Automotive News - September 8, 2008 - (Page 8) 8 • SEPTEMBER 8, 2008 advertising Grand Cherokee will get axles from new plant David Barkholz and Robert Sherefkin dbarkholz@crain.com Chrysler LLC is lining up equipment and business for its planned Marysville, Mich., axle plant as it continues to search for an investment partner in the operation. Chrysler intends to begin installing axle-making equipment at the plant Oct. 1, said Chrysler spokesman Dave Elshoff. The $700 million plant is scheduled to begin production in 2010. One of its first orders will be the axles for the redesigned 2010 Jeep Grand Cherokee. The plant, 55 miles northeast of Detroit, will use a Mercedes axle-making technology modified for Chrysler products. The axles will generate less internal friction, improving fuel economy. The plant is replacing an old Chrysler axle plant in Detroit. The Marysville plant was planned when Chrysler was part of DaimlerChrysler AG. After Cerberus Capital Management LP bought Chrysler a year ago, the private equity group surprised the industry by agreeing to proceed with the project. The conventional wisdom was that Chrysler could save money by not building the plant and buying axles from suppliers instead. But Chrysler declared axles a core technology, along with vehi- cle assembly and engine development. But the desire to conserve cash has prompted Chrysler to seek partners for the venture. Elshoff declined to name prospective investors or give a timetable for when a deal might be made. The Marysville plant will be able to supply a big share of Chrysler’s internal axle needs and serve outside customers. The factory will have annual capacity for about 1.2 million axles. Competitors include American Axle & Manufacturing Holdings Inc., Dana Holding Corp. and Linamar Corp. Automotive News has reported that each had expressed interest in the project. c Industry loans clash with GOP climate Harry Stoffer hstoffer@crain.com ST. PAUL, Minn. — Automakers and suppliers that seek as much as $50 billion in low-interest government loans will race the clock in Washington in the coming days. Last week auto lobbyists swarmed the Republican National Convention here, as they did the Democratic convention the previous week. They appealed to members of Congress and other political leaders for loan funding this year. But those pleas collided with the tide of political talk at the GOP convention. Party leaders vowed to reemphasize such Republican principles as lower taxes, limited government and reduced spending. Presidential nominee John McCain has said he supports $25 billion in industry loans. But in his acceptance speech last week, McCain said his party will “get back to basics.” In a typical rhetorical burst, Rep. Michele Bachmann, RMinn., drew convention cheers with the line: “Government is not a philanthropic organization.” Rep. Pete Hoekstra, R-Mich., left, chats with John Bozzella, Chrysler’s vice president for global external affairs and public policy, at a Michigan delegation breakfast last week at the Republican National Convention. “We know we have a lot of work to do in a small amount of time,” Ojakli told Automotive News. The industry and its allies in Congress probably will have to find offsetting cuts in spending or revenue increases to finance the loans. Requiring that the loan program not add to the federal deficit would be a tough criterion, said one top industry lobbyist who asked not to be identified. Rep. Fred Upton, R-Mich., co-chairman of the House Auto Caucus, said the loan plan has bipartisan support. Upton is working with Rep. John Dingell, D-Mich., who chairs the House Energy and Commerce Committee. Asked about the industry’s request for financial aid amid Republicans’ tough fiscal talk, Upton said, “To be prepared for the future, we’ve got to help our industry get there.” Upton argued that the program will keep jobs in the United States, that employed Americans will pay taxes and that the loans will be repaid. Last December, Congress and the see LOANS, Page 47 Red ink — red flag Still, “There is good sentiment to get something done” about the loan proposal, said Ziad Ojakli, Ford Motor Co.’s group vice president of government and community relations. CONVENTION N O T E B O O K Dealers say they can sell the Republican ticket Harry Stoffer hstoffer@crain.com ST. PAUL, Minn. — Scenes from last week’s Republican National Convention, where Sen. John McCain of Arizona was nominated for president. NADA Chairman Annette Sykora on vice presidential candidate Sarah Palin: “I’m very excited.” conservative” and votes Republican. Like leaders of other interest groups, Sykora delayed convention activities while awaiting word of the fate of Gulf Coast residents in the path of Hurricane Gustav early last week. She said that NADA is eager to return its annual convention — one of the industry’s biggest events — to New Orleans in January. Sykora identifies with Palin Annette Sykora, the first female chairman of the National Automobile Dealers Association, doesn’t characterize herself as a breaker of glass ceilings. But in the Twin Cities for the GOP convention, Sykora told Automotive News she felt a kinship with Sarah Palin — a woman with a family and a career who is prepared to take on major leadership responsibility. “I’m very excited” about McCain’s choice of the Alaska governor as a running mate, Sykora said. Asked about her personal politics, Sykora, a multifranchise Texas dealer, said she’s “open-mindedly Dealer’s prime-time seat Ken Zangara, a Dodge dealer in Albuquerque, N.M., had one of the best seats in the house for the conven- tion’s floor sessions. Zangara was a delegate. And delegations from states, such as New Mexico, that are considered pivotal in the Nov. 4 election get the best floor locations. That put Zangara in the third row. At first, he thought he was the only auto dealer serving as a GOP delegate. But then he ran into old friend Harry Brown, a multifranchise dealer and delegate from Jacksonville, N.C. Zangara, 55, attended his third straight convention as a delegate. He is McCain’s New Mexico finance chairman and has raised more than $600,000 for the campaign. Zangara lobbed this salvo at Democratic nominee Barack Obama and his economic policies: “He doesn’t have a plan. He wants to socialize everything.” GM retiree’s win-win Retired Buick engineer Henry Hat- ter says he’ll consider himself a winner whichever presidential nominee prevails in November. Hatter, 71, a black resident of Flint, Mich., supports McCain. But he said he is proud of Obama, the first black American to be a major-party nominee for president. Despite objections and questions from some friends, both black and nonblack, Hatter said he is remaining loyal to his lifelong preference for Republicans. He said his party identification was inspired when he was a child, by a favorite uncle and by getting to meet President Dwight Eisenhower. Despite an early preference for Mitt Romney in this year’s GOP campaign, Hatter said he thinks McCain’s policies would help revitalize the U.S. auto industry. Hatter was a member of Michigan’s delegation to the convention. He retired from Buick in 1996 after a 38year General Motors career. c http://www.zadv.com http://www.zadv.com
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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