Automotive News - June 9, 2008 - (Page 30)

30 • JUNE 9, 2008 Ford buys more from minorities DETROIT — Ford Motor Co. spent record amounts with minority- and female-owned suppliers in 2007. The automaker spent $4.2 billion with minorityowned Tier 1 suppliers and $1.2 billion with female-owned suppliers. That is up from $3.6 billion with minority Tier 1 suppliers in 2006 and $855 million in spending with femaleowned suppliers in 2006. highway. The V-8 Genesis has a 370-hp, 4.6-liter engine rated at 17 mpg city/25 highway. AUTO SHOWS July 1-7 — Syrian International Motor Show, New Damascus International Fairground, Damascus, Syria, 963-11-322-0732, www.syrmotorshow.com July 12-20 — Indonesia International Motor Show, Jakarta Convention Center, Jakarta, Indonesia, 62 21 315 7178, www.indonesianmotorshow.com July 23-Aug. 3 — British International Motor Show, Canary Wharf, London, 020 76540600, www.britishmotorshow.co.uk GENERAL June 11-12 — Diesel Emissions Conference, Sheraton Brussels Hotel and Towers, Brussels, Belgium, +44 20 7503 1265, www.integer-research.com June 17-19 — Digital Human Modeling for Design and Engineering Conference and Exhibition, Society of Automotive Engineers, Sheraton Station Square, Pittsburgh, 724-776-4841, A 2009 Ford Flex leaves the assembly line in Oakville, Ontario. Ford Flex output begins OAKVILLE, Ontario — Ford Motor Co. began production of the 2009 Ford Flex crossover on Tuesday, June 3, at its assembly plant here. The Flex is scheduled to arrive in dealerships this summer. The Flex joins the Edge and Lincoln MKX as the three crossovers being built here. Hyundai Genesis: $33,000 LOS ANGELES — Hyundai Motor America has priced the new Genesis luxury sedan at $33,000 for the V-6 version and $38,000 for the V-8. Both prices include shipping. The Genesis, Hyundai’s first luxury sedan, is to arrive in dealerships this month. The V-6 version has a 290-hp, 3.8-liter engine rated at 18 mpg city/28 Nissan Mexicana gets new chief MEXICO CITY — Julio Panama, 53, will become president of Nissan Mexicana SA de CV effective July 1. He replaces Shoichi Miyatani, 51, who becomes corporate vice president in charge of general overseas markets in Tokyo. www.sae.org June 19-20 — Clean Air & Energy Independence Conference, National Alternative Fuels Training Consortium, Crowne Plaza Resort, Asheville, N.C., 304-293-7882, www.naftc.wvu.edu June 20-22 — Fixed Ops Training and Education Conference, Marriott Irvine, Irvine, Calif., 714-206-8485, www.fixedopsconference.com. June 23-25 — SAE International Powertrains, Fuels and Lubricants Congress, Society of Automotive Engineers, Shanghai Marriott Hongqiao, Shanghai, 724-776-4841, www.sae.org June 24-28 — NIADA Convention and Expo, National Independent Automobile Dealers Association, Gaylord Texan Resort & Convention Center, Grapevine, Texas, 817-640-3838, www.niada.com June 25 — Auto Russia (conference), Astoria Hotel, St. Petersburg, Russia, +44 (0) 20 7368 9465, www.wbr.co.uk/autorussia July 7-9 — Biofuels: Specifications and Performance Symposium, Society of Automotive Engineers, Le Palais des Congres De Paris, Paris, 724-776-4841, www.sae.org July 22-24 — Plug-in 2008 Conference & Exposition: A Short Drive to Tomorrow, San Jose McEnery Convention Center, San Jose, Calif., 408-395-0059, www.plugin2008.com July 25 — SEMA Internet Symposium, Specialty Equipment Market Association, Hyatt Regency Irvine, Irvine, Calif., 909-396-0289, www.sema.org Aug. 11-15 — Management Briefing Seminars, Center for Automotive Research, Grand Traverse Resort & Spa, Traverse City, Mich., 734-929-0463, www.cargroup.org autonews.com For a complete listing of events, see our Web site. To see our online list of auto shows and other events or to add your event to the list, go to www.autonews.com/ calendar. E-mail calendar information, including Web site address, to: autonews@crain.com Or send it to: Deputy Managing Editor Automotive News 1155 Gratiot Ave. Detroit, MI 48207-2997 Need Salespeople, Tech’s, Managers & Other Employees? The Auto Industry’s #1 Recruiting, Training & Marketing Company Salespeople~BDC~Detailer~Porter~Technician Body Tech~Service