The Systech Newsletter: July 2012
Feature Stories
Check it out: Systech’s website gets the full treatment.
The Systech website has undergone an extensive new makeover, with new easy-to-find features about Systech and ESP products and programs, up-to-date news, I/M industry resources, a sharp new equipment and supply ordering page, and more.
Systech’s vehicle inspection program goes live in Wisconsin
The new Wisconsin Vehicle Inspection Program (WIVIP) was successfully launched on July 1st. The centralized stations, now closed as of June 30th, have been replaced by 200 independent auto service businesses serving the seven-county region, including Greater Milwaukee, Sheboygan, Waukesha, Racine, and other cities, and scheduled to perform over 800,000 vehicle inspections per year.
According to Program Manager Jack Pierce, the new decentralized network performed 10,000 inspections by 194 stations in the first week of the program. Wisconsin motorists can now take advantage of the added convenience of our new registration renewal process at all inspection stations, and according to Pierce, many of them did just that. “It was an excellent start to an exciting new program,” said Pierce.
The new stations feature all-new Systech OBD Analyzer equipment, which includes innovations such as Integrated Registration Renewal Services, Live Chat and many others. Wisconsin motorists now have their choice of more inspection station locations to choose from, and for many, closer to home. Link to WIVIP website
Testing and Regulations
More exemptions possible in Pennsylvania.
A bill that would exempt cars ten years old or newer from emissions testing is making its way through the Pennsylvania legislature. The bill, which is being sponsored by 20 state senators from both parties, would also exempt hybrid, electric, and compressed natural gas from most inspections. The writer is an Opinion page columnist, so the article reflects his particular perspective, but the sense is that because 96 percent of all vehicles tested last year passed emission testing, some lawmakers feel that consumers might feel better about investing in infrastructure repair if they didn’t also have to pay for having their cars tested. There is also a feeling that the EPA may go along with the new law if compensating cuts in emissions (e.g., from coal-fired plants) are found. The bill is likely to be debated in the fall. Pittsburgh Post-Gazette Link to article
A more objective, but less informative version of this story can be found here: Link to CBSPittsburgh story. It includes a quote from a troubleshooter repair shop owner who feels that exemptions should stop at five years (instead of the proposed ten).
Equipment, Tools, and Gear
Knit me a custom-tailored Thermaflex exhaust insulation sleeve, please.
Federal-Mogul has come up with a new emissions-saving product. The Thermaflex exhaust 
sleeve works by trapping heat inside the vehicle’s exhaust system, limiting the amount radiated to nearby components, such as turbocharger parts, emissions equipment, and electrical wiring. The strategy has been in use by racers for years, and offers the added benefit of more efficiently operating emission systems and fewer emitted gases. The sleeve, actually knitted out of basalt yarns, can handle temperatures of up to 1,382 degrees Fahrenheit. The product is also flexible enough for most applications, adds minimal weight to the vehicle, and takes up remarkably little space under the hood. Autoguide.com Link to article
Enforcement
New York: Busted in the Bronx
Two inspection stations in the Bronx were fined $930,000 by the state’s Department of Environmental Conservation (DEC), and over $50,000 by the New York DMV. Two certified inspectors, Manuel R. Inoa and Ramon B. Reyes, used electronic simulators to falsify a whopping 5,372 state emissions inspections over a two year period at AMI Auto Sales and Gurabo Auto Sales. Licenses for both inspection stations and the inspectors were revoked. DEC staff uncovered the “electronic signature” of the simulation device through analysis of inspection data. The enforcement action is a cooperative effort of three agencies: the DEC, DMV, and the Office of the Attorney General, part of a series of investigations into inspection fraud begun in 2009. New York State Department of Environmental Conservation (DEC). Link to Article
State News
Louisiana: Legislature sets 2 year inspections
State lawmakers have passed a measure sponsored by Sen. Sherri Smith Buffington (R-Keithville) allowing most state residents to have their vehicles inspected every two years instead of every year. Sticker fees have been set at $20 for two years, and $10 for a one-year inspection (parish fees extra). Parishes with emissions issues, such as the Baton Rouge area, will still require motorists to test their cars every year. Fox8/KVUE New Orleans Link to article
British Columbia (Canada): Premier Clark to phase out AirCare Program
The AirCare vehicle emissions testing program, which tests 440,000 cars per year in the Lower Mainland/Fraser Valley region of British Columbia (Greater Vancouver) will be phased out by 2014, promises the province’s Premier, Christy Clark. The premier’s initiat
ive is seen by many as a populist move, intended to bolster Clark’s flagging support among her constituents in advance of an upcoming election campaign. The premier’s Liberal Party has been giving ground to the New Democrats and Conservatives, and saving area motorists the $45 annual fee and associated hassle will undoubtedly make happy voters. The rationale is that most cars on the road in 2012 emit far less than cars did in 1992 when the program began. But many are concerned that the advances in clean air—the program removes 20,000 “tonnes” of pollutants per year—will take a significant step backward by eliminating AirCare. Key stakeholders in the province will be studying alternate means of emissions reduction, such as going after heavy commercial trucks, agricultural equipment (backhoes, etc.), and marine sources. The Globe and Mail Link to article
Systech News
Systech’s parent company, Opus Group AB has signed a definitive agreement to acquire 70 inspection stations in Sweden from AB Svensk Bilprovning.
