Automotive News - January 7, 2008 - (Page 3)

JANUARY 7, 2008 • 3 82nd year — No. 6289 GPS will track fuel price Ford Motor Co.’s next-generation navigation systems will help drivers find cheaper gasoline. Beginning with the 2009 Ford Flex sport wagon and F-150 pickup, Ford will offer Sirius Travel Link, which provides information such as gasoline prices and movie listings. Ford is scheduled to show the GPS technology this week at the International Consumer Electronics Show in Las Vegas. Ford also is expected to announce that the 2009 Flex and F-150 will be its first vehicles in North America to have Sony audio systems. Ford plans to make Sony the exclusive supplier of audio for the Ford and Mercury brands. — Leslie J. Allen Ford, Microsoft to offer 911 service in Sync Leslie J. Allen lallen@crain.com Harbour Consulting sold DETROIT — Harbour Consulting, creators of the oft-cited Harbour Report on automotive factory efficiency, has been sold. Oliver Wyman, a New York management consulting unit of Marsh & McLennan Cos., bought Harbour, the companies said Friday. Terms were not disclosed. CEO Ron Harbour is staying on at Oliver Wyman as director of global automotive manufacturing. Oliver Wyman has more than 2,500 professionals in 40 cities. Harbour Consulting has about 40 professionals and annual sales of about $8 million. Oliver Wyman was known formerly as Mercer Consulting. — David Barkholz Microsoft Corp. and Ford Motor Co. plan to enhance the Sync system, taking aim at a key feature of General Motors’ OnStar — automatic accident notification. On Sunday, Jan. 6, Microsoft’s Robbie Bach was expected to announce the enhancement during Chairman Bill Gates’ keynote address to the International Consumer Electronics Show in Las Vegas. Bach is president of Microsoft’s entertainment and devices division. Microsoft was also planning to announce that it is making Microsoft Auto 3.0 software available to Tier 1 suppliers that want to develop similar systems for other automakers. Auto 3.0 powers Sync and Fiat’s version of Sync, called Blue&Me. The two moves are the latest steps by Gates to push Microsoft more aggressively into automotive applications, especially telematics. “The sky’s the limit, almost” when it comes to the types of applications that suppliers may develop with the software, said Velle Kolde, senior product manager for Microsoft’s automotive business unit. “You’re putting a small, automotivegrade PC into a car. Almost everything you can do with the PC, you have the computing power to do in the car.” Auto 3.0 is Microsoft’s second operating system for autos. An earlier Windows version never gained traction. Sync, available on a dozen Ford, Lincoln and Mercury vehicles, lets drivers make telephone calls and control their MP3 players by voice. The enhanced system, called 911 Assist, will automatically place a hands-free call to 911 if the airbag deploys in the vehicle of a Sync user who has a phone equipped with Bluetooth wireless technology. Owners of current Sync systems will have to go to a dealership for a free upgrade to 911 Assist. Vehicles with other telematics systems such as OnStar have sensors that automatically notify a response center after a crash. An adviser then communicates with the driver and contacts 911 dispatchers or other emergency services, if necessary. ATX Group Inc. markets a similar call-center-based service under names such as BMW Assist and Mercedes-Benz’s TeleAid. Kolde said 911 Assist should be faster because it goes directly to 911. The system will give drivers an opportunity to cancel the 911 call if no emergency exists. Another software upgrade from Microsoft and Ford will allow drivers to use Sync to generate “vehicle health reports,” said Derrick Kuzak, Ford’s group vice president of global product development. At the dri- ver’s request, Sync will download vehicle diagnostic data and send it to Ford for analysis. Ford then will suggest any steps that may be necessary. At the Frankfurt auto show in September, Siemens VDO said it planned to develop a multimedia infotainment platform based on Microsoft software. VDO is now part of Continental AG. c autonews.com For more on the Consumer Electronics Show in Las Vegas, see our Web site. Federal-Mogul CEO to stay DETROIT — Federal-Mogul Corp. CEO Jose Maria Alapont says he will remain with the supplier for the “long run” after its Dec. 27 exit from more than six years of Chapter 11 protection. Alapont, 57, has led the company since March 2005. He told reporters at the company’s suburban Detroit headquarters Friday that his management team has maintained positive relations with investor Carl Icahn, who could exercise options to control as much as 76 percent of company stock. He said Federal-Mogul’s board is expected to met within a week and will choose a chairman. The company plans to list its shares on a stock exchange in the coming weeks. — Philip Nussel Bill Gates is moving Microsoft more aggressively into the automotive market. STEVE RINGMAN/SEATTLE TIMES/MCT/NEWSCOM Soft market threatens Tundra sales goal Mark Rechtin mrechtin@crain.com CORRECTION A list of 2007’s 10 least expensive vehicles on Page 21 of the Dec. 31 issue showed the wrong photo for the Toyota Yaris. Here is a photo of the 2007 Yaris. LOS ANGELES — Toyota executives say they couldn’t care less that the Tundra full-sized pickup fell 3,445 units short of their 200,000-unit sales goal. But what should have them concerned is whether Tundra sales can grow enough to reach Toyota’s goal of 300,000 by 2010. Toyota announced the 300,000unit target when it launched the pickup a year ago. At the time, executives said they expected to reach that goal by the end of the decade. But that was before the subprime credit crunch, housing market swoon and oil price surge. Given the soft market for pickups, it seems likely that Toyota will be left with some excess capacity this year at its truck assembly plants in San Antonio and Princeton, Ind. Those two plants now have the capacity to produce 280,000 Tundras annually. Toyota could push that to 300,000-plus by cutting production of the Sequoia SUV at Princeton. Toyota expects Tundra sales will be Much of the Tundra’s sales growth in 2008 will result from a large inventory rather than growing market demand. in the low 200,000s this year, predicts Bob Carter, Toyota Division’s general manager.“We know the segment is going to be tough,” Carter says. “There’s a lot of headwind.” Industry sales of full-sized pickups are likely to fall short of the levels achieved three or four years ago, Carter acknowledged. Nevertheless, he predicts Tundra sales will meet its sales targets. “There is no cause for alarm,” Carter says. “We are on plan.” But much of Tundra’s sales growth will result from a big inventory for the entire year rather than growing market demand. In 2007, a slow rollout of popular models meant dealers were undersupplied from January through June. Carter has noted that Toyota had to use incentives to support Tundra sales earlier than he wished, but market conditions forced the automaker’s hand. How long will it take for Tundra sales to top 300,000 units? Carter was evasive. “We have 44 Tundra models now,” he said. “In the future, that segment requires even a broader lineup than we have today.” c http://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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