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Features
Mercedes sees 15% share for diesel SUVs, crossoversAlthough diesel fuel tops $5 a gallon in some areas, Mercedes-Benz USA is confident that its new clean Bluetec 50-state diesels will account for at least 15 percent of its SUV and cross-over sales. Three new Bluetec vehicles go on sale in October with a new V-6 diesel: the 2009 320 ML crossover, GL SUV and R-class crossover. [SUB] 12:01 am U.S. ET | June 30 |
Chrysler looks to alliances to get through turbulent timesWhen Automotive News ran its last Chrysler future product forecast on Oct. 22, the average price for a gallon of regular unleaded gasoline was $2.82. Now, eight months later, the average price per gallon exceeds $4. This stomach-churning climb in fuel prices, coupled with upcoming new corporate average fuel economy rules, has forced Chrysler LLC to re-examine each product program. [SUB] 12:01 am U.S. ET | June 30 |
Detroit 3 a big drag in global supplier race
North American suppliers that are heavily reliant on the Detroit 3 are falling behind in the sales race with their Asian and European rivals. Stalwarts such as Delphi Corp., Johnson Controls Inc. and Lear Corp. all tumbled on this year's Automotive News list of the top 100 global original-equipment parts suppliers. They were hit by slumping vehicle sales at home. Meanwhile, Denso Corp. [SUB] 12:01 am U.S. ET | June 23
'Like house of cards,' used trucks fallDealer Poncho Redfern sees big used trucks that were worth $20,000 just a few months ago valued today at $12,000. And he winces. Many new-vehicle dealers grew accustomed to raking in big profits on large used pickups and SUVs. But now those trucks are sucking out cash as they gather dust. [SUB] 12:01 am U.S. ET | June 23 |
Alleged sales scam snares Ohio dealers
The Ohio attorney general is suing a used-car lot in suburban Columbus that allegedly bought new vehicles from franchised dealerships, sold them to consumers without titles and pocketed the proceeds. The civil suit, filed this month, also names as defendants two franchised dealerships that prosecutors say helped "facilitate the fraud." [SUB] 12:01 am U.S. ET | June 23
New Caddys comingGeneral Motors will unveil a Cadillac CTS wagon this fall in an effort to compete with BMW's 3 series and Mercedes C-class wagons. Cadillac intends to start production in 2009 for global sale. GM has shown a CTS coupe concept to be produced next year. [SUB] 12:01 am U.S. ET | June 23 |
More Fits for U.S. in fallHonda Motor Co. is boosting output of its popular Fit small car to meet U.S. demand when the next generation debuts there this fall. Production allotment now stands at 60,000 units but will increase to 80,000 when the redesigned Fit arrives Oct. 1, says John Mendel, executive vice president of American Honda. [SUB] 12:01 am U.S. ET | June 23 |
Japan's best-kept secretTOKYO -- They are as distinctly Japanese as sushi and sumo. Sporting pug-nosed, boxy bodies and roller skate wheels, the country's iconic minicars are nearly as comic as they are compact. Avant-garde styling and tiny 660cc engines long confined the runty runabouts to home. [SUB] 12:01 am U.S. ET | June 23 |
2008 Global Market Data BookThe 2008 Global Market Data Book is a 23-page supplement and has information on North America, Europe and Japan vehicle production and sales by model, as well as history and forecast tables. 12:01 am U.S. ET | June 23 |
Detroit 3 slash sales to fleets
Despite a brutal retail sales slump, the Detroit 3 continue to cut the number of light vehicles they sell to daily rental companies and corporate fleets. Through the first four months of 2008, General Motors, Ford Motor Co. and Chrysler LLC have reduced U.S. sales to fleet buyers, according to an analysis of data supplied by R.L. Polk & Co. [SUB] 12:01 am U.S. ET | June 16
Hot seat: Chrysler v. Magna
Chrysler LLC is suing Magna International Inc. for millions of dollars to cover mounting costs of injuries and recalls involving heated seats in Chrysler minivans. Chrysler blames North America's largest parts supplier for a technical flaw in the heated seats that can cause serious burns -- especially to paraplegics, who cannot feel their seats overheating. [SUB] 12:01 am U.S. ET | June 16
