Automotive News - July 21, 2008 - (Page 3) JULY 21, 2008 • 3 82nd year — No. 6317 Germans in U.S. eye VW work Established base of Southern suppliers awaits new plant April Wortham awortham@crain.com Tesla CAFE: 244 mpg WASHINGTON — The latest government fuel economy report says 2008 model cars and trucks sold in the United States will average 26.8 mpg, up only slightly from 26.6 mpg in 2007. But one eye-popping number appears in the report: Tesla Motors, the upstart maker of an electric sports car, gets a corporate average fuel economy rating of 244 mpg. The federal CAFE standard for cars is 27.5 mpg. Tesla’s CAFE number is more than a curiosity. It could mean cash. Tesla Vice President Darryl Siry told Automotive News on Friday that the company is eager to sell its CAFE credits when trading begins. — Harry Stoffer More than a little bit car country GM Bowling Green, KY Nissan Smyrna, TN VW Chattanooga, TN Honda Lincoln, AL German connection A sampling of German suppliers likely to get VW contracts in Chattanooga and their parts specialty Robert Bosch: Gasoline and diesel systems; brake and chassis systems; electrical drives, starter motors and generators Continental: Powertrain electronics; brake and chassis systems; interior modules; telematics Benteler: Chassis and exhaust systems, fuel distribution ZF: Driveline and chassis systems Brose: Window regulators, other door parts LaNeve: Make do with less marketing money DETROIT — General Motors’ top marketing executive says there will be general “belt-tightening in every area” as GM cuts its marketing budget. Mark LaNeve says he has met with all GM ad agencies and asked them to remove any unnecessary work. That way, GM won’t “directly take down their fees, but they take out some work, and by that the fees come down,” LaNeve says. GM can market successfully using little money, he says. GM spent just $10 million to launch the new Pontiac Vibe, LaNeve says. — Jamie LaReau CHATTANOOGA, Tenn. — From atop Lookout Mountain here, you can see seven states. From Volkswagen AG’s vantage point, the view is of a full-fledged European supplier community ripe for more business. Robert Bosch GmbH, Continental AG, Benteler AG, ZF Friedrichshafen AG and Brose Group are just a few of the traditional VW suppliers with manufacturing operations within a day’s drive of VW’s newly announced factory site in Chattanooga. Many also have long-standing relationships with Volkswagen de Mexico. For instance, ZF, the German driveline and chassis supplier, has three production sites in Mexico and supplies clutches and dual-mass flywheels for the Jetta sedan built in Puebla for the United States. VW will need trusted suppliers to meet a production schedule that Volkswagen Group of America CEO Stefan Jacoby describes as “typical German — very ambitious and very tight.” Continental is another prime contender by virtue of supplying VW in Puebla. Continental supplies sensors for the New Beetle’s electronic parking brake and electronic stability GM Spring Hill, TN Toyota Blue Springs, MS BMW Spartanburg, SC Mercedes-Benz Vance, AL Kia Nissan West Point, GA Hyundai Canton, MS Montgomery, AL With its announcement that it will begin building cars in Chattanooga in 2010, Volkswagen is but the latest automaker to put down roots in the southeastern United States. In doing so, these companies are building a growing base of parts makers that could supply VW’s new plant. control, as well as components for the hydraulic braking system. For the Jetta, Continental provides hydraulic brake parts and various sensors. Ready capacity VW plans to have the $1 billion Chattanooga factory ready by the end of 2010, in time to produce a new midsized sedan for the 2011 model year. Initial capacity will be 150,000 vehicles annually, although VW says that eventually will rise to 200,000. In the past decade, many German suppliers set up Southeastern factories to support Mercedes-Benz’s assembly plant in neighboring Alabama or BMW’s factory 250 miles away in South Carolina. They typically have extra capacity or can provide it on short notice, should VW come calling. VW won’t say what suppliers will be chosen for the Chattanooga factory. But Jacoby says it’s safe to say VW will use existing suppliers, including those based in the United States, Asia and Europe. “We expect that most suppliers also will be located directly here. It makes sense,” Jacoby said here last week. “We are also taking into consideration, but have not yet specified that, to see VW, Page 35 ■ Lincoln’s big crossover The 2010 MKT finally will give Lincoln dealers a large luxury crossover to sell. The production MKT is expected to carry three rows of passengers when it goes on sale about a year from now. Styling is based on the swoopy MKT concept shown at the 2008 Detroit auto show. The concept featured a prominent “bustle back” rear end and was powered by a 3.5-liter V-6 with Ford’s EcoBoost turbocharging and direct-injection technology. As seen in this running prototype, the MKT’s shape will differ sharply from the boxy Ford Flex crossover, which shares the MKT’s underpinnings. BRENDA PRIDDY & CO. S.C. warranty insurer faces shutdown The South Carolina Department of Insurance is seizing the assets of Heritage Warranty Risk Retention Group Inc., a national insurer of independent vehicle service contracts. In a suit filed against Heritage, South Carolina Insurance Director Scott Richardson asked a state court to shut down the company’s operations and turn over its property to the Insurance Department. Heritage has offices in Charleston, S.C., and Dublin, Ohio. A lawyer for Heritage did not respond to a request for comment late last week. — Donna Harris Sour Chery: Bricklin suit claims corruption Alysha Webb awebb@crain.com HOW TO REACH US Web site: www.autonews.com Editorial staff: 313-446-0361, e-mail autonews@crain.com or fax 313-446-0383 Advertising: 313-446-6050 or fax 313-446-8030 To locate information that has been published in Automotive News, call 313-446-1662. To start or renew a subscription or to report an address change or a delivery problem, e-mail subs@crain.com or call 888-446-1422 (in the U.S. or Canada) or 313-446-1662 (in all other locations). Entrepreneur Malcolm Bricklin is preparing to sue his estranged business partners at Chery Automobile Co., accusing the Chinese automaker of engaging in corrupt practices. Bricklin and Chery reached an agreement in late 2005 to distribute China-built cars in the United States. But Chery stopped dealing with Bricklin, claiming his company, Visionary Vehicles LLC, had not provided necessary funding. “We’re going to get them for everything they’ve done,” Bricklin told Automotive News on Friday, July 18. Bricklin was expected to file the Bricklin on Chery, which he once called “cooperative”: “We’re going to get them for everything they’ve done.” lawsuit suit today, July 21, in a federal court in Detroit. The suit alleges that Chery has “systematically broken contractual obligations, stolen plans for vehicles, made cars designed by Western companies without paying for their rights, and made deals without the slightest intention of carrying them out.” Bricklin’s company has lost more than $26 million because of Chery’s misconduct, the suit claims. Chery was not available for comment late last week. Bricklin said he can bring his suit in a U.S. court because Chery already has been sued in this country. Chery settled that suit, filed by a vehicle designer, out of court, Bricklin said. “We’re going after Chery here because they are vulnerable here,” he said. When their partnership began, Bricklin said of Chery: “I have never met a more cooperative, more intelligent, more aggressive group to do business with. We’re working togeth- er as if we’ve been working together for 100 years.” Bricklin signed up U.S. dealers with the pledge that Chery-built vehicles would be available for sale here in 2007. The exports never began. Last year, Chery formed a joint venture with Quantum LLC, the American finance subsidiary of an Israeli holding company, to produce cars for export. Chery also has an agreement with Chrysler LLC to build small cars for export. Chrysler is expected to ship the first of those cars to Mexico by year end. The two automakers are discussing exports to the United States and Europe. c http://www.autonews.com
Table of Contents Feed for the Digital Edition of Automotive News - July 21, 2008 Automotive News - July 21, 2008 Gray sky, not blue; store values wilt Sour Chery: Bricklin suit claims corruption Germans in U.S. eye VW work S.C. warranty insurer faces shutdown LaNeve: Make do with less marketing money Tesla CAFE: 244 mpg Lincoln's big crossover Schaeffler goes shopping: Can supplier land Continental? Dealers cut, shift their ad spending Truck for the times? Oklahoma pickup gets 37 mpg For Chrysler sensations, glory days are gone Kuzak: Redone Fords must have best fuel economy The Fisher brothers: Quite a body of work Kazamai concept: Mazda's design heard round the world 3 years later, Mitsubishi, UAW resume contract talks Big-pickup production will plunge Nason's NHTSA: More rules, fewer penalties A vote for the Volt Hyundai: Genesis gives brand a new beginning in luxury GM may survive; to thrive, it needs hot products GM just bought some time Green can be cool; it's up to the maker Why don't we drive diesels in the U.S.? Hooray! Joint effort stops airbag deaths All-Stars: Look beyond top brass Leno was right about U.S. cars Toyota recalls Siennas, disputes safety issue This time, the industry embraces connectivity Telematics connects with consumers Telematics gets no respect — the word, that is Tapping mapping for