Automotive News - January 7, 2008 - (Page 1)

autonews.com ® JANUARY 7, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY JAPAN TRIUMPHANT After a big 2007, Toyota Division is about to become #1 in the U.S. John K. Teahen Jr. jteahen@crain.com Closing in Chevy’s U.S. sales lead over Toyota 2004 2005 2006 349,476 2007 88,885 1,074,505 850,209 Get ready for a new leader in U.S. sales of cars and light trucks. And it won’t be an American brand. In a remarkable 2007, the Toyota brand passed the Ford brand in sales and was No. 2 behind Chevrolet. Not too far behind, either. Toyota is poised to take over the top spot, probably this year. Japan’s juggernaut is charging past one sales milestone after another. Japan’s Big 3 all roared ahead in 2007 while the Detroit 3 lost more ground. Toyota Motor Sales U.S.A Inc., including Lexus and Scion, left Ford Motor Co. in the dust last year. Toyota Motor is now No. 2 in the United States behind General Motors, and it took another massive chunk out of GM’s U.S. leadership in 2007. In fact, Toyota has cut GM’s advantage by 1 million units in the past two years and is now just over a million units behind. Sales story and tables ➤ 33-35 Could Toyota catch GM by the end of the decade? Not necessarily, says Jesse Toprak of Edmunds.com. “Toyota will grow at a slower pace,” Toprak says. “And GM will not lose as much market share over the next three years.” Nissan was back on track in 2007, and Honda added market share. Altogether, Japan’s brands gained 2.1 share points in 2007, to 36.9 percent. But for the Detroit 3 it was another dismal year in a dreadful decade. Detroit 3 sales were down 7.1 percent in a market off 2.5 percent to 16.2 million. Combined share fell from 53.7 percent in 2006 to 51.1 percent in 2007. The Ford brand collapsed. The brand’s overall sales fell 13.6 percent, and Ford car sales plummeted 27.6 percent. Lots of Detroit 3 brands got hammered in 2007, but the Ford brand shed more market share than the losses of Chevrolet, Pontiac, Buick Source: Automotive News Data Center and Chrysler combined. In 2006, Ford was first for the 19th time in 20 years; Chevrolet won in 2005. Chevy’s win in 2007 probably was the last hurrah for the American kingpins. Chevy outpaced Toyota by only 88,885 sales. If you include Scion with Toyota, Toyota is already the leader by more than 40,000 units. c An industry turns green — let’s talk The sharp rise in oil prices — now around $100 a barrel — has tossed an economic hand grenade into the debate over global warming. To reduce carbon dioxide emissions, automakers must achieve big improvements in fuel economy. And now, consumers seem certain to demand results. What next? On Nov. 19, leading auto executives will debate these issues at the Automotive News Green Conference at the Four Points by Sheraton Ann Arbor in Ann Arbor, Mich. Among the topics: How much has the auto industry contributed to global warming, and what can automakers do about it? Kaizen vs. the Great Leap Forward. Should automakers focus on costly, high-tech innovations such as fuel cells and lithium ion batteries? Or should they rely on step-by-step improvements such as lightweight parts, efficient transmissions and stop-start generators? “I’m with the government — I’m here to help!” Should the federal government play a major research role? Or should it simply stay out of the way? Who’s going to make money from the green revolution? For some suppliers, the green revolution may be the greenback revolution. Admission for the conference is $645. For more information, visit www.autonews.com/green or contact Libby Irwin at lirwin@crain.com or 313-446-0420. c Showtime in Detroit Pickups and SUVs — once predictable and conservative — are getting a styling makeover. At next week’s Detroit auto show, Toyota will introduce the A-BAT concept pickup, left. Ford will unveil the Explorer America concept, below, which shows the likely styling of the next-generation car-based Explorer. Our show preview begins on Page 15. Live coverage will be at www.autonews.com beginning Sunday. There’s big dough in going broke When Delphi comes out of Chapter 11, top execs Steve Miller and Rodney O’Neal stand to earn a combined $13.6 million in bonuses. | PAGE 6 | Ford doubles budget for local marketing Ford plans to spend lots more on regional promotions in the first quarter, a move meant to tailor incentives to local market conditions. | PAGE 4 | Ford, Microsoft go after OnStar Microsoft, moving deeper into auto telematics, will add automatic accident notification — a key element of GM’s OnStar — to Ford’s Sync system. | PAGE 3 | Caddy V-8 is endangered species Jamie LaReau and Richard Truett jlareau@crain.com On the Web… This week at www.autonews.com Today: Get live coverage of auto-related news from the International Consumer Electronics Show in Las Vegas. Tuesday: GM CEO Rick Wagoner speaks at the International Consumer Electronics Show. Thursday: PricewaterhouseCoopers holds a media roundtable in Detroit on the latest automotive trends. This week: Get previews and product announcements in preparation for the Detroit auto show at www.autonews.com/detroit DETROIT — The big, powerful V-8 engines that have been a mainstay of Cadillac’s big sedans since the late 1930s are fading away, victims of the move to fuel efficiency. Cadillac’s trademark V-8 engine will give way to smaller high-tech V-6s — and possibly some diesel engines — in Cadillac’s cars. In an interview with Automotive News, Cadillac General Manager Jim Taylor said last week that Cadillac is considering a 2.9-liter turbocharged V-6 diesel for its mainstream U.S. sedans. Taylor’s revelation came in the wake of General Motors’ announcement last week that it has dropped plans to replace the Northstar V-8, which goes out of production in 2010. The Northstar has powered Cadillacs since 1993. It’s all part of the new world of high fuel prices, rising fuel economy standards and pressure to reduce emissions. NEWSPAPER “On Dec. 19, the world changed,” Taylor said. That’s when President Bush signed a law mandating a 40 percent fuel-economy improvement by 2020. In the future, Cadillac’s mainstream sedans probably won’t offer V-8 engines, Taylor said. Instead, the CTS and the successor to the STS and DTS will be powered by the 3.6-liter directinjected V-6 that went on sale in 2007. In 2009, the new 2.9-liter diesel goes into production for Cadillac’s CTS to be sold in Europe. Cadillac also could use that engine in U.S. models, Taylor said. After 2010, Cadillac could use a see CADILLAC, Page 37 http://autonews.com http://Edmunds.com http://www.autonews.com http://www.autonews.com http://www.autonews.com/green http://www.autonews.com/detroit