Advisor~Service Manager Parts Counter~Parts Manager~Sales Manager Finance Manager~Office Staff~GSM~GM BMW purchasing chief ‘looking for waste’ MUNICH — Last October, BMW promoted Herbert Diess from head of its motorcycle division to purchasing chief. Since then, his resolute cost-cutting program has run into fierce criticism from suppliers. In an interview, Diess explained why he has to involve suppliers in cost sharing. The interview was conducted by Automobilwoche reporters Pia Krix and Klaus-Dieter Floerecke. Your job doesn’t sound like much fun. You have to cut 4 billion euros ($6.27 billion) by 2012. How do you handle all that pressure weighing on you? Honestly, I don’t feel it as pressure but as an obligation, because we have the greatest possible leeway for design. We influence 70 percent of the value creation directly or indirectly. That gives us the biggest lever on the cost side. This really doesn’t just involve purchasing. All logistics as well as components from in-house production are part of my newly created board area. Quality assurance engineers and cost analysts also fall under our area. That comes to about 7,500 employees in all. What are the areas where you see the greatest potential for savings? We have formed four value stream chains: powertrain, interior and electronics, driving dynamics and body. Each of these four areas currently has a purchasing volume of 4 billion to 9 billion euros ($6.27 billion to $14.11 billion). The potential for optimization is quite equally distributed. To increase potential in the value chain, you are currently carrying out so-called “process weeks” with your suppliers. Can you cite the early results? We are carrying out process weeks with about 80 of our partners. We intend to conclude analyses for the first 40 by this summer. Together we are going through all the process steps, from the installation site at our end, back to the supplier and, to some extent, to the next level. We are looking at possible ways to shorten cycle times, looking for questionanswer BMW’s Herbert Diess: Improved supplier productivity must benefit the supplier and BMW. waste in the process, for redundancies. For example, at a supplier in the U.K., we determined that certain inspection steps were being done twice, once at the supplier and once at our facilities. Or we found out that there are several interim storage sites for control units that we can do without. Our requirement is that the supplier optimize its productivity and that we benefit from its progress as well. During the first months of your tenure, complaints rained down from suppliers. Are you now getting along? We have a very good relationship with our suppliers. We are a preferred partner because we are innovative and because we involve suppliers in our development process early. A McKinsey study also shows that suppliers are very happy to work with us, and nothing in that regard will change in the future. One point of contention is the supplier’s share of rising raw material prices. Raw material prices have increased dramatically over the past few years. Since 2004, we have additional costs amounting to 800 million euros ($1.25 billion) for raw materials. More than 700 million euros ($1.10 billion) went onto our books. This has weighed heavily on our financial performance, and we can’t carry it alone in the future. As I see it, this involves a fairer sharing of the burden. So we want our suppliers to share more of the raw material costs. 800-421-4550 www.clickhereforadvice.com Brian C. Hall, President & CEO Born To Run? You Need The Performance Partnership www.hatadv.com Of what magnitude? The burden sharing depends on how dependent a particular partner is on raw materials. We expect a significantly smaller participation from a foundry than from an electronics supplier. But we have partners that have managed to pass on up to 100 percent of the higher raw material prices to us, a couple even 110 percent. We can no longer accept that. For the average company contribution to added value, I consider a onethird solution to be a good one: the subcontractor bears one-third, the supplier bears