Automotive News - March 31, 2008 - (Page 12)

12 • MARCH 31, 2008 opinion Dauch sends wrong signals as Axle strike drags Richard E. Dauch is one of most respected executives in the automotive supply chain. He has always worked with his stakeholders to make the company he co-founded — American Axle & Manufacturing — an exemplary supplier. By taking over and improving a troubled General Motors operation, he created a lot of value and saved a lot of jobs for GM workers. That’s why it is hard to understand his company’s strategy one month into the bitter strike by the UAW that has shut down five American Axle plants and brought General Motors’ truck production to a near standstill in the United States. Dauch is asking hourly workers to take significant pay cuts and make concessions for his company, which is still profitable. Meanwhile, Dauch and his top three executives all took increases in their base pay and total compensation. Dauch’s base salary — not including millions of dollars in stock options and incentives — rose 9.6 percent last year. Giving yourself a raise while asking your workers to cut their pay in half is a slap in the face. It’s wrong — and foolhardy — to ask workers to make sacrifices unless you are willing to share in that sacrifice. Dauch also took a trip to his Florida vacation home a few weeks ago while negotiations were going on and his employees walked a picket line in the snow. These are horrible messages to send to your stakeholders — and not just the union. How can Dauch justify all this to GM, his largest customer, which as of last week had lost production of 78,592 vehicles because of the strike against Dauch’s company? This is a new era in which management and labor must be partners if their companies are to survive and thrive. Equality of sacrifice must be the new ground rule, not just a slogan to entice workers to give up pay and benefits. That’s something American Axle and the rest of the industry ought to understand by now. It wasn’t too long ago that Barbara Vidmar, a successful dealer from Colorado, became the first woman to head a major dealer organization. She was chairman of the American International Automobile Dealers Association in 2000 and did a great job. I thought that might open the floodgates of opportunity for more women to take leadership positions in the automobile business. Well, not much happened until this year when the National Automobile Dealers Association elected Annette Sykora, a car dealer from Texas, as its first female chairman. A move that was long overdue. Even so, only five of NADA’s 64 directors are women, a lot fewer than there should be on a board that represents the entire dealer population in the United States. It hasn’t been that long since women discovered the retail automobile business. DAILY AUTO NEWS >> You can get the news you need every day. Go to www.autonews.com/signup and sign up for our daily e-mail newsletter. It’s time to break the glass ceiling First they realized that they could make a good living selling new cars and trucks. They rose through the ranks and became sales managers, general managers and owners. And many have discovered that they are good at interacting with customers and make great service writers and service managers. Women have shown they can do every job in a dealership. Meanwhile, female enrollment in the Automotive Marketing/Management Program on Northwood University’s three campuses has doubled from 5 percent 10 years ago to 10 percent this year. My own experience with women in the workplace is that they are growing in numbers and skills. Whether it’s publishing or automotive retailing, they are getting the Only five of NADA’s 64 directors are women, a lot fewer than there should be on a board that represents the entire dealer population. experience and responsibilities they deserve. I hope that the new chairman of NADA will increase the number of female members on the NADA board and will promote opportunities for women in the retail automobile business. That would be an outstanding legacy. Electing the first female chairman of NADA should be more than just an isolated incident. It ought to be the beginning of a trend. NADA should recognize the potential among its female members. It’s about time. autonews.com Did you know that you can write a letter to the editor on our Web site? Here’s how. Go to www.autonews.com. At the top of our home page, put your cursor on the tab that says “Opinion & Feedback.” Click on the section below that says “Send us a Letter.” That will bring up a letter form. Follow the directions. Future bright for Tata brands Ford Motor Co.’s sale of Jaguar and Land Rover to India’s Tata Motors Ltd. for $2.3 billion should be a fresh beginning for the two storied automotive brands. Some have questioned Ford’s stewardship of the upscale British brands and the automaker’s level of investment in product development, marketing and distribution. But there can be little doubt that Tata is getting a couple of brands on the threshold of a renaissance. With proper management, they ought to flourish. We wish them the best. odd, offbeat automobiles attractive. Toyota simply found out how many there are: Not many. Watch what happens next (as we already see in the xD); Scion will become more mainstream in appearance. It was an entertaining and neat little experiment, but I think we’re seeing that it has limited appeal — unless there is an untapped supply of post-teenagers out there. LEONARD J. MARSHICK Manager, Advanced Plastic Programs Cooper Standard Automotive Global Technology Center Farmington Hills, Mich. THE WEEKLY NEWSPAPER OF THE INDUSTRY Established in 1925, published every Monday by Crain Communications Inc. Keith E. Crain, Publisher and Editor-in-Chief Peter Brown, Associate Publisher and Editorial Director David Sedgwick, Editor Edward Lapham, Executive Editor HOW TO REACH US Web site: www.autonews.com Editorial staff autonews@crain.com Phone: 313-446-0361 Fax: 313-446-0383 Circulation Advertising subs@crain.com lschlagheck@crain.com Phone: 888-446-1422 Phone: 313-446-6790 Fax: 313-446-6777 Fax: 313-446-8030 Editorial data/research To locate information that has been published in Automotive News, call 313-446-1662. Customer service To start or renew a subscription or to report an address change or a delivery problem, e-mail subs@crain.com or call 888-446-1422 (in the U.S. or Canada) or 313-446-1662 (in all other locations). AUTOMOTIVE NEWS (ISSN 0005-1551) is published weekly at 1155 Gratiot Ave., Detroit, MI 48207-2997. Periodicals postage is paid at Detroit, MI and at additional mailing offices. Postmaster: Send address changes to AUTOMOTIVE NEWS, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. Canadian Post International Publications Mail Product (Canadian Distribution) Sales Agreement #40012850, GST#136760444. Canadian return address: 2-7496 Bath Road, Mississauga, ON L4T 1L2 Printed in the U.S.A. Customer loyalty is serious business To the Editor: With regard to the cartoon about Mazda’s loyalty rate in the March 10 issue, there really isn’t any positive way to interpret it. I am a loyalty manager hired by dealers and Mazda to work with the dealer body. I can tell you that as facilitators, loyalty managers bring years of training and automotive experience to the table. With any manufacturer, dealership success relies on culture. If we raise awareness about the customer perspective in an industry with such high turnover, then we have done the minimum. If we are successful in coaching dealerships to implement processes where before there were none, or teaching them to recognize the way the industry and customers are changing with regard to the purchase and servicing of vehicles and how customers expect to be treated, the dealers retain more customers and generate more revenue. Regardless of the manufacturer, customer loyalty feeds profitability. Mazda should be commended for doing everything in its power to raise the bar for its dealers. R. LASCAR Washingtonville, N.Y. The writer, a contractor, works with Mazda North American Operations and its dealers on loyalty issues. Autos don’t cause all global warming To the Editor: While we all know the data regarding the warming of the planet is quite solid, it appears that searching for the primary cause has become somewhat of a witch hunt. The experts assert that burning carbon is the primary cause for all global warming and that automobiles are the leading culprits. We have yet to see a consistent summary showing the relative contribution of all other potential sources of global warming. For example: Methane releases: biological sources on land, methane hydrate see LETTERS, Page 14 Toyota plumbed the depths of Scion To the Editor: “Scion hits a wall” (March 3): No mystery there. A finite number of folks find quirky, http://www.autonews.com/signup http://autonews.com http://www.autonews.com http://www.autonews.com

