Automotive News - June 23, 2008 - (Page 3)

JUNE 23, 2008 • 3 82nd year — No. 6313 Ford rethinks big-block V-8 plan Suppliers cite soaring fuel prices, slow pickup sales Amy Wilson awilson@crain.com Plastech’s Brown stands to get $9.25 million DETROIT — Julie Brown, CEO of Plastech Engineered Products Inc., could receive $9.25 million when a Johnson Controls Inc. unit completes the acquisition of the troubled supplier’s interiors business. Plastech lawyers are asking a U.S. Bankruptcy Court judge here to approve a settlement involving Brown, a syndicate of Plastech creditors and Plastech lenders as the suburban Detroit supplier’s Chapter 11 reorganization winds down. If the judge approves, Brown would get $9.25 million, paid in five annual installments of $1.85 million, according to court documents filed Thursday, June 19. The money would come from JCIM LLC, the new company owned by some of Plastech’s lenders and Johnson Controls that was formed to buy Plastech’s interiors business. — Ryan Beene DETROIT — Declining pickup sales and soaring gasoline prices are threatening Ford Motor Co.’s bigblock V-8 engine program. Ford told suppliers last week to stop work on a 6.2-liter V-8 engine that had been scheduled to go into the F-series pickup as early as next year, sources told Automotive News. The engine was canceled for the 2010 F-150, the sources said. It’s unclear whether it still is planned for the larger F-series Super Duty pickup. The big V-8 already had been stripped from the next-generation Ford Expedition and Lincoln Navigator full-sized SUVs. The engine program, known internally first as Hurricane and then Boss, was Ford’s answer to General Motors’ large-displacement V-8s. The program had been shelved in 2005, but Ford executive Mark Fields revived it after assuming leadership of the company’s Americas unit. 2 plants likely for new Focus ➤ 38 Fields said last week that the program is still on but acknowledged that it has been scaled back. “We’ve made a significant investment in” the Boss engine program, Fields told PickupTrucks.com in an interview. “The program is moving forward but with lower volumes and only one displacement.” Fields didn’t disclose the displacement of the engine that is scheduled to come to market. He also declined to identify the vehicles that would get the Boss engine. “It will be as fuel-ef- ficient as possible,” Fields said of the surviving engine. Sources familiar with Ford’s engine programs said it’s possible that the automaker may assign the Boss name to a 5.0-liter V-8 being developed for the Mustang. That would make marketing sense; the Boss label long has been connected to performance Mustangs. But the picture is murky on the family of V-8 engines that Ford will use for future big trucks. The F-150 currently comes with 5.4-liter and 4.6-liter V-8s. The gasoline engines on the Super Duty are the 5.4-liter V8 and a 6.8-liter V-10. c Webinar offers tips on going green Toyota dealer Pat Lobb has discovered that it pays to be green. In suburban Dallas, he built an energy-efficient store that recycles water, oil and other wastes, earning him certification from the U.S. Green Building Council. Now he’s enjoying the benefits. Lower utility bills will help Lobb recover his investment in three to five years. And customers have been receptive to his marketing campaign, which focuses on his store’s green features. Find out how he did it in an Automotive News Webinar at 1 p.m. Tuesday, June 24. And learn how other dealers have retrofitted stores to reduce utility bills, recycle wastes and earn green recognition. Webinar panelists will be Lobb; Justin Doak, the retail sector manager for the Green Building Council; Doug Greenhaus, the National Automobile Dealers Association’s director of environment, health and safety; and Automotive News Editor David Sedgwick. c Lawmakers: Redo roof rule WASHINGTON — Some key lawmakers want regulators to skip a July 1 deadline they and other members of Congress set for adoption of a vehicle roof strength standard. They say a preliminary version of the rule written by the National Highway Traffic Safety Administration is inadequate and must be redone. A 2005 law set the July 1 deadline but allows Transportation Secretary Mary Peters to seek more time. The lawmakers asked her to take that step in a June 19 letter made available to Automotive News. The letter is signed by Sens. Daniel Inouye, D-Hawaii; Tom Coburn, R-Okla.; and Mark Pryor, D-Ark. — Harry Stoffer Green dealerships What: Automotive News Webinar on green dealerships When: 1 p.m. EST on Tuesday, June 24 Where: Register at autonews.com/greendealerships Cost: Free McGurk Meyers Chrysler, above, in Coralville, Iowa, was forced to set up shop temporarily in nearby Iowa City. Hunt takes job at Gallup LOS ANGELES — Gallup Inc. has tapped longtime auto executive Len Hunt to expand its auto consulting business. Gallup announced Friday, June 20, that Hunt joined the company as a partner at its office in Irvine, Calif. Hunt, 52, left as CEO of Kia Motors America in February after just two months in that job. He had joined Kia in October 2005 as COO. Before that, he was with Volkswagen of America Inc. Hunt led Audi of America Inc. from 1999 to 2004. He also spent five years with Audi of Britain after 15 years with Jaguar. Looters and broken levees How one Iowa dealership found a new home after being wiped out by the region’s devastating floods Andrew Grossman agrossman@crain.com CORRECTIONS The Top 100 Global Suppliers supplement that is included with some editions of this issue gives the wrong percentage for Stanley Electric Co. Ltd.’s European sales. Europe accounted for 4 percent of Stanley Electric’s global sales. A digest item on Page 40 of the June 9 issue incorrectly described the 2009 FX35. It is available in rearwheel drive and all-wheel drive. With the Iowa River rising dangerously on Thursday, June 12, federal officials stopped by Jeff Carr’s Chrysler dealership in Coralville, Iowa. They told Carr that he had about four days before floodwaters would reach his 43-year-old store, which sits about a half mile from the river. In fact, Carr had less than a day. By the time four days had elapsed, Carr was supervising the reopening of McGurk Meyers Chrysler at a new location 3.5 miles away. His old dealership was under water. That Thursday night, Carr and his employees had begun moving the dealership’s inventory to a safer place. They managed to transfer about 80 percent of the 120 vehicles in stock — about half new and half used — to a lot out of harm’s way. Carr’s team finally went home around 1 a.m. on Friday, the 13th. After they left, Carr said, looters broke into the dealership. And some levees broke. About $750,000 worth of vehicles ended up under water, Carr said. ‘Absolute morons’ When Carr returned the next morning, the road to the dealership was closed. Carr and his employees rolled up their pants and waded through more than 3 feet of water. When they got to the dealership, they filled up two Dodge Rams and a Ford F-250 with as many parts, tools, computers and documents as they could and hauled them out. Carr said his service manager turned the air intake valves on the trucks upside down so they wouldn’t suck in water. A crowd had gathered on dry ground. They cheered when Carr’s trucks emerged from the water. Then his employees decided to go back again. “Everybody’s going; these guys truly are absolute morons,” Carr said. McGurk Meyers Chrysler was one see FLOOD, Page 38 Global Market Data Book is here The 2008 Automotive News Global Market Data Book has been delivered with this issue. The 18-page supplement includes information on vehicle production and sales in North America, Europe, Japan and several other countries, as well as history and forecast tables. Automotive News subscribers also can download an expanded version of the data book at online@autonews.com/datacenter. http://PickupTrucks.com http://autonews.com/greendealerships