one-third, and we bear one-third. Some suppliers complain that they would have to scrimp on the quality of their components to hold up under your price pressure. That is absurd. Our primary goal is quality. Comparatively speaking, we are very good, but we want to become even better. In the agreements on objectives that we are carrying out with our suppliers, we discuss possible quality improvements at the outset, and then cost reductions only after that. Isn’t that a contradiction: You want to save money and simultaneously improve quality? Not at all. It’s often the case that we see the highest productivity at the companies that deliver the best quality. Excellence usually attaches to these two attributes. These are our suppliers of the future. In the United States, you are increasing the share of local manufacturing to become more independent of currency fluctuations. Are you planning that for other markets? We want to increase local production in the growth regions. For example, that applies to China, where we will intensify local manufacturing for the next generation. c FROM 0 TO100 IN UNDER 30 SECONDS! 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NASDAQ: CACC Changing lives since 1972. creditacceptance.com or 1-800-873-0512 http://www.sae.org http://www.sae.org http://www.naftc.wvu.edu http://www.plugin2008.com http://www.syrmotorshow.com http://www.fixedopsconference.com http://www.sema.org http://www.indonesianmotorshow.com http://www.sae.org http://www.cargroup.org http://autonews.com http://www.britishmotorshow.co.uk http://www.niada.com http://www.autonews.com/calendar http://www.autonews.com/calendar http://www.integer-research.com http://www.wbr.co.uk/autorussia http://www.clickhereforadvice.com http://www.clickhereforadvice.com http://www.hatadv.com http://www.hatadv.com http://creditacceptance.com http://creditacceptance.com

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Automotive News - June 9, 2008 Hummer Bummer: A death sentence? New F-150, Ram in peril as big pickups collapse Japanese can add small cars faster than Detroit 3 Battery shortage hurts hybrid sales 2 key overseas staffers move to Automotive News in the U.S. Toyota may add Camry to Indiana truck plant Mazda extends warranty on RX-8 rotary engine CAW to consider strike against GM Porsche's new 911 GM plans big ad push for its big hybrid SUVs Chrysler cuts fees to outside service firms 5% Toyota considering 'Made in U.S.A.' Prius Congress, Bush square off over rollover suits GM finance whiz changed the industry GM's big SUVs may get lighter Harbour Report: Chrysler, Toyota most efficient Spring intros can be dicey Ford spends big on MKS ad launch Media buyer for GM cuts 25 jobs Sources: GM poised to buy Cobasys GM dealer program rebounds Mazda updates the RX-8 New Maxima is a tad smaller — but more buff Congress must balance safety, mpg concerns Is the gas crisis real or just temporary? What about poor driving? There's no substitute for safe driving Lack of regulation foils safety laws Sticker law cleaned up a pricing mess Lithia to sell outlets, delay used-car stores Nielsen likes to step off the beaten path GM union local strives to pull parts jobs in-house JCI will open Ga. plant to supply Kia Dealers: Be open about credit problems Finance venture has $1 billion Picture this Personnel Dealers BMW purchasing chief 'looking for waste' Nissan Mexicana gets new chief Ford Flex output begins Hyundai Genesis: $33,000 Ford buys more from minorities Audi's U.S. chief: Brand can handle high gas prices May in Detroit: Scary, not merry Infiniti FX starts at $41,765 Lincoln: 8,600 MKS orders Plastics supplier sees growth Jenkins gets Aston Martin post Smith is CEO of Jaguar, Land Rover Kremlin watching, Chrysler style Toyota breathing down GM's neck on monthly U.S. sales PR chief Steve Harris: At GM through '08 Small-car surge is a replay of 1979 Auto execs would benefit from some store experience Mini's mixed results: Sales soar, quality stumbles Nice car — so what's the ppmpg? Volt's good PR got struck by lightning

Automotive News - June 9, 2008

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