Document 5LOXNXO5kLe11aQNpBb35RJ8V

A cce tu ro v. A b e x Corp., et aL, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. MID-JL-660X-99-A.S: 03/07/06 icceturO v. A b e x Corp., et al., S uperior CL, Law D ivision, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 December 5, 1906 TO: G.L. COTTER Axle & Brake - Galesburg IDEC 0.91986 *' ~ ^ FROM: L.J. Valentine Axle It Brake - Galesburg SUBJECT: MARKETING DEPARTMENT MONTHLY REPORT - N0VEN8ER 1986 DISTRIBUTION: Axle & Brake - Galesbura R.N. Anders L.H. Barnhnrt A.W. Bau C. Bokar B.R. Gustafson W.W. Hoenes L.W. Hopper D.E. Jones F.M. KovaIlk M.L. Lawrence R.M. .OinLatM&.P, Plp.ik L.J. Valentine . R.C. VanWarmer R.W. Young F.R. Welser F.A. Zalar Axle Henderson J. Schwe.infurtli TCM World Headouarters 0. Breeding J. Collins D. Hays R. Hobble T. O'Boyle Truck Parts Division D. Purtill J. Warren Distribution Cody H. Passage J. Townsend (0045S) AO Copies Plant Manaqers R.J. Rnoke (Humholt) N.A. Valentine (Henderson) D.R. Doty (Glasgow) R. Scott (Gallatin) J. Lilly (Gallatin) TCM - Cahada J. Walker TCM - Great Lakes W. Tiller TCM - Midwest C. Garrison TCM - Southeast N.E. Walther T. Smith TCM - Northeast H.E. Mattingly Eaton - Hounslow R.S. Tooker Eaton - Australia R. Johnston TCH - International J. Yurgiewicz Transmission J. Elset EXHIBIT P-EAT-0654 9 v/t EAR 0.11712 SCF-EC-3310 Acceturo v. A bex Corp., et a t, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 0 3 /0 7 /0 6 A cceturo v. A bex Corp., et a t, S uperior Ct., Law D ivision, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -99-A S ; 03/07/06 Internal Correspondence Dale; December A, 1906 To. G.L. Cotter ' Axle tf Brake - Galesburg copy: From; See Attached L.J. Valentine - Axle & Brake Division Headquarters-Galesburg subject MARKET ING DEPARTMENT MONTHLY REPORT - NOVEMBER 1986 GENERAL ECONOMY Industrial production is still down. 0.5. manufacturers continue to be more competitive by cutting labor costs; but at the expense of slower growth in jobs and incomes. Output growth in the nation's factories, utilities, and mines slowed to zero in the month of October. Output in the fourth quarter slorted off weak. Short term effects of tax reTorm will tend to slow growth -- particularly business spending and construction. Tim credit market is resisting lower Interest rates at tho expense of housing. The drop off of auto production, which con be extremely volatile, held off the overall October advance, as output of new cars fell to 7.3 million units at an annual rate (from 7.7 million in September). Excluding autos, production would have been up 0.2% . October's production of consumer home goods was still being held by the strength in housing earlier in the year. With housing losing ground, production of home gootls may suon follow. Manufacturing output has been slagnanL fnr the past two months -- and hasn't posted a gain since August -- and that was only U.2%. It is expected thet consumer spending will not be able to support the economy the way it did earlier in the year. Retail sales plunged 5% in October (to $121.6 billion -- seasonally adjusted). ' P-EyiT-0655 LAB 011713 A cceturo v. A b e x Corp., et al., S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M JD -L-6601-99-A S ; 03/07/06 A cceturo v. A b e x Corp., et ah, S uperior C t, Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 Page 2 G.L. Cotter December 5, 1906 Excluding the two most volatile categories, food and energy, producer prices are up only 2.7% over the past year. This measure of producer-price inflation, which covers about two-thirds of the total Index, has fluctuated between 2% and 3% for the past three years. Despite the upward revision in third-quarter GNP, there are still np conclusive signs of a sustainable economic pickup, it is expected that relatively modest growth for the next two years is in order, with a significant risk of recession during 1987. North American Truck Market - Medium Duty 1906 truck factory sales for the month of September were reported at L3,110 vehicles. This is a 30.1% reduction