Automotive News - February 25, 2008 - (Page 29)

FEBRUARY 25, 2008 • 29 Air board responds to EPA estimate continued from Page 8 improvement in fuel economy over today’s vehicles. The new federal energy law, enacted last December with industry support, mandates a 40 percent boost in fuel economy. Until now, California regulators have been reluctant to translate their greenhouse gas emissions limits into fuel economy standards. The industry is challenging the rules in federal courts, calling them an illegal attempt to usurp federal authority over fuel economy. EPA vs. states Last December, EPA Administrator Stephen Johnson blocked California and other states from enforcing their own greenhouse gas rules on vehi- cles. Johnson argued that the new federal standard of 35 mpg would do more to cut emissions that contribute to global warming than state rules, which he said would set a standard of 33.8 mpg. Air board officials say they don’t know how the EPA calculated that estimate. Last month, they produced the new analysis in response. The battle over whether states can enforce their own rules continues on multiple fronts. Automakers and their allies are asking several federal courts to declare the state rules illegal. Industry leaders say the rules set an unrealistic standard and would create market chaos. At the same time, states are suing to overturn Johnson’s decision. A bill before Congress has the same goal. Welch of the California dealers association says the state regulations would require big changes in new vehicles. But he told Automotive News that “I don’t see a lot of customer pull” for those products. c Northwood offers dealer MBA Donna Harris dharris@crain.com Northwood University is launching the first master’s of business administration program for auto dealership executives. The new program is a joint project of Northwood’s DeVos Graduate School of Management in Midland, Mich., and the Association of Finance and Insurance Professionals. The partners announced the program this month at the National Automobile Dealers Association convention in San Francisco. The 30-month degree program will enroll its first students this year. It includes five weeklong classroom sessions and online coursework. Tuition is $25,500, not including travel costs. The program covers financial valuation, corporate strategy, economics, marketing and leadership. Northwood says the curriculum will feature industry case studies and guest lectures by leading auto retailers. To graduate, each student must design a project that will earn or save his or her company at least $75,000. Executives of franchised new-vehicle dealerships, officials of finance companies and aftermarket vendors, and independent used-vehicle dealers can enroll in the program. The Association of Finance and Insurance Professionals trains and certifies dealership F&I employees in law and ethics. Its executive director, Dave Robertson, says Northwood was the only university the association considered to host the MBA program. He adds: “Northwood is the recognized leader.” c HYDROGEN Lawmakers diverted money to districts continued from Page 4 There also has been progress in lowering the cost of making hydrogen from natural gas and in boosting the amount of hydrogen that can be stored on a vehicle, the GAO says. But developing a fuel infrastructure still will require “investment of tens of billions of dollars over several decades,” the report says. Congress has appropriated more than $1.2 billion for hydrogen since 2003. But Bush administration officials complain that lawmakers diverted some of that money to socalled budget earmarks. Lawmakers directed hydrogen-related grants to universities and research institutions in their home states and districts, instead of letting the Energy Department decide how to spend the money. The GAO agrees that nearly one-fourth of the main hydrogen program’s funding for the 2004-06 fiscal years went to projects “outside the initiative’s r&d scope.” How much is enough? Jerry Hinkle, a top lobbyist for hydrogen interests, has been a congressional staffer and a Department of Energy official. He says lawmakers wanted to appropriate more money for hydrogen in recent years but were pressured by the administration to contain spending in part so it could pay for fighting wars. Hydrogen spending in the current fiscal year is just 38 percent of the amount a 2005 energy law recom- mended. Bush’s proposed hydrogen budget of $238 million for 2009 would be only about 28 percent of the money authorized by the 2005 law, according to Hinkle’s analysis. Hinkle is vice president of policy and government affairs for the National Hydrogen Association. Its more than 100 members include BMW of North America, Chrysler LLC, General Motors, American Honda Motor Co., Toyota Motor Sales U.S.A. Inc. and others linked to the industry. Each of the Detroit 3 is spending more on hydrogen r&d for fuel cell vehicles than the federal government, the GAO report notes. Each automaker has indicated plans to spend an additional $6 billion to $10 billion through 2015. GM, Chrysler and Ford Motor Co. are members of FreedomCAR. The public-private program — which also includes the federal government, suppliers, energy companies and educational institutions — conducts research on vehicle technologies. Some automakers insist they will have commercially viable fuel cell vehicles before the government-targeted decision date of 2015. GM promises a competitive fuel cell vehicle early next decade. Still, GM is “concerned that there is no comparable federal effort to address both infrastructure and applied research,” said Greg Martin, the company’s director of public policy communications. Without more government funding, Martin told Automotive News, “the substantial progress that has been made to put in place tomorrow’s vehicles and the fuel that (will) power them will be seriously inhibited.” c Nissan has made push-button starters standard on its Altima family sedan, left, and the new Rogue small crossover. STARTERS Push buttons will become mainstream continued from Page 3 a card or other device that fits into an ignition slot. The consulting firm Frost & Sullivan believes that Nissan’s product push into the mainstream will prompt other automakers to begin cutting their price for technology. New wave A new wave is definitely coming, confirms Ward Randall, manager of sales and portfolio for Continental North America. In December, Continental North America’s parent, Continental AG, purchased Siemens VDO Automotive Corp. “I can say with certainty that within the next one to two years, every major automaker in the world will offer push-button ignitions,” Randall says without tipping his hand on his customers’ specific plans. Not only are more manufacturers adopting the feature, he says, “they are going to put it into more products.” Until now, push-button starters were primarily the domain of upper- crust vehicles such as the MercedesBenz S class, Cadillac XLR roadster and Jaguar XK. According to market data from JATO Dynamics Inc. in suburban Detroit, push buttons were offered on 33 2008model nameplates. Of those, 25 were luxury-brand nameplates, such as the Volvo S80 and Mercedes SLRMcLaren. The feature is also offered on the 2008 Volkswagen Touareg SUV and the Chevrolet Corvette, both of which retail for more than $40,000. BMW, which offers the feature on several of its models, also includes it on its Mini Cooper, according to the JATO data. Frost & Sullivan’s forecast predicts industry sales of the systems will rise by about 37 percent by 2013. Land Cruiser and the XLE Camry. But we’ll be putting it on others in time.” Keys, please As nonluxury consumers discover the technology, there could be an adjustment period. Replacing a lost smart card and having it reprogrammed to work correctly can cost a careless customer $250 or more. That’s substantially more than the $15 it typically costs to have a dealer cut a replacement metal key. Also, the new technology can ensnare consumers confused by new technology, says David Michaud, engineering manager for Alpha Technology Corp. in Howell, Mich. Alpha manufactures some of the push-button and smart-key components. Michaud says he recently encountered two women in a parking lot who were locked out of their car because their smart card had failed. They didn’t realize they could use the metal key on their fob to open the door, he says. It’s also possible to start the car with the button and drive away, leaving the smart card behind in, say, a coat pocket in the garage. If this happens, you must fetch the smart card to restart the car. Says Michaud: “We’re moving away from keys, yet metal keys will be around for a long time.” c Toyota offers it, too Nissan has made push-button starters standard on its Altima family sedan and the new Rogue small crossover. Toyota now offers the feature as an option on its high-end Camry, Avalon and Land Cruiser SUV, as well as the hybrid Prius. “We have it only on our higher-end products so far, says Toyota product spokesman Bill Kwong. “It belongs on the Prius, since Prius customers want the latest and greatest technologies. Otherwise, you see it on our higher-end models — the Avalon, the KIA Incentives offered to improve dealerships continued from Page 4 Now, for the first time, Kia has budgeted money to help them build or renovate stores. definitely helps elevate Boosting the brand “When the company first came to the U.S., we were more interested in growing,” Hoostal says. “We had an image design out there, but it was never supported. So we came up with a plan to offer incentives to build the stores. We want to strengthen the Kia brand. “ The store the brand. stores, but only 8 percent have the modern, consistent look sought by the automaker. In the past, Kia has given dealers incentives to operate exclusive stores. DAN GORRELL AutoStrategem ” “We want a more consistent look.” Don Hobden, a partner in three Kia stores in Louisville, Ky., is a big supporter

