Automotive News - March 17, 2008 - (Page 38)

38 • MARCH 17, 2008 final assembly comment For rent: Ford’s PAG palace on the West Coast T he dissolution of Premier Automotive Group, the luxury division conceived by former Ford CEO Jacques Nasser, is leaving Ford with a white elephant on the West Coast. The latest evacuee from PAG’s hulking glass-and-steel U.S. headquarters in Irvine, Calif., is Volvo Cars of North America, which plans to return to Rockleigh, N.J. Ford is now seeking new tenants for the building — in a glutted real estate market. The PAG brands set up shop out west in 1998, hoping to tap into California’s creative energy and casual lifestyle. In July 2001, when the structure was completed, Lincoln-Mercury joined Jaguar, Land Rover, Aston Martin and Volvo square-foot, five-floor headquarters will become vacant. The top floor had been for LincolnMercury, Aston and top brass; the first floor for administrative offices and a cafeteria. Some of the empty space has been filled with regional Ford sales, credit and customer service staff. Ford also has a design office there. But if Jaguar, Land Rover and Volvo all leave, the building will be mostly empty. Stefanie Denby, spokeswoman for Ford Land, said there are no plans to move Ford’s regional staff from the building. Said Denby: “Ford Land is meeting with potential tenants on an ongoing basis in an effort to maximize the building use by both Ford and others.” A note to eager auto execs: Invaders sometimes get icy reception in Russia It shouldn’t surprise anyone that Chrysler is thinking about building vehicles in Russia, which seems to be one of the fastestgrowing global markets for Western cars and trucks. Other automakers from western Europe, North America and Asia already have moved in EDWARD LAPHAM and built IS EXECUTIVE factories there, EDITOR OF or have plans to AUTOMOTIVE do so. NEWS. No wonder. Sales of cars and trucks in Russia hit 2.4 million units last year and are predicted to keep soaring this year. But of that big sweet Russian pie, Chrysler sold fewer than 6,000 units. In 2007, Chrysler sold nearly a quarter of a million vehicles overseas, many of them exported from North American factories. And if Chrysler is to hit the halfmillion overseas sales mark by 2012, getting more of the Russian market will help. But Chrysler and other outsiders should remember that Russia has a way of repelling or absorbing invaders. The Mongols invaded Russia in the 1200s. Napoleon did it in 1812. Hitler made the same mistake in 1941. Don’t forget that the Japanese army nibbled at Russian territory, sending troops over the border into Mongolia from Manchuria during the run-up to World War II. Even U.S. forces have invaded Russia. In 1918, President Woodrow Wilson sent about 8,000 officers and men of the American Expeditionary Force to Siberia after the Bolshevik revolution. At about the same time, Wilson sent an additional 5,000 soldiers, known as the Polar Bear Expedition, to northwestern Russia, where they engaged the Red Army. Neither incursion amounted to much. But Russians have never forgotten them, which may have fed some of the animosity among the country’s communist rulers during the Cold War. It’s a little different now. But given the way Russians treat invaders, it might pay to remember that history tends to repeat itself. Edward Lapham writes five commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. Ford’s Premier Automotive Group headquarters is losing tenants. in Irvine. Building and relocation costs for the headquarters were said to top $50 million. But the place has been slowly losing its automotive tenants. Lincoln-Mercury returned to Dearborn in 2003. Aston Martin moved out its token staff last year when Ford sold the English brand. With Volvo moving out by the end of 2008, and the likely departure of Jaguar and Land Rover with their pending sale to Tata Motors, three sprawling floors of the 190,000- Chrysler cuts Calif. studiohrysler will close its nearly 20person advance design studio as part of an effort to “right-size” itself in line with its reduced market share. The Chrylser Pacifica Advance Design Center, founded in 1983 during the Lee Iacocca years, spawned some well-known concepts that ended up as production cars. Those include the Dodge Intrepid (1988), Chrysler Cirrus (1992), Plymouth Prowler (1993), Jeep Compass (2002) and the revived Dodge Challenger muscle car (2006). The Pacifica studio also was responsible for some important concept cars that never made it to production, including the Chrysler Millenium (1989) Chrysler 300 (1991), Chrysler Atlantic (1994) and The Plymouth Prowler, developed by Chrysler’s Pacifica Advance Design Center, ended up in production. Dodge Hornet (2006). Brandon Faurote, the head of the studio, will be relocating to Chrysler’s design center in Auburn Hills, Mich., along with the advanced design function. Chrysler won’t say whether any of the designers will move with him. Illingworth leaving — and staying with — Toyota Hush, hush: Baby Nason on boardirst the happy news: Nicole Nason, administrator of the National Highway Traffic Safety Administration, is a mom again. The nation’s chief vehicle safety regulator gave birth Feb. 19 to a son, Brandon. Nason and her husband, David, an assistant U.S. Treasury secretary, also are parents of two daughters. Nason: NHTSA Nason is the first NHTSA administrator administrator to take a maternity takes leave. leave. She is expected back at Department of Transportation headquarters in Washington this spring, a NHTSA spokeswoman said last week. Now the not-so-happy news: NHTSA, whose openness has come into question in the past couple of years, did not announce publicly that the administrator was on leave. That information came only in response to questions from Automotive News. NHTSA Deputy Administrator James Ports is temporarily in charge. Tony Stewart blows a gasket R J ust days after Dave Illingworth announced that he was calling Illingworth: Joins it a career at Toyota Motor Sales, ranks of retailers. he unveiled plans to open a Toyota dealership in Warsaw, Ind. Illingworth, 64, has a vacation home near Warsaw, where he will partner in the new store with longtime Ford dealers Dan and John Rice. Illingworth, who announced this month that he would leave at year end, held several big jobs during his three decades at Toyota. He was Lexus’ general manager when the brand debuted in 1989 and stayed in the job until 1992. He then ran Toyota Division during the go-go ’90s. Illingworth finished as Toyota Motor Sales’ senior vice president and chief planning and administrative officer. Getting into retail is nothing new for retired auto execs. But Toyota has been tight-fisted in handing out open points, saying it doesn’t want too many dealerships. “Dave presented a proposal as far as what he would do with an open point,” said a Toyota spokesman. “It is not a dealer development point. There’s no Toyota money in it.” With just 12,000 residents, Warsaw doesn’t scream big market, although Kosciusko County has 75,000 people. The nearest Toyota dealerships — in South Bend and Fort Wayne — are about 35 miles away. ace car driver Tony Stewart’s tirade against Goodyear after the Kobalt Tools 500 NASCAR race in Atlanta on March 9 has the stock car world buzzing. Stewart and several other drivers blasted Goodyear — the exclusive tire supplier for NASCAR Sprint Cup races — for the quality of the tires after the race at the Atlanta Motor Speedway. Stewart, who finished second, said: “That was the most pathetic tire I’ve ever been on in my career … They can’t build a tire worth a crap … If they can’t do any better than that, Goodyear should pull out.” Drivers complained that the tires were too hard and didn’t provide enough grip. In the middle of last week, Stewart was still fuming: “When you’re stuck in a car for 3½ to 4 hours and it drives like crap, you’re going to be upset about it,” he said. On Monday, March 10, Goodyear issued a statement that said in part: “Even though both Goodyear and NASCAR were satisfied with the tire’s performance in Atlanta, if the drivers are not happy, then Goodyear’s not happy.” http://autonews.com http://autonews.com/edwardlapham

