Automotive News - January 7, 2008 - (Page 14)

14 • JANUARY 7, 2008 Detroit show gets back on a global track Rising gasoline prices reverse trend toward big-truck parochialism James B. Treece This month, the Detroit auto show celebrates its 20th year as an international exposition. The same forces that are making the Tokyo show more parochial are converging to restore Detroit — which itself was heading toward parochialism a few years ago — to solid internationalshow status. For decades, the Detroit show was a small, regional event. Chicago was the premier auto show of the season, vying with New York and Los Angeles as the top North American event. The Detroit show, by contrast, was put on by dealers for dealers. Their primary goal was to boost sales amid the snowfall. So show organizers allocated space according to the number of an automaker’s dealerships in the Detroit area. Companies other than the Detroit 3 were marginalized. As late as 1987, all import brands were in Cobo Hall’s basement. Mitsubishi Motors Corp. was an international player, but its U.S. sales arm had no dealers in metro Detroit and therefore got no space at the Detroit show. EDITORIAL STAFF 313-446-0361 E-mail autonews@crain.com Web site www.autonews.com Keith E. Crain Publisher and Editor-in-Chief Peter Brown Associate Publisher and Editorial Director DETROIT 313-446-0361 Fax: 313-446-0383 1155 Gratiot Ave. Detroit, MI 48207-2997 David Sedgwick Editor dsedgwick@crain.com Edward Lapham Executive Editor elapham@crain.com Richard Johnson Managing Editor rjohnson@crain.com John K. Teahen Jr. Senior Editor Mary Beth Vander Schaaf Deputy Managing Editor Anne Wright Curtis Assistant Managing Editor, Data Services Charles Child International Editor David Kushma Retail Editor Dave Guilford News Editor Philip Nussel Special Projects Editor James B. Treece Industry Editor Karen Faust O’Rourke Insight Editor COPY EDITORS: Bob Allen, Tom Fetters, Patricia C. Foley, Kenn Jones, Gregory Skwira Susan Zavela Bamford/Graphics Editor Rick Kranz/Product Editor REPORTERS: Leslie J. Allen, David Barkholz, Mary Connelly, Ralph Kisiel, Jamie LaReau, Arlena Sawyers, Robert Sherefkin, Richard Truett, Bradford Wernle, Amy Wilson Mary Raetz Senior Statistician Debi Domby, Camille Pippen Research Assistants Dan Jones Office Manager Robertta Savage Editorial Assistant Corinne M. Price, Michael Garrison Information Center A few years ago at the Detroit auto show, domestic and foreign automakers showed some gargantuan SUVs and pickups that were of interest to the U.S. market but almost irrelevant to the rest of the world. In 2006, for example, Ford showed the F-250 Super Chief concept, which was inspired by a railroad locomotive. trucks with 660cc engines, account for about a third of all vehicles sold in Japan. That share has been growing steeply. So displays at the Tokyo show increasingly are devoted to vehicles that are not sold outside Japan. The show is steadily becoming less relevant to the global auto industry. tor Co. said — no, bragged — that one of its concept trucks, the F-250 Super Chief, was inspired in styling and size by a railroad locomotive. Parochialism was ascendant. Then gasoline prices began to rise. The U.S. market shifted. Americans may not be ready for the smallest Euro-city cars — other than a smattering of Smarts — but they’re no longer looking for Titanic-sized SUVs, either. So the vehicles we’re likely to see at this year’s Detroit show will have global relevance again. The Detroit show is reclaiming its international reputation. In a global industry, that’s as it should be. Enjoy. You may e-mail James B. Treece at jtreece@crain.com comment James B. Treece is industry editor of Automotive News. He was Asia editor, based in Tokyo, for 12 years. when they could have done so in Los Angeles — the Detroit show joined the ranks of first-class international expositions. Still, every international show struggles with the reality that it reflects its market. Take Tokyo. Minivehicles, defined as cars and Global view A few years ago, Detroit was falling victim to similar domestic-market forces. Despite the organizers’ desire for an international show, the Detroit 3 and foreign automakers displayed vehicles of primary interest to the U.S. market: SUVs and pickups. Those trucks were often gargantuan and almost always irrelevant to the rest of the world. At the 2006 Detroit show, Ford Mo- World class To its credit, the Detroit Auto Dealers Association decided that the Motor City deserved a world-class auto show. So starting in 1989, the association changed the rules. Organizers moved the imports out of the basement and opened the doors to all automakers. Thanks to a positive response from Lexus and Infiniti — which debuted in Detroit continued from Page 12 The brainwashing has resulted in people’s willful blindness over quality issues with their Japanese vehicles. For example, my brother drives a $65,000 Acura RL that has had electrical and suspension