TNT Express Sells Chinese Trucking Business

TNT Express has sold its domestic Chinese trucking business, TNT Hoau, kicking off the Dutch delivery company’s stand-alone strategy after a failed $6.8 billion takeover by UPS.

TNT did not say how much the buyer, CITIC PE, China’s state-owned private equity fund, is paying for Hoau, which it has owned since 2007.

It expects to close on the deal, which requires regulatory approval, in the second half of 2013, with part of the payment being settled in 2014.

Shanghai-based Hoau, which is thought to be marginally profitable, is one of China’s largest road distribution companies offering day-definite deliveries through a network of 1,500 depots serving more than 600 cities.

“In the past few years, Hoau has transformed itself into a leading nationwide operator in China. The change of ownership secures the ongoing growth and development of the company,” said Bernard Bot, TNT’s interim chief executive.

Following the deal, “TNT Express will focus on offering the broadest range of international services to and from China,” Bot said.

Bot said the sale of Hoau was “imminent” on Monday when he unveiled plans to shed 4,000 jobs, six percent of TNT’s payroll, shrink its intercontinental air capacity, and focus on its core European market, as it adjusted to European anti-trust regulators’ blocking the UPS takeover.

TNT is now looking for a buyer for its domestic Brazilian operation, which remains unprofitable but has reduced losses in the first two months of 2013.

The company said the restructuring program is targeting annual savings of 220 million euros ($282 million) and will result in a one-off charge of 150 million euros ($192 million).

View the original article here

Volvo Expects Reorganization of Truck Business to Boost Margin

Volvo AB said its operating margin should eventually grow by 3% as a result of the reorganization of its truck division, Bloomberg reported.

“I will not give a deadline when we’re done with it, but it will be over time,” CEO Olof Persson said Tuesday, Bloomberg reported.

The previously announced restructuring of the company’s truck division is aimed at simplifying purchases and decreasing internal invoicing, Bloomberg said.

Persson said the changes are “on track” for completion by Jan. 1, Bloomberg reported.

View the original article here

Freightliner introduces sales incentives for Business Class M2, 114SD

PORTLAND, Ore. -- Freightliner Trucks has launched its Work Smart Strong Finish Retail Sales program. Available in the fourth quarter, the limited-time offer provides special incentives for new Freightliner Business Class M2 trucks or Freightliner 114SD trucks in dealer or corporate inventory financed or leased with Daimler Truck Financial by Dec. 30.

Canadian customers can select from two options: up to $4,300 for an extended basic chassis warranty plus a $1,500 Freightliner Trucks Customer Support MasterCard prepaid card; or up to $5,800 for an extended basic chassis warranty.

"The 114SD and Business Class M2 line of vehicles are designed to enhance efficiency and revenue," said TJ Reed, director of product marketing for Freightliner Trucks. "Our new incentive programs will only further benefit our customers and their bottom lines."

For more information, visit www.freightlinertrucks.com.

View the original article here

Goodyear names Mark Pillow business solutions director

AKRON, Ohio, -- Mark Pillow has been named director of business solutions for Goodyear's commercial tire systems division.

In his new role, Pillow will oversee Goodyear's business solutions portfolio, including the company's fleetHQ program, on-highway operations, and retreaded tire business. He will report directly to Joe Copeland, vice-president of Goodyear Commercial Tire Systems.

A 25-year Goodyear veteran, Pillow most recently served as director of commercial systems and off-highway tires for Goodyear Canada, a role he assumed in 2007. Prior to that position, he served as general manager of national accounts, North America, and before that, director of Goodyear farm tires. He also has held positions in engineering, consumer tire sales and marketing, and other areas of Goodyear's business.

"Mark is an outstanding leader with extensive management experience, and will play a key role in expanding our comprehensive offering of business solutions," said Copeland. "Having previously served as the leader of our national account business, he understands how fleets operate, the challenges they face, and the importance of Goodyear's ability to provide fleet customers with value-added services that will help them reduce their operating costs. This knowledge, coupled with the experience Mark accumulated as the head of Goodyear's Canadian commercial tire business, will prove invaluable as we continue to expand the portfolio of business solutions that we offer to our commercial customers."

The following Goodyear executives will report directly to Pillow: Bruce Woodruff, director of business solutions marketing; Roy Sutfin, vice-president of fleetHQ; Clint Schrock, director of on-highway operations; and Jay Hofner, general manager, retreading.

"I look forward to continuing our focus on providing a total solutions package to our customers, including industry-leading tire technology, as well as value-added services that will help fleets, owner-operators, and other end users run their businesses more efficiently and profitably," said Pillow.

View the original article here

COMPETITION WATCH: Bison, TransX listed among P&G's top business partners

CINCINNATI, Ohio -- A pair of Canadian trucking companies have been recognized by Procter and Gamble as among its top performing external business partners. Bison Transport and TransX were listed among P&G's top supplier and agency partners during an awards ceremony last week. The objective of the annual event is to recognize and celebrate those key contributors who have demonstrated partner excellence.

