Automotive News - September 1, 2008 - (Page 3) SEPTEMBER 1, 2008 • 3 83rd year — No. 6323 Salaried workers face the ax Sales slump, globalization claim white-collar jobs David Barkholz and Robert Sherefkin dbarkholz@crain.com VW passes Ford as No. 3 global seller in 1st half The Volkswagen group overtook Ford Motor Co. for third place in global unit sales in the first half of the year. Volkswagen said it delivered 3.27 million vehicles to dealers, up 5.8 percent. In an internal tally of wholesale vehicle sales, Ford reported volume of 3.21 vehicles, down 6 percent. — Jesse Snyder White-collar blues Salaried job cuts announced this year in North America GM: 5,000 Ford: 2,000 Chrysler: 1,400 Delphi: 600 Dana: 600 American Axle: 350 BorgWarner: 220 Source: Company announcements and Challenger, Gray & Christmas Inc. GM offers early retirement General Motors is offering early retirement incentives to about 28 percent of its U.S. salaried work force as part of its effort to reduce payroll expenses and conserve cash. The incentives were offered to about 9,000 U.S. employees, a person familiar with the plan said Friday. A GM spokesman confirmed the offers but declined to give details. — Reuters White-collar automotive jobs at carmakers and suppliers are disappearing by the thousands. Salaried auto workers, like their blue-collar counterparts, are being whacked by collapsing North American vehicle sales and the consolidation of engineering into fewer centers with global responsibility. Each of the Detroit 3 has announced significant white-collar job cuts this year, totaling about 8,400 positions. Suppliers, too Several large suppliers also are cutting salaried workers to deal with the sales slump. They include Delphi Corp., Lear Corp., BorgWarner Inc. and American Axle & Manufacturing Holdings Inc. But there’s more to the cuts than just bad U.S. business, says Dave Cole, chairman of the Center for Au- Lutz wants loan guarantees CHICAGO — General Motors Vice Chairman Bob Lutz said the U.S. government should underwrite loans to the Detroit 3. “The American automobile business is deserving of government loan guarantees because the financial institutions in the U.S. are so stressed out right now,” he said last week at a press event here. — Amy Wilson tomotive Research, a think tank in Ann Arbor, Mich. U.S. engineers are losing out as Ford Motor Co. and General Motors locate global platform engineering for their mid-sized cars in Europe and subcompacts in Asia, Cole said. Ideally, North American engineers would pick up work from overseas for large cars and light trucks, he said. But those are the segments suffering the most now from a consumer shift to more fuel-efficient small cars, Cole said. Even BorgWarner, one of the most profitable of the Detroit-based parts suppliers, is cutting 1,000 North American jobs, including 220 salaried positions. The company is not only responding to the North American sales environment but trying to get ahead of potential tougher times. BorgWarner, which makes turbochargers and engine and transmission management systems, is experiencing flat revenue in North America and increases in Europe and Asia. “We have to make sure we’re rightsized for the business that we have here,” said spokesman David Peterson. Market conditions prompted Delphi to announce 600 U.S. salaried job cuts in its electronics and safety division centered around operations in Kokomo, Ind., said Delphi spokesman Lindsey Williams. Dana’s double decimate Dana Holding Corp. announced in late July that it would lay off 600 salaried workers in North America, or about 20 percent of its salaried North American work force. A few weeks later, during its Aug. 8 earnings call, company executives announced that 3,000 layoffs, in- cluding the 600 reported earlier, would take place by year end. Axle maker Dana did not break out the number of salaried and hourly worker cuts. “Dana is scaling back operations to match market demand,” a spokesman says. A supplier vice president who asked not to be named said his employer has been selective with salaried cuts. The company cut head count in departments supporting North American lines of business but spared salaried employees working on global platforms for the same products, the source said. Last week, Linamar Corp. announced plans to lay off 400 to 500 workers, after a cut of 300 to 400 employees earlier this year. A spokesman for the Canadian supplier blamed industry production cuts. He wouldn’t say how many of the layoffs would be salaried workers. The layoffs come despite doubledigit earnings growth reported last month for the powertrain products maker. White-collar employees make up 40 