Automotive News - June 23, 2008 - (Page 8)

8 • JUNE 23, 2008 advertising OUR DEALERS ARE GROWING Alleged sales scam snares Ohio dealers Arlena Sawyers asawyers@crain.com AND SO CAN YOU! Title role A suit by the state of Ohio outlines how an alleged vehicle sale scam worked. NAL Group Inc., a used-car lot, bought new vehicles from franchised dealerships but never paid for them. NAL sold the vehicles to consumers without titles. The state has received as many as 40 complaints from consumers who said they could not obtain titles for the vehicles they bought from NAL. Hugh White Honda, of Columbus, says NAL Group bought 6 new vehicles worth $160,000 but has not paid for them. “With Zimmerman as a partner we have grown to be the # 1 GM Dealer in Albany, NY.“ Kara DePaula DePaula Chevrolet The Ohio attorney general is suing a used-car lot in suburban Columbus that allegedly bought new vehicles from franchised dealerships, sold them to consumers without titles and pocketed the proceeds. The civil suit, filed this month, also names as defendants two franchised dealerships that prosecutors say helped “facilitate the fraud.” But the general manager of one of the dealerships says his store was unaware of the alleged scheme, which he says cost the dealership $160,000. A lawyer for the lead defendant, licensed to do so. Both businesses operated out of a used-car dealership in Grove City. Acting as a broker, NAL Group acquired new vehicles from franchised dealerships without paying for them, the suit says. It illegally resold the vehicles without providing titles, according to the suit. Consumers gripe NAL Group Inc., of Grove City, Ohio, says his clients did not engage in fraud but were poor businessmen. He says the company closed last November and is broke. The alleged scheme involves about 44 new and used vehicles. According to the state lawsuit, NAL Group and an affiliate, National Auto Lease, sold new vehicles although they were not The franchised dealerships named in the suit are Lindsay Acura and Hugh White Honda, both of Columbus. Lindsay Acura did not respond see OHIO, Page 39 Feds: Drivers don’t have to hang up phones Harry Stoffer hstoffer@crain.com RESULTS! • KEYES AUTO GROUP • IRA MOTOR GROUP • TOM WOOD AUTOMOTIVE • CHECKERED FLAG • AUTONATION • DIEHL MOTOR COMPANY • CORAL SPRINGS AUTOMALL • RUSTY ECK FORD • AUTOLAND • HENDRICK CARY AUTOMALL • PATRICK AUTO GROUP • HUBLER AUTOMOTIVE • PLEASANTON AUTOMALL • DEPAULA CHEVROLET • WALLACE NISSAN OF KINGSPORT • SUPERIOR CHEVROLET KGP PHOTOGRAPHY Dealers Prove Our Advertising Gets ■ Meaner, muscular NSX? Acura’s next-generation NSX sports car may get a bolder, more angular look. This spy photo of a prototype, taken in Germany, shows a more athletic design than Acura displayed on its Advanced Sports Car Concept at the 2007 Detroit auto show. The prototype has two large air intakes flanking a large central grille, sharp-angled headlights and outward-jutting rocker panels. Dick Colliver, executive vice president of American Honda Motor Co., said this year that the next NSX will be powered by a 10-cylinder engine. He said the next NSX is scheduled to arrive before a redesigned RL sedan, scheduled to be replaced in 2010. Magna eyes new growth strategy: Powertrain-driveline modules Robert Sherefkin rsherefkin@crain.com GET A COMPLETE MARKETING PROGRAM! Guerrilla TV Marketing Radio Print Hispanic Direct Mail Web Design Internet Website Optimization In-Store CALL OR E-MAIL THE AGENCY THAT WILL WORK FOR YOU 24/7 (SERIOUSLY) 1-888-878-ZADV zauto@zadv.com or visit www.zadv.com DETROIT — Magna International Inc. has a new plan to package powertrains and drivelines and sell them to global automakers. The company has a new top executive for Magna Powertrain — Joachim Hirsch, who was given global responsibility to execute the strategy. He says demand for fuel efficiency will open new opportunities for Magna, North America’s largest supplier. Now Magna, of Aurora, Ontario, mainly sells parts for engines, transmissions, driveshafts and other driveline components separately. To succeed, Magna will have to persuade many automakers to subcontract engines, transmissions, driveshafts and axles. The automakers have considered these parts core to their identities. “There will be significant changes in areas of what is core,” Hirsch, 56, told Automotive News. He was named president of Magna