Automotive News - February 25, 2008 - (Page 6)

6 • FEBRUARY 25, 2008 GMAC: Office cuts won’t affect dealers Donna Harris dharris@crain.com GMAC Financial Services says dealers will see little change when the company closes 75 percent of its auto finance field offices this year. Most GMAC employees who work directly with dealers are unaffected by the cutbacks, said Barbara Stokel, executive vice president of North American operations. GMAC said last week that it plans to reduce the number of regional field offices in the United States from 16 to four and in Canada from four to one. The company will maintain business centers in Atlanta, Chicago, Dallas, Pittsburgh and Toronto. The finance company is trimming its work force by 930 employees — about 15 percent of the 6,275 employees in its auto finance business unit. Stokel said most staffers who serve dealers work online from their homes, in small offices or within dealerships. The field offices generally handle commercial loans, Stokel told Automotive News. Improvements in technology are letting GMAC reduce its reliance on physical offices, she said. Stokel said the cutbacks are not a product of the credit crunch, although GMAC’s mortgage business has suffered from the subprime crisis. GMAC lost $2.3 billion in 2007, while its North American auto finance unit reported net income of $1.1 billion. Cerberus Capital Management LP owns 51 percent of GMAC and General Motors the rest. GMAC has been streamlining its field offices since the 1990s, Stokel said. The latest cuts are expected to save $175 million a year. “We need to be more efficient,” Stokel said. “That’s something the dealers understand.” c Toyota hybrid battery partner boosts output Hans Greimel hgreimel@crain.com Calif. eyes 40-plus mpg by 2020 ➤ 8 TOKYO — If battery output is any indication, Toyota is gearing up for much higher hybrid sales. Panasonic EV Energy Co. plans to churn out 800,000 hybrid-vehicle batteries in 2009. About 95 percent will go to Toyota Motor Corp., according to Panasonic EV Energy. The production plan underlines Toyota’s optimistic outlook for hybrid-vehicle sales. The automaker is aiming for worldwide annual sales of 1 million units in the early 2010s. In 2007, Toyota sold 429,000 hybrids. Panasonic EV Energy was founded in 1996 as a joint venture of Toyota and Matsushita Electric Industrial Co. To meet growing demand, the venture built a factory in Omori in central Japan. The company has been making nickel-metal hydride batteries. But Panasonic EV soon will provide Toyota with next-generation lithium ion batteries, which are expected to be used in a new plug-in hybrid due by 2010. The main hurdle for lithium ion batteries is proving reliability and durability, said Shinichi Matsumoto, project general manager of Toyota’s hybrid division. “We are thinking battery life should be longer than the vehicle itself,” he said, or about 10 years. Other Japanese automakers are strengthening partnerships with bat- Buick may add a car below the LaCrosse Jamie LaReau jlareau@crain.com By early in the next decade, Toyota aims for worldwide annual sales of 1 million hybrid vehicles — including the Prius, shown. tery suppliers. Nissan has teamed with NEC Corp., while Honda has ties with Sanyo Electric Co. In December, Mitsubishi Motors Corp. formed a joint venture with GS Yuasa Corp. to make lithium ion batteries. That company is called Lithium Energy Japan. c Toyota could add 2 more small vehicles to U.S. lineup Mark Rechtin mrechtin@crain.com LOS ANGELES — Toyota may add two small vehicles to its U.S. lineup as a result of pressure to meet new fuel economy standards. One is the Urban Cruiser, an entrylevel crossover that debuted as a concept in 2006. The Urban Cruiser will be shown in production trim at the Geneva auto show next week and is planned only for sale in Europe. The other vehicle is the A-BAT compact pickup hybrid that was shown as a concept last month at the Detroit auto show. Jim Lentz, president of Toyota Motor Sales U.S.A., says there is room for both vehicles here. He added that neither has been approved for U.S. sale. “As we look to 2020, when we have to get 35 miles per gallon (fleetwide), that’s a big challenge,” Lentz said in an interview. The four-door Urban