Automotive News - June 23, 2008 - (Page 42)

42 • JUNE 23, 2008 final assembly comment GREEN WEBINAR >> Automotive News will hold a Webinar to explain how dealers are learning to create environmentally friendly stores at 1 p.m. Tuesday, June 24. Go to www.autonews.com/section/WEBINAR for details. Bob Stempel’s legacy is the future you do it right, you can Ifyour life’sinto somethingbuild work so that it crescendos that matters. By this measure, Bob Stempel matters. Stempel, who will be 75 in July, is still working on the future of the automobile, as well as the future of batteries and energy. The former General Motors CEO has a EDWARD LAPHAM consulting IS EXECUTIVE business in a EDITOR OF quiet, upscale AUTOMOTIVE office in NEWS. suburban Detroit that — as he puts it — presents itself well to visitors, even those from Japan and Europe. He’s just keeping his hand in, he told me. Stempel still has the heart of a powertrain engineer. Along his career path at GM, he worked on transmissions and engines, the traditional fare for a car guy. Then he got involved with alternative energy. His first peek at the future was the Electrovette, which was a Chevette converted to electric propulsion. It was developed in the early 1980s and used nickelzinc batteries. Then came the Sunraycer, which was GM’s solar-powered race car that won the 1,950-mile World Solar Challenge in Australia in 1987. The ultimate alternative experience for Stempel at GM was the Impact electric vehicle prototype that evolved into the EV-1, which was produced in limited numbers in the mid-1990s. He had seen the future. After being elbowed out of GM in 1992, Stempel migrated to Energy Conversion Devices Inc., where for 12 years as CEO he guided the company to develop battery technology for many uses, including gasoline-electric hybrids. He stepped down as CEO last August but remained chairman until he was nudged off the board this year. No matter, Stempel says. Energy Conversion Devices’ solar panel business is heating up. And the new management team headed by CEO Mark Morelli is geared to find more commercial uses for the battery technology developed during Stempel’s watch. It shouldn’t be hard. The run-up in traditional energy costs means more industries will need battery and solar panel technology. For someone who thinks of himself as a futurist, that’s one heck of a legacy. Edward Lapham writes five commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. In terms of market value, the General is a buck private H arley-Davidson and General Motors are both American motor industry icons, and these days they have something else in common: nearly the same market value. Lately, GM’s market capitalization — the share price times the number of shares outstanding — has shrunk below $10 billion as its stock price has drifted downward. Eight months ago, it was well over $20 billion. GM shares took a big hit last week after Deutsche Bank analyst Rod Lache lowered his industry sales forecast and predicted that GM will need to further restructure. By the end of last week, Harley had surpassed GM in value. The motorcycle maker’s market cap was $8.7 billion; GM’s was about $8 billion. Never mind that GM’s 2007 revenue was about $180 billion, compared with Harley’s approximately $6 billion. And while we’re at it, here are more of those pesky market cap comparisons: Starbucks’ $13 billon in value easily tops GM’s. And eBay’s $37 billion more than quadruples the General’s. The recent Forbes 400 ranking of the richest Americans listed 36 individuals whose personal wealth was more than the size of GM’s current market cap. They included Rupert Murdoch, Michael Dell, George Soros, Jeff Bezos, Carl Icahn, Michael Bloomberg and Kirk Kerkorian. This 2003 Toyota RAV4 EV sold for $45,989 on eBay. EVs on eBay: It’s all the rage W ith gasoline prices soaring, eBay is turning into a hotbed for electric vehicles. Any old electric vehicle. Surf the Internet auction giant, and you’ll find regular production models converted by professionals as well as neighborhood electric vehicles or NEVs — speed-limited vehicles barred from main thoroughfares. But there are also some crudely adapted cars and trucks that use boat batteries and parts from RadioShack. All of them are attracting bids — and the occasional astronomical price. Last week a 2003 Toyota RAV4 EV with more than 127,000 miles — one of a few electric models made by Toyota and sold in California — sold on eBay for a staggering $45,989. Other factorybuilt electric vehicles include Chevrolet S10s and Ford Rangers from the late 1990s that were produced for utility company fleets. Both are bringing prices in the mid-20s. Bargain hunters on eBay also can choose