Automotive News - September 8, 2008 - (Page 6) 6 • SEPTEMBER 8, 2008 GM: Currency shift stalled Astra Amy Wilson awilson@crain.com Since January, the Saturn Astra’s price has risen from $15,995 to $16,495. CHICAGO — The Saturn Astra costs too much for U.S. customers, and sales and profitability of the small hatchback are suffering, says General Motors product chief Bob Lutz. GM decided to import the Belgiummade Astra when the value of the U.S. dollar was stronger. At that time, the starting list price was planned at around $15,500. And it would have been marginally profitable, Lutz, GM vice chairman of global product development, said at a press event here. “Well, I have to tell you, the price is no longer $15,500, and the profit is no GM’s Bob Lutz: “The car is priced too high.” longer there, either,” Lutz said. “The car is priced too high.” The Astra’s base price, including shipping, has risen since it went on sale in January, to $16,495 from $15,995. Astra sales have been disappointing at 7,914 units for the year to date. The company’s employee pricing promotion provided a lift in August: Astra sales were 1,994, up from a previous monthly high of 1,555 in July. Saturn had aimed to sell at least 25,000 Astras annually. If the August sales figure could be sustained, the Astra would be back on pace with expectations, said Mark LaNeve, vice president of GM North American vehicle sales, service and marketing. But outside of the employee pricing deal, LaNeve said, the currency exchange penalty on the Astra has kept GM from “being very aggressive with incentives or marketing the unit.” c Press: Chrysler is pushing forward on electric cars Alysha Webb awebb@crain.com LOS ANGELES — This month, Chrysler LLC will show auto dealers prototypes of three electric cars that can be produced, says co-President Jim Press. “We are making substantial progress on electrification of our vehicles,” he said here last week during a Motor Press Guild luncheon. Chrysler is focusing on developing hybrid electric plug-in vehicles with a range of 300 miles, Press said. “Fuel cells are in the future, but probably more in my kids’ future than my own,” he said. The key issue, he said, is to develop platforms with electrification in mind. Chrysler can move forward on elec- Chrysler’s Jim Press: “We are making substantial progress on electrification of our vehicles.” tric vehicles with or without partners, Press said. All of Daimler AG’s technology remains available to Chrysler, Press added. Daimler continues to own 20 percent of Chrysler more than a year after selling the rest to Cerberus Capital Management. Press said Chrysler is working with a few battery suppliers, both in the United States and overseas. c Nissan will offer larger wheels, factory-installed bedliners, modular storage units, leather seats, heavy-duty roof racks and off-road packages for the Xterra SUV, left, and Frontier pickup. To retain truck buyers, Nissan offers more stuff Lindsay Chappell lchappell@crain.com Leasing falls to 4-year low Leasing last month plunged to its lowest level in four years — and it wasn’t just Chrysler. Only 13.3 percent of new-vehicle transactions were leases from Aug. 1 to 24, according to the Power Information Network. That was down from 18.0 percent for all of July and 18.4 percent in August 2007. Leasing hasn’t been that low since September 2004. Starting Aug. 1, Chrysler LLC stopped issuing new car and truck leases through its financial arm and instead turned its resources to financing loans for customers. That decision was made as the value of used vehicles — especially trucks and SUVs — plummeted, leaving manufacturers with vehicles with poor value at auction once the leases expire. Chrysler’s lease penetration went from 23.4 percent in July to 1.8 percent in August. Last week, the company’s executives partly blamed a 34.5 percent sales decline in August compared with August 2007 on the end of leasing. Last August, Chrysler dealers leased 24,000 vehicles. This August, the total was about 2,000. But others pulled back from leasing, too. General Motors’ percentage fell to 4.1 percent from 11.1 percent leasing the month before. Ford Motor Co.’s leasing business slipped from 13.1 percent of all transactions in July to 9.7 percent in the first 24 days of August. Daimler AG’s leasing went from 52.1 percent in July to 35.6 Running the numbers percent in the Aug. 1-24 period. Among the 10 major groups, only Hyundai/Kia’s leasing penetration rose in August compared with the month before. But then the two Korean brands have never done much leasing. c STEVENSON, Wash. — To hang onto its share of a shrinking pool of U.S. truck buyers, Nissan North America Inc. will offer more features at a discount on some models. In 2009, the automaker will market larger wheels, factory-installed bedliners, modular storage units, leather seats, heavy-duty roof racks and offroad packages for the mid-sized Nissan Frontier pickup and Xterra SUV. “We think it’s a value story — give them more