Honda dealers scramble amid stampede to small carsFor two days last week, Honda dealer Rene Isip stalked the lanes at the Manheim auto auction in Orlando, Fla., in search of used Civic and Fit cars for his store in Katy, Texas. Isip's dealership, one of the top 100 Honda stores in the nation, was almost depleted of new ones. Getting used models was brutal, too. "I'm standing here looking right now," he told Automotive News via cell phone. [SUB] 12:01 am U.S. ET | June 16 |
Lithium ion batteries power converted Priuses
Toyota dealerships in four U.S. metropolitan areas are offering to convert customers' Priuses into plug-in hybrids, using technology from the battery maker A123 Systems. The arrangement provides the strongest indication yet that lithium ion battery technology is ready for mainstream automotive use. [SUB] 12:01 am U.S. ET | June 16
GM calls Hummer sale a strong option
Several global companies have shown interest in Hummer, making the sale of the brand a strong option, the head of General Motors' premium sales channel told dealers last week. Hummer dealers reported the comments after attending meetings with Mark McNabb, 47, GM's new vice president of the premium channel. The premium channel consists of Cadillac, Hummer and Saab. [SUB] 12:01 am U.S. ET | June 16
New F-150, Ram in peril as big pickups collapseThe collapse of the full-sized pickup segment comes at a disastrous time for Ford and Chrysler as they prepare to launch redesigned pickups this fall.The segment is expected to shrink by about 500,000 units this year to as low as 1.65 million. That's a far cry from the 2.5 million in the peak years of 2004 and 2005. Ford Motor Co. and Chrysler LLC have been counting heavily on the replacements. [SUB] 12:01 am U.S. ET | June 9 |
Hummer Bummer: A death sentence?In 2002, Jacques Moore added the Hummer brand to his Cadillac-Saab dealership in Richmond, Va. As a pioneer with General Motors' new premium channel, Moore spent millions building a separate Hummer showroom. He was a satisfied Hummer dealer -- until Tuesday. [SUB] 12:01 am U.S. ET | June 9 |
Toyota considering 'Made in U.S.A.' PriusToyota's popular Prius hybrid could soon be "Made in U.S.A." The company is considering a North American production site to meet soaring demand for the fuel-efficient car, but it has made no decisions regarding a reported plan to build the Prius at Toyota's joint venture plant with General Motors in California. [SUB] 12:01 am U.S. ET | June 9 |
GM's big SUVs may get lighterGeneral Motors may shift its two big SUVs, the Chevrolet Tahoe and GMC Yukon, to a lighter, more fuel-efficient platform, said a company source. The Tahoe and Yukon -- traditionally two of GM's most profitable vehicles -- eventually will "fade away in their present form," said the source. The future of other big SUVs such as the Chevrolet Suburban and Cadillac Escalade was unclear. [SUB] 12:01 am U.S. ET | June 9 |
Sources: GM poised to buy Cobasys
General Motors is nearing a deal to buy Cobasys LLC, the troubled supplier of batteries for GM's mild hybrid vehicles, three sources told Automotive News. A source with knowledge of the talks said a deal between GM and Cobasys' parent companies is imminent. Chevron Corp., of San Ramon, Calif., and Energy Conversion Devices Inc., of suburban Detroit, each owns half of Cobasys. [SUB] 12:01 am U.S. ET | June 9
Surging steel prices shock auto industrySharp increases in steel prices -- up as much as $500 per vehicle since January -- have left automakers and suppliers reeling. Tensions are rising as steel makers tear up contracts and demand immediate price increases. [SUB] 12:01 am U.S. ET | June 2 |
Gas prices fuel industry's new eraAs gasoline prices top $4 a gallon, the shift by U.S. consumers from big, powerful trucks to small cars with small engines is now a stampede. Fuel prices are roiling the auto industry in a way Americans have not seen since the panic that followed the embargoes by oil-exporting countries in the 1970s. [SUB] 12:01 am U.S. ET | June 2 |
Japanese rivals race for lithium batteries