from a very strong sales level in September, 1905. Sales continue to be on track for a year end volume oT 140,000 trucks. The current forecast Far 1907 is for 140,000 units. This represents a demand level which is basically rial and assumes that Imports will increase their market share at the expense of North American truck factory sales. CLASS 5 - 7 TRUCK FACTORY SALES BY UllARTER 1st Otr. 2nd Otr.. 3rd Otr. 4th Otr. TOTAL 1905-Actual Units SAAR 34.9 144 44.7 1.47 43.0 101 37.6 175 16D.2 1906-Profit Plan Units 40.5 SAAR 169 43.0 147 3i.a 133 27.9 123 143.2 1906-Forecast Units SAAR 36.0 153 42.1 144 34.1 143 35.0 152 148.0 19B7-Profit Plan Units .34.4 5/1AR 143 41.3 141 32.3 135 32.0 14 L 140.0 North American Truck Market - Heavy Outy The Class 0 market continues at a fairly strong pace going Into the last part of the year. This strenglh will generally conLinue into the first part of 1907. The last reported month, September, had factory sales of 11,433 vehicles, a 5.1% reduction from September of 1985. The 1907 Profit Plan forecast continues to reflect a year of 140,000 trucks spread fairly evenly over the quarters. This forecast is based on an economic scenario of continued slow growth in the U.S, economy. P-EAT-0656 EAR U3I7M A cceturo v. A bex Corp., etdL, S uperior CL, Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 A cceturo v. Abex C o r p e td l., S uperior CL, Law Division, Middlesex Cty., New Jersey, Docket No. M 1D-L-6601-99-AS; 03/07/06 Page 3 G.l. Cotter December 5, 19G6 CLASS 8 TRUCK FACTORY SALES BY QUARTER 1985-Actual Units SAAR 1st JDtr. 2nd Otr. 3rd otr.. 4th Otr. TOTAL CD 40.6 165 43.5 160 31.9 130 151.8 19B6-Profit Plan Units SAAR 33.7 136 30,1 141 31.7 137 31.6 L27 L35.1 1986-Forecast Units SAAR 32.2 130 37.0 137 29,8 129 33.0 133 L32.0 1907-Profit Plan Units 34.6 SAAR 140 37.5 130 32.4 139 35.5 143 EATON CLASS 5-7 DRIVE AXLE PCNETRATKIH L4Q.Q Our monthly share figures show that our shipments Far the months of July and August were not proportionately as low as Llie market was down in that period -- resulting in disproportionately high share for those months. Our share for September and October will be low compared to recent months, but it is due to the expected loss of sharp at Ford. At this point, it appears that .we will end the year at the cumulative level of share within one half percentage point below the level that we show for this month (September). Our share at Ford will drop to about 4156 for the year, at GMC share should end at 5556, near 9.956 for NIC, and should be 0.956 for others. Compared to the year-end cumulative share position for 1985, the September 1986 cumuletive share position at GMC is up 4.756. The same comparison at Ford reveals that we arc down 10.456; are down 35.4% at NTC; and are down 50.056 at other O.E.M. -- for an overall share drop of 10.056. In comparing nine months 1905 to nine months 1906, the overall drop is more significant (down 12.256 in total). Ford GMC NIC U1HER Total 86 vs 85 YTD 06 vs PP Y-T-D 0 MUNTHS 1906 Y-T-D 9 MONTHS 1986 Y-1-0 9 MONTHS 1985 56.156 47.156 9.256 0.054 5D.956 50.8% 9.3% 0.856 57.056 48.456 L5.556 0.056 34.9% 34.656 -12.256 -4.956 39.4% Y.E. 1985 56.856 48.556 14.4% L.656 38.8% P.P. 1986 30.756 61.556 17.754 0.554 36.4% P-EAT-0657 EAB 031715 A cceturo v. A bex Corp., etaL, S uperior CL, Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 A cceturo V. Abex Corp., et a l., S uperior CL, Law Division, Middlesex Cty.,New Jersey, Docket No. M 1 D -L -6601-99-A S ; 03/07/06 Page 4 G.L. Cotter December 5, 1986 EATON CLASS 8 DRIVE AXLE PENETRATION Our cumulative share of the class 8 market rose to 25.636 in March (calendar year), then fell continuously to 24.136 in July; but is steadily rising (is currently 24.536 for September), and will continue to do so -- to reach or exceed the Profit Plan level for the year. compared to the same nihe month period for 1985, our share is up 89.436 at NIC, 29.536 at Kcnworth, 24.036 at Volvo White, 15.036 at Pcterbilt, 13.956 at Othors, and 8.8% at GMC. We post losses in share fpr that same nine month period of 91.736 at Mack, 42.336 at Western Star, 8.236 at Ford, and 3.236 at Freightliner. The total nine month share comparison between 1986 add 1985 reflects share improvement of 16.716. Y-T-0 8 MONTHS 1986 Y-T -0 9 MUNTHS 1986 Y-T-D 9 MONTHS 1985 Ford Freightliner GMC NIC Kenworth Mack Petorbill Yolyo White Western Slar Others 32.136 37.336 22.336 16.236 44.036 0.136 45.736 20.236 26.136 12.056 30.236 36.856 22.336 16.136 45.656 0.136 46.836 .22.236 29.136 13.936 32.936 38.036 20.536 8.5% 35.236 1.236 40.7% 17.936. 