content without tacking up prices,” Vinay Shahani, Nissan’s director of truck and SUV marketing, said at a press event here. The company estimates that the manufacturing costs of the added content are as much as $2,800 in some packages. But the additions will result in added sticker prices of about $1,500 in some cases and as little as $1,000 in others. Nissan officials intend to place more emphasis on what they think is the brand’s traditional strength in trucks: sportier models sold to outdoorsy consumers who likely live in the South, West or Southwest. The company thinks that additional content also will make its lower-end, four-cylinder Frontier more competitive as truck consumers shop for more fuel economy. On the eve of the new strategy, Nissan Division’s light-truck sales were surprisingly strong in August: 48,023 units, up 32.7 percent from August 2007. The Quest minivan, Xterra and Frontier scored major increases as the company tried to clear out 2008 model inventories with heavy incentives. c Nissan looks to Mexico for engineering aid With its r&d workload increasing in this region, Nissan North America plans to turn over a large share of its vehicle engineering to an expanding tech center it has been quietly staffing up in Mexico. In the coming years, Nissan intends to hand off much of its current-model work to engineers in Mexico. That will free up the automaker’s large staff in suburban Detroit to focus on future model development here, says Robert Sump, vice president of vehicle engineering for Nissan North America Inc. Three hundred to 400 people are employed at Nissan’s expanding Mexican engineering center, although the company has said little about it. That compares with about 1,000 working at the Nissan Technical Center in Michigan. Sump forecasts that Nissan’s Mexican engineering base eventually will be the same size as the U.S. r&d operation. Nissan is using its Mexican auto plants as an export base to ship cars to Europe. U.S. suppliers have noted new pressure from Nissan to source more parts from Mexico. In recent years, Nissan’s U.S. engineers have taken the development lead on such projects as the Titan pickup, Quest minivan, Xterra SUV and Frontier pickup. Less leasing Leasing as a percentage of all new-vehicle retail transactions by automaker AUG. 1-24 JULY BMW Volkswagen AG Daimler AG Nissan Motor American Honda Toyota Motor Ford Motor General Motors Hyundai/Kia Chrysler LLC Industry total 47.0% 37.4% 35.6% 21.5% 17.5% 16.3% 9.7% 4.1% 2.7% 1.8% 13.3% 48.1% 41.4% 52.1% 23.3% 17.5% 16.9% 13.1% 11.1% 2.2% 23.4% 18.0% Nissan’s U.S. engineers took the lead on development of the Titan, above, and other vehicles. Now Nissan wants to free those engineers up to focus on future models. The Michigan group now has responsibility to create three all-new, U.S.-directed light commercial vehicles that will be manufactured in Canton, Miss., starting in 2010. Nissan also is motivated by a desire to hold back its U.S. head count. This year, the automaker pared its U.S. design personnel and moved a small number of labor-intensive design functions to Mexico. — Lindsay Chappell Source: Power Information Network
Table of Contents Feed for the Digital Edition of Automotive News - September 8, 2008 Chrysler Financial hikes dealer floorplan fees Back in business? Detroit's best bets for cash: Feds, UAW Document fee suits swamp Missouri dealers Honda's family squabble Used truck prices rebound Ford mulls Lincoln compact Toyota delays RAV4 plan Proposed flex-fuel mandate roils industry Chrysler sues consultant over sourcing Cobalt transaction prices are up $775 since April Nissan looks to Mexico for engineering aid To retain truck buyers, Nissan offers more stuff Press: Chrysler is pushing forward on electric cars Leasing falls to 4-year low GM: Currency shift stalled Astra Dealers say they can sell the Republican ticket Industry loans clash with GOP climate Grand Cherokee will get axles from new plant Makers must resist urge to backslide as gas price dips Times are tough outside the U.S., too Chevrolet does tout its small cars Let natural gas power the fuel cell A crash course in collaboration Dodge wouldn't rush the RamBox Plastics are losing cost advantage Suppliers expect to benefit from tougher CO2 rules 'People just want Ford to go' For now, Honda will skip electric vehicles Toyota, Subaru enter race to market electric vehicles China exports squeezed Study: 15% of wrecked autos got washed titles Mercedes megadealer is bullish on luxury Sheehy: 'We are not in business for nostalgia' Automakers use driving schools as marketing tools Dodge smoothes Ram's rough edges â a little Honda touts leasing while others fall back Alysha Webb Study: Nonprime car loans get longer Dealer CPA group picks leader BMW, Edmunds team up on loan site for consumers Va. Honda dealership loses protest bid Judge throws out deceptive-ads lawsuit against Toyota in Arkansas Mo. dealership's protest gets go-ahead Pa. court throws out suit against Ford, dealership