Automotive News Table of Contents

For the Week of Nov. 2, 2009




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Mulally: We could export from U.S.

Three years after arriving at Ford Motor Co., CEO Alan Mulally has flexible manufacturing plants and global vehicles ready to go. Throw in the weak U.S. dollar, and that means Ford now could even export vehicles made in its U.S. [SUB] 12:01 am U.S. ET | Nov. 2

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Tire plan is a blowout; dealers, drivers stuck

Baltimore dealer Edward Drieband thought selling lifetime tire replacement policies would increase repeat business at his dealerships. Instead he has a bevy of upset customers and is out $130,000 for claims he has honored without reimbursement. [SUB] 12:01 am U.S. ET | Nov. 2

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Toyota's new U.S. plan: Trim trucks, add hybrids

Toyota Motor Corp. President Akio Toyoda is rewriting his U.S. playbook to revive battered sales and a tattered image. [SUB] 12:01 am U.S. ET | Nov. 2

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Chrysler revival event puts spotlight on mpg

More than a dozen Chrysler Group executives will take center stage this week to present the automaker's much-anticipated five-year revival plan. But the real stars of the show will be Fiat S.p.A.'s fuel-saving engines and technology. [SUB] 12:01 am U.S. ET | Nov. 2

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Jim Perkins still pushes the pedal

Anybody who thinks starting an automotive venture is a young man's game hasn't been following the career of Jim Perkins. At 74, the former Chevrolet boss is taking North Carolina megadealer Rick Hendrick on a new entrepreneurial tear. [SUB] 12:01 am U.S. ET | Nov. 2

Public dealer groups post higher profits

Aided by the cash-for-clunkers sales boost, publicly traded retailers posted sharply better earnings in the third quarter. [SUB] 12:01 am U.S. ET | Nov. 2

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AUTOMOTIVE NEWS WORLD CONGRESS

Toyota's North America chief will address congress

Yoshi Inaba, COO of Toyota Motor North America, will be a keynote speaker at the 2010 Automotive News World Congress. Inaba will speak Tuesday evening, Jan. 12, in Detroit. As the Toyota Motor Corp. 12:01 am U.S. ET | Nov. 2

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How this Gen 5 store lived to be 100

Dennis Egglefield has two big tasks on his mind: planning a 100th anniversary bash for his upstate New York Ford dealership and preparing for a fifth generation of Egglefields to take over what great-grandpa Wilbur wrought in 1910. [SUB] 12:01 am U.S. ET | Nov. 2

Lawmakers: Agency will oversee lenders, not dealers

Key lawmakers are trying to clarify that banks and captive finance companies that make indirect loans to consumers would be overseen by a new consumer agency being proposed -- even though auto dealerships that arrange these loans would be exempt. [SUB] 12:01 am U.S. ET | Nov. 2

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New sales chief wants to break GM's bad habits

Just two weeks into her new role as General Motors Co.'s vice president of U.S. sales, Susan Docherty plans to break some of GM's bad sales habits. For instance, GM still splurges on incentives -- about $4,000 per vehicle, she says. [SUB] 12:01 am U.S. ET | Nov. 2

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A glimpse of VW's future

Volkswagen of America has released a sketch of the U.S.-built mid-sized sedan that will go on sale in the fall of 2011. [SUB] 12:01 am U.S. ET | Nov. 2

Dealers dispute customer's suit over clunkers

Dealers say a New York judge should throw out a consumer's request for class-action status for a lawsuit accusing Penske Automotive Group Inc. of keeping $75 the dealership received from a scrappage company for a cash-for-clunkers trade-in. On Aug. [SUB] 12:01 am U.S. ET | Nov. 2

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Lear in, JCI out on sedan seats

Lear Corp. has unseated Johnson Controls Inc. for the seat contract on the redesigned 2011 Chrysler 300 sedan. Seats for the current model are supplied by Johnson Controls. [SUB] 12:01 am U.S. ET | Nov. 2

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M-B rounds up Sprinter dealers

Mercedes-Benz USA says 100 Mercedes dealers so far have accepted its offer to sell the Sprinter van starting in January. In September, Daimler AG pulled the Sprinter from the Dodge lineup and moved the diesel-powered van to Mercedes. [SUB] 12:01 am U.S. ET | Nov. 2

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Toyota promises to improve quality