percent of Linamar’s work force. c Asbury to challenge verdict Asbury Automotive Group will ask a federal judge to reduce a $19 million jury award against the public retailer and one of its former dealerships in a race-bias lawsuit, Asbury said Friday. On Aug. 27, the jury found that four black former salesmen at Thomason Toyota in suburban Portland, Ore., had been subjected to racist remarks by managers and co-workers and were threatened with retaliation if they complained. Asbury Vice President Allen Levenson called the verdict “outrageous.” — Arlena Sawyers ■ Suzuki in disguise Even with an extra layer of clothing, the silhouette of Suzuki’s new midsized car is unmistakable — especially the sloping hood and front fender line. The unnamed, front-drive sedan will be aimed at Honda Accord and Toyota Camry buyers when it goes on sale for the 2010 model year. BRENDA PRIDDY & CO. Nissan, Renault aim to share more parts Hans Greimel hgreimel@crain.com CORRECTIONS A story on Page 4 of the Aug. 25 issue incorrectly attributed a comment that Nissan’s global stable of commercial components and chassis can be adapted to the United States. The comment should have been attributed to Larry Dominique, vice president of product planning at Nissan North America Inc. A box with a story on Page 33 of the Aug. 25 issue gave the wrong horsepower and torque for the 2008 Dodge Dakota TRX4 with a V6 engine. The correct horsepower is 210 hp at 5,200 rpm, and the torque is 235 pounds-feet at 4,000 rpm. A story on Page 46 of the Aug. 25 issue about suicides at Renault’s product development center in France named the wrong company in the headline. TOKYO — Nissan Motor Co. and Renault SA plan to share more parts and more suppliers. Nissan and Renault plan to double the volume of each auto part used in their cars over the next five years, to squeeze new cost cuts from joint purchasing. The push for common parts will require tighter cooperation between the engineering teams of the two alliance partners, to simplify component designs. The two automakers also will favor suppliers that can service both companies. “Probably we have 20 or 30 different types of alternators or starters we use at Nissan, and if we can reduce it from 20 to 10, then we can discuss with Renault,” says Yasuhiro Yamauchi, general manager of the Renault-Nissan Purchasing Organization. “And if they have 20 and can reduce it to 10, then we discuss how we can commonize those 10.” By next March, the companies will define the new component strategy, outlining joint engineering specifications for parts and identifying suppliers. The first standardization targets likely will be smaller parts such as alternators, starters or wiper systems, Yamauchi said. The most difficult components to share will be stylingspecific ones, such as cockpit components and seats. The new policy means more pressure on parts makers that make many sales to one of the alliance partners and few to the other, Yamauchi said. The alliance wants suppliers to have a better balance of business between Renault and Nissan. “There are many suppliers that have very unbalanced turnover. That means we do not 100 percent utilize the scale merit,” Yamauchi said. “So we have many things to do.” Robert Bosch GmbH, Calsonic Kansei Corp. and Delphi Corp. are among the most balanced suppliers, he said. Yamauchi declined to identify companies at the other end of the spectrum, but they likely would include those that supply only Nissan’s North American plants. The Renault-Nissan Purchasing Organization helps both companies cut costs through economies of scale. After seven years of operation, it has expanded to cover more than 90 percent of the purchasing by both companies. c Steven Ribet joins Automotive News in Shanghai Steven Ribet has joined Automotive News as a staff reporter based in Shanghai. He replaces Alysha Webb, who has transferred to Los Angeles. Ribet will cover China’s auto industry for Automotive News, Automotive News Europe and Automotive News China, a weekly online publication that covers automakers and suppliers there. Ribet (pronounced REE-bay) has spent the past seven years in Beijing studying Mandarin and doing freelance work for business publications. He has written for the Economist, the Economist Intelligence Unit and Institutional Investor magazine. From 1996 through 2001, Ribet was a staff writer for the Hong Kong Standard and for The Digital Asset, a venture capital magazine. Ribet, 40, earned his bachelor’s degree at the University of Bristol and a master’s degree at the University of Sussex. He was born in London. c Steven Ribet will cover China’s auto industry. http://www.nxtbook.com/nxtbooks/crain/an7523641829YHGBF/index.php?startpage=8 http://www.nxtbook.com/nxtbooks/crain/an7523641829YHGBF/index.php?startpage=42 http://www.nxtbook.com/nxtbooks/crain/an7523641829YHGBF/index.php?startpage=56