Dealers Ross' interiors company pushes into China, India More than a game Nissan's Tavares: Green conference keynoter Quality group seeks to set consulting standards Personnel Dana to shift HQ by Sept. '09 Tenneco to supply Volvo XC60 BMW gets Siemens conveyors IAC to cut 280 jobs in Sweden Polytec to acquire Peguform Metaldyne to sell Italy operation Federal-Mogul to build India plant Beck, Delphi make pact TRW to supply Chinese sedan Auto profits rise in Russia Black Book expands data Hayes Lemmerz cuts losses Ford: Buyouts are a tough sell GM's party plans include production Volt An ice-cold August for auto sales Big drop in Aug. output Lights, camera . . . Volt? In case the roads get too quiet . . . The Insight rides again Lagonda brand will be back Milwaukee road trip: No old pals, but 1 new lesson Choice of Odell seen as Ford vote of confidence in Volvo Dana sort of wins an award Automotive News - September 8, 2008 Automotive News - September 8, 2008 - (Page Introducti) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 1) Automotive News - September 8, 2008 - Detroit's best bets for cash: Feds, UAW (Page 2) Automotive News - September 8, 2008 - Toyota delays RAV4 plan (Page 3) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 4) Automotive News - September 8, 2008 - Cobalt transaction prices are up $775 since April (Page 5) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 6) Automotive News - September 8, 2008 - GM: Currency shift stalled Astra (Page 7) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 8) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 9) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 10) Automotive News - September 8, 2008 - Grand Cherokee will get axles from new plant (Page 11) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 12) Automotive News - September 8, 2008 - Let natural gas power the fuel cell (Page 13) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 14) Automotive News - September 8, 2008 - Plastics are losing cost advantage (Page 15) Automotive News - September 8, 2008 - Suppliers expect to benefit from tougher CO2 rules (Page 16) Automotive News - September 8, 2008 - 'People just want Ford to go' (Page 16A) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16B) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16C) Automotive News - September 8, 2008 - Toyota, Subaru enter race to market electric vehicles (Page 16D) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 17) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 18) Automotive News - September 8, 2008 - For now, Honda will skip electric vehicles (Page 19) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 20) Automotive News - September 8, 2008 - Study: 15% of wrecked autos got washed titles (Page 21) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 22) Automotive News - September 8, 2008 - Mercedes megadealer is bullish on luxury (Page 23) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 24) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 25) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 26) Automotive News - September 8, 2008 - Sheehy: 'We are not in business for nostalgia' (Page 27) Automotive News - September 8, 2008 - Automakers use driving schools as marketing tools (Page 28) Automotive News - September 8, 2008 - Dodge smoothes Ram's rough edges â a little (Page 29) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 30) Automotive News - September 8, 2008 - BMW, Edmunds team up on loan site for consumers (Page 31) Automotive News - September 8, 2008 - Judge throws out deceptive-ads lawsuit against Toyota in Arkansas (Page 32) Automotive News - September 8, 2008 - Pa. court throws out suit against Ford, dealership (Page 33) Automotive News - September 8, 2008 - Dealers (Page 34) Automotive News - September 8, 2008 - More than a game (Page 35) Automotive News - September 8, 2008 - Personnel (Page 36) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 37) Automotive News - September 8, 2008 - TRW to supply Chinese sedan (Page 38) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 39) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 40) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 41) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 42) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 43) Automotive News - September 8, 2008 - Auto profits rise in Russia (Page 44) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 45) Automotive News - September 8, 2008 - GM's party plans include production Volt (Page 46) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 47) Automotive News - September 8, 2008 - An ice-cold August for auto sales (Page 48) Automotive News - September 8, 2008 - Big drop in Aug. output (Page 49) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 50) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 51) Automotive News - September 8, 2008 - Dana sort of wins an award (Page 52)
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