Toyota Motor Corp. senior executives say the automaker is moving aggressively to improve quality after a recent rash of problems saddled the company with lawsuits, its largest-ever U.S. recall and allegations of deadly defects. [SUB] 12:01 am U.S. ET | Nov. 2

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Acura reverses product plans

Acura is reversing course in North America as the brand suffers through the shift from high-performance luxury vehicles and the cancellation of its V-8 and rear-wheel-drive programs. [SUB] 12:01 am U.S. ET | Nov. 2

AN Today is renamed; new Digital Edition

Automotive News has made changes to two of its online features. The Digital Edition has been redesigned and the "Automotive News Today" newscast has been renamed "Automotive News TV." 12:01 am U.S. ET | Nov. 2

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Higher limits look likely for SBA guaranteed loans

For the first time in a decade, Congress is poised to raise limits on federally guaranteed loans to small businesses, including auto dealers, in an attempt to stimulate the economy, lobbyists say. [SUB] 12:01 am U.S. ET | Nov. 2

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Mazda, Ford go separate ways on product development

Less than a year after Ford Motor Co. halved its stake in Mazda Motor Corp., Mazda is embarking on a more independent product development path. [SUB] 12:01 am U.S. ET | Nov. 2

Denso eyes standard hybrid parts

Denso Corp., the world's No. 2 auto parts supplier, aims for a bigger stake of the global hybrid car market by standardizing its electric-gasoline drivetrain technology for sale to automakers other than Toyota Motor Corp. [SUB] 12:01 am U.S. ET | Nov. 2

Ford favors Geely in bidding for Volvo

Geely Holding Group Co., a small but ambitious Chinese automaker with overseas ambitions, is Ford Motor Co.'s preferred bidder to purchase Volvo Car Corp. [SUB] 12:01 am U.S. ET | Nov. 2

OPINION

Dealers need SBA loan program improved now

The Obama administration's pilot program that allows the Small Business Administration to guarantee floorplan loans to dealerships was a bold stroke to free up wholesale credit for dealers just when they needed it most. [SUB] 12:01 am U.S. ET | Nov. 2

LETTER TO THE EDITOR

GM's customers want the sizzle

Regarding "Cadillac wants the buzz to be about product," Oct. 19: Modernista's ads for Cadillac featuring Kate Walsh did more to appeal to a woman wishing to establish her femininity than any of the soccer mom ads for minivans and the like. [SUB] 12:01 am U.S. ET | Nov. 2

COMMENTARY: LETTERS TO THE EDITOR

GM: Treat all dealers the same

In October General Motors offered $2,000 in bonus cash on 2009 pickups and SUVs, but not all 2009 pickups and SUVs qualified. The rebate was aimed at older inventory. [SUB] 12:01 am U.S. ET | Nov. 2

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COMMENTARY: KEITH CRAIN

It's a week of revival for car people

This week is for SEMA. That's the Specialty Equipment Market Association. I remember when it stood for Speed Equipment Manufacturers Association, but that was before the first energy crisis almost killed the aftermarket business. [SUB] 12:01 am U.S. ET | Nov. 2

COMMENTARY: LETTER TO THE EDITOR

Tell the truth about rural sales

I am a rural Chevrolet dealer who is being "wound down." We are in a small town in southern Oregon that serves a market with more than 80,000 people in about a 60-mile radius from our store. [SUB] 12:01 am U.S. ET | Nov. 2

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COMMENTARY: CHARLES CHILD

Give rejected dealers stock in GM, Chrysler

The pain felt by executives, workers, companies and communities from the bankruptcies of General Motors and Chrysler is enduring and deep. But the rejected dealers of the two automakers are bearing more than their fair share. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Alternative power brings a fresh surge of patents

The auto industry's scramble into new kinds of vehicle power has unleashed a tidal wave of technology patents that will make their way into vehicles in the coming decade. [SUB] 12:01 am U.S. ET | Nov. 2

VEHICLE TECHNOLOGY

Auto technology: Push the reset button

To a degree not seen since the early decades of the 20th century, vehicles are being reimagined, reconfigured and recast in their role in society. No longer is it enough to go from point A to point B in style and safety. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Better fuel economy from tires? Yes, but it may come at a price

Automakers like low-rolling-resistance tires and the quick jump in fuel economy they can provide. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

COMMENT: The tech Hall of Shame: Who needs this stuff?

