Document 99kKXqQjOMZkBxQjEX9NR1VZq

ALL-STATE LEGAL' PLAINTIFF'S EXHIBIT f riAiMiiifs i/i. i cxuiuif 1 7k'.',i/ iripiircmrnl for class actions repairs, compensation and notifica He insisted the FTC doesn't want Recover)' of all warrantor tion. the staff foresees lu set specifications fur warranties, "foot-dragging" costs for Manufacturers "must be faeed bul would rather see lire car malrrs plaintiffs with the pruspecl of having lo pay offer prices and levels of coverage The manufacturer buying bacl the costs should a defect slip . because "lire marketplace is still tin- a "'lemon" even under a limit through their testing." tin- report best tcsl" ed warranty Here, consumers staled Otherwise, the)' would lx.- in Kantor plans lo meet with key coulsl be allowed In sue under clined to ``undertest " auto people to "get a dialogue go Mapnuson-Moss, and also keep Yet, under most actions involving ing " He wants to find out what in and use the car during the dis recalls for faulty mechanisms, car dustry plans arc afoot for the next pute. makers usually incu'r.thc cost of rc; five to ten years, and what effect If lire automaker docs not pairs themselves at franchised re government is having on the in adopt a voluntary-impartial pair shops. dustry. procedure for settling dispules. In any event (he staff admits, Asked -if FTC proposals piled or Congress should impose man "More testing would raise the price lop of fuel economy, emissions am datory processes. of cars, but would spread the risk safety standards, plus pressure lr These are the recommendations and reduce cost to Ihnse buyers who build a ''supcrcar" might be o*rr made by the task force. The group got stuck with defects after buy loading the industry and pushiiv concedes. However. "Improved in ing " price* up. Kantor said. "Rrgardles formation plus improved warranty FTC policy planning director of where pricing pressure come performance are probably tlir most Robert 8 Reich told Automotive from, that doesn't relieve the nee that can be done regarding 9951 of Industries, "We. will be speaking to keep prices down. defects " softly, but carrying a big stick." "I don't sec the industry as belt. It admits, loo, that "devising a sat While the coiner of that phrase. gut-red, they are groping for snh isfactory system of consumer in lions," he observed. "The Is: formation is not easy for so complcs We will be speaking soflJy, Three have already set op ail a piece of equipment'-' as a car. bul carrying a big slick. (ration of dispute programs Ti To fill that void, the FTC has must feel they need to gain ere? joined hands with the National Teddy Roosevelt, had an entire na bility." Highway Traffic Safely Adminis tion's military behind him. Reich's tration lo develop an information arsenal is litigation and rule-mak Echoing a sentiment shared more and more governmental o: system for public disclosure of dura ing. which the bureaucrat says the cizl*. as reported elsewhere in !: bility, reliability and crash-worth agency wants to avoid using, bul issue. Kantor secs the FTC s rrli iness will if necessary. encouraging more automobile . For "serious and egregious" de The FTC's aggressive tone stems perimentatinn and calling fur in- fects. the report suggests "special from a two-year-old, multi-phase innovation In marketing attention" A trigger would be set program "Our role is to be the catah by examining three areas ."the Fhase One included antitrust in he concluded --Paula D. Hodge hrrmlx-r of cars affected, the poten vestigation (still going on) and a tial d am age, or cost of repairing the close look at warranty performance Age Df Asbestos On delict lo lire consumer, and time and auto repair. The trophy from Vehicle Parts Ending (milcagr or ngr of the cat)" that assault came in the filing of a Raybcslns Friction Material* * If thr trigger is activated, the defects ease against Ford Motor Co. a unit of Raybestos Manhattan Slaffircommrnds blasting the man Phase Two is the jawboning ap na_ a halt to (he inanofar;..,. ufacturer with public notice lo all proach with the AWC sending out brake linings and other pails potential buyers. bv stickers in the coordinator Larry Kanlor 10 do contain asbestos. Aindow of affected new cars and most of the talking The company 'brought on1 mandatory inclusion in company Kanlor claims that one quarter of president, vice president of m.i advertising for the model Notice to all car buyers receive warranty serv ing. director of research