Automotive News - September 22, 2008 - (Page 3)

SEPTEMBER 22, 2008 • 3 83rd year — No. 6326 Hyundai hesitates on i10 SEOUL — Although Hyundai Motor Co. needs more small cars to sell in the United States, it won’t bring in its i10 small car anytime soon, says Brandon Yea, senior vice president of product planning at Hyundai and Kia. “The i10 is too small for the American market,” Yea says. Instead, the company is looking at the larger i20 and i30 cars. “But there is no decision yet,” Yea says. Hyundai is considering adding another small car to its lineup that can rival the Honda Fit and Toyota Yaris, he adds. — Hans Greimel INA FASSBENDER/REUTERS GM recalls 42,408 Vues DETROIT — General Motors said Friday it is recalling about 42,408 Saturn Vue crossovers built from February to July because of a potential leak of power steering fluid that could cause a fire. GM said there had been no reports of accidents or injuries stemming from a potential loosening of a nut that secures the power steering line to the power steering pump. A fluid leak could lead to a possible engine compartment fire. The recall covers Saturn Vues from the 2008 and 2009 model years with six-cylinder engines. GM said dealers would inspect and tighten the nut and check the fluid level as needed. — Reuters A worker checks cold rolled steel coils at a production line. Since Jan. 1, prices for cold rolled steel are up 51 percent. Suppliers: Chrysler jury a worry New unit aims to deal with rising raw materials costs Robert Sherefkin and David Barkholz rsherefkin@crain.com date that they turn over sensitive financial details with any application for price relief. Automotive News learned of the new review board from suppliers who provided confidential documents out of concern about the program. Seeking relief Here how Chrysler’s review board handles suppliers’ petitions for relief from high raw-material costs. Claims are heard by a panel of 5 or 6 members, including purchasing chief John Campi. Claims from all of a supplier’s divisions must be submitted and settled together. Suppliers must provide full financial disclosure to back their claims. Source: Chrysler documents Title wash rules arrive The federal government today will publicly unveil proposed rules requiring insurers and salvage yards to identify for a national database all severely damaged vehicles they acquire. The National Automobile Dealers Association, automakers and consumer groups have been pressuring the Justice Department to issue the rules, originally mandated by a 1992 anti-theft law. The industry and consumer groups contend full implementation of the law would help stem title washing — the practice of reselling repaired wrecks and flood-damaged vehicles with clean titles — which victimizes dealers and consumers, they say. — Edward Lapham and Harry Stoffer DETROIT — Chrysler LLC has set up a review board to deal with the growing urgency of auto parts makers suffering from steeply rising raw material costs. Sig Huber, a former Toyota Motor Corp. purchasing executive who joined Chrysler in May, says the initiative will bring fairness and consistency to the supply base. But suppliers say the move may hamstring the relief process. They also worry about a new Chrysler man- Tightrope Chrysler and other automakers are walking a tightrope with suppliers on raw-material costs. On one hand, suppliers are stressed by soaring raw-material prices, falling production volumes and a credit crunch. If they fail, that can halt carmakers’ factories. On the other hand, automakers face their own cash problems. Prices for cold rolled steel are up 51 percent since Jan. 1, according to consulting firm AlixPartners LLP. Prices of resins used in plastic parts have risen with the price of oil. Chrysler created the review board about a month ago, said Huber, director of supplier relations. So far about 15 suppliers have had requests for price increases heard by the board’s rotating five to six members, one of whom is purchasing chief John Campi, Huber said. Huber declined to say how the cases were decided. He also said it is too early to know whether the process results in more or less relief on average. Huber said the process is an improvement over the past because it establishes a clear and standard procedure for dealing with requests. “It becomes a fact-driven process,” he see CHRYSLER, Page 39 Incentives are needed on the 2009 Ram, says Group 1 Automotive Chairman Earl Hesterberg, “because you’re trading somebody out of a truck they’re upside-down in.” The green scene What: Automotive News Green Car Conference/Exhibition When: Thursday, Nov. 13 Where: Rock Financial Showplace, Novi, Mich. Cost: $795, or special rate of $675 for Automotive News subscribers To register: www.autonews.com/green Questions: green@autonews.com or 313-446-0485 Host sponsor: Ernst & Young Ram launches with incentive Bradford Wernle bwernle@crain.com CORRECTIONS A story on Page 3 of the Sept. 15 issue gave a wrong account of American Axle & Manufacturing Holdings Inc.’s relationship with General Motors in Brazil. GM is one of American Axle’s customers in that country. An editorial on Page 12 of the Sept. 15 issue gave the wrong dollar figure in a lawsuit. Chrysler LLC alleges that Johnson Controls Inc. overcharged the automaker more than $15 million. DETROIT — In the midst of one of the toughest truck markets in recent memory, Dodge is launching the 2009 Ram 1500 pickup with incentives of up to $1,000. The $1,000 is available on crew and quad cabs. Customers buying a regular cab get $500 consumer cash. The incentive runs through September. Dodge has not advertised the incentive, but customers visiting dodge.com can find it. Dodge dealers are still working to sell remaining 2008 Rams, which carry incentives of as much as $10,500 in consumer and dealer cash. Dodge is offering the cash even though parent company Chrysler LLC has been trying to move away from heavy incentives and offer customers more fully equipped vehicles for lower prices on new models. “We’re committed to remaining competitive with our new truck pricing, and that includes offering modest incentives and lowered MSRP pricing,” said Chrysler spokeswoman Eileen Wunderlich. Earl Hesterberg, chairman of Group 1 Automotive Inc., said he understands why Dodge is offering Ram incentive money from the launch. “You need money on it because you’re trading somebody out of a truck they’re upsidedown in,” said Hesterberg, whose Houstonbased dealership group owns eight ChryslerDodge-Jeep stores. Because used-truck values have taken such a pounding, he said, “you’re going to need some money to make a deal.” “I don’t think it’s a sign of weakness on pricing, Hesterberg said. “I think it’s a sign of what’s happened on the used-truck market.” Since arriving at Chrysler from Toyota a year ago, co-President Jim Press has tried to realign the pricing strategy at Chrysler, which has led the industry in incentive spending. A 2008 Ram quad cab 4x2 SLT carried a sticker price of $31,675. The 2009 version of the same truck stickers for $30,675 and comes standard with side curtain airbags, four-wheel antilock brakes and an electronic stability program. The 2008 quad cab had ABS only on the rear wheels, and the two other items were optional. c Learn how going green can be good for business The Green Car Revolution is well under way. What does it mean to you? Find out at the first Automotive News Green Car Conference/Exhibition on Nov. 13 in suburban Detroit. Gregg Sherrill, CEO of Tenneco Automotive, will present the business case for going green, explaining how environmental initiatives can be good for the bottom line. Michael Brylawski, leader of the mobility/vehicle efficiency practice at the Rocky Mountain Institute, will discuss why the auto industry needs to go green for the sake of the planet and why the industry is up to the challenge. Senior automotive executives will discuss the powertrains of the future and suggest ways that engineers can reduce energy losses. The conference also will offer a product showcase of green vehicles, parts and technology. And the first Automotive News PACE Environmental Awards will be presented. c http://www.autonews.com/green http://www.autonews.com/green http://www.dodge.com http://www.nxtbook.com/nxtbooks/crain/an7879192630MBMPO/index.php?startid=2 http://www.nxtbook.com/nxtbooks/crain/an7879192630MBMPO/index.php?startid=12 http://www.nxtbook.com/nxtbooks/crain/an7879192630MBMPO/index.php?startid=12