50.4% 12.2% Total 86 vs 85 YTO 06 vs PP 7.4.336 24.536 16.756 -1.236 21.0% Y.E. 1905 31.0% 37.036 18.9% 9.036 36.0% 1.036 40.736 .20.6% 48.9% LO.I36 21.0% P.P. I9H6 29.5% 35.9% 53.3% 13.6% 38.6% 1.6% 42.0% 27.3% 34.6% 14.9% 24.8% EATON STEER BRAKE PENETRATION The year-to-date share position compared to Y-T-D 1985 reveals that we have improved 221.136 at Kenworth, 110.236 at Volvo White, and 84.136 at Peterbilt. We are down 04.136 at Ford, 39.636 at Mack, 25.456 at Freightliner, 16.436 at NIC, and 13.5% at Western Star -- for a total loss of 21.436. ' P-EAT-0658 EAR 051716 A cceturo v . A b e x Corp., et al., Superior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 Accepj.ro v. A bex C orp., et a t, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 Page 5 G.L. Cotter December 5, 1586 Y-T-D 8 MONTHS 1986 Y-T-D 9 MONTHS 1986 Y-T-0 9 MONTHS 1985 Y.E. 1985 P.P. 1986 Ford Freightliner CMC NIC Kenworth Mack Peterbilt Volvo White Western Star Total 86 vs 85 YTD (16 vs PP 0.6% 16.4% 0.0% 22.4% 45.4% 20.3% 54.9% 10.3% 8.5% 19.1% 7.6% 15.6% 0.0% 22.4% 4B.8% 21.2% 61.3% 12.4% 9.0% 19.8% -21.4% 1.0% 47.7% 20.9% 0.0% 26.8% IS.2% 35.1% 33.3% 5.9% 10.4% 25.2% 45.0% 20.1% 0.0% 27.0% 17.1% 31.7% 34.2% 8.4% 8.2% 24.7% 2.5% 20.0% 0.0% 29.0% L0.0% 42.5% 44.9% 510% 10.0% 19.6% CflTOH OH IVC BRAKE PENETRATION Ihe year-to-datc share position compared to Y-T-D L985 reveals that we have improved 60.7% at Kenworth, 14.4% at Volvo White, 2.TO at Peterbilt, arid 0.9% at Mack. We are down 87.5% at Ford, 50.1% at Western Star, 18.1% at Freight liner, 16.1% at Navistar, and 5.7% at GMC -- for a total loss of 20.4%. Y-T-D 8 MUNTHS 1.986 Y-T-D 9 MONTHS 1986 Y-T-0 9 MONTHS 1985 Y.E. 1985 P.P. 1986 Kurd Tvclghtliner CMC NIC Kenworth Mack Peterbilt Volvo White Western Star 8.2% 34.6% 3.4% IB.1% 50.3% 10.4% 72.1% 13.6% 23.6% 7.2% 34.0% 3.3% 18.3% 52.7% 10.7% 76.0% 14.3% 27-2% 57.4% 41.5% 3.5% 21-8% 32.8% 10.6% 74.5% 12.5% 54.5% 53.6% 40.3% 3.3% 21.0% 32.5% 9.3% 77.4% 13.7% 58.1% 31.5% 40.0% 3.4% 23.5% 20.0% 11.1% 79.9% 15.0% 54.9% Total 66 vs B5 YTU 86 vs PP 22.4% 23.0% -20.4% 1.3% 20.9% 28-3% 22.7% P-EAT-0659 liAU (131717 A cceturo v. Abex Corp., et al., Superior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 A cceturo v. A b e x Corp., et al., S uperior Ct., Law Division, Middlesex Cty., New Jersey, D ocket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 Page 6 G.L. Cottar December 5, 1986 EATON ON HIGHWAY STEER AXLE PENETRATION The year-to-date share position compared to Y-T-0 1985 reveaXs that we have improved shore 200% at ''Other" O.E.H., 28.9% at Kenworth, and 1.2% at Peterbilt. At Navistar, the figure is very high, as w? just began shipments in the middle of last year. The same comparison reveals losses in share of 64.7% at Western Star, and 5.2% at Freightliiier. Overall, we show a 31.2% improvement in the nine month 1986 vs 1985 figures Y-T-D 8 MONTHS 1906 Y-T-D 9 MONTHS 1986 Y-T-D 9 MONTHS 1985 Y.E. 19B5 P.P. 1986 FreighLliner Kenworth NIC Peterbiit Western Star Other 18.4% 33.3% 5.0% 40.5% 5.6% 0.3% 18.4% 35.2% 5.0% 41.3% 4.9% 0.3% 19.4% 27.3% 0.1% 40.8% 13.9% 0.1% 18.7% 31.0% 0.0% 43.1% 12.8% 0.1% 15.0% 29.0% 3.0% 44.0% 15.0% 0.0% CLA55 8 86 vs 85 YTO 86 vs PP 10.9% 10.5% 31.2% 9.4% 8.0% B.B% 9.6% OEM ACTIVITY GENERAL MOTORS General GM's order board is showing some strength as the large medium duty orders placed by Ryder, Hertz-Penske and UPS are loaded. Heavy duty activity is also steady and most of the large fleet business that has historically been