and d all existing buyers together with an ice with which they arc dissatisfied opment, and manager of proth. offer to repair or compensate should Without being specific. Kantor a press conference at its nr i follow said he would like to see consumers quarters in Trumbull. CT li .This action would shift the cost of have a ''w hole range of choices" on nouncc the development a design defect lo the auto maker warranty terms and costs. "You The conference as calli In depressing the price of the un have lo wonder why there has been ctusis-cly for Chilton Co mai sold ears and increasing the cost of only one level until recently." editors (<-* 1 rc Dr. J T. Trainor, Haybcslos R&D brake pads, clutch facings, truck helpful in reducing workers' ei director. announced * varitly of brake blocks and hydraulic brake posurc to the known hazard of as malirials will lx- used to substitute parts bcslos" for asbestos Tin- company's modern If proved successful (and certain Add it ion t lly. the compm day alchemists have concocted a OEMs arc currently testing the seemed to have recognized lit blend of man-madr inorganic fi . parts) the new blends could con odiousncsofthernalcrialSaid I bers. natural inorganic filrors and ceivably replace asbestos in other S. (Cy) Daly, president of the frit A bewildering array of matcrials will be used. markets The company decided In swilrh to the new compounds for its frie- lion materials company: "We knn asbestos can be a health hazard ur der certain conditions We're cot natural oiganic fiVacrj to replace the mineral fiber that asbestos is. These fibers include, respectively, fiber glass. svoolaslonilc and graphite, cotton. sisal and jute. All told there will be 10 to )5 components in a given friction ma terial: <051 fiber,'205: resin binder and <05f friction modifiers In the tion materials following class action lawsuits levied against it by workers who claimed they had an unhealthy amount of asbestos fibers lodged in their lungs ' > A whopping 1.300 eases were brought against the company. Set tlements have ranged from $500 to $S7.500 and have all been picked ccrncd about national altitudes ti ward asbestos" There is widespread concern ih asbestos fibers ran be spun off Iro brake linings and into the lunj However, a practitioner of enviro mental medicine at New- York's h Sinai Hospital. Dr. Arthur Lang ` said. "I'm not firmly convinc selection of (he alternatives to as bestos the company looked for sub up by company insurance. . Informed of the company's There's a problem for ! stances that would provide wear re sistance. noise abatement, adhesion, planned switchover to new- blends. Crover Wremi. Occupational Safety guy who repairs brakes. safety and heal absorbing proper and Health Administration (OSHA) there's a problem for the gene ties director of health standards, gave population. I think there's a pn The company has been putting his imprimatur: lem for the guy who repairs bral them together in a blcnd_ to absorb friction on both dry and wet mate rials Wet materials are those parts whose sides are ei|>uscd to fluid, as in automatic transmission plates. Dry parts that will use the blends of materials ate brake finings, disc "OSHA is always pleased to hear of technological advances which of fer alt ernatives to hazardous sub stances such as asbestos The prod ucl Ravbe'stos reports it has de veloped to replace asbestos in brake linings and clutches should prove however." Another company,' Molded M; rials a division of Carlisle Corp. nounced almost simultaneously I it has introduced a new- asbrs free brake lining The lining usi synthetic, inorganic fiber to rep asbestos Out precautions are available workers who have to handle br before the age of asbestos ends fisk of. America. Inc.. King Prussia, PA,.manufactures a sv: specifically designed to whisk a dust from brake linings and in vacuum cleaner nearby When - plied, a wide-mouthed suction covers the brake assembly wh Specially filtered vacuum ttir residual asbestos dust from broke shoes Raybeslos says'some of the C currently testing the new- blent CAT. CM and Ford Some HO people were in\ in the switchover to the new at the New England conplwT P.iyl-cs'os ruction Malcruls Co manufactures, among oilier things, sintered lacings tor hraiy duly manual ciutchos. the company's marJurling people art looSmg tor sales In new non-asocsios lacings Cost of research and drvcloi for the new product amoun nearly $5 5 million. .Mouwi-r tutu r