Automotive News - June 2, 2008 - (Page 39)

JUNE 2, 2008 • 39 American Axle lines up new non-U.S. business Craig Trudell ctrudell@crain.com New business American Axle has won these new contracts around the world. CUSTOMER VEHICLE PARTS PLANT DETROIT — American Axle & Manufacturing Holdings Inc. said it has a $1.4 billion backlog in new business beginning next year through 2013 — almost all of it sourced outside the United States. Separately, CEO Richard E. Dauch told analysts in a conference call that American Axle’s new contract with the UAW will yield annual savings of $300 million, thanks to deep cuts in labor costs for unionized factory workers. “American Axle was clear, consistent and direct about the need for a U.S. market competitive agreement that would help us achieve opera- Nissan Renault Audi Brilliance China Chery 2010 North American light vehicle 2011 light commercial vehicle for developing markets N/A 2010 crossover for China 2009 crossover for China Rear axles/driveshafts Rear dual-wheel axles Transmission differentials Independent rear-drive assemblies Driveshafts Guanajuato, Mexico Changshu, China Olawa, Poland Changshu, China Changshu, China Source: American Axle & Manufacturing Holdings tional flexibility and efficiency,” Dauch said. The 11-week strike that preceded the new contract reduced American Axle’s expected 2008 sales by about $370 million. American Axle expects the new contract to cut its average UAW-represented hourly labor cost from nearly $73 before the strike to between $30 and $45. Its U.S. work force of about 3,650 will be reduced by about 2,000 over the next year. About 85 percent of the company’s new business will be made in non- U.S. operations, increasing its business in Brazil, China, India, Mexico, Poland and Thailand. That means more than half of the supplier’s production will be outside the United States, Dauch said. About 65 to 70 percent of that output will be shipped back to the United States. About half of American Axle’s new business will be for rear-wheel-drive and all-wheel-drive products for cars and crossovers. But the company said it also is looking to begin offering electronics products, including transmission differentials and transfer cases. About two-thirds of the company’s $1.4 billion in new business will launch from 2009 to 2011. c Hughes: Not a subscriber? No problem Ralph Kisiel rkisiel@crain.com Lead Prospector Internet It’s September 2009. You’ve locked your keys in your new Chrysler vehicle. It’s equipped with a Hughes Telematics control unit, but you didn’t subscribe to its safety and security service. If you were a subscriber, your spouse could unlock the car remotely from the Chrysler owner’s Web site. No problem: Some Hughes services also will be offered on a pay-pertransaction basis. So you simply call Hughes Telematics, ask a staff member to unlock your vehicle and pay a fee for the one-time service. Pricing hasn’t been set, but it could be as low as $1.99 for some services. About 70 percent of Hughes’ business will be through subscriptions, says Kevin Link, Hughes Telematics vice president of marketing. Individual transactions from nonsubscribers will make up the remaining 30 percent, he predicts. “Your choices are to call the (Hughes) number on the dashboard or call a tow truck, which could be $100 and a two-hour wait,” says Erik Goldman, president of the Atlanta company. If it’s priced right, that person is going to call Hughes, he says. Chrysler will install the Hughes Telematics control unit as standard equipment on all vehicles beginning in summer 2009. Mercedes-Benz will do the same beginning in November 2009. The automakers have not announced which services they will offer. Services that Hughes Telematics potentially could offer on a pay-asyou-use basis are turn-by-turn route directions, movie and other media downloads and car-diagnostic reports. As an example of the latter, Hughes has been offering to California fleets on a trial basis a service that automatically notifies the vehicle owner if the car’s emissions exceed state regulations. “The challenge is, the market today is so conditioned on one model,” Link says. “What’s probably going to play out: Some of those interested parties may do subscription for certain services and transaction for other services.” c See More Prospects SAVE 22% On Leads! Find Your Next Online Customer Get quality online leads sent directly to your dealership through your Reynolds Contact Management System. Lead Prospector Internet delivers highly motivated leads so you can quickly contact in-market consumers – and see more prospects. Sign Up by June 30, 2008 and SAVE 22% on Internet Leads!* Call Today • 866.491.4256 CREDCOservices.com/Reynolds *Offer expires June 30, 2008. Good for first 50 customers that sign up. One rooftop per offer. Call for details. http://CREDCOservices.com/Reynolds http://CREDCOservices.com/Reynolds http://CREDCOservices.com/Reynolds

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Automotive News - June 2, 2008 Gas prices fuel industry's new era Chrysler faces tricky dealer mergers Honda may crank out more Civics in N.A. Mercedes will move into Chrysler Pacifica studio Ford to offer hatchback version of Fiesta Prestige Automotive sells stores but keeps Black Enterprise top spot Dealership marketers take to text messaging Senate to hear personal pleas on roof crush rule Magazine: Chrysler, Fiat are talking Former Fla. dealer gets jail for bilking bank That guy Alfred had possibilities Ford will make next Mustang look smaller Pontiac subcompact may come to U.S. GM: Battery glitch cuts hybrid sales Porsche exec: CAFE 'will not change our nature' Japanese rivals race for lithium batteries Jatco boosts CVT capacity in Mexico for N.A. vehicles Mercury deserves a better chance Rising gas prices have changed the U.S. market Marketing and sales: Context and content Mexico's Nemak grows beyond North America Buyers didn't quit GM; GM quit on its buyers Brand perceptions change slowly Bloggers are journalists, too Nice HQ, Nissan, but where's Nobe? Chrysler's Chernoby: Growing up gearhead Picture this Mitsubishi hopes new gearbox widens Evo's appeal Openlane gets funds Obituaries Survey: Going green can get your auto ad noticed Inrix: Router can reduce traffic delays Mazda6 gets own platform for U.S. ... sort of Mazda6 set to take on mid-sized sedan heavyweights Troubled or not, the United States still beckons What's next? More transplant models headed this way Exports help as Mitsubishi sorts things out Irma Elder: 'This is one of the toughest times we have had' Fitzgerald: Dealers, consumers need alliance Can Bertone design a comeback? Family-owned business struggles for survival Some design houses fall on tough times Hughes: Not a subscriber? No problem American Axle lines up new non-U.S. business GM think tank works to boost service business Toyota offers gas card as tire incentive VW turns to common software to develop products Continental's Calif. office targets Asian carmakers ZF sees chassis, axle opportunities in N.A. Flex: A new Ford image ... or just over the top? Ford targeted Flex interior quiet, ride Ex-dealership managers say firings were over religion Dealers Genesis in Toledo: It's a long story Back woes sideline Nardelli GM: 19,000 take buyouts Panama to head Nissan Mexicana Wilhite jumps to Jumpstart Dauch sons move up, out Kozyra leaves Continental Ford to lay off salaried staff More small cars to arrive in 2009-10 Even on used market, big trucks go begging Auto advertisers adopt mpg mantra Industry to motorists: We're here to help Diesel prices hit suppliers' Mexico sites Can Camry catch F series? Leno's words of wisdom for automakers Nissan's carbon credits ease global warming guilt Automotive CEOs' pay pales next to peers' Year of the Small Car can't come too soon Foreign suppliers adding capacity in Southeast From cows to kimchi: Making Alabama sweet home for Koreans After light-truck push, cars are king again Mexican suppliers expect sales record in '08

Automotive News - June 2, 2008

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