Automotive News - June 2, 2008 - (Page 6)

6 • JUNE 2, 2008 Ford will make next Mustang look smaller Rick Kranz rkranz@crain.com NEW YORK — In an environment in which a big car might be viewed as a gasoline hog, Ford Motor Co.’s intention to make the next-generation Ford Mustang look smaller may be politically correct. “We have a car which I think is more suitable for the times than the Challenger and the Camaro,” said Peter Horbury, Ford Motor’s North American design director. “Especially the Challenger — it is a huge car when you see it on the road.” The restyled, re-engineered 2010 Mustang goes on sale early next year. The 2008 Dodge Challenger SRT8 went on sale this spring. Overall, the Challenger is 10.1 inches longer and 1.8 inches wider than the 2008 Mustang. The dimensions of the 2010 Chevrolet Camaro have not been released, but the Camaro concept is 1.4 inches shorter and 5.7 inches wider than the 2008 Mustang. Speaking of the 2010 Mustang, Horbury said the overall length and width are the same as those of the 2008 Mustang “By cleverness in design, we’ve been able to make it look like the wheels are further out, further forward and further rearward,” Horbury said during an interview at a Ford event last month in New York. “The center line is the longest part” of the next Mustang, he said, “and the widest part of the car is the middle. From there on, you can tuck it in and bring the apparent size down.” c Ford’s Peter Horbury: “We have a car which I think is more suitable for the times than the Challenger and the Camaro.” Fiat CEO Sergio Marchionne: “We will be producing cars in North America by 2010.” That guy Alfred had possibilities Pierre Samuel DuPont was 50. He had made his fortune and had turned over the family chemical company, E.I. duPont de Nemours & Co., to his younger brothers. All he wanted to do was work in his garden. But there was a problem. It was 1920, and his family owned a lot of General Motors stock — about $50 million worth, which was 43 percent of the company. Someone had to keep an eye on it. And Billy Durant had been fired again as president of GM. A president was needed, and Pierre was the obvious, though unwilling, choice. He had been chairman of GM since 1915, but that wasn’t much of a strain — just preside over board meetings and let Durant do the rest. Pierre pondered. Walter Chrysler had quit, but there was that young fellow who had run United Motors, a GM property. Alfred something. He had possibilities. He was a vice president, and he had drawn up a reorganization plan that spring. It was a good one. Alfred Sloan, indeed, had possibilities. He became president in 1923, and Pierre could go back to his garden, although he continued as chairman until 1929. 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. Magazine: Chrysler, Fiat are talking Bradford Wernle bwernle@crain.com Reports of talks between Chrysler LLC and Italian carmaker Fiat have resurfaced, this time in the German publication WirtschaftsWoche. Alfa Romeo brand boss Luca De Meo told the magazine that in recent weeks, Fiat and Chrysler had talked about forms of cooperation. A Chrysler spokesman would say only: “His comments are his own. They don’t represent Chrysler.” In March, Fiat CEO Sergio Marchionne told the Financial Times that his company talked with Detroit automakers about producing Alfa Romeos in the United States. Last month, Marchionne told Automotive News that Fiat could produce its 500 minicar in the United States. “I am convinced the 500 with a full range will be a smash” in the United States “if we do it right,” he said. “We will be producing cars in North America by 2010,” Marchionne said, without specifying which brand or which car. Chrysler has said it is willing to discuss sharing plant capacity with other carmakers. Chrysler will make a new pickup truck for Nissan at its Saltillo, Mexico, plant starting in 2011. In March, Chrysler sold its Tritec Motors engine plant in Campo Largo, Brazil, to Fiat Group for $129 million. c Luca Ciferri contributed to this report Pontiac sells the current version of the G3 in Canada and Mexico. In Canada, the car is called the Wave, above. Pontiac subcompact may come to U.S. Jamie LaReau and Richard Truett jlareau@crain.com G3 competition Fuel economy ratings for the Pontiac G3; its platform mate, the Chevrolet Aveo5; and key competitors (all cars with automatic The 2009 Chevrolet Aveo5 transmissions) 2009 Pontiac G3: 25 city/34 hwy. 2009 Chevrolet Aveo5: 25 city/34 hwy. 2008 Honda Fit: 27 city/34 hwy.