The race to develop lithium ion batteries is shifting into high gear. Last week Japanese electronics giant Sanyo Electric Co. was the latest to say it will start mass-producing the advanced hybrid-vehicle batteries next year. It also said it has added a partner: Germany's Volkswagen AG. The move stokes a race among several Japanese companies for the lead in green vehicles. [SUB] 12:01 am U.S. ET | June 2
Irma Elder: 'This is one of the toughest times we have had'When her husband died in 1983, Irma Elder had to raise three children on her own -- and run a Detroit Ford dealership. Over the past 25 years, Elder has built that single point into a retail empire. Today, Elder Automotive Group owns 11 dealerships in Michigan and Tampa, Fla. The company has 16 franchises, including Jaguar, Land Rover, Aston Martin, Ford, Lincoln, Mercury, Saab and Jeep. [SUB] 12:01 am U.S. ET | June 2 |
Fitzgerald: Dealers, consumers need allianceJack Fitzgerald heads a large dealership group in suburban Washington. The veteran retailer says he likes to think of himself as a consumer resource. Fitzgerald's company publishes several guides on how to shop for vehicles. His 13 dealerships, which sold nearly 20,000 new and used vehicles at retail last year, post no-haggle prices. [SUB] 12:01 am U.S. ET | June 2 |
GM seeks Volt tax break to avoid $40k sticker
General Motors expects its gasoline-electric Chevrolet Volt to come to market in 2010 priced close to $40,000, say sources close to the project. That's pricey compared with rivals such as the Toyota Prius hybrid, but taxpayers may help lower that sticker. GM is lobbying Congress to create tax credits benefiting "extended-range electric vehicles" such as the plug-in Volt. [SUB] 12:01 am U.S. ET | May 26
Bad times? Not for CEO paychecksWhat downturn? For CEOs in the auto industry, hard times didn't necessarily translate to low pay in 2007. That was especially true for CEOs of parts suppliers. The median compensation for CEOs in the survey was $4.1 million, slightly higher than the $4.0 million median 2006 compensation. In 2007, nine automotive industry CEOs received at least $10 million. That's up from eight in 2006. [SUB] 12:01 am U.S. ET | May 26 |
2008 Market Data: Dealer Data |
Ford's big cuts aim for a Honda-sized lineupFord Motor Co. is undergoing wrenching production changes -- fewer trucks, a lot more cars -- to become a little bit more like Honda. Last week, Ford announced plans to slash truck production while boosting output of the Ford Focus and Fusion, and also the Mercury Milan. [SUB] 12:01 am U.S. ET | May 26 |
Orbiting the blogosphereKristen Hammond writes about her two young sons and sells T-shirts on her Web log, "Mommy Needs A Cocktail." She isn't anyone's idea of a gearhead. [SUB] 12:01 am U.S. ET | May 26 |
Hyundai spends like never before to launch Genesis luxury sedanHyundai will spend $80 million on a marketing campaign for its new Genesis luxury sedan -- by far the most the automaker has spent to launch a vehicle in the United States. Hyundai expects to sell only about 30,000 units of the rear-drive Genesis annually in the United States. [SUB] 12:01 am U.S. ET | May 26 |
Chrysler seeks 25% slash in parts prices
Chrysler LLC purchasing czar John Campi told hundreds of supplier executives last week that the automaker wants to cut component costs by 25 percent over three years. Spokesman Kevin Frazier says Chrysler will make some significant changes in its manufacturing and purchasing operations to help suppliers hit the 25 percent target. [SUB] 12:01 am U.S. ET | May 19 | UPDATED: 5/19/08 4:58 p.m. EDT
Sonic: Mercedes tries to 'extort' store upgrades
Sonic Automotive Inc. has accused Mercedes-Benz USA of seeking to "extort" millions of dollars in unneeded dealership improvements from the public retailer. Sonic, the nation's third-largest dealership group, has an agreement to buy a Mercedes store in Charlotte, N.C., Sonic's hometown. [SUB] 12:01 am U.S. ET | May 19
Gas plan came from the troopsChrysler LLC's $2.99 gasoline promotion was born at late-February sales meetings at the Royal Park Hotel in Rochester, Mich. As part of a new policy of talking with people on the front lines, Chrysler invited about 25 general sales managers and finance and insurance managers to Detroit to ask what they were hearing from customers. [SUB] 12:01 am U.S. ET | May 19 |