from several Chinamade electrics, including a threewheeled vehicle called a Zap Zebra and some homemade conversions. Last week, a 1980 AMC Hornet electric was going for just $3,550. There was also a rusty, dusty and nonrunning 1981 Ford Fairmont wagon. A picture showed the interior filled with unidentifiable electronic equipment. The owner claimed the vehicle was converted to electric power by NASA. And even that had eight bidders driving up the price. Flying BMWs and ramp cakes in Bavaria? It was all a hoax. Sign of the times: Hummer store to be used-car lot I t was a big occasion, the grand opening of John Bergstrom’s Hummer dealership in July 2002. The store in Neenah, Wis., about 30 miles southwest of Green Bay, was one of the first Hummer dealerships to adopt General Motors’ in-your-face design plan. GM flew in a planeload of journalists, and even CEO Rick Wagoner showed up. But six years later, with Hummer sales shrinking, Bergstrom’s showcase dealership is getting an overhaul. The store has an off-road course, a large curved steel corrugated roof that mimics the style of World War II Quonset huts, and a large steel “H” in the facade that doubles as the doorway. Now the roof is coming off, and slow-selling H3s have been rolled out of the store and into a corner of Bergstrom’s Chevrolet showroom next door. He will turn the Hummer building into a nofrills used-car outlet. The conversion to a GM Certified Used Vehicle store will be completed by October. Some dealers spent as much as $6 million to build their Hummer Taj Mahals. Now the stores are looking more like white elephants. GM says it is considering all options for the struggling brand — including selling it. Said Bergstrom: “The market is changing, and we’re changing with it.” Flying 1 series? It’s BMW’s joke T he trouble with guerrilla marketing is that sometimes it can make a monkey out of you. Last year, for example, Turner Broadcasting was pilloried after 10 batterypowered signboards placed around Boston, meant to promote a TV show, were mistaken for terrorist bombs. Freeways closed, the subway shut down, and Turner wound up with a corporate black eye. But BMW seems to have scored with an Internet “mockumentary” — socalled “viral” marketing meant to be seen as hip and passed along in a yougotta-see-this e-mail. The film, by BMW’s ad agency, GSD&M Idea City, chronicles the ill-fated attempt of an off-kilter events promoter and a goofy band of accomplices to put the small town of Oberpfaffelbachen, Germany, on the map by catapulting a BMW 1 series to the United States. The plan involves a ramp that reaches to the clouds and spawns a town festival, Rampenfest, that includes ramp-shaped cakes and pretzels. The clip began making the rounds on auto blogs, but BMW kept silent for weeks to increase the suspense. Finally, it ’fessed up. The result: Some good publicity, at a fraction of what it would cost to turn out a typical ad campaign. The Web address: www.rampenfest.com. Dealer hurt in sky-dive navigates the road to recovery ar sales have been in free fall this year, but U.S. auto dealers still hope for a soft landing — unlike the one Rick Morrison had while sky diving last month in the Arizona desert. The Anchorage, Alaska, dealer was about 50 feet from terra firma on May 18 when a gust of wind, referred to as a “dust devil,” whipped him back up about 30 feet higher into the air. Morrison’s parachute deflated and he plunged to earth. He spent six days in intensive care, four more days in a hospital bed and two weeks at a private Arizona residence recovering from separate surgeries to repair his leg and back. The fall resulted in two breaks of his thighbone — “My thigh looked like Jell-O,” he said — a broken pelvis and an injured back. Doctors inserted a titanium rod in Morrison’s leg. He will remain on crutches until August and wear a turtle-shell-style back brace for a few weeks, but he is expected to make a full recovery. Since returning to Alaska on June 11, Morrison, 55, has spent only a few hours a day running his Morrison Auto Group. The group encompasses two Anchorage area dealerships selling Volkswagen, Porsche, Audi, Isuzu and Saturn brands and a used-car store. “Coming back to work was a little bit hard because my energy level is still low,” he said. “Everything hurts every day. Nothing is easy to do.” Morrison logged more than 200 jumps before the accident. He said he hasn’t decided whether he’ll jump again. Rick Morrison: Done in by a dust devil. http://www.autonews.com/section/WEBINAR http://www.rampenfest.com http://autonews.com http://autonews.com/edwardlapham

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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