Treadwell named ASC chairman
DETROIT - Waltraud Prechter, with the help of a longtime business associate, will oversee the vast holdings of her husband, the late Heinz Prechter. Heinz Prechter died July 6 in a suicide at his home in suburban Detroit.
Waltraud Prechter becomes sole shareholder and chairwoman of Prechter Holdings, the parent company of automotive supplier ASC Inc. David Treadwell becomes chairman of ASC after serving as vice chairman of the company since 1997. Treadwell, who joined the Prechter companies in 1984, will remain president and CEO of Prechter Holdings.
ASC will continue to operate as a privately held company, officials said.
- Amy Wilson
Analysts see grim earnings
DaimlerChrysler and General Motors will see earnings fall by more than 50 percent for the second quarter, while Ford will plunge into red ink. That is the consensus of analysts surveyed by Boston-based First Call Corp. The automakers will report quarterly results this week.
Ford will lose 34 cents per share, based on a poll of 19 analysts. That would translate to a loss of about $598 million for Ford. Ford earned $1.18 per share in the second quarter of 2000. Ford will book the costs of its Firestone tire recall as a routine business expense rather than an extraordinary item.
DaimlerChrysler will earn 23 cents per share, an 86.1 percent decrease from earnings of $1.65 per share in the year ago quarter, based on a poll of nine analysts. DCX will post net income of about $233.4 million.
General Motors will earn $1.14 per share, down 61.1 percent from $2.93 a year ago, based on a poll of 20 analysts. GM will post net income of about $625.4 million.
- Dave Guilford
Sedona priced at $19,590
SEDONA, Ariz. - Kia Motors America Inc. priced its first minivan, the Sedona, from $19,590, including $595 destination charge.
The base model comes equipped with a 5-speed automatic transmission, a 3.5-liter V-6, dual sliding doors, and power locks and windows. An EX model with leather seats, a sunroof, a roof rack, chrome trim, interior wood accents and antilock brakes will be priced at $23,610. It will be covered by Kia's 10-year, 100,000-mile limited powertrain warranty.
The Sedona arrives in showrooms in August. Kia projects it will sell 20,000-24,000 minivans in the model's first year.
At the vehicle's press introduction here, Kia Motors America President B.M. Ahn said the company is 'within a month' of naming a new executive vice president to replace Dick Macedo. Ahn said he still is considering candidates for the post but will reach a decision soon. Macedo retired in April after eight years with the company including three years as executive vice president.
- Joe Kohn
Ford recalls 1.4 million vehicles
Ford Motor Co. is recalling 1.4 million 2001 model-year cars and trucks to inspect driver and front outboard passenger seat belt buckles. Less than 5 percent of the buckles may not latch properly if sufficient force is not applied when inserting the tongue into the buckle.
Ford blamed the problem on supplier manufacturing issues. Supplier TRW Inc. said it would record an undisclosed charge to its second-quarter earnings related to the recall cost.
The recall affects the 2001 Ford Crown Victoria, Windstar, Ranger, F series, Excursion and Expedition; the Mercury Grand Marquis, Lincoln Town Car and Navigator; and the Mazda B-series truck, built from the beginning of the model year through May 26.
Look for fewer Dodge spots
Dodge will create far fewer TV spots for the 2002 model year and run them more often.
Julie Roehm, marketing communications director of Dodge, said its agency, Omnicom Group's PentaMark Worldwide of Troy, Mich., will produce fewer than half of the 50 commercials created for the 2001 model year. That figure includes spots for regional dealer ad groups.
Past Dodge executions used a single commercial to hammer home a single different vehicle feature, so it could take six different spots to cover a model. 'TV is not meant for that,' Roehm said. 'If I can get you to look at our spot on TV and it can make you smile and feel good about our brand, I've done my job on television.' Print and the Internet are better suited for explanations of features, she said.
- Advertising Age