Automotive News - June 23, 2008 - (Page 6)

6 • JUNE 23, 2008 GM: Volt buyers deserve tax credit April Wortham awortham@crain.com © GM CORP. Tax credits can boost consumer demand for the Chevrolet Volt, GM says. NASHVILLE — General Motors wants a tax credit of up to $7,000 for buyers of the Chevrolet Volt, GM’s vice president for global program management told a congressional caucus here last week. That would jump-start plug-in hybrid sales when the Volt comes to market in late 2010. “What we favor is actually a sliding scale depending on how much bat- tery you have on board,” said Jon Lauckner. “When I talk about $6,000 to $7,000, we’re talking about a battery that’s at least two times the size of a typical conversion plug-in or even a plug-in hybrid that we would offer.” Early buyers of the Toyota Prius got a $3,150 credit. Tax credits can boost consumer demand until economies of scale bring down retail prices, Lauckner said. “Customers will have to pay a price premium for these vehicles, at least initially,” he said. Lauckner said the credit should be based on “the amount of storage capability and therefore how much petroleum is avoided.” He suggested a scale that would slide from “maybe a low of $3,500 for vehicles where there is an electric assist to a vehicle like the Chevy Volt, which is going to run 40 miles under all conditions electrically with a lot bigger battery.” c GM’s parts ordering comes down to Earth Ralph Kisiel rkisiel@crain.com More Fits for U.S. in fall To meet demand, Honda boosts output of next generation Hans Greimel hgreimel@crain.com Bye-bye, satellite. By July 31, General Motors will decommission its satellite-based dealership parts ordering system, known as RAPID. Remote Automated Parts Input for Dealers is based on GM’s Pulsat satellite, says Eric Hylen, GM’s parts system manager. When GM launched Pulsat in 1991, it was the world’s largest privately owned satellite network. It linked GM’s corporate headquarters and all its dealerships. Starting July 31, the dealerships will place, track and revise parts orders using GM’s new Internet-based Parts Workbench. Dealerships can enter Parts Workbench through the GM DealerWorld Web site or through their dealership management system. GM has provided new specifications to all 21 dealership management system vendors that have GM dealership customers, Hylen says. “All but four or five are certified” and are piloting the new system, he says. Rollout is to begin within a few weeks. Says Mike Esposito, president of Auto/Mate Dealership Systems, of Clifton Park, N.Y.: “With almost half of a dealer’s operating profits coming from its service and parts department, getting a new service like this up and running as fast as possible is critical for our GM dealership customers.” Auto/Mate is a dealership management system vendor that has completed integration with Parts Workbench. GM will continue to use its Pulsat satellite network for video training sessions with dealerships. Hylen says that function may switch over to the Internet as well.c TAKANEZAWA, Japan — Honda Motor Co. is boosting output of its popular Fit small car to meet U.S. demand when the next generation debuts there this fall. Production allotment now stands at 60,000 units but will increase to 80,000 when the redesigned Fit arrives Oct. 1, says John Mendel, executive vice president of American Honda. “We had planned to sell between 30,000 and 40,000 and figured out very early that wasn’t enough, so we increased production to 60,000. That still wasn’t enough,” Mendel said here last week on the sidelines of a ceremony for Honda’s new FCX Clarity fuel cell vehicle. Honda’s John Mendel: “We’re continuing to try to increase capacity wherever we can.” “We’ve ramped it up closer to 80,000 this year,” he said. “That starts in October.” The base sticker of the current 2008 Fit, including the destination charge, is $14,620. The car gets 34 mpg on the highway and 28 in the city. The expansion was planned before the current surge in gasoline prices spurred a wave of demand for small, fuel-efficient vehicles, Mendel said. But the timing could- n’t be better. Dealers are scrambling to get more Fits and Civics, and some are facing waiting lists. For the first five months of the year, U.S. sales of the Fit were up 64.0 percent to 29,784 vehicles. And that’s before the updated model even arrives. Global capacity for the Fit is more than 500,000 units. All U.S. units are imported from Japan, where the new generation is already in production. Japan is still making the first-generation Fits for the United States but will phase that out before October. “We compete with the rest of the world for Fit production,” Mendel said. “We’re continuing to try to increase capacity wherever we can from around the world to bring it in.” c Ian Robertson: “BMW is weathering all storms, but it has affected our business.” BMW exec: We can grow in U.S. Diana T. Kurylko dkurylko@crain.com The redesigned 2009 Honda Fit arrives in the United States Oct. 1. The man who put the wind in GM’s sales Dick Grant didn’t coin the term “supersalesman,” but he certainly epitomized it. He was an early sales giant who helped build General Motors into a colossus. Grant was the forefather of such supersellers as Bob Lund at Chevrolet and Cadillac, Bill Holler at Chevy, Jim Roche at Cadillac (he became CEO of GM) and Rocket Jones at Oldsmobile. Grant was a Harvard man who decided on a career in sales after graduating in 1901. He was general sales manager of National Cash Register Co. in Dayton, Ohio, when E.A. Deeds and Charles Kettering tapped him for Delco Light in 1915. Delco Light, which supplied lighting for farms, became part of GM in 1920. In 1924, he became vice president and general sales manager of Chevrolet, and the real Dick Grant emerged. His sales promotions were legion and legendary. Perhaps the most famous were his steak and beans dinners. Dealers were urged to sponsor a dinner for their sales staffs each month. Those who made their sales quotas ate steak; those who didn’t dined on beans. Grant led Chevrolet past Ford in sales in the late 1920s and became GM sales vice president in 1929. He was elected to the GM board of directors and served until 1953. For the rest of the story, read Automotive News’ GM 100th anniversary edition, How General Motors Changed the World, on Sept. 15. For information about the special edition, go to www.autonews.com/gm100. WOODCLIFF LAKE, N.J. — Despite economic headwinds, BMW sees growth potential in the United States, says the company’s chief sales and marketing executive. “We have no doubt the U.S. will be the dominant force today and tomorrow,” Ian Robertson said here this month at the opening of a $100 million expansion to BMW’s U.S. headquarters. Robertson is BMW board member for sales and marketing. Because of the continued importance of the United States, BMW will spend $1 billion here by 2012, including a major expansion of its South Carolina factory, where output of the X3 compact crossover will be added. Robertson says he isn’t dismissing the economic situation. BMW faces skyrocketing fuel costs, rising commodity prices, a weak dollar and the global credit crisis. “BMW is weathering all storms, but it has affected our business,” he said. Meanwhile, BMW’s Mini brand had its best ever month in May in the United States, with sales of 6,312 cars, Robertson says. “We will see the further expansion of Mini,” he said. Robertson says BMW also sees a market in the United States for what it calls a megacity car, also known as Project i, being developed as an environmentally friendly urban vehicle. BMW has approved the car but isn’t ready to disclose details, Robertson says. BMW is deciding whether the new urban vehicle will be sold under a new fourth brand, he says. The project was announced earlier this year at BMW’s financial press conference, where it was disclosed the low-emissions small car could be electric. Hybrid and other powertrains are being examined. c BMW’s Mini brand had its best ever U.S. sales month in May. http://www.autonews.com/gm100

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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