This special section celebrates engineering excellence. But some product planners and engineers insist on installing obsolete technology or gimmicky gadgetry that only annoys vehicle occupants. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Direct injection for gasoline, not just diesel, sees growth spurt

An advanced engine technology that reduces fuel consumption and emissions while increasing power appears headed for widespread adoption in North America. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Efficient air conditioners are cool new trend

Energy-efficient auto air conditioners, which have been a hit in Europe for years, finally are getting noticed in North America. Electronically controlled variable compressors now are used in just 20 percent of North American vehicles. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Fuel-saving cylinder deactivation takes hold

Call it the quiet technology. Cylinder deactivation -- turning off the combustion in several cylinders of an engine under low-revving conditions -- isn't something carmakers want customers to notice except when they tally up their gasoline bills. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Increasingly, cars get software upgrades to allow automatic parking

Automatic parking systems are becoming more common, and some automakers are offering several 2010 models with the convenience feature. Volkswagen AG, Ford Motor Co. and Toyota Motor Corp. [SUB] 12:01 am U.S. ET | Nov. 2

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VEHICLE TECHNOLOGY

Stop-start: Not just for hybrids anymore

Stop-start is moving to start. Today, only hybrids such as the Toyota Prius and Ford Escape Hybrid use a stop-start system in North America. But that's about to change. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

Giving service a jump-start

Dealers are finding it harder to keep their service departments full. New-car dealers booked $81. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

At the bump shop, it's a hard-knock life

The bump shop business is facing hard times. Just ask dealer John Hine. A little over 18 months ago, Hine's collision repair center in San Diego was turning 75 percent of its repair estimates into business. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

Dealer's quick-lube franchise is a buffer when sales head south

In the early 1970s, Larry Puckett was a sales manager at a Chevrolet store in Birmingham, Ala. He became fascinated by an auto service shop down the street that changed oil in just 10 minutes. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

Dealer taps global market for performance parts

To sell more performance parts, Scott Crouch of Flatirons Subaru in Boulder, Colo., created a loyal following of customers, online and local. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

Discount oil-change coupons boost revenue

With vehicle sales down across the industry, auto dealers are counting heavily on service work, such as oil changes, to make money. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

Accessory sales pump up profits during tough times

My salesman never mentioned the word "accessories" when I was buying my 2010 Pontiac Vibe GT. Only after I got home and started thumbing through the paperwork did I learn that General Motors Co. offers about a dozen items for the Vibe. [SUB] 12:01 am U.S. ET | Nov. 2

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SERVICE & PARTS

Toyota store holds its own against tire discounters

To beat discount tire chains, Toyota of Walnut Creek in Walnut Creek, Calif., started with a simple proposition five years ago: Meet or beat the prices of the competition. [SUB] 12:01 am U.S. ET | Nov. 2

SERVICE & PARTS

Pit Stop builds good vibes for GM dealers

Zimbrick Buick West in Madison, Wis., has a special Pit Stop lane where customers can get tire pressures checked, wiper fluid topped off and other such minor services, without an appointment and at no charge. [SUB] 12:01 am U.S. ET | Nov. 2

Dealers

Dealerships in this report: Lloyd's Toyota in Jamestown, N.D.; Healy Chrysler-Dodge in Ludington, Mich.; Woodstock Garage (Chrysler-Dodge) in Woodstock, Va. 12:01 am U.S. ET | Nov. 2

Aisin sells some of its brake business to Advics

Aisin Seiki Co. will sell part of its brake business to Advics Co., a joint venture Aisin helped start with Toyota Motor Corp. [SUB] 12:01 am U.S. ET | Nov. 2

Alcan in Chinese venture

Aluminum company Alcan Engineered & Automotive Solutions has created a joint venture with aluminum, steel and plastics maker Changchun Engley Automobile Parts Co. Ltd. The joint venture is called Alcan Engley Automotive Structures Co. Ltd. [SUB] 12:01 am U.S. ET | Nov. 2

Cequent supplies towing system to Ford Super Duty

Cequent Performance Products Inc. will supply an optional cross-bed towing system on the 2011 Ford Super Duty F-series trucks. The towing system is for towing gooseneck and fifth-wheel trailers of up to 25,000 pounds. [SUB] 12:01 am U.S. ET | Nov. 2