GM.'s is still in-house. The most recent example is a 10004- unit order from Yellow Freight. Air Brakes Purchasing has requested quotes far air brake volumes related to the GMT53Q program from Eaton and Rockwell. Eaton's position is favorable since brakes ate a critical port of the program to provide "dressed" drive axles to the assembly plant. Rockwell has a strong constituency, but the decision to bring axles from an Eaton shop may have a major influence on the brake sourcing decision. P-EAT-0660 E/YH 031718 A cceturo v . A bex Corp., et aL, S uperior CLy Low Division, Middlesex Cty., New Jersey, D ocket No. M UD-L-6601-99-AS; 03/07/06 A cceturo v. A bex Corp., et ah, S uperior Ct., Law D ivision, Middlesex Cty., New Jersey, Docket No. M ID -L -6601-99-AS; 03/07/06 Page 7 G.L. Cotter December 5, 1986 Drive Axle The "second design" data book has generally cleaned up the problems which existed with heavy duty axle Listings in Auyust. In spite of the improvement, several minor points still exist. Rockwell R160 pricing is also a problem. According to GM, it is so low they ate "doing Eaton a favor" by displaying it at no charge to the 23105S. Tandem Axle Product Line Revision: It appears GM will stay with DS381 and D546QP through the MY87. While there has been no formal response, engineering is reluctant to make the change mid-year. Next step is to push the issue through purchasing. ' Now Hypnid Ratios: GM continues- to press over the availability of more popular SECJ ratios for the 15000 and 7.10655 hypolds. The second major release of eight ratios for thesB axles will be ready in January. Marketino Eaton has offered a $75 cash rebate for tnridem axles purchased in the second round of the "Silver Aero" promotion. The second promotion will feature the setback axle variant of the General. GM is taking various steps to keep Class B business levels stable. The most recent is a 7.9% financing program for dealers. Generally, tho intention is to provide more dealer incentive programs, augmenting the large fleet sales efforts. . Eaton began the "Setting Mew Standards" program with Chevrolet in November. Chevy dealers will receive aLl mailings previously senL to GMC dealers. Future Programs GMC Business Rian GMI5J0: Corporate management has signed off the program for MY90 introduction. This means budget will be available for both development activities and operations. Staffing should Increase quickly and the program's pace accelerate noticeably in January. Janesville, Wisconsin has been formally announced as the assembly facility for the 530 vehicle. There are numerous rumors about the fate of the Pontiac plant. Eaton has submitted a final quote on steer axles for the 530 program. Of the original competitors, only Eaton, Dana and Rockwell are quoting the second round. P-EAT-0661 F.AI3 031719 A cceturo v. A bex Corp., et al., S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S 03/07/06 Accetp.ro v. Abex Corp., et a l, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 Page fl G.L. Cotter December 5, 1986 Volvo-White Joint Venture: The companies are close to the final business agreement and hope to sign before year end. GM has apparently fcommitted to entering the first year (1989) with a minimum 7.5S4 class 8 tnarket sharo. Shortfall is to be made up in cash. Dressed Axle Program: The Eaton committee has met twice to discuss the possibie outline of such a program. Major functional areas have identified concerns and initial efforts to develop cost estimates are underway. Opportunities exist for pilot programs at Canadian Kfenworth and GMC. However* it is evidenL that customer OEM's have not clearly formulated their own approach to the issue, making it difficult to gather accurate information. FORD MOTOR COMPANY No report submitted. NAVISTAR General Comments The Navistar/Dana partnership is slowly, but effectively, getting underway. Class 8 front and rear drive axles now carry a three-year or 300,000 miles, 100% parts and lahor with 10U% parts extended to five years ur 300,000 miles at no charge transferable to second owner. They also have a Simplified Orivelrain (S.D.T.) on transmissions, drivelines and rear axles for a nominal fee - service contract. On certain vehicles equipped with certain SDT and engihes, dealers are offered extended free floor plan and various lucrative discounts. 