Table of Contents Feed for the Digital Edition of Automotive News - March 17, 2008

Leases grow as alternative to long loans Toyota dealers balk at upgrades Up for grabs: China importer Testing Chevy's Camaro Escalade first vehicle to get full LED headlamps Hoops fans take a shot at China Toyota will cut Tundra, Sequoia production F-150's risk-reward strategy: Ramp up before the revamp As UAW, American Axle talk, CEO Dauch in Fla. Ex-GM purchasing executive indicted Court allows higher Plastech credit line Saab sticker prices rise as sales fall; will U.S.-built 9-7X offset losses? VW plant capacity in U.S.: 250,000 units Bad cruise control switch haunts Ford Continental plans to bring r&d in-house Rieter expects to increase its global footprint Stadler: Audi considers U.S. plant Another General charges into electric cars Toyota sees its first checkered flag as sign NASCAR's paying off A pickup may figure in Kia's future Analysts: Lampert no threat to AutoNation More likely to be spent to keep suppliers alive in '08 2 suppliers plan Alabama plants UAW seeks job guarantees to end American Axle strike Revolving door continues to spin at Nissan GM, top marketers to share research Electric power steering is grabbing the wheel Delphi completes sale of interiors unit to Renco Mercedes again is true-luxury king How electric power steering works It's time for dealer-factory collaboration Ford must close stores but remain open to diversity The small print Here's a question for Obama, Clinton Didn't you ever hear of a halo? Hurray for affordable performance cars Politics can age a car overnight Good for planet, good for GM What 'scientific consensus'? Lutz may be right but said it wrong Lutz had the courage to tell the truth Big Apple isn't very green 23 finalists in running for PACE honors Canada sales up 14.5% in Feb. RV shipments drop 7.1% in Jan. Wagoner: No sure thing on state air rules Conquest sales, Asia growth boost ADP Brockman: Reynolds focuses on service OEConnection links to ADP Geneva goings-on Judge: Dealer suit over transfer of GM franchise can proceed Honda will build Ridgeline in Alabama So who's running the show at Chamco? GM seeks Plastech tooling Federal-Mogul reports gains Chrysler sells plant to Fiat BMW's new sales boss Odell is named COO at Ford of Europe Strike dents GM truck output Tony Stewart blows a gasket Illingworth leaving — and staying with — Toyota A note to eager auto execs: Invaders sometimes get icy reception in Russia Hush, hush: Baby Nason on board For rent: Ford's PAG palace on the West Coast Chrysler cuts Calif. studio

Automotive News - March 17, 2008

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