Automotive News - February 25, 2008 - (Page 34)

34 • FEBRUARY 25, 2008 final assembly comment GENEVA AUTO SHOW >> Go to autonews.com/geneva for the latest from the 2008 Geneva Auto Show GMAC parties have lost a bit of their pizazz O nce upon a time, General Motors Acceptance Corp. always had the biggest, grandest party during the National Automobile Dealers Association convention, hosting thousands of dealers, wives and guests. Even in 1989, when Chevrolet had its divisional party at the Superdome in New Orleans and General Manager Bob Burger rode in on a Mardi Gras float, GMAC was bigger. That’s because back then Chevy EDWARD LAPHAM had about 5,000 IS EXECUTIVE dealers — half EDITOR OF the number of AUTOMOTIVE dealers GMAC NEWS. serviced. Boy, have times changed. Now the finance company is known as GMAC Financial Services. It’s no longer a wholly owned subsidiary of General Motors, which sold 51 percent of its captive finance unit in December 2006 to a group of investors led by Cerberus Capital Management. GMAC’s plan to restructure its North American auto finance operations is more proof that times have changed. The company will cut 15 percent of its work force and consolidate 23 offices in the United States and Canada into five regional business offices. That’s part of a long-term costcutting trend. When GM had 10,000 dealers and half the market, GMAC bought retail paper from most of them and also floorplanned their dealership inventories. The company needed a lot of field offices to keep in touch with dealers and process all the paperwork. But computers and the Internet have changed the finance business. Buying retail paper doesn’t involve much paper anymore because so much of the transaction is done electronically. That’s not the worst of it. For the past several years, GM and GMAC have held a joint reception at NADA, a far cry from when there were five divisional soirees in addition to the GMAC blowout. But you know, that’s OK, too. These days, many GM dealers also need to attend parties thrown by their other manufacturers. And their other finance companies. Next year’s NADA convention is back in New Orleans. But I’ll be surprised if anybody from GM or GMAC rides in on a float. Edward Lapham writes five commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. Chrysler’s white knight: We’re investors, not heroesor a guy who hates publicity, Cerberus Chairman Stephen Feinberg has been getting a lot of ink and BlackBerry juice. Feinberg was in the headlines last week, and a letter he and Cerberus exec William Richter wrote to investors was racing around Wall Street via BlackBerry. The letter bemoaned the state of the economy but tried to reaffirm confidence in Cerberus’ two highest-profile investments, Chrysler and GMAC. Chrysler “has more than $8 billion in cash and it is beating the budget we set at the time of the deal,” Feinberg and Richter wrote. The letter downplayed the idea, played up by Cerberus and Chrysler executives in the past, that Cerberus is a patriotic white knight riding to rescue an ISTOCKPHOTO American icon. It’s about making a buck, investors were told: “We believe we bought the company very cheaply, and we do not need to be heroes to earn a good return on the investment in Chrysler. We do not need to transition the car industry or even return Chrysler to a much stronger relative position in the U.S. car market in order to be successful.” If Feinberg sought to reassure investors, his “cheerless” letter failed dismally, wrote Andrew Ross Sorkin in his Dealbook column in The New York Times. “One moment, Mr. Feinberg sounded cavalier about the prospects of the companies he controls,” wrote Sorkin. “The next, he seemed cold and ruthless.” Justin Bruening, who plays Mike Tracer, and co-star KITT Ford’s ‘Knight Rider’ is Sync on steroids placement, Usually, ina productastar isBut it’s you put star in car. the even better when the car. NBC has high hopes for “Knight Rider,” the exhumed idea from the 1980s in which a crime-fighting car named KITT is smart enough to do all of the thinking and some of the talking. Back in the day, the star car was a Pontiac Trans Am; in the 2008 effort, it’s a Ford Shelby GT 500KR. And Ford and NBC burned some rubber out of the gate. The TV movie broadcast Sunday, Feb. 17, left tire tracks on the competition and was the evening’s top-rated prime-time program. It’s likely “Knight