1L has been reported that on certain select fleets, spiffs are running as high as Tl.SUU if using all Dana componentry. Purchasing We have been assured that revised drive axle contract prLcing will be in our possession by December 12, 198.6. This contract will reflect pricing that was established in September, 1985. Product Engineering Drive Axles We officially received and responded to an RFQ on model 23070S. Apparently, this model has created an interest abd may service a niche market that neither Dana nor Rockwell can offer at the present time. Brakes Commodity Team has arrived at a decision and must have "higher* management approval before announcing that decision. We have been told that we will be advlsnd by December 1.2, 1986 of their decision. P-EAT-0662 HAD 031720 PagB 9 G.I.. Cotter December 5, 19B6 CRANE CARRIER The City of New fork has awarded Crane an order of 235 vehicles. In turn, we will supply 100% of our 10F3 front axles and 125 sets of DhASS-P. Single repr drive axles will be Rockwell since we do not have a 16.5 X 7 brake that will certify at 27,500 pounds. FRE1GHTI.INER CORPORATION Engineering The Freightliner air broke standardization has been completed. Implementation will Lake place early in the first quarter of 1907. Our 402 axles are being released for January availability. The change to the "white" style housing will he postponed until May 1987. "White" housings, half-round yokes, 461, 521 axles wUl all occur simultaneously wiLli Lhe Hay time. Due la an urgent meeting in Germany, the Freightliner visit to our Galesburg facilities has been cancelled. At this time it appears that March 1987 will be Lhe earliest possible lime for the meeting to be rescheduled. Harketinn and Sales Data book revisions will be issued late this month. The effective date is January 1, 1987. These revisions will have our 402, 460 and 480 axles available for the 112 series truck models. All other truck models will show the 402, 23105S and the 23UI5C. Our 461, 521 axle will remain unpublished (unrevised) until July 1987 revisions. FreighLliner will Imve ended 1987 with the highest daily production rates in the history of the company. They expect their share to hit the 19-20% level, feeling that the share increase will have been taken from Navistar and Mack. Thus far, they expect to have strong order boards through mid-February 1987. (he expect their share to increase slightly in 1987, with 1987 market to be vury similar Lo that of 1986. KENWDRTH TRUCK COMPANY Engineerino Eaton brakes with non-asbestos linings are being released in December 1986. The change will be implemented on a plant by plant basis aLlowing existing inventories to be exhausted prior lo using the new non-asbeslos lined brakes. Complete change over should occur prior to February 1, 1907. A cce tu ro v. A b e x C orp., et a l, S uperior CL, L a w D ivision, M iddlesex Cty., New Jersey, D ocket No. M 1D -L-6601-99-A S; 03/0& 06 Page iu G.L. Cotter Deceniber 5, 1906 With the crack pressure revisions by Kenworth (5.5 psi) and the implementation of E-145-A lining, Kenworth feels that the drum cracking problems will be behind us. The Gunite drum issue will remain resolved until Gunite changes their position and their product quality issues. Full implementation of the Dana half-round end yoke will be completed by year end. The pricing issues have been resolved internally and will be presented to Kenworth nBxt month. The pin type wheel bearing nuLs will be implemented as a running in January 1907. Marketing and Sales . Kenworth marketing was approached about our extended service brake and asked to consider how they would see it marketed with' the near-term plan to have it become the standard brake. Iheir response was positive and they asked that we