rmrs. lur '970 r m___ Y : > i CQ i-1 n (/ r Consolidated nrl sales (of 1078 al . Raybeslos were $285 million, an in crease of 13 G$i- over 1977. The company's friction malerials prod ucts aecnuoled lor nearly 7551 of- sales last year. When the company decides to markrl the new blends there will lie the matter of price hikes In its an nual report for last year, the com pany said it will be passing on the cost of the new product to custom ers However, at the press confer ence, the firm said it would be pro ducing the product al the ''same performance and price as the old product--Joseph R. Einhaus Gear MakerAims At Auto Market A New York based gear machine manufacturer is gearing up for (he new wave of front-wheel drive cars with transverse engines Already the biggest producer of hypoid and bevel gear-making ma chines. Cleason Works has in troduced two new machines to pro duce spur and helical gears up to J4-in (355 mm) in diameter. It's Clcason's first attempt Jo enter the spur and helical gear markcL A helical gear is one whose teeth arc set obliquely to the ruis of rota tion A spur gear is the simplest form of toothed wheel used in ma chinery with radial teeth parallel to the axis of the wheel According to president and chief ciccutivr officer Alfred Murrer, production rates up to 10 limes fas ter than shapers or bobbing ma chines could Ik-cr'mc a reality What makes lire machining sys tem unique is the cutting principle employed in C-Trac Models 765 and 766. The 'Model 766 has multiple rows of rack-style culling tools for con tinuous index generation which as sists in producing high volumes of gears According to a Cleason spokes-' man. "Model 766 has 1-1 articulated lurks fastened aiou..d a basic hous ing The power comes from racks on Spur gears being cut in Ibe Gleason No. 765 G-THAC gear generator. - the inside of the chain links And this is the important concept of the machine -- everything is accom plished wi|h rolling motions, there fore there is no wobble. The con cept is not'ncw but Cleason has in novated with the cutting prin ciple-- all rolling motion and no slide." Model 765 is better suited for production of moderate o.uanlilics of gears typically used in heavy duty vehicles such as (rucks, buses, tractors, farm and construction equipment and industrial drives. Everything is accontplish.ed with rolling mo tions--there is no wobble. The machine has a single row of 112 tools and cuts unc tooth slot at a time in a stack of gears According to Cleason engineers the design provides rigidity through the workrone--both machines can cut stacks up In 7.5-in. (190 min) of spur or helical gears--and therefore per mits holding extremely close toler ances in tooth shape, spacing and runout. According In Murrer. "Tire de mand fur. farm Iraclurs and con struction equipment is expected In increase in 1979 and beyond For example, the 765 will produce the gears on the Model RT-95J3 Fuller Roadrangcr (win countershaft trans mission." Dnlh machines combine a largr number of culling edges which ad vance into the slack of gears al llir same time--instead of starling al the lop and working down This eliminates hob advance and overtravel. According to Murrer, (.his dramatically increases produelivily while decreasing tool costs "We are looking into all phases of hclipal gear marketing." says Murrer.-"We arc exploring possible expansion'into other capital goods markets through the acquisition of companies that meet our profit ability criteria and have products compatible with our engineering, marketing and manufacturing strengths" Cleason look a major step in that direction when it acquired Alliance Tool and Die Corp.. of Rochester. NY this year. Alliance manufac turers automated assembly and lest systems for the automotive, appli ance and computer industries Tire machines, when they arc available in quantity, will lie more expensive llfan conventional bob bing or roughing machines' Hut ac cording to 'Murrer the units will "substantially" lower the price per gear. - A Cleason sales executive reports orders arc being filled for live ma chines for next year. "Deyond that several lots of ten w ill lie sold in the fulurt," The machines are not yet in full production at Cleason, but will be within a year or two. Said Murrer. "Auto makers and the heavy duty vehicle manufac turers can expect a significant ini- prnvcmcnl in their production rale They can expect the payback lime period to !< shortcried."--Michael K. McCann O 31