Ford eyes smaller F-150 cousin
Ford Motor Co. is developing a lightweight, more fuel-efficient pickup truck to slot in below its flagship F-150. The new pickup truck, code-named P525, is being engineered on the F-150's platform. But it will be lighter and slightly smaller, supplier and industry sources told Automotive News. [SUB] 12:01 am U.S. ET | May 19
Lamborghini picks L.A. for U.S. HQ
Turns out you can't spell Lamborghini without L.A. Automobili Lamborghini has created a separate sales arm for its North American operations --the first such business unit outside of Italy. It will be headquartered in the beachside Los Angeles suburb of Santa Monica. [REG] 12:01 am U.S. ET | May 12
U.S. firms sink on supplier listAfter a stormy decade of spinoffs, megamergers, acquisitions, grand expansions and occasional red-faced retreats, the pecking order for North America's auto suppliers has a distinctly new look: Americans no longer are running the show. For the first time, a company based outside the United States is the largest supplier of parts to automakers and other suppliers' North American factories. [SUB] 12:01 am U.S. ET | May 12 |
Clarke: Buyers don't know Saturn brandSaturn's problem with potential buyers? It's worse than a lack of consideration. Buyers are barely aware of Saturn. That means that Saturn has to revamp its marketing to build awareness of the brand and its new vehicle lineup, says Troy Clarke, president of General Motors North America. [SUB] 12:01 am U.S. ET | May 12 |
Nissan: N.A. off the hot seat
Nissan North America can exhale now. After nine years of high-pressure emphasis on North America, Carlos Ghosn, CEO of Nissan Motor Co., says the automaker will not be so critically reliant on that market going forward. [SUB] 12:01 am U.S. ET | May 12
Partnership seeks "premier' stores
The new partnership of computer billionaire Michael Dell and veteran auto retailer Jeffrey Rachor will focus on buying “premier” U.S. dealerships that sell luxury and high-volume import brands, Rachor said. “We have the capital available to pursue virtually unlimited growth,” said Rachor, a former president of the public dealership group Sonic Automotive Inc. [SUB] 12:01 am U.S. ET | May 12
Factories punish rogue exporters
As the weak dollar continues to make U.S. goods a bargain, automakers are cracking down on U.S. dealers who are exporting a growing number of new cars and trucks to foreign customers on the gray market. In some cases, though, dealers say they're unwitting and unwilling participants who have no idea the vehicles they sell are going overseas. [SUB] 12:01 am U.S. ET | May 12
Chevy Traverse, Ford Flex face off this yearTheir minivans bombed, so Ford and Chevrolet are pinning hopes on their newest people movers, two strikingly different crossovers. The 2009 Ford Flex and 2009 Chevrolet Traverse will join one of the few remaining strong segments, mid-sized crossovers. The Flex and the Traverse will debut within about three months of one another and are aimed at the same buyers: people who relish value and price. [SUB] 12:01 am U.S. ET | May 12 |
Honda: Sales are flat, but market share soars
If you can keep your sales steady when all about you are losing theirs, then you'll be a man, my son, and rack up lots of market share. With apologies to Rudyard Kipling, that's the way it has played out for Honda so far this year. [SUB] 12:01 am U.S. ET | May 12
Kerkorian interest buoys Ford stockKirk Kerkorian's investment kept Ford Motor Co. stock trading last week near its highest levels in almost six months. The stock reached $8.68 on Friday morning before closing at $8.27 . That was one day after Kerkorian representative Jerry York told Automotive News that he would unload Volvo and Mercury if he were in Ford CEO Alan Mulally's shoes. [SUB] 12:01 am U.S. ET | May 5 |
Used-car price slump slams luxury makesUsed-vehicle prices are slumping in the United States, just as cars and trucks coming off lease are crowding the upscale pre-owned market. That's bad news for several luxury import brands and their captive finance companies, which rely heavily on leasing. Their used vehicles now are selling, in some cases, for thousands of dollars less than the automakers expected. [SUB] 12:01 am U.S. ET | May 5 |