Table of Contents Feed for the Digital Edition of Automotive News - June 23, 2008

TRW exec: We're in the 'sweet spot' for growth 'Like house of cards,' used trucks fall Detroit 3 a big drag in global supplier race Ford rethinks big-block V-8 plan Looters and broken levees Plastech's Brown stands to get $9.25 million Lawmakers: Redo roof rule Hunt takes job at Gallup Lawmakers urge roof rule rewrite Webinar offers tips on going green Lawmakers: Redo roof rule Webasto sees more demand for retractable hard tops Why small isn't always big To move metal, hire an Ironman Chevy limits ZR1 Corvette to top dealers Lithium ion battery is key to hybrid growth With Russia hot, Ford will boost Europe production BMW exec: We can grow in U.S. The man who put the wind in GM's sales GM's parts ordering comes down to Earth More Fits for U.S. in fall GM: Volt buyers deserve tax credit Mercedes exec seeks more exclusive technology from suppliers Bosch, Mahle execs to lead turbo venture Supplier personnel ZF moves steering operations in Ky. Slowing Volvo, Saab add to Sweden's industry woes Feds: Drivers don't have to hang up phones Magna eyes new growth strategy: Powertrain-driveline modules Alleged sales scam snares Ohio dealers GM center troubleshoots IT in plants around the world Senator: Plants have capacity for plug-ins Lots of talk but little to show Going green pays off The Detroit 3 are smart to cut sales to fleets Drop Mercury? No; Ford needs it Awareness isn't GM's problem Leno was off base in bashing U.S. cars Roofs, rollovers and reckless driving Big-truck sales fall 15.2% in May Serra deal reflects GM channel strategy No. 2 vehicle hauler to go out of business Chinese company's car looks a lot like a Mini Honda taps star power for fuel cell car Dealer wanted media attention — and got it Dealers European sales dip 7.8% in May Merger gives Hughes Telematics a cash boost Mexico sales bounce back in April Suzuki dealers test system to turn Web leads into sales Bosch-Samsung venture to make lithium batteries Hyundai plans Elantra hybrid for Korea in '09 RV sales drop 8.5% in April Japan’s best-kept secret Utilities join automakers for plug-in r&d Ford likely to build '11 Focus at 2 plants Glut of '08 Ford F-150s delays launch of '09s '09 Porsche SUV prices rise Ford calls off Ohio plant sale Ford idles Mich. truck plant CarMax net earnings decline Dodge Journeys recalled 2009 Chrysler hybrid SUVs start at $45,340 GOP: Climate bills would make $4 gas look cheap EVs on eBay: It's all the rage In terms of market value, the General is a buck private Sign of the times: Hummer store to be used-car lot Bob Stempel's legacy is the future Flying 1 series? It's BMW's joke Dealer hurt in sky-dive navigates the road to recovery Opel car recognizes signs; BMW plans similar system JCI, Magna unit buy main parts of Plastech The little engines that could Suppliers to the 2008 Dodge Viper

Automotive News - June 23, 2008

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