Document RjkDZ3K4owXKnowJjonoxLOok

March 15, 1973 Me. E. H. Feierabend, V.P. American Brakeblok - Winchester Subject: Lindsay Industrial Hygiene Survey t PLAINTIFFS EXHIBIT AB-59 The reports by Pete Milner and Frank Tayler on the above subject included with your letter of March 12 have been reviewed, it appears Pete has done an excellent job in outlining an approach to resolving his in-plant problems. Frank Tayler has apparently reacted very rapidly as is indicated by his report dated March 8. The outline suggested in Pete Milner's report dated February 14 is certainly an excellent one to follow. I would, however, like to question his choice of wording under Item 3(a)-Noise. Here he states "..in the meantime make ear plugs or muffs available". Availability of hearing protection devices is one thing while an active program to obtain acceptance by the workers is another. I think we should actively pursue the use not only the availability of these items. Pete notes in his February 14 communication that no directions have yet been received from the Ontario government regarding asbestos. Although this is true, it should be noted that in July, 1972 they did do four (4) asbestos counts, all of which exceeded the Threshold Limit Value of two (2) fibers per cc. Although they have not yet issued d.rections,- I think it should be remembered that they are interested in asbestos and are aware of the fact that the Lindsay plant is above their TLV in work room air concentrations. I suppose after the engineering people have made their trip to Lindsay, a timetable for completion of the items which they will review will be made. Certain items such as the use of respirators will, of course, be dependent on their timetable. If we can be D. K. Rennie E. Tayler, Jr. fh/ SPNY 001375 INTRODUCTION BACKGROUND NAPA is considering offering automobile brakes to the public under the brand name NAPA. NAPA brakes could be sold to the public in several ways. One way would be to have NAPA brake centers, just as Midas has Midas muffler shops. The car owner needing a brake job would drive into the NAPA shop and have the brakes installed by NAPA-authorized mechanics. A second way would be to build a network of service stations and independent garages authorized to install the brakes. With this approach, the car owner would go to a NAPA-authorized dealer who would install the NAPA brakes with his own mechanics OBJECTIVES 1. To gain additional insights into the consumer image of NAPA. 2. To discuss the dynamics of the buying decision process for brakes. 3. To assess the strengths and weaknesses of the lifetime warranty program. Additionally, this research is intended to learn car owners' attitudes toward: >r '; 5PIM 0121 Price, speed of completion, warranties, and competence of mechanics when having a brake job done. . Mass merchandisers (such as Sears and K Mart), franchise outlets (such as Brake-0), independent garages and service stations, and dealers as installers of brakes. Several advertising concepts for selling brakes. A NAPA brand of brakes. The possibility of NAPA brake centers of NAPAauthorized dealers. Asbestos-free brakes and the use of Fiberglas in brakes. RESEARCH METHODOLOGY Four focus group sessions were held--two in Denver on June 6, 1984, and two in Atlanta on June 7. The criteria for respondents in all four groups were: Male. . Own automobiles riot now under warranty. . In charge of having their cars maintained. . Had brake jobs done not under warranty in the past 12 months. . Don't know one another. . Have never participated in a focus group on brakes. . Have not participated in any focus groups in the past 12 months. The respondents were segmented by having one group in each SPIM0122 personnel who might be installing the brakes at these dealers. What