consider offering it as an exclusive Kenworth, or it riot, ul ieusl Lu Paccar (Peterb.ilt and Kenworth). We advised they we wnuld consider their request. The Kenworth concerns relative to our proposal were directed specifically to three areas. First, was how would they receive their share of the rebate and how would they be able to price their trucks. Second, was the lack of total product coverage, i.e. steering axles, 14.6K, 16K, and 2CK ratings plus extra heavy tandems in the 70K weight range. The third concern was obout their ability to reach the attractive share levels without imposing significant data book penalties for Rockwell axln products. PETERSILT MOTORS COMPANY Engineering Pelerbilt engineering will release E-145A lining for the appropriate brake gruups timed for July 1, 1907 production. Further releases of non-asbestos materials will not occur until adequate Lasting is completed for the other friction ranges. The half round end yoke releases are being processed at Lhis time. The pin type wheel bearing nuts will be made as a running change and should be complete by February 1, 1907. Cal Burgin has recently been promoted to the position of Assistant Chief Engineer, reporting to Mr. Joseph Neff, Chief Engineer. P-EAT-0664 F.AB (II AcceturO v. A bex Corp., et dl., S uperior Ct., Law D ivision, Middlesex Cty., New Jersey, Docket No. M ID -L -6601-99'A S ; 03/07/06 A cceturo v. A b e x Corp., et a l., S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 Page 11 G.L. Cotter December 5, 1906 Marketing and Sales Y)e have agreed to participate in Peterbilt's 357 5pring Construction Special that begins immediately. We have approached Peterbilt's marketing Bbout our extended service brake in the same manner as Kenworth. The bnttom line was, extended service at competitive prices can be sold. An exclusive would be nice, but Peterbilt could also include Kenworth with' no problems. MACK TRUCK A study is being done by Mack Engineering Tor a presentation to Mack Purchasing on suggestions regarding weight and cost reduction on axles and brakes. It had previously been pointed out to Mack Engineering that weight and cost reductions could be obtained by Mack by using the Eaton L.W. 16.5 X 7 bloke but unly if Mack redesigns their uxie housing to accept a 1.7V brake offset. Mack plans to change the fLange offset to the "R" series wheel end on their 30K/4OK bogies and will then be Bble to use J .75" brake offsets. Mack Engineering researched brake costs from Danu un both Eaton and Rockwell and round the potential savings in the Eaton L.W. brake from costs already in their system. Mack could change axle arrangements to call out Eaton or press Rockwell for lower prices on the particular broke assemblies. VOLVO WHITE Autocar Autocar Engineering has decided (with Greensboro approval) that they will not release th.e new Eaton H.D. tandems on the Autocar vehicles. Decision was made due to Autocar being phased out of production at year end 19S6. The new tandems will be released on the new vehicle scheduled to replace the Autocar. All orders for current Eaton axles and brakes will be honored on a T.b'.D. basis until the Autocar is out of production. Hew River Valley Volvo Engineering at NRV has decided to release the EFAL2F4 steer axJe on their chart drawings where applicable. This means that the 12FA will be shown under six (6) VWTC part numbers. P-EAT-Q665 EAR 03177.1 A cceturo v. A bex Corp., et a l, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 A cceturo v. A bex Corp., et at., S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M 1D -L-6601-99-AS; 03/07/06 Page 12 G.l.. Caller December 5, 1986 VWTC Tech Service Marty Mertz, National Training Manager - Greensboro, has requested Eaton participation in 1987 component training seminars to be held at Lhelr corporate training center. A commitment has been given for Axle & Brake participation sometime in March, April or June for two, two-day sessions to Include a sales features presentation, failure analysis and service, maintenance including teardown. In