"We have tremendous partnerships with our external business partners around the world," said Bob McDonald, P&G's chairman, president and CEO. "These partnerships are powerful because they are focused on a common purpose - to touch and improve people's everyday lives."

Bison and TransX were selected from P&G's more than 75,000 suppliers and agencies globally.

View the original article here

Cavalier Transportation Group announces new VP business development

BOLTON, Ont. -- Cavalier Transportation Group has appointed Rick Brooks to vice-president of business development. Operating out of Buffalo, N.Y., officials said Brooks will be working closely with the company's US marketing partners, managing select corporate accounts and developing new opportunities for Cavalier, including the continued growth of its domestic US logistics business.

Brooks recently held the position of senior vice-president of sales for a leading expedited carrier. Over his career, he has held senior management roles with USFreightways, CP Express and Intercity Truck Lines. Brooks will be reporting directly to Brian Ledson, executive vice-president of sales and marketing for the Cavalier Transportation Group.

"Our family has known Rick for a long period and in the past, Rick has worked closely with other members of our current senior executive. Having someone of Rick's calibre join our team is a real asset to us," Ledson said. "He is knowledgeable, professional and personable. With the steady growth of our business, south of the border, the timing of his appointment couldn't be better."

View the original article here

One Less American Business; Borders

Growing up in Huntsville for the longest time we only had one bookstore. It is a local chain out of Florence Alabama, Books A Million. They are still my favorite bookstore with Barnes and Noble quickly coming in second. I had never heard of a Borders until I traveled with my husband while trucking one summer. I don’t remember exactly where we were, but it was in the North. He made a point of getting me by a store, as he knew I loved all things books. It was an awesome store. I found out that there were some stores in the south, but they were all in Georgia. I think Atlanta would have been the closest to us while we were still in Bama. 

Now that I have been living above the Mason-Dixon line, I have had opportunities to visit a Borders that is about a 45 minute drive from my home.  

Now, Borders, started by brothers Tom and Louis Borders, and who have been in business for 40 years, is closing shop across the board in Chapter 7 land. In February of this year they filed Chapter 11 bankruptcy protection. Now it is complete shut down mode. Around 11,000 people will loose their jobs and a really nice bookstore, in my opinion, will be gone.  The total stores closing are 399, with 10 of those stores all in Georgia. 

They are in liquidation mode right now and although I have not been able to hit the big sales, some family members have and told me it was chaos, but some really good deals were worth pushing through the crowds and the disarray of books that were just stuck anywhere.  

They plan to see the liquidation complete by September. The liquidation could generate $252 million to $285 million. This company has not turned a profit since 2006. In 2008 Borders ended their marketing alliance with Amazon.com. Amazon had been acting as Borders’ online component. They owe tens of million dollars to publishers. They owe Penguin  Putnam $41.5 million and debts to 3 other publishers at about $35 million each.  

It is said that Borders also failed to jump in with the new trends in the reading industry. The electronic readers, electronic books and web usage in general, which is today’s hottest methods of reading, got away from them due to being too sluggish in responding. Some analysts have said that Borders focused too much on superstores. When Borders saw their peak in 2003 they had 1,249 stores under the names Borders and Waldenbooks.  

In 1992 Borders was acquired by K-mart, who had also acquired Waldenbooks previously. K-mart’s hope was that the Borders business brains would help save the floundering Waldenbooks. Waldenbooks were mainly found in shopping malls.  

They also made the mistake of hiring 4 CEOs in the past five years who had no book selling experience. That one baffles me. Payoffs, blackmail, politics, or just old fashion stupidity? There has also been a good amount of shuffling on the board for some time.  

Another analyst said Americans are buying lesser books. Sales fell nearly 5% in 2010. I know personally, I have really cut back on the books I actually buy. I use our library. If my local branch doesn’t have what I am looking for, I can request the book and from anywhere in the region, based on availability, they will loan it to me out of my local branch.

You know how on Cheers when Norm walked in the door everyone yelled Norm! When I walk in the library they all say Kimberly! They just do it in a quiet way.  

From what I read it seems Borders made some really lousy business decisions. And unfortunately in this economy there were no takers when Borders was up on the block before the bankruptcy deadline. An actual auction had been arranged but was cancelled according to the Wall Street Journal.  

I blame this economy, but that is just my guessing. I thought if times were better, maybe someone would have seen some potential with Borders, but I think it would take too much money and too much time to get it right. I could be wrong; it could just be that even trying to salvage Borders would be another bad business decision.  

Either way, I think it is a shame we are seeing this company close it’s doors. Not just because it is a bookstore, but also because it is an American company based out of Ann Arbor Michigan. The worse outcome in this situation of course is that many folks are loosing their jobs. That will mean 11,000 more people dealing with the stress of loosing their job and trying to find another job. Even more stressful is the pickings right now in the job market are not very encouraging.  

Take care and stay safe,

KJ

If you liked that post, then try these...

View the original article here