Rider” will turn up in NBC’s fall lineup as a weekly series. RUSTY JARRETT NASCAR junkie Bob Nardelli watched the Daytona 500 from the pits — and then celebrated in the winner’s circle. Nardelli’s NASCAR debut is a winner S o why did Chrysler CEO Bob Nardelli have such a big smile at this year’s Daytona 500? Well, he’s a big NASCAR fan, and it’s NASCAR’s most prestigious event. More important: Dodge finished 1-2 and captured six of the top eight spots. Penske-team driver Ryan Newman won, and teammate Kurt Busch came in second. It was the Penske team’s first win at the Daytona 500 in 24 tries. Before the Feb. 17 race, Nardelli was seen talking with the Dodge teams, slapping backs, shaking hands and offering a challenge: a $1 million bonus to the Dodge team that won. “I told our pilots to make sure you get 12 hours of rest because we’re going to be here awhile,” he told a newspaper reporter before the race. “I’m looking forward to the winner’s circle and getting champagne on me.” He got his wish: After watching the race from the pit area, Nardelli celebrated with Newman in the winner’s circle. Nardelli’s enthusiasm for NASCAR goes back to his Home Depot days, when the Depot sponsored the Chevrolet operated by the Joe Gibbs Racing Team and driven by Tony Stewart. Nardelli told AutoWeek: “And now to come over here and have four good teams and 12 drivers — well, it’s a dream come true.” W Global warming? It’s a crock – but . . . I t’s hard to read General Motors Vice Chairman Bob Lutz sometimes. He talks with equal passion about Chevrolet’s Volt plugin eco-concept and his strongly held belief that global warming is a bunch of bunk. But the dichotomy has been explained: There’s Corporate Bob and Personal Bob. Personal Bob stirred up gigabytes of Internet flak after he said at a supposedly closed-door meeting with reporters in Texas in January that global warming was a “total crock of shit.” According to some accounts, Lutz also is purported to have said hybrids such as the Toyota Prius “make no sense.” The timing wasn’t great, since GM is making a big push to tout its greenness and is encouraging dealers to climb aboard (see story, Page 28). Responses in the blogosphere were predictable: Right on, brother from horsepower junkies; tongue-clucking from those who see GM headquarters as Dinosaur National Park. Last week Lutz took to the Internet to explain. On fastlane.gmblogs.com, Lutz wrote: “My beliefs are mine and I have a right to them, just as you have a right to yours. But among my strongest beliefs is that my job is to do what makes the most business sense for GM. “Never mind what I said, or the context in which I said it. My thoughts on what has or hasn’t been the cause of climate change have nothing to do with the decisions I make Lutz: Plugs Volt, to advance the cause of General but says global warming is bunk Motors.” Thus Lutz insists he’ll do whatever it takes to make GM a leader in green technology. “The point is not why and how did we get where we are,” he wrote. “It’s what are we going to do to get where we’re going.” So maybe we need a signal: How about a red tie when Personal Bob is talking and a blue one when it’s the other guy? hen Mother Nature serves you lemons . . . talk about your antilock brakes and stability control. Acura thought it was making a safe choice for its Valentine’s Day ride-and-drive for the 2009 TSX sedan. San Diego in February figured to be a good place for journalists to soak up some sun and get to feeling good about your new vehicle. But then the snow came. And kept coming. About 70 miles north of the city, journalists faced freezing temperatures and a whiteout snowstorm that dumped 4 inches on stunned Californians. What should have been a two-hour trip back to the comfy hotel and burgeoning buffet table took more than five hours. The good news for Acura: The TSX’s brakes and stability control system worked fine; no fenderbenders. An Acura spokesman said journalists at a similar session two days earlier had enjoyed sunny 71degree weather. “We’re about as close to Mexico as you can get,” he said, “and the weather still did not cooperate.” ISTOCKPHOTO A frosty reception for the TSX http://autonews.com/geneva http://fastlane.gmblogs.com http://www.autonews.com http://autonews.com/edwardlapham

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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