Table of Contents Feed for the Digital Edition of Automotive News - January 7, 2008

Caddy V-8 is endangered species An industry turns green -- let's talk JAPAN TRIUMPHANT Ford, Microsoft to offer 911 service in Sync GPS will track fuel price Brose buys Siemens motor unit as step toward N.A. growth Expanding Meridian sees bright future Federal-Mogul CEO to stay Harbour Consulting sold Soft market threatens Tundra sales goal Ford dumps volume targets for dealer bonuses How HCCI engines work Visteon: 'We're leaner and smaller' Ford doubles regional promo money Gasoline-diesel combo moves closer to reality Rethinking retail: A hot topic at World Congress Denso expands hybrid plant CAFE fines may yield meager grants Some pay raise: To $8.3 million from $1 New Chrysler purchasing chief looks to Asia BMW adds jobs to boost S.C. output Continental layoffs follow production cuts at Chrysler Study: Indirect loan delinquencies soar No more peekaboo for Camaro Saturn's Lajdziak: GM is 'where I wanted to be' LETTER TO THE EDITOR Why buy Japanese? Here's an answer CAFE will put new entrees on auto show menu What an exciting way to start 2008 LETTER TO THE EDITOR 84-month financing is nothing new LETTER TO THE EDITOR GM ad policy shift is good for dealers JAMES B. TREECE Detroit show gets back on a global track LETTER TO THE EDITOR Too many dealers: Blame greed LETTER TO THE EDITOR Why not learn from Toyota? LETTER TO THE EDITOR A hot news item? Nah; it's 9 years old Suppliers to the 2008 Saturn Vue Supplier personnel Haldex farms out brake work The theme: Green and mean Dodge Ram gets interior upgrade BMW's 1-series coupe gets a soft-top counterpart Chrysler eye candy includes green jelly bean Chinese automakers increase their presence Concept offers a peek at Explorer's likely successor Ford goes global in styling its B-cars Forum concept is a clubhouse on wheels Dealers Simple safety: Green, amber, red Lexus SUV luxury will grow on you Personnel Gas prices boost Nissan car sales as trucks tank This year's U.S. sales forecast: Gloomy Ford: Tata is lead bidder for 2 brands Ex-Toyota manager goes to Audi Hyundai has new N.A. chief TRW buys Delphi brake assets Who's No. 1? Time for an official review Waning interest Solstice outguns Miata - again Once more into the legal fray? Lifan is the latest Chinese wannabe Things are looking up (and down) for MG Who has 1st Mustang - and what's it worth?

Automotive News - January 7, 2008

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