Table of Contents Feed for the Digital Edition of Automotive News - September 1, 2008 Automotive News - September 1, 2008 'Mr. Big Volume' hit again Auto ad spending plummets American Axle to grow outside U.S. Nissan, Renault aim to share more parts Steven Ribet joins Automotive News in Shanghai Salaried workers face the ax Asbury to challenge verdict Lutz wants loan guarantees VW passes Ford as No. 3 global seller in 1st half Suzuki in disguise Dodge hopes smooth ride of coil springs will distinguish Ram Candidates split on union organizing bill Check in the mail? Toyota, Ford can tell 10 CTS stays true to concept GM shifts some vehicle design work to U.S. Infiniti may add cars, big and small BMW slashes production of big engines Toyota cuts sales forecast Chrysler: Viper lures suitors Honda hybrid plan bets big on small cars Ford starts L-M consolidation meetings Obama renews aid offer — industry wants it now Honda taps rainwater to create wetlands U.S. loans could make sense, but can't be a bailout Wanna buy a car? Wanna buy a brand? PPG story recalls Exner's Imperial Toyota goofed on Scion; is Prius next? Editor grows up; import vet pleased Field reps blamed for GM's problems Honda Insight engine isn't noiseless Trucks, Vette fine; rest of GM, blah Reynolds to dealers: Replace aging servers by year end Saddle up! Dem delegates honor slain Arkansas dealer Kia makes a mark of its own Koreans step up; Indians step cautiously; Chinese step back The next batch of new Hyundais: Smaller, more fuel efficient To give fuel economy a boost, Hyundai spends big on r&d U.S. plans fizzle for most Chinese vehicles Mahindra delays U.S. retail launch until 4th quarter of '09 Dealers Personnel Despite tough times, Galpin profits by pimping rides Web service leads grow Uh, I didn't mean to say you should retire Remembering Phil Hill, racing's modest giant Mulally to speak at gadget show GM picks Volt battery supplier Split verdict in fraud case July auto output was up in Japan Bob Fisher Dems reopen the CAFE Hummer, king of the desert? MG remains a no-show in North America Mustang silly Protests could bring ta-ta from Tata The politicians (and I) need a new road map Welburn's design journey began in Philly Automotive News - September 1, 2008 Automotive News - September 1, 2008 - (Page Intro) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 1) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 2) Automotive News - September 1, 2008 - Suzuki in disguise (Page 3) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 4) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 5) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 6) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 7) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 8) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 9) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 10) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 11) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 12) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 13) Automotive News - September 1, 2008 - Trucks, Vette fine; rest of GM, blah (Page 14) Automotive News - September 1, 2008 - Saddle up! (Page 15) Automotive News - September 1, 2008 - Dem delegates honor slain Arkansas dealer (Page 16) Automotive News - September 1, 2008 - Koreans step up; Indians step cautiously; Chinese step back (Page 17) Automotive News - September 1, 2008 - To give fuel economy a boost, Hyundai spends big on r&d (Page 18) Automotive News - September 1, 2008 - Mahindra delays U.S. retail launch until 4th quarter of '09 (Page 19) Automotive News - September 1, 2008 - Personnel (Page 20) Automotive News - September 1, 2008 - Web service leads grow (Page 21) Automotive News - September 1, 2008 - Web service leads grow (Page 22) Automotive News - September 1, 2008 - Web service leads grow (Page 23) Automotive News - September 1, 2008 - Web service leads grow (Page 24) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 25) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 26) Automotive News - September 1, 2008 - July auto output was up in Japan (Page 27) Automotive News - September 1, 2008 - Bob Fisher (Page 28) Automotive News - September 1, 2008 - Bob Fisher (Page 29) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 30) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 31) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 32)
For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.