Powertrain on April 25. Magna does not sell engines now, but Hirsch said the company could buy and build more engine parts and assemble them. Hirsch, who is based in suburban Detroit, brings a private equity discipline to the job. He entered private equity in 2003 and by 2007 was CEO of Teksid Aluminum Ltd. He then sold some Teksid assets. Earlier, he was CEO of Textron Fastening Systems and COO of Magna Europe AG. Hirsch, who was born and educated in Germany, returned to Magna in September 2007. One of his first tests looms at Chrysler LLC, long a major Magna customer. The automaker is deciding whether to continue manufacturing and assembling gears, axles and other driveline parts or turn the work over to suppliers such as Magna, American Axle & Manufacturing Holdings Inc. or others. “We play in most of those fields already,” Hirsch says. “We are stronger in some and weaker in others. We are moving from the components to the systems. That is our vision.” Magna is a major European driveline supplier. Less complete are its North American operations, which include four-wheel and all-wheel-drive systems, transfer cases, manual transaxles, axle modules and transmission parts. Magna is hiring former General Motors and Chrysler powertrain engineers to develop design capabilities, says a source familiar with the changes. Hirsch is re-examining Magna Powertrain’s portfolio to decide what goes and what stays. When Magna lacks an expertise or technology, the company will acquire it or find a partner to get it. With gasoline prices high, Hirsch says he expects a big market shift out of 4wd SUVs and pickups to awd cars. Magna’s rivals include American Axle, Dana Holding Corp., ZF Friedrichshafen AG and Linamar Corp. Last year, Magna reported North American sales to automakers of $13.59 billion on global sales of $25.66 billion. c WASHINGTON — Federal regulators agree that distracted drivers are dangerous. But the government won’t require phones built into cars and trucks to shut down automatically when the vehicles are moving. Longtime safety advocate Clarence Ditlow proposed such a rule last year. It would have required a lockout mechanism to shut off any vehicle-integrated telephone or other communication device when a motorist shifted the transmission into drive or reverse. The prohibition would have covered General Motors’ OnStar telematics system and Ford Motor Co.’s Sync onboard communication and entertainment device. In a public notice this month, the National Highway Traffic Safety Administration said it found “no reason to believe” Ditlow’s proposal “would result in safety benefits.” Ditlow, the executive director of the Center for Auto Safety, disagrees. “The issue is not going away because people are dying,” Ditlow told Automotive News last week. Ditlow calls distracted driving a threat that could rival drunken driving. He notes that some states have enacted laws that ban drivers from using hand-held mobile phones. But further safety regulation is needed, he says, because police cannot tell when a driver is using an in-vehicle device. Research shows that a driver on a phone, hand-held or hands-free, is three to four times more likely to be in a crash than “attentive drivers,” Ditlow’s petition says. GM and Ford opposed Ditlow’s proposal. GM said some of Ditlow’s assertions about OnStar were “without merit.” NHTSA recommends that motorists not use phones while driving. But the agency argued that if it had adopted Ditlow’s proposal, motorists likely would have used hand-held phones more. Research from 2005 indicated that 6 percent of drivers were using handheld phones at any time, NHTSA said. NHTSA is examining technology that could increase the effectiveness of collision warning devices when drivers may be distracted, according to the notice rejecting Ditlow’s proposal. Eighteen states and the District of Columbia have laws that restrict use of wireless communication devices by teenage drivers with learner’s or instructional permits, according to the National Conference of State Legislatures. Six states and the District of Columbia outlaw drivers’ use of handsets. The conference says Minnesota, New Jersey and Washington state ban wireless text messaging by drivers.c http://www.zadv.com http://www.zadv.com

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

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.