Automotive News - September 1, 2008 - (Page 8) 8 • SEPTEMBER 1, 2008 advertising Ford starts L-M consolidation meetings Jamie LaReau and Amy Wilson jlareau@crain.com Ford Motor executives said they would spell out product plans for Lincoln and Mercury and talk about business prospects. But dealers at the initial meetings said there wasn’t a lot of new product detail. The main message, dealers said, was a push toward more dealership consolidation. Last week’s meeting was attended by dealers in the Detroit, Chicago, Pittsburgh and Cincinnati regions. More meetings are scheduled for this week with dealers from the rest of the country. “They told us there’s been more consolidation in other parts of the country than in Detroit, and they were showing us what is going on in other parts of the country,” said one dealer who attended and asked to not be identified. “But they’re careful to not push too much because of franchise laws. They said this is a national scheme.” Ford executives told Automotive News that regional representatives will meet individually with dealers over the next two months. Lincoln-Mercury dealers have long been asking Ford Motor executives to share product and volume plans, particularly regarding the uncertain future of the Mercury brand. In July Ford announced it would keep Mercury but trim the product lineup. Candid discussions with the dealers are necessary because market conditions have worsened dramati- DETROIT — Lincoln-Mercury dealers have seen the future and know it might not include them. Ford Motor Co. executives began meeting with Lincoln-Mercury dealers last week to outline the company’s plans for those brands. A big part includes speeding up dealership consolidations. “I’m still trying to figure out how it affects me,” says George Benson, president of Benson Lincoln-Mercury in Pittsburgh, who attended last week’s meeting. Ford executives told Automotive News they would spell out product plans for Lincoln and Mercury and talk about business prospects for the franchise. But dealers at the initial meeting said there wasn’t a lot of new product detail. cally since spring, said Ken Czubay, Ford Motor’s new vice president of U.S. sales and marketing. He joined the company in July. Ford Motor has eliminated more than 500 stores since its consolidation program began in summer 2006, said Randy Ortiz, general sales manager for the Ford, Lincoln and Mercury brands. The company now has about 3,900 domestic brand U.S. dealerships, down from 4,056 at the beginning of 2008. For dealers who consider getting out, financial assistance is available. Dealers and dealership brokers have reported payments of $700,000 or more to encourage closures. “Will (the money) last forever?” asked David Kelleher, Ford’s director of market representation — an internal name for the dealership reduction effort. “I doubt it. But for the foreseeable future, and I’d say that’s through the end of the year.”c Honda hybrid plan bets big on small cars Hans Greimel hgreimel@crain.com TOKYO — Don’t expect large hybrid vehicles from Honda Motor Co. anytime soon. The company plans to put hybrid systems into compacts and subcompacts because that’s where the green technology achieves its greatest efficiencies, said Masaaki Kato, president of Honda R&D Co., the automaker’s product development arm. The strategy differs from that of Honda’s rivals, which largely have been installing hybrid drivetrains in luxury sedans and SUVs. Toyota Motor Corp. is making its next-generation Prius, due for the 2010 model year, bigger than the current one. Toyota also will debut a new Lexus hybrid at the Detroit auto show in January. Nissan Motor Co.’s first in-house hybrid will go into an Infiniti, and Ford Motor Co. and General Motors have focused on hybrid SUVs and pickups. Honda’s biggest hybrid is the Civic. And in the future, it’s all about getting smaller. Next year, Honda will launch a hy- Honda’s biggest hybrid is the Civic — and future Honda hybrids are expected to be even smaller. brid that will be smaller than the Civic. After that, an even smaller sports hybrid, the CR-Z, arrives. Around 2012, a hybrid Fit will be added. Any chance of revisiting the Accord Hybrid or rolling out something bigger? “Not in the near future,” says Kato. Honda is still stinging from the lackluster sales of its Accord Hybrid, which featured a V-6 gasoline engine and was pulled at the end of the 2007 model year. Kato says hybrid systems are best used in small cars because small hybrids most often are used for city driving, where regenerative braking constantly recharges the batteries. “Cars that drive stop-and-go are most suitable to hybrid technology,” Kato said. The first test for its hybrid strategy comes in April, when Honda launches its highly anticipated dedicated hybrid to take on the Prius. The car will be priced below the Prius — and, not surprisingly, it will be smaller. c Obama renews aid offer — industry wants it now Harry Stoffer hstoffer@crain.com DENVER — As he accepted the Democratic nomination for president last week, Barack Obama renewed his offer to help automakers revamp their plants to build more fuel-efficient vehicles. But Obama’s chief proposal for tax credits and loan guarantees — long part of his campaign’s energy plan — is being overtaken by events. Industry lobbyists told lawmakers and other political leaders last week at the Democratic National Convention in Denver that they can’t wait for a new administration. They are pressing for funding this year for a direct loan program of as much as $50 billion. “We need to do something now,” said Sen. Debbie Stabenow, D- MORE ON DEM CONVENTION Candidates split on card check ➤ 4 Editorial: Loans could make sense➤ 12 Comment: Card check is risky ➤ 14 16 Delegates honor slain dealer ➤ 25 Convention notebook ➤ Politicians need new road map ➤ 30 30 Dems reopen the CAFE ➤ Mich., after a conversation with Ford Motor Co. executives at a convention breakfast. Midway through his acceptance speech in Denver on Thursday, Aug. 28, Obama cited his proposals for tax credits for buyers of “green” cars and for a 10-year, $150 billion clean-energy fund. As for aid to automakers, the Illinois senator said: “I’ll help our auto Ford Motor Co. executives Bruce Andrews, center, and Tony Brown have an impromptu meeting with U.S. Sen. Debbie Stabenow of Michigan at the Democratic National Convention. companies retool so that the fuel-efficient cars of the future are built right here in America.” Besides their longer-term plans, both Obama and the Republican presidential candidate, Sen. John McCain of Arizona, have said they would support direct loans to automakers and suppliers. A $25 billion loan program, enacted by Congress last year but not funded, was designed to help the industry convert to more fuel-efficient vehicle technology. But with falling vehicle sales and deteriorating credit markets, the program has become a potential financial lifeline for some automakers and suppliers.c http://www.zadv.com http://www.zadv.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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