INDUSTRY IN DISTRESSAfter an awful April, nearly every industry forecaster now agrees: U.S. sales will plummet by about 1 million units in 2008 -- the first time sales have tumbled that much in one year since 1991. But it's not just the million units that matters. It's the mix. High-profit pickups and SUVs account for most of the lost volume. [SUB] 12:01 am U.S. ET | May 5 |
Dodge dealers battle to bust Ram logjamClick on the Web sites of several auto dealers in central California and you'll find Dodge Ram pickups offered at $13,000 below sticker. With four months to go before a redesigned 2009 Ram arrives in showrooms, inventories and incentives are sky high on the 2008 model. Dodge has a 109-day supply of 2008s, and dealers say they're struggling to unload them. [SUB] 12:01 am U.S. ET | May 5 |
Dealers take Tundra to the peopleDrive through Raleigh, N.C., and you're likely to spot a Toyota Tundra on the streets with no doors. It's a true head-turner, the kind of offbeat promotion that lots of Toyota dealers must do to get traction in the collapsing market for full-sized trucks. The doorless Tundra is an optical illusion -- a photograph of the truck's interior is superimposed on its passenger doors. [SUB] 12:01 am U.S. ET | May 5 |
Honda to some dealers: Upgrade or elseSome Honda dealers are fuming over letters they have received from the automaker telling them to upgrade their stores or risk losing their franchises. The letters, sent in late March, tell dealers they have until May 31 to lay out their plans to make improvements and until January 2010 to comply. [SUB] 12:01 am U.S. ET | May 5 |
6 key tasks for Ford recoveryCost-cutting largely drove Ford Motor Co.'s surprise first-quarter improvement, but CEO Alan Mulally has a lot to do to achieve a full turnaround. Mulally told Automotive News last week that it's way too early for a "Mission Accomplished" banner. "The way to judge the performance, I think, is that every year we want to make an improvement over the previous year," Mulally said. [SUB] 12:01 am U.S. ET | April 28 |
New CAFE rules affect makers differentlyMercedes' cars would have to achieve better average fuel economy than Toyota's. BMW's light trucks would have to get 4 mpg more than those built by General Motors. These are among the startling outcomes projected for the 2015 model year under proposed federal fuel economy regulations. Under the new rules, the relative increase is highest for the smallest vehicles. [SUB] 12:01 am U.S. ET | April 28 |
Toyota Division inventories soar to record high
Toyota and Scion vehicle inventories have risen to record levels because the company misjudged just how much the U.S. market would decline this year. The number of units in dealership stock and en route have swelled to about 376,000. That's about 100,000 units more than were on the ground last summer, and up from about 348,000 a year ago. [SUB] 12:01 am U.S. ET | April 28
Electricity, gasoline and lots of hot airThe Beijing auto show gave automakers a chance to show off their green technology, but Chinese consumers aren't likely to be impressed. Later this year, several hybrid-powered vehicles will go on sale in China. But don't expect to see many on China's roads in the near future. Industry observers agree that no viable market exists for hybrid vehicles in China. [SUB] 12:01 am U.S. ET | April 28 |
DealmakerLast September, General Motors shocked the industry when it gave detailed future product plans to the UAW, which promptly made them public. In a business where such plans are kept tightly under wraps, GM's openness was extraordinary. It was also a key to rank-and-file approval of the groundbreaking 2007 GM-UAW contract. [SUB] 12:01 am U.S. ET | April 28 |
Hummer plummets, Saturn soars in sales per franchiseBy one measure of sales performance, two General Motors brands -- Saturn and Hummer -- were at polar extremes last year.vThe measure is U.S. new-vehicle retail registrations per franchise. Saturn tied for the greatest improvement among all automakers' brands in 2007, an Automotive News analysis concludes. But Hummer was the biggest loser. [SUB] 12:01 am U.S. ET | April 21 |