attendance will be VWTC Corporate people as well as dealer-distributors. INDUSTRIAL SALES Soartan Motors - Charlutte, Ml Spartan remains standard with Eaton front and rear axles, with brakes on their moLur home chassis, ihey expect to Diuid 5U tu /5 unlLs per year. They recently received an order fur ten fire trucks spec'lng Eaton front sLeer axles, and will also consider our 22K rear. Eaton has rated our LTA-12f-4 at 10,600 lb for these fire trucks. BMY - Marysville. Ohio Joint sales call with R. VanWormer to discuss Cl lS for BMY production units starting in July, 1907. Also reviewed their y.C. requirements as ttiey relate to the military. BMY has firm order for 15,ODD units, with options for an additional 15,000 units over a.five-year period. Federal Motors - Ocala. Florida Received word that Federal has agreed to standardize on Eaton front axles, rear axles, and brakes on fire truck, trolleys, and sweeper chassis starting in 1987. It was indicated that within the next 12 months, Federal may change their buying habits to purchase axles, brakes, and huhs Bnd drums loose. This would help us with the disc brake problem at Federal Motors. BoinbaTdier - Montreal. Canada .. A visit made to Bombardter Lu discuss a RFQ lu supply axles fnr a future military program. Program is for the Canadian army, and consists of either 500, 700, or 1,000 over a 15 month period. Contract award would be made in March, 1988, with production to begin July of 1989. Bombardier is competing against GMC and Kenworth. P-EAT-0666 HAB 031724 A cceturo v. A bex Corp., e ta l., Superior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 Acceturo v. Abex Corp., et a t, Superior CL, Law Division, Middlesex Ciy., New Jersey, Docket No. M ID -L-6601-& 9-A S ; 03/07/06 Page 13 G.L. Cotter December 5, 1906 BMY - Ann Arbor. .Michigan Gary Schultz and writer visited the engineering and purchasing personnel to discuss a request by BUY to change a speed transducer from a Synchro Start design to a unit manufactured hy Dana Precision Controls Division for our CTfS. This request wqs due to a potential cost savings, as thB Dana device is approximately $24.00 less than the Synchro Start device.. However, because of our concerns of possible deficiencies associated with the Dana device, and the fact we made it quite clear we would not be responsible for any problem/losses resulting from a failure of the Dana device, 8MY decided to stick with the Synchro Start unit. I.R.I. ; IR1 Engineering is currently designing a refuse packer similar to a crane carrier. The first protulype is scheduled to be built by the beginning of the second quarter of 190/. Tim D5-460P will lie the standard rear axle with the DP-46UP, DS/DP-AQOP listed as optional. A 20,000// steer axle will also be designed inLu this Lruck but o decision on the supplier has not been determined. Ottawa Truck Ottawa Truck, the largest manufacturer of Lraller spotters, hos buiit and sold its first six refuse packers, four in New York and twu in Lawrence, Kansas. Rockwell axles are standard in Ottawa's trailer spatter, and also in the six refuse trucks that were sold. However, SbIbs has received a number of inquiries relative to the use of Eaton tandems. Trinity Industries Trinity Is bidding ort a TransAmerican trailer order calling far 250 trailers. Trinity Purchasing Manager, feels confident that Trinity wi11 receive this urder and will place an.urdur fur the IIJ-501-I62V as soon as confirmed. TMK ' The use of our 23070S was approved fur the TMC (Greyhound) bus. However a .102" track housing Is needed which will be pursued with Engineering. TMC Purchasing informed me that it is willing to swlLch to our 12f4 Lutaiiy in 198/ if we agree to make it available with a 14,600 lb rating (probably 1900). F. 1`almeri has this project on his priority list. P-EAT-0667 EAR 011725 A cceturo v. A bex Corp., et a l, S uperior CL, Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 A cceturo v. A bex Corp., et a l, S uperior CL, Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L -6 6 0 1 -9 