Automotive News - September 1, 2008 - (Page 4) 4 • SEPTEMBER 1, 2008 Candidates split on union organizing bill Obama backs card check proposal; McCain opposes it Harry Stoffer hstoffer@crain.com MORE POLITICAL NEWS Comment: Bill favors unions ➤ Convention Notebook ➤ 14 25 DENVER — A proposed federal law that would make it easier for unions to organize workers — including employees of automakers, suppliers and dealerships — is emerging as a key industry issue in the presidential campaign. Obama: Voted for McCain: Veto bill in test vote would be expected Democratic nominee Barack Obama and Republican candidate John McCain are divided on the issue. “Senator Obama supports free choice in the workplace,” UAW President Ron Gettelfinger said in the union’s endorsement statement. By contrast, Gettelfinger told Automotive News at last week’s Democratic National Convention here that he has no doubt a President McCain would veto the measure. The “free choice” proposal would enable a company’s workers to organize a bargaining unit by getting a majority of employees to sign statements of support — a process called card check. A secret-ballot election would not be necessary. The legislation’s official name is the Employee Free Choice Act. Opponents call the title a misnomer. A New England dealer who asked not to be identified said the card-check measure would enable unions “to organize every car dealership.” The House of Representatives has approved the card-check bill. A bare majority of 51 senators supported it in a test vote last year. Obama, of Illinois, voted for the bill. McCain, of Arizona, did not. But supporters could not muster the 60 Senate votes needed to end debate on the bill. President Bush would have been expected to veto it. Cardcheck advocates say they seek Obama’s election and Democratic gains in the Senate this November to clear see CARD, Page 25 Dodge hopes smooth ride of coil springs will distinguish Ram Bradford Wernle bwernle@crain.com Springs vs. coils Leaf-spring rear suspensions vs. multilink coils Elliptical leaf springs Advantages: Toughness, durability, load capacity Disadvantages: Harsh, jittery ride Multilink coil springs (shown) Advantages: Smoother ride, better handling Disadvantages: Unproven in pickups, although Dodge says its testing shows they can handle heavy loads BRENDA PRIDDY & CO. ■ ’10 CTS stays true to concept The 2010 Cadillac CTS coupe will faithfully follow the styling cues seen on the concept that debuted this year at the Detroit auto show. The photo of this CTS prototype was snapped last week. Tape camouflages the taillights, which angle up and come to a point near the end of the trunk lid. The production coupe appears to be 2 inches taller than the concept. Sales begin in the second half of 2009. Check in the mail? Toyota, Ford can tell Mark Rechtin mrechtin@crain.com LOS ANGELES — You say the check is in the mail? Don’t tell that to the captive finance arms at Toyota and Ford unless it’s true. Here’s why. The same technology that allows Netflix to get DVDs to its customers so fast has been adopted by Toyota Financial Services and Ford Motor Credit Co. Subscribers to the giant online movie rental service can receive a new DVD only after mailing back the one they’ve just watched. Yet if subscribers drop a return disc in the mailbox on Monday they will likely receive a new movie from Netflix on Wednesday. How can that be? After all, there’s a reason they call it snail mail. It’s a miracle of bar code-reader technology at the U.S. Postal Service. Netflix is notified electronically when a DVD headed to its warehouses arrives at the first U.S. Postal Service sorting center. At that point the next movie can be shipped to the subscriber. The Toyota and Ford captives are using the technology to track vehicle payments. Computers developed by DST Output, of Kansas City, Mo., let them know whether the vehicle owner’s check really is in the mail. Inbound, outbound When a customer mails a monthly car payment, a bar code on the envelope is read by computers at the post office. DST also tracks outbound mail to ensure an owner has received the bill. “We could actually identify which statements got delivered in the flooded Midwest a couple months back,” said Mury Salls, senior vice president of DST’s managed service operations. “We also knew which statements were waiting to be delivered and which ones were in a post office under six feet of water.” With the DST technology, Toyota and Ford do not send past-due notices to people who already have paid or maybe never received statements. Unnecessary and unpleasant confrontations can be avoided. “It’s a significantly reduced cost compared to a phone call or postage on a past-due