Automotive News - July 21, 2008 - (Page 6) 6 • JULY 21, 2008 For Chrysler sensations, glory days are gone Bradford Wernle bwernle@crain.com DETROIT — When it was introduced in 2004, the brash-looking Chrysler 300 became an industry sensation. And just a year ago, Chrysler’s Jeep brand couldn’t make Wranglers fast enough. But times have changed, and the two former stars have fallen on hard times. “Wrangler is soft,” says Stephen Kaiser, president of the Fairfield Auto Group in Muncy, Pa. “Usually we have a waiting list, but I have about seven in stock.” In the first half of 2008, sales of the 300 are down 36.5 percent to 40,014 units. The Wrangler is off 29.3 percent to 46,443. Kaiser says used 300s still sell, but new versions of the rear-drive sedan aren’t moving at all. “People just can’t afford $30,000 to $40,000” for a new vehicle, he says. One New York dealer who declined to be identified complains that Chrysler waited too long to refresh the 300’s distinctive design. “The guy coming out of a lease doesn’t want to buy the same car,” he says. Chrysler plans a redesigned version in 2010 for the 2011 model year. Sales of the Wrangler skyrocketed when Jeep redesigned the vehicle for the 2007 model year. The difference? For the first time, Jeep offered a fourdoor model, the Wrangler Unlimited. Dealers had long been asking for a four-door. Chrysler 300: Down nearly 37 percent in the first half of the year. Art Spinella, an analyst for CNW Marketing Research in Bandon, Ore., says customers usually buy Wranglers as a second or third household vehicle. “That’s the biggest problem they’re running into now,” Spinella says. “Nobody is adding to their household fleet.” c 2008 first-half sales of the once-hot Jeep Wrangler dropped 29 percent. Kazamai concept: Mazda’s design heard round the world Mark Rechtin mrechtin@crain.com The Fisher brothers: Quite a body of work There were six brothers: from the eldest, Fred, Charlie, Bill, Larry, Ed and Al. There also was a baby brother, Howard, who wasn’t in the auto business, and there were four sisters. Howard worked for the family company that managed the Fishers’ joint financial interests. They came from Norwalk, Ohio. Their father was a blacksmith and carriage maker, and his boys became the world’s largest makers of automobile bodies. The Fisher brothers built millions of bodies for General Motors, each of which wore a tiny badge on the body panel just ahead of the front door. It read: Body by Fisher. GM currently has an insignia that it calls the “mark of excellence.” “Body by Fisher” was GM’s first mark of excellence. Fred was the first of the brothers to come to Detroit. That was in 1902, and he got a job at the Wilson carriage works. Brother after brother joined him in Detroit as each one came of age, and in 1908, they established Fisher Body Co. In 1912, they built 105,000 bodies. In 1916, capacity was 370,000. The Fishers sold them to all comers — Ford, Hudson, Studebaker and Packard, as well as GM. In 1919, GM bought 60 percent of Fisher Body for $27.6 million. In 1926, GM bought the remaining 40 percent for $208 million. A bargain for GM? Certainly. But the Fishers did all right. It was 80 years ago, and $235 million was a great deal of money. 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. The Eclipse is one of three vehicles built at Mitsubishi’s only U.S. plant. 3 years later, Mitsubishi, UAW resume contract talks Lindsay Chappell lchappell@crain.com Mitsubishi Motors North America Inc. has returned to the negotiating table with the UAW after a three-year delay in contract talks. In August 2005 the Normal, Ill., company, facing difficulties, had agreed with UAW Local 2488 to postpone new contract talks and to extend the terms of the existing contract into March 2008. In 2006, with problems continuing, the UAW agreed to extend the contract six more months and to accept a temporary $4-an-hour wage cut in an effort to help keep the plant open. That wage decrease ended in April 2008. The contract now expires one minute before midnight on Aug. 28. Last week in a joint statement Mitsubishi and the union said, “We are now into substantial negotiations of a new contract,” adding that neither would comment publicly on details of the talks. The Normal plant, which builds the Galant sedan, Eclipse sports car and Endeavor SUV, has been a UAW shop since it opened in 1988 as DiamondStar Motors, a 50-50 joint venture with Chrysler Corp. Chrysler exited from the partnership in 1991. For much of this decade, the factory has struggled as Mitsubishi’s U.S. sales have collapsed. The plant was built to produce 240,000 cars a year and employ 3,000. It will turn out about 68,000 units this year. Earlier this year, Mitsubishi offered some employee buyouts in an effort to trim the plant’s 1,600 person work force by another 100 people. c Take a sketch by an American of South Korean descent working in a Southern California design studio. Refine that sketch in Japan, and unveil the finished vehicle concept — with the European market in mind — at the Moscow auto show. That’s the story of the Kazamai compact crossover that Mazda revealed last week. Based on the same platform as Europe’s Ford Kuga crossover — and hence the C1 architecture that spawns the European Focus and Mazda3 cars — the vehicle is a strong candidate for production, insiders say. The Kazamai could replace the Mazda Tribute, which is built alongside the Ford Escape at Ford Motor Co.’s Kansas City, Mo., plant. Successors to both crossovers could be based on the next-generation Kuga, sources say. Mazda designer Min-Yong Lee had been working at the U.S. studio for six years when the call went to all the com- pany’s four studios — two in Japan and one each in California and Germany — for a concept for the next-generation crossover. The vehicle was intended primarily for Europe, and Lee’s design was the one the parent company liked most. Late last year, Lee went to Japan, where he helped the project’s chief designer, Yasushi Nakamuta, develop the show car. Although it has the same footprint as the Kuga, the Kazamai has a different stance and packaging and a more taut overall appearance. Franz von Holzhausen, Mazda’s North American design chief, said the company is taking a more global approach to design. “We’re one team, just working in different locations,” von Holzhausen said in an interview at the press launch of the Mazda6 sedan. “It’s no longer where one design team wins the competition and carries it to the end.” As for Kazamai production possibility, von Holzhausen said, “There is definitely market potential.” c Mazda insiders say the Kazamai concept, shown, is a likely candidate for production, possibly replacing the Tribute. Kuzak: Redone Fords must have best fuel economy Amy Wilson awilson@crain.com DETROIT — When the restyled 2010 Ford Fusion goes on sale early next year, Ford Motor Co. product developers expect the mid-sized sedan to lead its segment in fuel economy. The restyled Fusion gets a new powertrain combination: Ford’s 2.5liter four-cylinder combined with a six-speed automatic transmission. Ford is adjusting other elements in new product programs, such as aerodynamics and rolling resistance, to drive fuel economy higher. It’s all part of a mandate by Ford product chief Derrick Kuzak: When the company significantly changes a vehicle and updates its powertrain, fuel economy must be best in class. “When we have new powertrains in a new vehicle, why would we Ford’s Kuzak: have an expecta- Best in class tion of anything less than being equal to or better than anything the competition is offering?” Kuzak told Automotive News. Ford used the same approach developing the 2009 Ford Escape. The updated Escape, which went on sale this summer, has a fuel economy rating of 20/28 mpg for its four-cylinder/automatic transmission version. Kuzak called that class-leading among small crossovers. The 2009 Escape was the first Ford to get the 2.5-liter/six-speed automatic combo. The Fusion will add it when the 2010 model debuts in December. Kuzak declined to share expected mpg for the 2010 Fusion. Fuel economy on the 2009 Fusion is 20/29 mpg with a 2.3-liter/fivespeed manual and 20/28 mpg with a 2.3-liter/five-speed automatic. That puts the current Fusion behind several mid-sized competitors including the Honda Accord and Toyota Camry. c http://www.autonews.com/gm100
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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