Automotive News - March 31, 2008 - (Page Cover1)

autonews.com ® MARCH 31, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY Alfa searches for a U.S. factory Luca Ciferri lciferri@craincom.de TURIN, Italy — Fiat is scouting for a plant to build Alfa Romeo cars in the United States and plans to choose a location by the end of May. Two possibilities are being considered, according to sources familiar with the project: 1. Buy a shuttered factory formerly owned by one of the Detroit 3. 2. Expand an existing Case New Holland agricultural machinery or construction equipment plant. Fiat owns Case New Holland, which operates 11 plants in North America. The plant would begin producing vehicles in 2011 or 2012, according to sources. Capacity would be about 150,000 units annually. Vehicles built there would be sold in North American and exported to Europe. The Italian company is talking with various states about incentive and tax abatement packages, the sources say. Fiat Group CEO Sergio Marchionne said in January that Alfa would export vehicles to the United States beginning in late 2009. Alfa will start with the 8C Competizione coupe, which will be sold through selected Maserati dealers. Other models will follow through Alfa’s own channel. Alfa Romeo CEO Luca De Meo said this month that a decision on the distribution network and the vehicles to be sold would be made within two or three months. Alfa Romeo left the U.S. in 1995. Fiat has talked for years about reintroducing the brand, but the effort has been repeatedly delayed. c Ford will try trendy in crossover ads Sure, you can haul a family in Ford’s Flex crossover. But the marketing pitch will focus on the trendy, not the old kidsand-dogs approach of the minivan era. | PAGE 4 | Chrysler minivan output dips ➤ 40 The minivan is dead, right? Think again Bradford Wernle bwernle@crain.com Thurston Peabody and Ann Morin stand in front of some of their “hostage” lanelogic cars. Morin says lanelogic owes their New Hampshire dealership more than $32,000. They are holding five cars hostage until the broker settles. A funny thing happened to the minivan on the way to the scrap heap. Competition knocked out General Motors and Ford. But their retreat left three powerful players with high-volume minivans: Chrysler, Toyota and Honda. The survivors get to split an ample 700,000-unit segment. Minivan sales have collapsed in recent years because of all the alternatives: seven- and eight-seat SUVs, and now crossovers. But some people want and need a van. “There aren’t as many choices for minivans,” says Randy Pflughaupt, Toyota Division group vice president of marketing. “There are fewer players and fewer options, but those that are left are pretty strong.” The overall segment continues to shrink in 2008 — down 23.9 percent for the first two months of 2008. If trends continue, sales this year will be barely more than half of historical peak sales of 1,371,234 in 2000. But the dip this year has a lot do with Chrysler’s new strategy since see MINIVANS, Page 40 PACE setters Twenty-three finalists are competing in this year’s PACE competition, which honors innovation by suppliers. See 6 profiles of this year’s big ideas. | PAGE 28 | Tata’s triumph After months of courtship, Tata Motors of India has acquired from Ford two of the auto industry’s most prestigious brands. Several stories explore the deal and the future of Jaguar and Land Rover. | PAGES 3 AND 39 | BILL TRUSLOW Car broker leaves dealers in lurch Angry retailers say lanelogic failed to repurchase unsold used cars Arlena Sawyers asawyers@crain.com Leading the pack Minivan transaction prices have risen faster than transaction prices for the overall industry in the past 5 years. Figures are not adjusted for inflation. MINIVANS ALL NAMEPLATES 2008* $27,500 2003 $25,049 Change 9.8% *Jan. 1-March 23 $27,785 $25,648 8.3% Source: Power Information Network For the managers of used-car lots, it looked like an offer that you couldn’t refuse. A Dallas-based broker called lanelogic had formed a network of franchised dealer clients that bought and sold each other’s used cars. And if a dealer purchased a used car through lanelogic and failed to sell it within 45 days, lanelogic would buy it back. For a fee, lanelogic was promising to eliminate the risk a dealership faced in the used-car business. It sounded too good to be true — and it was. In February, lanelogic abruptly halted its vehicle brokerage business, leaving some of its 200 dealership clients in the lurch. Angry dealers told Automotive News that lanelogic had reneged on its buyback offer, leaving them with unwanted used vehicles. Some dealers had used cars with no titles, while others had titles but no cars. Some say lanelogic owes them thousands of dollars. One dealership is taking hostages. Ann Morin, general sales manager at Bill Dube FordToyota-Scion in Dover, N.H., says lanelogic owes her store $32,198. If lanelogic refuses to of- fer a fair settlement, Morin says, she’ll hang on to five of lanelogic’s used vehicles her store has not paid for. “They make good hostage vehicles,” Morin says. On the Web This week at www.autonews.com: Tuesday: Automakers report U.S. vehicle sales for March. Wednesday: General Motors’ OnStar unit announces upgrades. Wednesday: Auto retailer CarMax announces its financial performance for the fourth quarter and fiscal year. All week: Continuing coverage of the UAW’s strike at American Axle and the impact on GM vehicle production. Other disputes A half-dozen other dealers, who asked not to be named, told Automotive News about similar disputes with lanelogic. Contacted last week, lanelogic CEO Bruce Thompson said he plans to settle all disputes with dealers. “When you wind down, there is no easy way to do it,” Thompson admits. “You just try to make dealers whole.” Thompson likened lanelogic’s old business model to a stock exchange. see USED CARS, Page 38 NEWSPAPER http://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

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.