Autonews.com offers news customization |
Reorganization plan gives more muscle to 4 sales-channel execsGeneral Motors' reorganization of its brand leadership has created a new group of power players atop its four marketing channels. But some question whether, even now, these executives have enough clout. [SUB] 12:01 am U.S. ET | April 21 |
Chrysler-Nissan: Loads of partnership potentialChrysler and Nissan have barely scratched the surface when it comes to sharing products and powertrains -- a sign that their new tactical alliance could grow into a major strategic partnership. With two product-sharing agreements already in the works, the automakers now say they're busy exploring more ways to cooperate. They won't have to look far. [SUB] 12:01 am U.S. ET | April 21 |
With new products, is there life in Saturn?After years of selling cars to economy-minded buyers who loved the brand's low-pressure dealerships, Saturn has an all-new vehicle lineup. General Motors wants to reposition Saturn to attract customers who value European styling and handling and will pay for them. Customers have yet to arrive in a huge numbers. Through March, Saturn's U.S. sales totaled 48,306 units, down 15.3 percent from 2007. [SUB] 12:01 am U.S. ET | April 21 |
Panel: Diesels may hit 20% of U.S. market by 2020
About 20 percent of the vehicles in the United States could run on diesel fuel by the end of the next decade, a panel of auto executives said here last week at the 2008 SAE World Congress. Panelists also expect hybrid technologies to be in about 10 percent of vehicles by 2020, as consumers' thirst for fuel-sipping vehicles continues. [SUB] 12:01 am U.S. ET | April 21
Automotive News PACE Awards: Night of black ties, trophies, praiseSony Corp. has won Oscars, Grammys and Emmys. On Monday, April 14, it added an Automotive News PACE Award to its trophy shelf. Sony was one of about 40 companies honored as winners, finalists and honorable-mention recipients at the black-tie Automotive News PACE Awards ceremony, held here at the Max M. Fisher Music Center. [SUB] 12:01 am U.S. ET | April 21 |
2008 Guide to China's Auto MarketIn the West, higher fuel prices are prompting drivers to log fewer miles and embrace smaller, energy-efficient vehicles. Not so in China, where wealth generated by the booming national economy has more than offset rising fuel prices. 12:01 am U.S. ET | April 14 |
Hard-sell tactics plague dealers, customersPaul Broome, a Cadillac dealer in Independence, Mo., hears from about 10 customers a month who complain about his dealership's high-pressure sales of service contracts. But Broome has nothing to do with the disputed contracts or their marketing. [SUB] 12:01 am U.S. ET | April 14 |
Dealership jobs hit 8-year low
Employment at new-vehicle dealerships sank this year to the lowest level since 2000, the U.S. Labor Department reports. In February, the most recent month for which data are available, franchised dealerships employed 1,096,100 U.S. workers -- virtually the same as in February 2000. Dealership employment peaked at 1,151,000 in September 2005, the department says. [SUB] 12:01 am U.S. ET | April 14
NEWS ANALYSIS
GM is the wild card in axle war
American Axle is sticking with its demand to cut the wages of its striking UAW workers in half -- and why shouldn't it? Standing reluctantly in the wings is General Motors. The former owner of American Axle's operations may have little choice but to broker a deal. Within a week, GM will run out of American Axle-made parts for its hot-selling Chevrolet Malibu and Pontiac G6 sedans. [SUB] 12:01 am U.S. ET | April 14
After S. Calif. success, Honda may fund ad groupsAfter a successful dealer ad campaign in Southern California, Honda may resume funding its dealer advertising groups across the nation. With the blessing of sales chief Dick Colliver, Honda dealers here revived their ad associations after a 12-year absence. And after the rollout of "Honda Helpful," a quirky ad campaign that began in early 2007, the dealers are seeing results. [SUB] 12:01 am U.S. ET | April 14 |
Toyota, Subaru work on 'affordable' sports car