Table of Contents Feed for the Digital Edition of Automotive News - March 31, 2008

Axle strike leads GM to alter production plan Industry expert Ferron joins Automotive News Group Hummer adds E85 models Lear expands in China Ford spills the beans on car seats Concern ... confidence ... curiosity — welcome to America, Tata Expect most Ford-bred executives to stay put Tip for Tata: Let British brands be British brands Dana CEO sees need for growth in Asia Chrysler: Any deal for partner would be done by Cerberus Farley retools Flex marketing strategy Malibu attracts import-minded buyers European purchasing execs to suppliers: Costs must fall Reynolds removes dealership modems New Saturn ads will promote Aura, Vue, Outlook This Spring Hill launch is a fraction of the first one GM works on small global car Hal Riney, Saturn campaign creator, dies Dealer sours on China importer Secret computer lets Nissan planner peek into future XM-Sirius merger: Lower prices, more choices? Key Chrysler product developer resigns Ford's new boss in HR plans no major changes Wagener to replace Pfeiffer as Mercedes design chief It's time to break the glass ceiling Autos don't cause all global warming Toyota plumbed the depths of Scion Customer loyalty is serious business Future bright for Tata brands Dauch sends wrong signals as Axle strike drags Yanase opened Japan to Western cars Fewer dealers, sure, but more brands What if Ahn falls short? Want to inspire Lori Queen? Just say no Hanwha to build GM Powertrain assembly line Toyota enters untapped Korea, home of Hyundai James O'Rourke Jr. Picture This -- March 31st, 2008 Lexus pays dealers for innovations Suppliers to the 2009 Dodge Journey Ricardo center has battery focus Howa USA opens interior parts plant in Kentucky N.Y. show suggests a future of smart powertrains, muscle BMW sees new models as sales saviors Ford contract has unique take on core jobs 6 more PACE-setters in auto innovation Buy-here, pay-here may grow Dealers Mercedes SL: A fresh face — with 1 flaw Ex-Chrysler design chief John Herlitz dead at 65 Future could be bright for Jag, Land Rover Land Rover in good shape, but challenges remain Fuel economy fines loom for Tata As segment shrinks, Chrysler minivan output takes a big dip Mercedes names 27 AMG dealers Continental to cut jobs Cobalt SS price: $22,995 Kia opens Ga. training center Nissan idles Mexico plant Plastech legal bill: $1 million for a month Magna will add 3 plants in Mexico El Camino diehards say Pontiac G8 should have been a Chevy No 2nd chance for Nasser, other Ford alums Buick grabs a name from the past After short list, a short stay for Laymon Lori Queen or Ellery Queen? Daimler's mum on BMW Southern supplier strategy Tracing the Camaro's bloodline Alfa searches for a U.S. factory

Automotive News - March 31, 2008

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