In the 4th quarter 2012, Opus Group will complete the acquisition of a Bilprovningen subsidiary that includes 70 inspection stations with 243 inspection lanes. The subsidiary inspects nearly 2 million vehicles per year, with a geographical focus on Stockholm, the Mälardalen region, and North Sweden.
The purchase price amounts to SEK 375 million ($53.3 million) including cash of approx. SEK 20 million ($2.8 million) and estimated equity build-up between May 1 and closing amounting to SEK 35 million ($5 million). By gaining a large market share in Sweden, Opus Group builds a strong platform for future expansion, both within Sweden and internationally. Opus Group’s estimated combined turnover increases to approx. SEK 960 million ($136.5 million) based on fiscal year 2011, which includes the recently acquired U.S. company Environmental Systems Products, Inc. (ESP) and the current acquisition of inspection stations from Bilprovningen. The estimated combined EBITDA of 2011 amounts to approx. SEK 140 million ($20 million). The Acquisition is expected to have a significant positive impact on the net result in 2013.
Opus Group is a public company with headquarters in Gothenburg, Sweden and listed on Nasdaq OMX First North Premier under the ticker OPUS. Opus Group operates vehicle inspection programs, and develops, produces and sells equipment and IT systems for the vehicle inspection industry. Opus Group companies, Systech International (Systech) and Environmental Systems Products (ESP) are leading operators in the U.S. vehicle inspection industry, managing over 13 million vehicle inspections per year. The acquisition of 70 inspection stations from Bilprovningen builds on program management competence of Systech and expands Opus Group’s reach within the vehicle inspection management business to the European market.
“Opus Group has extensive knowledge and experience of managing vehicle inspection programs and supplying equipment and IT systems to the vehicle inspection industry. We believe that by combining Bilprovningen’s operation with Systech’s competence in vehicle inspection will create a strong organization both in Europe as well as internationally,” says Magnus Greko, CEO of Opus Group.
“We are looking forward to transitioning the 70 inspection stations and to creating a world class vehicle inspection operation and IT system in Sweden,” stated Lothar Geilen, CEO of Opus U.S. and head of Opus’ vehicle inspection business unit. Link to full press release
Systech Signs Vehicle Inspection Program Contract with the State of North Carolina
Systech has signed a contract with the North Carolina Department of Transportation (NCDOT) to develop the Motor Vehicle Inspection and Law Enforcement System (MILES). The contract starts immediately, and includes the design, development, implementation and maintenance of a statewide data management system that will provide a real-time link to over 6,000 private inspection stations conducting 7.7 million inspections per year. When fully implemented, MILES will provide over 300 officers and staff of the North Carolina Division of Motor Vehicles (NCDMV) License & Theft (L&T) Bureau, located in 8 district offices across the State, with new computerized tools to manage and enforce the inspection program, conduct audits, manage evidence and cases, investigate motorist complaints and maintain the highest standards of quality and public service.
“We are pleased that the State of North Carolina has chosen Systech to develop MILES, which will manage the third largest vehicle inspection program in the United States.” said Lothar Geilen, President and CEO of Systech, “We are looking forward to implementing our innovative data management technology for the benefit of the citizens of North Carolina.”
“The proposed MILES system promises the N.C. Division of Motor Vehicles a modernized data management system that will mean enhanced and accurate recordkeeping for our staff and better service for our citizens,” stated DMV Commissioner Mike Robertson.
Systech anticipates that the MILES contract will result in over $6 million in revenues in 2012 and 2013, with the potential of an ongoing maintenance contract after program implementation. This contract is expected to positively impact the company’s EBITDA starting in 2012. Total order backlog at Systech is over $90 million.
Off The Beaten Track
Artificial “exhaust notes”: Maserati goes one better than the old baseball card in the spokes strategy.
For performance enthusiasts, it really makes a difference: exhaust not
es, that is. Defined as the aural sensation a motorist experiences from their car, be a scream, purr, burble, vroom, or whatever, if a car doesn’t have the right sound, it really isn’t quite the same. Electric cars? Forget it. Diesel? There’s got to be something better than the all-too-familiar rattle and knock. Turns out Maserati has the solution: on the car maker’s new diesel Kubang SUV, that satisfying exhaust note, that beguiling purr, will be courtesy of the vehicle’s sound system. Whatever will they think of next? CarNewsPortal Link to article