They'd Want from NAPA These respondents would Like several things from a NAPA brake center or NAPA-authorized dealer: lifecime warranties for parts and labor, nationwide network honoring those warranties, quality personnel, acceptance of credit cards and checks, and prompt service. Attitudes toward Price Only half the respondents said they would consider a NAPA brake job if it cost 20 to 25 percent more than ocher brake jobs. However, if they were convinced that the brakes would last 35 percent longer chan ocher brakes, some--but not all-of them would consider them. Some of those who weren't sold wondered why.it should matter to them how long the brakes lasted so long as they carried lifetime warranties. Attitudes toward Asbestos and Fiberglas in Brakes The respondents were indifferent to the elimination of asbes tos or the substitution of Fiberglas in auto brakes--unless it could be shown chat such a change increased brake life. None of them had any feelings one way or another about whether or not it would. SPIM 0123 20 considerably more appealing to these respondents than a net work of NAPA-authorized dealers or garages, about which they were only moderately enthusiastic. They felt that because a specialty shop does only one thing it's likely to do it well. A significant advantage to distributing the brakes through NAPA brake centers rather than through NAPA-authorized dealers is that it would give the NAPA brand a much higher profile. Because there's virtually no brand awareness when it comes to auto brakes, a chain of NAPA brake centers could give NAPA the same top-of-the-mind association in brakes that Midas has in mufflers and that Monroe has in shock absorbers. Asbes tos The presence or absence of asbestos in a brake product appeared to be of little or no consequence for the consumer. SPIM 0124 THE ASBESTOS___ISSUE GROUNDr OF X JNlhJ ST ATUS REPORT MAJOR PROGRESS UR* TO 1 MAJOR NEEDED XIM 1 STOF- SP1M 0125 X fNifvl! rcA y__Q ^____x REPORT TRENT) IS AWAY FROM MANY SMALL CASES TOWAF^B SLOWING OF CASE NUMBER GROWTH BUT HIGHER N/ALLJE CASES- SOO CASES 1ST" OLJABTEFR 1985. CASES OE EXPOSURE TO ABEX ASBESTOS BEFORE APRIL- X , 1 <=PSS AF<E COVERED BY OUR I NSURANCE - X </SS > (JUDGE EEIxIInI DECISION CASES BASED OIN EXPOSURE AFTER THAT DATE UJ I L_L_ NOT AR I SE EOR X S YEARS- -*e- SUCH CASES WIL_1-- BE WEAKENED BECAUSE -- E A I LURE TO WARN UlOtNl ' T BE ISSUE-- BROUGHT BY THOSE FEW WHO Ui I I 1____ ____ ESCABE PRESENT WIDESPREAD EXPOSURE CONTROL MEASURES. SUBSTITUTES ARE BEING INCREASINGLY USED <ABEX IS A LEADER > FURTHER REDUCING EXPOSURE- E I V>E YEAR MAXIMUM FRUtM OUT PERIOD. SPIM 0126 f 1o0 o *o o 1o0 o WINCH ESTER/SALIS B U RY LBS. ASBESTOS/CU. IN. PRODUCED 1977 197B 1979 1980 1981 1982 1983 1984 1985 Moo T- O o O SPIM0127 tf'l 'S cr- f U L N-j < o < +j 't I+ in CD 0) o S3TVS S01S38SV lN30H3d SPIM0128 * ASBESTOS XSSUE MAJOR PROGRESS LJF^ TO___1985 I>OUJMUIAF:ID OP SAL_ES TFRETMID ASBESTOS USAGE PER CUBIC X NCH TREND OMI--Y' AF=-P'F<0\/C:D SOURCE -- NEW CAR, DRUM BRAKES GOOD PROGRAM OF SO MIX WITH R3 X -- 1 > OF MOM--ASBESTOS FOR DOMESTIC PASSENGER CARS AMO I IGHT SP?M01?9 1~?AL7QR ASBESTOS ISSUE injeeidrid x ini i <5>e<> f=*ro: ION DEBUG OR NEW BU X l__3D CUSTOMER CONFIDENCE RORMUL.AS I IM NEW * HIGH FRICTION BLOCK FORMULA REDUCE COST OR NON-ASBESTOS RAW Mrf=*TER I ^L.S QDFA* INSURANCE SUIT STATUS i 1, CLAIM AGAINST CARRIERS SETTLEMENTS DEFENSE COSTS INTEREST INTERNAL COSTS 1NSURAHCE SUIT COSTS TOTAL AMOUNT i 243,875 1,481,888 238,888 E 261,888 E 387,888 2,522,875 RECOVERY HIGHLY PROBABLE HIGHLY PROBABLE PROBABLE POSSIBLE REMOTE 2, FAVORABLE DECISION ON LIABILITY APRIL 16, 1985, 3, APPEAL BY LIBERTY MUTUAL APRIL 23, 1985, RESOLUTION IN 9 TO 12 MONTHS, 4, SETTLEMENT OFFER BY TRAVELLERS AHO MARYLAND CASUALTY PENDING, Corn*