Toyota's long-anticipated sports car will arrive in 2011. It will be developed with Subaru and have a boxer engine. The compact, rear-drive, "affordable" car will be built at a new Japanese plant to be set up by Fuji Heavy Industries, parent of Subaru. Each company will market the car separately and badge it as its own. [SUB] 12:01 am U.S. ET | April 14
GM hybrids get off to a slow start in first quarterSales of new General Motors hybrids, including its touted full-sized SUVs, are taking off at a crawl. GM sold 843 hybrids in the first quarter -- 655 of them the Two Mode hybrid versions of its full-sized Chevrolet Tahoe and GMC Yukon SUVs. The rest are mild hybrids: the Saturn Aura Green Line, Saturn Vue Green Line and Chevrolet Malibu Hybrid. [SUB] 12:01 am U.S. ET | April 14 |
6 more finalists in contest for PACE honorsHere are profiles of six of 23 finalists in the 2008 Automotive News PACE Awards. [SUB] 12:01 am U.S. ET | April 7 |
Industry's March was off a cliff
When the Detroit 3's sales in the United States decline for the month, the typical reaction is: So what else is new? But when the sales of the Japanese Big 3 -- Toyota, Honda and Nissan -- also drop, the situation merits closer examination. And when 31 of the 38 major brands on the Automotive News sales chart take a bath, the condition is critical indeed. [SUB] 12:01 am U.S. ET | April 7
GM may realign marketing leadershipGeneral Motors North American marketing chief Mark LaNeve may revamp GM's sales, service and marketing to handle key functions through retail channels rather than through a centralized setup. If that happens, it would mean that each of GM's four sales channels will have a sales executive under the brand general manager. [SUB] 12:01 am U.S. ET | April 7 |
Downsizing arrives -- with a vengeanceThe big shift to small cars this year threatens the revenue and profitability prospects of the Detroit 3. The change in buying patterns accelerated in March, while overall sales tanked. The problem for the domestic automakers: They are still way underrepresented in the vehicle segments that are growing. All three say they aim to bolster their small-car portfolio. [SUB] 12:01 am U.S. ET | April 7 |
Detroit 3 diet: Lose dealerships
Big challenge for Ford's quality guyIn November 2006, Ford Motor Co. quality chief Bennie Fowler and two fellow executives left a meeting three hours before they were to give the OK to ship several thousand Ford Edges to dealers. But then came a call: Someone driving the Edge in a customer evaluation fleet reported a problem. The executives decided to tell their bosses the vehicle wasn't ready to ship. [SUB] 12:01 am U.S. ET | April 7 |
Chrysler eases store upgrade standards
As part of its downsizing effort, Chrysler LLC is lowering the amount it requires dealers to spend to upgrade stores. For an average store's land and building requirements, "we brought down the size of the footprint about 12 percent," said Steven Landry, executive vice president for North American sales. "We want to keep facilities requirements in line with what dealers can afford." [SUB] 12:01 am U.S. ET | April 7
2008 Market Data: North America Production |
5 more PACE-setters in auto innovationHere are profiles of five of 23 finalists in the 2008 Automotive News PACE Awards. [SUB] 12:01 am U.S. ET | March 31 |
Alfa searches for a U.S. factory
Fiat is scouting for a plant to build Alfa Romeo cars in the United States and plans to choose a location by the end of May. Two possibilities are being considered, according to sources familiar with the project: Buy a shuttered factory formerly owned by one of the Detroit 3, or expand an existing Case New Holland agricultural machinery or construction equipment plant. [SUB] 12:01 am U.S. ET | March 31
Farley retools Flex marketing strategyFord Motor Co. will market its new seven-passenger crossover without focusing on one of its biggest potential customer categories: families. Instead, Ford will try to position the Flex as a trendsetting vehicle for people wanting a stylish ride. [SUB] 12:01 am U.S. ET | March 31 |