9 -A S ; 03/07/06 Page 14 G.U Cotter December 5, 19B6 TMC builds 400 to 450 buses per year. If we make a 14,600 TJ rated 12P4, TMC Management feels that MCI - Winnipeg, Canada (approximately 750 yearly build) will also switch to it. In order for us to be certain, a visit should be made to MCI. Eagle Transportation Per request from Eagle Management, a product presentation was made to the Purchasing and Engineering departments. Our current and future products were covered much like the presentation held for Transportation Mfg Corporation. Engineering has agreed to make some design changes to accept our 23070S if the decision is made to go with it. Application approval forms covering steer and rear axles will lie forwarded to my attention shortly. Eagle builds approximately 200 buses per year and which includes ail I railway buses. Both 96" and 102" tracks are built. We arc in a bettor position here than we are at most bus manufacturers since a 16 i/2 X 8 5/8" brake is slundard. TRAILER ACCOUNTS Reports from major trailer manufacturers indicate that trailer arderboards continue to decline. However,-there are several trailer ordets that are scheduled for production in January, 1987; i.e., Stoughton has approximately 1,000 for Post OFfice and Kentucky received orders from Frito-Lay and North American Van Lines. Strlck Coro - Fairless Hills. PA Strick received an order for (400) four hundred single axle trailers for Yellow Freight. Although Yellow Freight informed Howard Passage they would accept Eaton trailer axles, we were unable tn obtain the order. By the time they informed Mr. Passage about the order at Strick, the trailer axles had been ordered and received plus they were already building the bogies. Dorsey Trailer - Elba. Alabama The word is that Dursey Trailer has been sold to a group of private investors. The name of the investors should be made public in the near Tuture. The news release staLes that present management wjll remain unchanged. Dorsey has asked if we couLd start shipping an order of 50U model 230C's at the rate of 150 per week starting Ln January, 198/. This would be for a trailer order al Howard Express. P-EAT-0668 EAR m 1 m A cceturo v. A bex Corp., et al., S uperior CL, Law Division, Middlesex Cty., New Jersey, D ocket No. M ID -L-6601-99-A S ; 03/07/06 A cceturo v. A bex Corp., e t a l, S uperior Ct., Law Division, Middlesex Cty., New Jersey, Docket No. M ID -L-6601-99-A S ; 03/07/06 Page 15 G.L. Cotter December 5, 1986 Kentucky Trailer - Louisville. KY Kentucky received orders From Frito-Lay and North American Van Lines for trailers requiring 767 axles. The bulk of these trailers will be built starting in January, 19B7. Utility Trailer - City of Industry. CA Utility strongly objects to our conclusions in the brake balance analysis tests dated 8-5-86/8-7-86, at All-State teasing. The report indicates that the problem of tire flat spotting Is a result of the Sealco valve an the Utility trailers. Crown Coach - Chinn. CA Crown Coach requested we offer a proposal on all the front steer and drive axles they currently purchase From RockweLl. Wo obtained the necessary data and this will bo used Lu ulier uur proposal. However, okTuio ruiuiLiuiial work requested from Engineering, we are requesting the Credit Department to obtain a financial repurt on Crown Coach. Fabco - Oakland, CA ' The concern at this company is who will purchase them. Although Kabcn's business continues to be good, most of the conversation Is regarding their future. Stoucihton Trailer - Stounhton. .WI We obtained the order for the trailer axles Ln lie used oil the 97? tandem Post uffice trailers. The bulk of this order will start in January, 1987. This order should re-establish Eaton as a major trailer axle supplier at Stoughton. GDVEEWENT PRODUCTS No report submitted. PRODUCT MANAGEMENT ' DS/D1 /PfJA02fP') Tandem Phase in Coordination of this product phase-in with our major customers continues on-scliedulc per the timing indicated in the monthly report on product phase-in and phase-out. P-EAT-0669 LAD (01727