Cruiser shares mechanicals with the subcompact Yaris platform and looks like a jackedup version of the Scion xD hatchback. It is slightly smaller than the first-generation RAV4 crossover. “We are seeing further splintering The A-BAT compact pickup could fit on a shortened version of the Camry/ Highlander platform. and segmentation, even within the small-SUV segment,” Lentz said. “It’s the hot market right now. Customers are moving away from traditional passenger cars, but they want utility, and still want ride comfort and mileage.” The A-BAT has a four-foot bed for light-duty hauling. Toyota planners believe urban truck owners don’t need the hauling capacity of a compact body-on-frame pickup like the Tacoma. The A-BAT’s 112.2-inch wheelbase and 181.3-inch length could fit on a shortened version of the Camry/ Highlander platform. The vehicles could fit into either the Scion or Toyota lineup. “As long as we are keeping customers,” Lentz said, “it doesn’t matter whether they are in the Toyota brand or Scion brand.” c DETROIT — General Motors may build a Buick luxury car that is sized and priced below the LaCrosse. Executives are rethinking GM’s U.S. product plans in light of new federal regulations requiring an average fuel economy of 35 mpg by 2020, company insiders say. The small Buick could be one outcome. The vehicle would be based on the Buick Excelle sedan that debuts in China by early next year. “I definitely think there might be a market for a luxury-crafted smaller car for Buick,” says a senior GM source. GM would have to resolve where in North America to build the car. Also, executives are considering how to position it against other GM brands with compact sedans. The Toyota Corolla-sized Excelle is based on GM’s new global rear-drive architecture, called Alpha, being developed in Germany. Sources say GM’s product plans are affected in other ways by the new fuel economy rules: Pontiac now plans to sell 30,000 units of the 2009 G8 sedan, which debuts this spring. But fuel economy standards mean the car might not be a permanent part of Pontiac’s lineup. GMC will get a small SUV at the same time Chevrolet will get a redesigned Equinox in 2010. Hummer probably will get a vehicle smaller than the current H3 — likely to be called H4. The small HX concept that debuted at the Detroit auto show in January previewed the vehicle. Saab plans to unveil a small 9-X concept car next week at the Geneva auto show. Automotive News Europe sources have called the production version of the car the 9-1. GM likely will produce that vehicle after 2010. c LaSorda: Chrysler’s $700 million axle plant is ‘going up’ David Barkholz and Robert Sherefkin dbarkholz@crain.com DETROIT — Chrysler LLC co-President Tom LaSorda says all systems are go for a planned $700 million axle plant in Marysville, Mich. “The plant’s going up. Chrysler has a long history of axle production,” said LaSorda, who answered questions before a reception for UAW Chrysler’s Tom LaSorda: The plant will be competitive when it opens in 2010. President Ron Gettelfinger in suburban Detroit. Marysville is about 50 miles northeast of Detroit. LaSorda disputed rumors that Chrysler owner Cerberus Capital Management LP was considering canceling the plant to conserve cash for vehicle development. “I went out to the site myself just the other day,” he said. LaSorda said the plant will be competitive when it opens in 2010. Under a new UAW contract negoti- ated last autumn, Marysville will pay second-tier wages and benefits to its 900 workers. In other words, it will pay about half the $28 an hour paid to veteran Chrysler workers elsewhere. The only exception would be Chrysler workers who transfer to Marysville from Chrysler’s Detroit Axle plant. Marysville effectively replaces that plant. Detroit Axle work- ers are among about 32,000 Chrysler workers nationwide who are being offered early retirement and buyout packages. Those who leave will be replaced with lower-paid new hires. Chrysler spokeswoman Michele Tinson declined to say how many workers have taken the packages since they were offered in December. The carmaker’s goal is about 8,500 to 10,000 takers.c

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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