Table of Contents Feed for the Digital Edition of Automotive News - February 25, 2008

Automotive News - February 25, 2008 Chamco's 'consultant' is forced into limelight Group 1, Gulf States clash Dealer profit stuck in neutral Ghosn: Autos are in recession NHTSA investigates Toyota, Pontiac cars' windows The upside of upside down: Better belts Push buttons will alter interiors Schwarzenbauer leaves Porsche for Audi CSM: Cuts in auto output to ease in 2nd quarter Ford's Hispanic ad campaign takes it to the mat Hydrogen slips as a solution for the greening of autos Kia to spend big to upgrade dealerships GMAC: Office cuts won't affect dealers LaSorda: Chrysler's $700 million axle plant is 'going up' Toyota hybrid battery partner boosts output Buick may add a car below the LaCrosse Toyota could add 2 more small vehicles to U.S. lineup Calif. regulators shoot for 40-plus mpg by 2020 Loyalty/conquest: Power's best, worst Chrysler firm on retrieving tools from Plastech Former NUMMI exec applies Toyota ideas to aircraft industry Kozyra's resume reflects volatile supplier climate Obituaries Chrysler, Plastech now have chance to work together Do it the NADA way Hail, Geneva; spring must be near Volt's potential is unlimited The Volt is terrific; give GM a hand Beware of high tech running amok Teach reporters half full/half empty Dealer wants to view Conti exec: Inside, it's about the info Dealers Caddy chief's goals: Build on CTS, prestige, high-tech Geneva looks like another green scene Volvo XC60 system senses impact, hits the brakes Saab 9-1 concept awaits green light GM: Supply of vehicles to certify will stay steady Used-vehicle supplies up, prices down in Jan. Black Book plans daily updates Cars.com rolls out video service Manheim launches search tool Luxury sales channel is high on GM agenda GM seeks dealers' help with 5-point green plan Northwood offers dealer MBA Court rejects Chicago dealer's appeal Taxes distort Jan. sales in Europe Nissan to cut designers NHTSA studies window woes Bank: Autos easier to afford VW labor boss gets jail term Delphi sells 2 units Toyota Tundra had tough Jan. Chrysler's white knight: We're investors, not heroes Ford's 'Knight Rider' is Sync on steroids GMAC parties have lost a bit of their pizazz Global warming? It's a crock - but . . . Nardelli's NASCAR debut is a winner A frosty reception for the TSX

Automotive News - February 25, 2008

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