Table of Contents Feed for the Digital Edition of Automotive News - September 22, 2008

Credit-crunched BMW to cut volume and jobs in U.S. Did dealer pitch have a catch? Henderson will keynote World Congress Suppliers: Chrysler jury a worry Learn how going green can be good for business Hyundai hesitates on i10 Ram launches with incentive Dodge RamBox cost: $1,895 Toyota seeks bids to build A-BAT Volt: A pricey short hauler? A horse of a different, uh, color Delphi work moves to N.Y. from plant in Mexico GM store count down 226 so far this year Bill Heard shuts Arizona dealership Would Mazda2 hurt Mazda3? Chrysler dealers may see Volt fighter GM gets more bucks for its 4-bangers GM's '09 list prices rise 2.7% Suppliers seek piece of loan package Don't attach too many strings to federal loans Cars run on money and credit, not gas The workplace is a democracy? Free Choice Act must be defeated Extreme makeover Logo no go A 4-cylinder Cadillac? Get real A double standard on idle workers? Free Choice Act means no choice Saccucci: Let's hear it for free enterprise Dealers signal support for 35% estate tax rate Dealers Designing for MPG Slippery styling What happened to Volt's racy design? Aerodynamics Belletech will supply Honda in Indiana Practicality will top panache at Paris show Chrysler seeks to build loyalty with service Band buddies Personnel Auction group's new boss sees dip in volumes Wholesale prices of big used trucks rise 8.6% in August Big-truck sales off 22.6% in Aug. August sales in Europe worse than in U.S. Honda will let supplier assemble on-site at Ohio plant Farley: Retool image for era of the small car O'Donnell: No stranger to U.S. Honda to debut camera, airbag American Axle lands contract Ex-Ford dealer prevails in court Dodge plans Web blitz for Ram Federal-Mogul will idle 4,000 Sparks will fly over GM, Toyota plug-ins Negotiations fail; chaos (allegedly) ensues Bo plays defense, helps GM avoid weather woes Critics say the new Volt was jolt Lithium, schmithium-- Will the ladies like it? Small and beautiful-- mutually exclusive? Where Andrea Pininfarina saw design headed Designers think small to make it big Designers can't ignore history Pretty and petite Toyota goes its own way with green designs The elements of style It's difficult to design fuel efficiency into big pickups Specialty-car maker has bright design ideas Form follows fashion Vehicle designers aim to please Chinese Suppliers to the 2009 Dodge Ram Eaton will equip '09 VW Golf IAV to move into new tech center BorgWarner makes Tesla deal Mann plans 4th China plant NovaCast buys into Korean firm Valeo shifts rear-light work Supplier personnel

Automotive News - September 22, 2008

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