* 2008 Toyota Yaris: 29 city/ 35 hwy.* * Most recent available data Source: EPA DETROIT — General Motors wants to raise its fuel economy by adding a Pontiac subcompact. Dealer sources say GM plans to bring to the United States the Pontiac G3, a platform mate of the Chevrolet Aveo that is sold in Canada and Mexico. GM also hopes to boost sales of the redesigned Aveo5 five-door when it arrives in showrooms in July, a spokesman says. The EPA has approved for sale the Pontiac G3 and G3 five-door, twins of the Aveo. The G3 is certified as a 2009 model, according to the agency’s Web site. The site says both G3s and the 2009 Aveo5 are powered by a 1.6-liter engine and four-speed automatic transmission. They are EPA-rated at 25 mpg city and 34 highway. Pontiac sells the current version of the G3 in Canada, where it is called the Wave, and in Mexico. News of the G3’s 2009 EPA ratings caught some Pontiac executives by surprise. Pontiac spokesman Jim Hopson said executives learned over Memorial Day weekend that the EPA had certified the G3. One dealer told Automotive News that a GM executive confirmed to him this year that Pontiac would get a G3 compact based on the Aveo. The dealer says many dealers don’t want a small economy car in Pontiac’s lineup. Others inside GM say it’s a move to round out the BuickPontiac-GMC channel. Hopson says dealers have not asked for the car and already have a small economy car, the Pontiac Vibe fivedoor hatchback. The 2008 Vibe’s EPA ratings are nearly the same as the G3. But the G3 would cost less than the Toyota-built Vibe, which starts at $15,895, including shipping. The 2008 Chevy Aveo five-door starts at $10,895, although a Pontiac version likely will cost more. For Chevy, the Aveo5 “is an important car,” says Terry Rhadigan, a Chevrolet spokesman. “The market is about 75 percent five-doors now.” c Former Fla. dealer gets jail for bilking bank Andrew Grossman agrossman@crain.com The former owner of a Florida dealership is appealing his conviction on charges that he stole more than $1.1 million from his bank by falsifying vehicle documents. John Giovanetti, who on May 14 was sentenced to more than 11 years in jail, used the funds to run his Bartow, Fla., dealership, Big Oaks Buick-Pontiac-GMC Inc. The store has since gone through bankruptcy proceedings and been sold to another Florida dealer. The money also helped pay for Giovanetti’s “lavish lifestyle,” according to court documents. That lifestyle included an award-winning 42-foot powerboat, multiple residences and $40,000 in monthly credit card payments covered by the dealership, according to a document filed by Kelly Roth, Big Oaks’ former general manager. Prosecutors said Giovanetti, 53, used forged titles at least 12 times in 2004 to get financing from SunTrust Bank for 44 vehicles that the dealership already had sold. A federal jury found Giovanetti guilty of 11 counts of wire fraud, 11 counts of bank fraud and one count of conspiracy to commit wire fraud and bank fraud. A judge also ordered him to pay $1.06 million in restitution to SunTrust, of Atlanta. Roth and former Big Oaks Controller Edward Littlejohn testified against Giovanetti and pleaded guilty to one charge of conspiracy to commit bank fraud in return for reduced sentences for their role in the theft. Both will forfeit their salaries for 2004. In a motion for a new trial, Giovanetti argued that prosecutors had access to hard drives that contain accounting data that could exonerate him. In that motion, he said Roth and Littlejohn acted alone in defrauding SunTrust while they also were stealing from Big Oaks. Giovanetti’s attorney filed a notice of appeal May 20. The attorney did not return a message left at his office last week. c MICHAEL WILSON/THE LEDGER Prosecutors said John Giovanetti used forged titles to defraud a bank. http://www.autonews.com/gm100

Table of Contents Feed for the Digital Edition of Automotive News - June 2, 2008

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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