an extra eye on the road Drivers can check CO2 'tire print' Pay As You Drive insurance tracks cars to trim costs Subscribers, sponsors may fund telematics services Big-truck sales fall 14% in June Continental plant to make brakes Lear to shut Mo. seating plant Modine shifts production to Ky. Linamar buys Visteon plant Picture this Lexus revamps 'Taste' marketing extravaganzas Suzuki hires new auto ad agency Fisker turns to Finnish firm to make first hybrids American Suzuki gets new president Canada sales slip 5.6% in June Dealers A big fuel saver: Easy-rolling tires (but watch braking) MPG now! Automakers race to boost efficiency Products — not entire brands — likely to be ditched Pared ad budget is back on the chopping block GM goal: Big small-car profits Congress mulls arbitration bill 2009 Mazda6 price: $19,220 Copart files antitrust suit Denton's out, Leuliette's in as Dura CEO June output falls 13.8% Dodge Challenger: Not quite a sellout Magazine is raided in Renault espionage case Ya gotta believe: Dealers buy GM stock States of the auto industry Will the big guns pull the trigger? Lear a year later: Icahn's offer in hindsight Midcourse correction in Toyota's global sales outlook Chattanooga: A good site better Automotive News - July 21, 2008 Automotive News - July 21, 2008 - (Page Intro) Automotive News - July 21, 2008 - Gray sky, not blue; store values wilt (Page 1) Automotive News - July 21, 2008 - Gray sky, not blue; store values wilt (Page 2) Automotive News - July 21, 2008 - Lincoln's big crossover (Page 3) Automotive News - July 21, 2008 - Truck for the times? Oklahoma pickup gets 37 mpg (Page 4) Automotive News - July 21, 2008 - Truck for the times? Oklahoma pickup gets 37 mpg (Page 5) Automotive News - July 21, 2008 - 3 years later, Mitsubishi, UAW resume contract talks (Page 6) Automotive News - July 21, 2008 - 3 years later, Mitsubishi, UAW resume contract talks (Page 7) Automotive News - July 21, 2008 - A vote for the Volt (Page 8) Automotive News - July 21, 2008 - A vote for the Volt (Page 9) Automotive News - July 21, 2008 - Hyundai: Genesis gives brand a new beginning in luxury (Page 10) Automotive News - July 21, 2008 - Hyundai: Genesis gives brand a new beginning in luxury (Page 11) Automotive News - July 21, 2008 - Why don't we drive diesels in the U.S.? (Page 12) Automotive News - July 21, 2008 - Why don't we drive diesels in the U.S.? (Page 13) Automotive News - July 21, 2008 - Leno was right about U.S. cars (Page 14) Automotive News - July 21, 2008 - Leno was right about U.S. cars (Page 15) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page 16) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page GM1) Automotive News - July 21, 2008 - Toyota recalls Siennas, disputes safety issue (Page GM2) Automotive News - July 21, 2008 - Telematics connects with consumers (Page 17) Automotive News - July 21, 2008 - Telematics connects with consumers (Page 18) Automotive News - July 21, 2008 - Telematics gets no respect — the word, that is (Page 19) Automotive News - July 21, 2008 - Tapping mapping for an extra eye on the road (Page 20) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20A) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20B) Automotive News - July 21, 2008 - Pay As You Drive insurance tracks cars to trim costs (Page 20C) Automotive News - July 21, 2008 - Subscribers, sponsors may fund telematics services (Page 20D) Automotive News - July 21, 2008 - Subscribers, sponsors may fund telematics services (Page 21) Automotive News - July 21, 2008 - Linamar buys Visteon plant (Page 22) Automotive News - July 21, 2008 - Picture this (Page 23) Automotive News - July 21, 2008 - Fisker turns to Finnish firm to make first hybrids (Page 24) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 25) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 26) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 27) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 28) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 29) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 30) Automotive News - July 21, 2008 - Canada sales slip 5.6% in June (Page 31) Automotive News - July 21, 2008 - Dealers (Page 32) Automotive News - July 21, 2008 - MPG now! Automakers race to boost efficiency (Page 33) Automotive News - July 21, 2008 - GM goal: Big small-car profits (Page 34) Automotive News - July 21, 2008 - Denton's out, Leuliette's in as Dura CEO (Page 35) Automotive News - July 21, 2008 - Denton's out, Leuliette's in as Dura CEO (Page 36) Automotive News - July 21, 2008 - June output falls 13.8% (Page 37) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 38) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 39) Automotive News - July 21, 2008 - Chattanooga: A good site better (Page 40)
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