Car broker leaves dealers in lurchFor the managers of used-car lots, it looked like an offer that you couldn't refuse. A Dallas-based broker called lanelogic had formed a network of franchised dealer clients that bought and sold each other's used cars. And if a dealer purchased a used car through lanelogic and failed to sell it within 45 days, lanelogic would buy it back. [SUB] 12:01 am U.S. ET | March 31 |
Suddenly, a market for plug-insWith the stroke of a pen, California regulators have created an instant market -- and a sizable one -- for plug-in hybrids. Last week, the California Air Resources Board ruled that automakers must sell at least 66,000 plug-in hybrid vehicles from 2012 through 2014. [SUB] 12:01 am U.S. ET | March 31 |
Axle strike leads GM to alter production plan
In the first quarter, a strike at a key supplier slashed General Motors' North American vehicle production. Now GM may not have to cut as deeply in the second quarter as it did in the first, according to a forecast by consulting firm CSM Worldwide. [SUB] 12:01 am U.S. ET | March 31
What's ahead for British brands?Each day on his way to work, Tim Kip zips past the Tata Tea Inc. processing factory in Plant City, Fla., in his Jaguar XK8 sports car. Kip said he rarely if ever thought of Tata before last week. And if he did, it meant just one thing: tea bags. That changed when Ford Motor Co. sold Jaguar and Land Rover to Indian automaker Tata Motors Ltd. for $2.3 billion. [SUB] 12:01 am U.S. ET | March 31 |
Future could be bright for Jag, Land RoverJaguar and Land Rover could have a bright future under Tata Motors' ownership, industry insiders say. This month, Tata Group Chairman Ratan Tata told Automotive News Europe that he would not transfer Jaguar and Land Rover production or component sourcing from England to low-cost countries. [SUB] 12:01 am U.S. ET | March 31 |
AutoNation's lead shrinks as largest U.S. dealer groupIt isn't General Motors vs. Toyota. But after a decade of dominance as the nation's largest auto dealership group, AutoNation Inc. may have reason to check its rearview mirror. Last year, AutoNation's new-vehicle retail sales and gross revenue both sank to their lowest annual levels since 1998, according to this year's Automotive News list of the top 125 U.S. dealership groups [SUB] 12:01 am U.S. ET | March 24 |
Industry straps in for rough ride
Whether this is a recession or not, automakers and dealers are girding for a continued pounding. February sales declined for four of the Big 6 automakers, and executives say it may be months before the market stabilizes. [SUB] 12:01 am U.S. ET | March 24
Ford lists 6 to succeed Mulally
New Ford Motor Co. marketing chief Jim Farley is on a short list to replace CEO Alan Mulally. Farley's management skills and his potential to be CEO made him the No. 1 pick for Ford's top marketing job last year, says Ford personnel chief Joe Laymon. [SUB] 12:01 am U.S. ET | March 24
GM pushes luxury superstores
General Motors is helping dealers who want to consolidate its Cadillac, Saab and Hummer luxury franchises into superstores, and the company says it could offer financing to some dealers on a case-by-case basis. In a strategy reminiscent of its Buick-Pontiac-GMC consolidation, GM appears to be creating multibrand luxury dealerships that could compete more effectively with rivals such as Lexus. [SUB] 12:01 am U.S. ET | March 24
Fukui: Nickel battery is best bet for hybridFrom Detroit to Tokyo, automakers are banking on lithium ion batteries to power the next generation of hybrid and electric vehicles, starting as early as next year. But Honda President Takeo Fukui says the technology is still too unreliable to warrant mass production. What's more, Honda's highly anticipated "affordable hybrid" will debut next year with standard nickel-metal hydride power packs. [SUB] 12:01 am U.S. ET | March 24 |
Dodge's pitch for Challenger: A halo that you can affordMichael Accavitti, Dodge brand director, likes to call the 2009 Dodge Challenger an "affordable halo car." "The Viper SRT10 is great, but it's out of reach for most Dodge customers," Accavitti said. With prices starting just north of $20,000 for a V-6 SE and ranging to nearly $40,000 for a loaded SRT8, Dodge wants to make a Challenger for every budget. [SUB] 12:01 am U.S. ET | March 24 |