notice,” said David Barcz, collections vendor relationship manager for Toyota Financial Services. “And we are more successful if we are focusing on those who truly haven’t paid us.” DST Output, a subsidiary of DST Systems Inc., is the largest thirdparty first-class mailer in America, with $555 million in revenues in 2007. DST generates more than 2.6 billion print and electronic communications annually. It also prints millions of statements sent to consumers and is the world’s largest inkjet systems printer. Clients include Costco and HSBC. Netflix is handled by a competitor. For Toyota, DST scans about 3.4 million outgoing bills and 2 million incoming checks a month. There are more outbound scans because many rural postal centers do not have mail scanners. More pay electronically Salls says DST’s mail-scan business has suffered somewhat as more customers pay their bills electronically. But DST also uses bar codes to track the effectiveness of direct-marketing campaigns. In these tough times, more vehicle owners are delinquent with their payments. “With this technology, we can give them an experience another creditor isn’t going to give them,” says Toyota’s Barcz. “People take pride in not being past due, and most won’t say, ‘We need your help.’ We need to get them to admit that something’s going on.” c SANTA BARBARA, Calif. — When the 2009 Dodge Ram 1500 reaches dealerships this month, it will be the only full-sized pickup offering a fivelink, coil spring rear suspension. In a segment where cherished traditions really matter, why take a chance doing something nobody else is doing? By talking with its customers, particularly those trying pickups for the first time, Dodge learned they were not enamored of the bouncy, jittery ride that comes with traditional elliptical leaf-spring rear suspensions, which descend directly from the horse and buggy. Dodge will continue to use leaf springs in heavy-duty versions of the Ram. Although carmakers have switched to link and coil spring arrangements on the rear suspensions of full-sized, body-on-frame SUVs, they’ve stuck with leaf springs on pickups. Leaf springs have an aura of toughness, and they’ve proved themselves over generations in pickups, where users care more about payload and towing capacity than a silky ride. But Dodge thinks it has engineered a system that will handle tough loads and improve ride quality. “There was clearly a demand for better ride,” Scott Kunselman, Chrysler LLC vice president of truck product development, said here last month at the Ram media introduction. Now Dodge must convince pickup customers that the new rear suspension is as tough and durable as leafspring rear suspensions. Dodge should find early road tests encouraging. “The new Ram delivers ride and handling that are the current best of breed,” wrote NextAutos.com, a road test Web site. “The big Ram doesn’t bob or weave or toss your head about over rough pavement, and the interior remains surprisingly quiet regardless of the road surface — or lack of road surface.” The problem with leaf springs is they must do too many jobs, he said. Those jobs include not only suspending the truck but also positioning the solid rear axle, Kunselman said. In the Dodge coil spring setup, the links connect the solid rear axle to the frame, leaving the springs free to do just one job — springing the load. Don Sherman, technical editor for Automobile magazine, said that, despite their ruggedness, leaf springs have several drawbacks. One is weight. Dodge cut 40 pounds from the Ram by switching to rear coil springs. “Also, they’re bulky,” Sherman said. “A big problem is friction. You don’t want friction in the suspension. (Friction) tends to cause a harsher ride.” Dodge ‘mavericks’ Sherman also said Dodge is once again doing what it did in the early 1990s with styling. “What they’re looking for is some way to distinguish themselves from the herd,” he said. “That was the Ram story all the way back. They made it look like a Peterbilt. It was something different.” Marc Seguin, launch manager of the 2009 Ram 1500 pickup, put it another way: “We don’t follow. We lead. We like to think of ourselves as mavericks.” Now Dodge will wait to see whether competitors — and customers — follow. c Taking a beating Dodge won’t disclose its advertising strategy for the truck until October, but look for the ads to point out what Dodge engineers have been saying: Coil springs work just fine in other heavy-duty applications such as rail cars and semitrucks. Kunselman said Dodge has no concerns about the durability of the rear suspension. http://NextAutos.com
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)
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