Automotive News - January 7, 2008 - (Page 8)

8 • JANUARY 7, 2008 advertising YOU’LL SEE MORE TRAFFIC IN DAYS WITH US THAN IN MONTHS WITH ANYONE ELSE. Study: Indirect loan delinquencies soar Donna Harris dharris@crain.com OUR DEALERS ARE GROWING AND SO CAN YOU! Delinquencies on vehicle loans made through auto dealerships hit a 16-year high in the third quarter of 2007, a new study says. The trend is likely to continue, the American Bankers Association said last week. Payments on 2.86 percent of socalled indirect loans were more than 30 days late from last July through September, according to the associa- tion’s report. That was the highest quarterly delinquency rate since it reached 2.87 percent during a recession in 1991. A fourth-quarter figure for 2007 was unavailable. James Chessen, chief economist of the bankers association, says the delinquency data suggest the subprime mortgage crisis is affecting vehicle loans. Rising mortgage payments, gasoline prices and home heating bills are making it harder for consumers to keep up with vehicle loans, Chessen says. “Job growth is slowing down, and we expect that to continue to slow this year,” Chessen told Automotive News. “We would expect higher delinquencies as a consequence.” By contrast, the delinquency rate on direct auto loans — those made by banks and other lenders directly to vehicle buyers — was down year over year. That rate was 1.81 percent in the third quarter of 2007, compared with 1.87 percent in the year-ago quarter. Direct loans typically require higher credit standards, Chessen says. To cope with sluggish vehicle sales, he says, many dealers are seeking loan customers more aggressively. As a result, Chessen says, dealers are more likely than direct lenders to finance consumers who are struggling with debt. The study data include both subprime and prime vehicle loans. c Kara DePaula DePaula Chevrolet Continental layoffs follow production cuts at Chrysler April Wortham awortham@crain.com “With Zimmerman as a partner we have grown to be the #1 GM Dealer in Albany, NY.“ OVER 2000 DEALERS ■ No more peekaboo for Camaro PROVE OUR In an apparent effort to get ahead of spy photographers, Chevrolet released the first official photo of the 2009 Chevrolet Camaro last week. Chevy plans to test the car on public roads before it goes on sale in the fall. ADVERTISING GETS RESULTS! ZIMMERMAN © GM CORP. BMW adds jobs to boost S.C. output April Wortham awortham@crain.com YOUR COMPLETE MARKETING PROGRAM! ACTIVATES & INTEGRATES Guerrilla TV Marketing Radio Hispanic Print Direct Mail Website Optimization Web Design Internet In-Store 1-888-878-ZADV zauto@zadv.com or visit www.zadv.com CALL OR E-MAIL THE AGENCY THAT WILL WORK FOR YOU 24/7 (SERIOUSLY) BMW AG may be cutting 8,000 jobs worldwide this year as part of its plan to boost profits, but it’s hiring in South Carolina. The German automaker’s Spartanburg factory will add up to 200 jobs in the first quarter and extend its night shift two hours as it ramps up production of a new vehicle, the X6. All of the new hires will be temporary workers employed by BMW’s primary staffing partner in the United States, MAU Inc. German news magazine Der Spiegel reported last month that BMW would slash as many as 8,000 jobs this year; most are expected to be temporary positions at BMW plants in Germany. BMW would not confirm the number of job cuts, but a spokesman in Munich said personnel cuts are part of the automaker’s five-year strategic realignment announced in September. “We are working to change the trend in the development of our profitability,” the spokesman said. “That also comprises personnel savings.” According to MAU’s Web site, the Spartanburg jobs will pay $12.50 an hour, plus $1 extra for working the night shift. The plant is extending its night shift to 10 hours from eight this year to match its 10-hour day shift. The move will help BMW increase annual production capacity in Spar- BMW’s Spartanburg, S.C., plant is adding up to 200 jobs and is extending its night shift to 10 hours from eight hours. Last year, the plant built more than 152,500 units of the X5 SUV, above, and the Z4 coupe and roadster. SUV and Z4 coupe and roadster. Production of the new X6 crossover, which will go on sale in the second quarter, began a few weeks ago. In 2009, BMW will move production of the Z4 to Regensburg, Germany. The second-generation X3, a small SUV, will take its place in Spartanburg in 2010. The Spartanburg plant employs about 4,500 workers, including about 900 MAU employees. c Reuters contributed to this report BMW began assembling the X6 a few weeks ago in Spartanburg, S.C. tanburg from 140,000 to 240,000 vehicles. Through Dec. 15, the plant produced 152,535 units of the X5 Continental AG will slash more than 200 jobs at its newly acquired automotive electronics plant in Huntsville, Ala., as it copes with fewer orders from its largest customer, Chrysler LLC. Continental announced the job cuts just eight days after the German auto parts giant took over the plant as part of its $16.71 billion acquisition of Siemens VDO. The job losses show the impact that Chrysler’s production cuts are having on the carmaker’s North American supply chain. In November, Chrysler announced plans to eliminate four vehicles from its lineup and cut shifts at five North American assembly plants. Chrysler’s total vehicle production will be down 15 percent in the first quarter of 2008 from a year earlier, according to CSM Worldwide, a forecasting firm in suburban Detroit. The cutbacks are already being felt at the Huntsville plant. Chrysler owned the factory until Siemens bought it in 2004. The plant still depends on Chrysler for 90 percent of its business. “They have other customers — GM, BMW, Ford — but the majority of it is with Chrysler,” Continental spokesman Jim Gill said of the Huntsville plant. “We have some strategies to build on that, but we’re just getting into it. We’ll see going forward how to further diversify the business.” About 1,700 employees work at the Huntsville plant. They make and assemble chassis and car body electronics, powertrain and drivetrain controllers and infotainment systems. The layoffs began in the waning days of 2007, when about 40 hourly workers lost their jobs. Sometime in the first quarter of 2008 about 50 salaried positions will be cut, followed by 120 to 150 hourly positions, depending on sales projections. Quintin King, president of UAW Local 1413, said some cuts were expected. Local 1413 represents the 1,000 hourly workers at Huntsville. Another UAW unit, Local 1929, represents about 700 salaried employees. “Given the fact that 90 percent of what we do here is Chrysler, to think that they could be doing something and it not affect us would be unreasonable,” King said. “But we didn’t know it was going to happen right now.” c http://www.zadv.com http://www.zadv.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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