PMTG Management Corners

PMTG is Well Positioned

It's alarming to read about recent events in the US auto manufacturing industry.  Ford and Chrysler  recently announced 4th quarter production cuts and GM is expected to make a similar announcement soon.

That's particularly bad news for the two giants of car haul:  Allied Automotive Group (AAG) and Performance Transportation Services (PTS).  Both companies have already filed for Chapter 11 protection - AAG in August of 2005 and PTS in January of this year. 

Fortunately, predictions for PMTG are much more favorable.  Our marketing and operating strategy focuses on high end delivery services for manufacturers of high end automobiles.  That strategy has provided us with a customer base generating volumes far more stable than those from what was the Big 3.

Forecasts for our 4th quarter volumes remain strong .  Historically those three months account for 30% of our total annual revenue.  We also have new programs coming on line that will reduce costs and improve operating ratios such as our new Waybill technology, negotiation of reduced maintenance vendor costs, terminal budgeting and an improved surcharge recovery mechanism for most of our shippers.

Combined, AAG and PTS have over 5,000 trucks and 5,000 drivers.  In terms of size, PMTG with only 260 drivers may seem insignificant; but in terms of financial performance and job stability, PMTG is the giant of the industry.

-- Joe Jacobson

Driver Pay Increases

PMTG has been very active during the last several months working on the renewal of customer contracts with Daimler Chrysler (Jeep – Toledo) and Subaru (Lafayette).  Both of theses customers offer PMTG return freight to our origin points on the East coast and Southern states for vehicles destined for the mid-west.

PMTG is pleased to announce that we have extended our existing contract with Subaru for an additional year and have received an increase in our rates.  We are also pleased to announce a driver pay increase for the Subaru cars.  The current Subaru East bound vehicles pay rate of $44.78 per vehicle will increase to $49.98 per vehicle, effective 9/1/06.  The current Subaru South bound vehicles pay rate of $39.46 per vehicle will increase to $43.82 per vehicle,  effective 9/1/06.

In addition, Jeep has awarded PMTG a new 3-year contract with a rate increase that will extend our relationship with Jeep into 2009.  PMTG is announcing a driver pay increase for Jeep vehicles from $25.00 per vehicle to $26.65 per vehicle, effective 9/1/06.

Please note that the driver pay examples above represent the initial driver pay level from the driver longevity pay program and will increase according to your individual seniority.

PMTG is also working with BMW and Porsche on Request for Proposals for each company.  We anticipate successful negotiations with each customer to conclude in the 4^th quarter this year.  We will provide further updates in the near future.

--- Dallas Knepp

Welcome

Welcome!  I'm very proud to have  this opportunity to welcome our employees and their spouses to the first edition of  PMTG's Management Corners Blog.

Blogs are similar to websites in that the articles and pictures are posted to the web.  They are unique in that they can be set up for easy two-way communication.

PMTG has entered into an aggressive campaign to improve communications with our employees.  Towards that end, we have established two Blogs:

Management Corners  - will provide regular updates on important company financial,  operational and customer service events.  This blog will be maintained by Warren Lasch, Dallas Knepp and Joe Jacobson. This Blog is designed for one-way communication only.

Okemos Corners - will provide updates on operations, safety, maintenance and administrative events.  This blog is set up for two-way communication.  Employees and their spouses are encouraged to submit their comments on articles for publication consideration. Please keep in mind the 'family nature' of our Blog when you submit your comments.

Your comments can be questions you have regarding any administrative problems or suggestions. Those comments that have broad informational value will be published for all to benefit from.  You may submit your questions anonymously (use a handle like 'Hound Dog's Wife') or use your real name.  Of course, if you want us to call you back regarding a particular concern, we will need your real name and contact information.

If your comment is not published but you do provide contact information, we will get back to you with an answer.

--- Warren Lasch

President Bush

Most of you already know that PMTG celebrated Driver Appreciation Week with alternating breakfasts and lunches for our driver employees at our head haul terminals and maintenance shops.  A letter of gratitude was sent out from Warren, Dallas and Joe, and banners were posted at many of our locations thanking our drivers for their hard work.

President Bush's Letter

Besides PMTG, someone else recognized Driver Appreciation Week.  President Bush wrote a letter to the American Trucking Association regarding National Truck Driver Appreciation Week.  To read his letter, clink on this link:  http://www.truckline.com/NR/rdonlyres/0874AC26-0BCB-4A8E-8050-A6AF4D5ACAB2/0/Bush_Letter.PDF