issues. If it were a Ford, he would be swearing a blue streak about the lack of quality; but because it’s a Japanese car, he subsequently bought his daughter an entry-level Acura. It all defies logic. ROGER EAMER Edmonton, Alberta The writer is a Ford shareholder. Added to that, Consumer Reports now realizes that dealers appreciate informed customers and that the Internet has made a positive difference in the auto retailing marketplace. Then I thought: Where have they been? Why is this such a surprise? Why is that breaking news? Since 1998, Automotive Retailing Today’s biennial research consistently has shown high customer satisfaction rates in the 90th percentile, high satisfaction with dealerships and their sales personnel and an increased customer use of the Internet that parallels high satisfaction rates. Other major news outlets report on and routinely use our data. Even though Consumer Reports had to do the research itself in order to believe, so be it. Glad it’s on board. H. CARTER MYERS III Chairman Auto Retailing Today McLean, Va. Too many dealers: Blame greed To the Editor: This is in response to John K. Teahen Jr.’s Dec. 17 column, “Why the Detroit 3 have too many dealers.” I refer to Detroit as Disneyland for Detroit 3 execs and dealers and for the Automotive News staff. Hop in your Ford, GM or Chrysler model and drive a few hundred miles east, west or south and enter the real world of automotive retail. Ford, General Motors and Chrysler are overdealered in America because of greed and fantasy. The fantasy was that every dealer outside Detroit should be able to sell as many cars as those in Detroit. The greed was they didn’t care what happened to existing dealers in already overdealered markets when they added another dealer just to squeeze a few more cars into the market. Teahen’s superhighway theory is pure bull. I became a Pontiac dealer in 1968 and in the 1980s watched Pontiac put another dealer in my market, a man who also had stores in Disneyland/Detroit. He couldn’t make it in this market. He ran back to Disneyland/Detroit with his tail between his legs. EARL STEWART Owner Earl Stewart Toyota North Palm Beach, Fla. LOS ANGELES Mark Rechtin/Bureau Chief 310-739-8009 Fax: 310-832-6362 Kathy Jackson/Reporter 323-370-2481 Fax: 323-655-8157 6500 Wilshire Blvd. Los Angeles, CA 90048-4947 NEW YORK Diana T. Kurylko/Reporter Phone/fax: 908-273-6059 dkurylko@crain.com WASHINGTON Donna Harris/Reporter 540-668-7295 Fax: 540-668-7296 Harry Stoffer/Reporter 202-662-7212 Fax: 202-638-3155 814 National Press Building Washington, DC 20045-1801 MID-SOUTH Lindsay Chappell/Bureau Chief 615-371-6654 Fax: 615-371-6655 April Wortham/Reporter 615-371-6617 104 East Park Drive, Suite 315, Brentwood, TN 37027 TOKYO Hans Greimel/Asia Editor +81-3-3828-9060 Fax: +81-3-3828-9061 hgreimel@crain.com Yurakucho Denki Bldg., 20th Floor 1-7-1 Yurakucho, Chiyoda-ku, Tokyo 100-0006, Japan SHANGHAI Alysha Webb/Bureau Chief +86-21-6226-9485 Fax: +86-21-6226-9483 alyshawebb@yahoo.com TURIN Luca Ciferri/Reporter lciferri@craincom.de +39-011 961 0194 Fax: +39-011 961 0113 Viale Cavaglia, 8 10029 Villastellone (TO) Italy STAFF CORRESPONDENT: Eric Freedman/Legal file, 517-337-0269 www.autonews.com DETROIT Victor Galvan/Web Editor vgalvan@crain.com 313-446-0345 Scott Kennedy/Multimedia Editor A hot news item? Nah; it’s 9 years old To the Editor: I found myself of two minds when reading your Nov. 14 breaking news item online, “Study says most auto dealers satisfy customers.” At first I thought: Hallelujah! Consumer Reports finally acknowledged that 96 percent of customers get a fair deal from dealerships and that 90 percent of customers say the dealership salespeople are helpful and informed. Why not learn from Toyota? To the Editor: Regarding T.R. Tobey’s letter in your Nov. 12 issue (“Toyota cares only for our money”): That point of view typifies the “head buried in the sand” mentality of your average domestic auto executive, trying to sell vehicles that no one wants or asked for. Can you say Jeep Patriot, anyone? It’s funny to read the excuses offered for lack of recent success for the Big 3, such as the name was wrong or too little was spent on advertising. It’s the vehicle, silly! Instead of being bitter about the success of another company, why not try to up your game a little? Perhaps Tobey should read the Toyota “brochure” (Toyota 50th anniversary issue, Oct. 29) again; he may learn a little about what it takes to be successful in today’s automotive market. Besides, last I checked we live in a capitalist, free-market society where the strong survive. So what if Toyota is worried about making money? I doubt if many of us are in this just for the fun of it. C. SWANSON President Local Motorcar Services Inc. Wilmington, Vt. Local Motorcar Services is a fullservice repair shop. http://www.autonews.com http://www.autonews.com

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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