Fisker backer: Auto industry is a good bet

Fisker Automotive Inc. investor Ray Lane says he knows the auto industry bears little resemblance to the Internet and software businesses that have made him and his fellow venture capitalists successful. [SUB] 12:01 am U.S. ET | Nov. 2

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GM monitors more troubled suppliers with smaller staff

General Motors Co. purchasing chief Bob Socia has to do more with less. [SUB] 12:01 am U.S. ET | Nov. 2

GM seeks return to fixed-price steel contracts

In a rare move, General Motors Co. has tipped its hand in upcoming steel price negotiations, signaling that it wants to lock in lower prices by seeking fixed-price contracts, a practice it abandoned at least in part last year. [SUB] 12:01 am U.S. ET | Nov. 2

Kemet wins hybrid grant

Kemet Corp., a Tier 2 capacitor maker, has won a $15.1 million Department of Energy grant to expand its Simpsonville, S.C., plant to make more hybrid components. [SUB] 12:01 am U.S. ET | Nov. 2

LG supplies VW audio

South Korea's LG Electronics Inc. will supply Volkswagen AG with car audio systems worth about $370 million starting in 2012. [SUB] 12:01 am U.S. ET | Nov. 2

Lithium ion battery engineers focus on cost

DETROIT -- As hybrid and electric vehicles get nearer to production, the focus on lithium ion batteries is starting to shift from safety to price. [SUB] 12:01 am U.S. ET | Nov. 2

Porsche's Panamera starts well, but segment is iffy

With 983 firm orders at launch, Porsche's new four-door Panamera is breathing life into the brand and will help the company record flat or slightly increased sales this year, said Michael Bartsch, COO of Porsche Cars North America. [SUB] 12:01 am U.S. ET | Nov. 2

UAW health trust hires investment chief

The UAW's Voluntary Employees' Beneficiary Association won't officially open for business until Jan. 1. But the association, which has more than $37 billion in assets, is hiring staff and working on legal requirements of operation. [SUB] 12:01 am U.S. ET | Nov. 2

Incentives ease skid in Japan; 3rd qtr. off 2%

Japan's new-vehicle sales got a big boost from that nation's version of cash-for-clunker incentives in the third quarter. [SUB] 12:01 am U.S. ET | Nov. 2

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Key redesigns will boost VW sales 10%, COO says

Volkswagen of America expects sales of the VW brand to rise 10 percent in 2010 thanks to redesigns of several key products, says COO Mark Barnes. [SUB] 12:01 am U.S. ET | Nov. 2

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Kia's new Sorento will get a big 'Made in U.S.A.' label

Kia Motors America will use its new "Made in U.S.A" bragging rights to help drive sales of its redesigned Sorento next year. The compact SUV will begin rolling out of Kia's $1 billion assembly plant in West Point, Ga. [SUB] 12:01 am U.S. ET | Nov. 2

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Aisin Seiki hunts business beyond Toyota

Aisin Seiki Co. President Fumio Fujimori says the Japanese supplier wants to boost sales by building up business with customers other than Toyota Motor Corp. as part of its restructuring strategy. [SUB] 12:01 am U.S. ET | Nov. 2

Nissan seeks signature sound for Leaf EV

One of the good things about Nissan's upcoming electric car, the Leaf, is that it is virtually silent as it drives. But that's also one of its problems. Nissan engineers are now searching for more than one sound for the Leaf. [SUB] 12:01 am U.S. ET | Nov. 2

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NEWS ANALYSIS

How Deutsch L.A. snared plum Volkswagen account

If there's such a thing as a surprise account win in a business in which marketers frequently defy logic when it comes to selecting agencies, then this was it. [SUB] 12:01 am U.S. ET | Nov. 2

TOKYO AUTO SHOW

Tokyo glow

The Tokyo Motor Show was a subdued affair this year compared to the glittering gallery of automotive excess it was in past years. But it still offered eye candy and intriguing ideas. Here are a few standouts. [SUB] 12:01 am U.S. ET | Nov. 2

28 innovators are finalists for PACE Awards

Twenty-eight finalists have been chosen for the 2010 Automotive News PACE Awards. PACE stands for Premier Automotive Suppliers' Contribution to Excellence. Here are the categories and finalists and their innovations, by category. [SUB] 12:01 am U.S. ET | Nov. 2

4 companies win honorable mention

Four companies will receive 2010 Automotive News PACE Awards honorable mentions. [SUB] 12:01 am U.S. ET | Nov. 2

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Parts shortages crimp Toyota's Prius output

Toyota Motor Corp. can't achieve full production capacity for its hot-selling Prius hybrid because of battery and inverter shortages at its parts makers. [SUB] 12:01 am U.S. ET | Nov. 2

Violence in India shuts GM and Ford plants in N.A.

