Document vD7yywa2gN8bw8VdMv03JZpm

!X Internal Correspondence Date: February 28, 1986 To: Fred Kovalik Axle Sc Brake - Galesburg Copy: SEE LIST *4'*C*i 4. % From: Tom Bruggeman - Axle & Brake Division Headquarters-Galesburg Sublect: UPDATE ON PROGRAM TO DEPLETE EXCESS R31 BRAKE SHOE INVENTORY AND IMPLEMENT NON-ASBESTOS IN THE MARKET PLACE A# >. In following up on several key areas this month. It has been reay.;^ that' potential problems exist. Please find below a list of these problems an&fbux planned course of action. ^ vXj'* A key factor in minimizing the quantity of excessv-.R31 tifls shoe assemblies was based on RABA supplying axles^l^ss' orpl^t^^ Ruth Smith previously advised that RABA would bseNVwijr^t*inc*f^L jacIhere to our request. On February 11, Mr. Komonczy^RABA fm-eetar nf Sales) telexed the following, ...."RABA can notT'QjQdamqntaHy accept that Eaton wants to purchase the trailer a&us? witluJt*brakes. Please, be Informed that RABA envisages tha>|^ply p|hB trailer axles complete with brakes both at pres|ift,jand La the future." This disagreement must be rasolved%ii|^^iatyy^ Lonnie Dye has forwarded Janbq^ and,>yijrruary schedules requesting the receipt of axles be "1? brakes"','1 We have successfully expedited new part numbe^^rouijtnj; engineering enabling us to release in this mannerf A* f'XX ' \) Ruth Smith advised, thlt we\vf$ltl begin scheduling approximately , 25-3096 of our bral^et ajjd^s^'ftess brakes) to Axles India in August-Septemb^r^time frajTip. There hasMmQ&^a d|9^S.ii1i the qualification of the sweep guage . necessar^Cta^allciw^eVelopment of the RABA coined shoe. The latest promiSE^ytSm RUjtqSSmlth is to ship the guage to RABA on March 7. With CMs in'mintf, we can expect to receive coined shoes in August iTSy Engineqrifapis expected to make an announcement on the approval non-astifesfos lining by no later than March ID. A meeting is schpHj5|ed for March 7 with B. Anders, J. Clark, B. Cook, G. Singh, L.<5gbrlock and B. Young to discuss the details of our standard .(l^sltion on non-asbestos. ,,,,NNjRuth Smith is processing Letter of Credit for the return of R31 loose lining blocks at RABA. SCF-EC-3050 form CIO 20 (R, 12(221 EAB 046149 Page Two Frad Kovalik February 28, 1986 x *' __ RABA has not reduced their previous quoted price ofv$3.79^0.B. \VV"* Gyar on R31 lined shoe assemblies. Ruth has recently-advised RABA that a reduction in price is necessary in order that we not suffer vN^ a loss in marketing the product. . vtk\ Recent test results of Abex (Italian) manufactured 3G30-7 may' require that RABA initially receive domestic manufactured ^iqfngs blocks. It has been suggested that until the Itelian^inismo successfully completes further tests, which arefixpectec^ i^be finalized in late June, that Abex sell domesti^b^bcl^^trwton for consumption by RABA. This Is basically foir-quejlity|spnlfol reason. ,VJ x\si' Perry Johnston has advised that his temporary bulks4hip program of R31 lined shoe assemblies will begin ApCL^rjt, l86 .s Our price to trailer dealers will be as follows: Av vf\* Quantity 1-9 Skids (8B pcs/skid) 10-19 skids 20 skids or more Freight ^ FOB Gal'lfu*) Brice Each ^Sl5.50 \/ yCNK J?1 V Ffli^lla^ > $14.73 ^f^epaid^Fj^ight $14.73 Many variables effect the^sOrtadrt^fT'vvis program - NkS X/ . market demaji&Qfrir ng^-asbestos which nocessitatcs switching out shoes in G^lfftir^^Tfere'fore, creating excess. R31. if RAB&jaci5ntinuBS\.to assemble shoes on axles, volumes will trickle iniOy ju NJ- Nhi* .. if RhBA agrafes to reduce their selling price on the 66,200 shoe assemb0e^-i? which they lined without our authorization, we should schedj^^quantities Lo support the above program The key in thS^scenario is that as time progresses, the demands for asbestos decreases.^OjErefore, It is necessary that we rid ourselves of asbestos inventor^fqr which Eaton is responsible. EAB 046150 Page Three Fred Kovalik February 28, 1986 Listed below is an update on R31 shoe assembly inventory: 4*\ AS REPORTED JANUARY 31. 1986 8,000 102,796 71,236 as of 1/31/86 R31 lined shoes in transit fram^jiABA Loose shoes at RABA x^ fX*' if* \ ** \ ` "i 11,520 0 15,995 14,756 18,564 0 16,572 Shoes on axles at RASA Kt;.i Shoes to be return^ wa) RAB/TSSJ .\J vtYO Shoes shipped Barfly. DecemBcll/to RABA * Current lLogosge'C^^'s|Jtaiaee rh^htary in Gallatin 20.000 20.000 165,057 (9700) 134,372 *f4364) Approximafc^maunii ab- R31 shoes inventory to be, gebijrated jteTj5}een March 1 and Septerfiljar). 198bV^' X/ vO^ ,N ^Pyrreni^iJJjedules to RABA which will % Cpequire lines assemblies. 155,367 130,008 V do V'V /Av As of 2/27/86 a total qUb^ity Df jjjpo trailer axles have been shipped in the month of February. Apfdwximat-ejly 35% were switched out with non-asbestos (454 axles). \<^V' .v>W|* ` We currently havevl^S'/J axlesKin transit from RABA with R31 lined shoes assemblies whifcK^f'the^redUced RABA1 s inventory of lined shoe assemblies. *Lonnie Dye initially*^Sheduled these axles less brakes, but was advised by RABA that they wD^fr^nbt adhere to our request to ship "less brakes". <v TB "V (3439p) EAB 046151