Labor violence at an Indian supplier that forced both Ford Motor Co. and General Motors Co. to halt crossover production has raised questions about the stability of India as a source of parts for U.S. factories. [SUB] 12:01 am U.S. ET | Nov. 2

A carpenter's side job becomes the Egglefield family's legacy

Dennis Egglefield figures that his family's Ford dealership in upstate New York had to beat some pretty long odds to keep going for 100 years under continuous family ownership. [SUB] 12:01 am U.S. ET | Nov. 2

AutoNation's Jackson: 'Production push' is dead

For the first time in his long auto retail career, AutoNation Inc. CEO Mike Jackson says he is feeling no pressure to order vehicles from the factories. [SUB] 12:01 am U.S. ET | Nov. 2

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Chrysler goes with the Flo TV

In December, Chrysler Group vehicles will offer as many as 20 channels of programming from channels such as CBS, CNBC, Comedy Central, FOX News, MSNBC and MTV. [SUB] 12:01 am U.S. ET | Nov. 2

GM extends 60-day guarantee

General Motors Co. will extend its 60-day satisfaction guarantee program as part of a continuation to its "May the Best Car Win" advertising campaign. GM started the program Sept. 13. It was supposed to end Nov. 30 but now will run to Jan. 4. [SUB] 12:01 am U.S. ET | Nov. 2

Japan automakers' earnings fall

Falling sales and an unfavorable exchange rate hurt July-September earnings at Japanese automakers. [SUB] 12:01 am U.S. ET | Nov. 2

Keep lobbying, dealers told

A group representing dealers rejected by General Motors Co. and Chrysler Group urged its members to resume lobbying Congress for passage of legislation to reverse dealer terminations while settlement talks continued with the two automakers. [SUB] 12:01 am U.S. ET | Nov. 2

Some use Web; some shop lots

Used-car buyers now use the Internet and dealership visits equally to find vehicles, the market research firm J.D. Power and Associates said in a report. [SUB] 12:01 am U.S. ET | Nov. 2

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FINAL ASSEMBLY

Chrysler's ad chief goes for the heavy hitters

Olivier Francois, the Fiat executive tapped last month to head Chrysler marketing, is famous in Europe for putting famous people in his ads. [SUB] 12:01 am U.S. ET | Nov. 2

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COMMENTARY: FINAL ASSEMBLY

COMMENT: GM's college of hard knocks

Don't expect to see any tailgate parties with burgers, brats and beer. But General Motors University is alive and well, having survived the automaker's slide through Chapter 11. [SUB] 12:01 am U.S. ET | Nov. 2

FINAL ASSEMBLY

Heated debate over a van erupts in flames at Ford store

Dealers have some unique problems in these tough times. And then there is that old standby -- the irate customer. Coccia Ford-Lincoln-Mercury in Wilkes-Barre, Pa., had a doozy last week. [SUB] 12:01 am U.S. ET | Nov. 2

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FINAL ASSEMBLY

Public retail groups looking to buy, with a wary eye

The market for buying and selling dealerships has been in a deep freeze this year. But last week's round of financial results from public retailers suggests that things may be loosening up a little. [SUB] 12:01 am U.S. ET | Nov. 2

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FINAL ASSEMBLY

Shrinking industry losing a woman's touch at the top

When Susan Docherty replaced Mark LaNeve as General Motors' vice president of U.S. sales last month, she bucked a growing trend. Docherty, 46, is one of the few female auto executives who is moving up this year, rather than moving out. [SUB] 12:01 am U.S. ET | Nov. 2

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FINAL ASSEMBLY

Tesla: The real Government Motors?

Tesla is a tiny maker of electric sports cars. But it's in the big leagues when it comes to finding government money. First, Tesla received $465 million in low-interest loans from the federal government. Next, from now until Jan. [SUB] 12:01 am U.S. ET | Nov. 2