Automotive News - February 4, 2008 - (Page Cover1) autonews.com ® FEBRUARY 4, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY In an icy economy, early signs of frostbite January sales soften; dealers and suppliers scramble to cope David Sedgwick dsedgwick@crain.com Shaky start Annualized sales, Jan. ’08: 15.8 million Annualized sales, Jan. ’07: 16.3 million Who’s hot: GM, up 2.6% Who’s definitely not: Chrysler, down 12.1% Source: Automotive News Data Center The Fed’s January interest-rate cuts kept a mediocre sales month from being even worse, but the shaky economy clearly is sending ripples of distress through a jittery auto industry. Toyota, Nissan and Honda — typically A-list performers — had lower sales last month. And the domestic industry is slashing production. Of the six top-selling automakers, only General Motors had higher sales — up 2.6 percent from January 2007. By contrast, industry sales declined by 2.9 percent (see story, Page 99). As the Detroit 3 struggle to stabilize sales, some suppliers and dealers are battling cashflow crises. Plastech, for example, a maker of plastic trim, is seeking a bailout from the Detroit 3. At least two of the automakers are nervous enough about Plastech’s future that they’re lining up alternate suppliers (see story, Page 8). Meanwhile, many Ford dealers who are giving up their franchises are discovering that it’s a tough business even when you’re trying to go out of business (see story, Page 101). Looking ahead, General Motors, Ford and Chrysler could hit another snag this summer when they negotiate contracts with the Canadian Auto Workers. Last week, CAW President Buzz Hargrove vowed to reject Detroit 3 proposals for two-tier wages in Canadian plants (see story, Page 3). And sprinkled among the bad news is some really bad news: Isuzu, which was in the forefront of the brewing SUV craze in the 1980s and early 1990s, is bailing out of the U.S. lightvehicle market (see story, Page 3). Sometimes the best thing you can say about a month like January is that it’s over. c Dealers meld clicks, bricks Some industry experts predict vehicle sales will go completely online in just a few years. Others insist the Internet never will replace the physical showroom. Either way, auto dealerships of all sizes are doing more on the Web than ever before. See story, Page 21 Dealers gather in San Francisco for the NADA convention that starts Saturday, Feb. 9. Look for our convention dailies and Web reports at autonews.com/nada Great debate To buy or not to buy online? Two Automotive News staffers face off. Page 26 Negative feedback A growing number of Web sites allow customers to rate dealerships — and dealers are crying foul. Page 29 Social work Dealers use social networking sites such as MySpace, Facebook and YouTube to reach young customers. Page 32 CATHY GENDRON GM runs the show in Chicago Among world debuts at the Chicago Auto Show, nearly half are by GM. | PAGE 17 | No product? No future After surging sales in the 1980s and ’90s, the Isuzu brand is limping toward extinction in 2009. What happened, and who’s to blame? | PAGE 3 | Allocation consternation After years of steady growth, Suzuki dealers had a so-so ’07. The problem, dealers say: They can’t get the right cars at the right time. | PAGE 4 | GMC’s Denali XT Turning mpg into money Tougher fueleconomy rules require lighter, smarter, pricier components. Which suppliers will be big winners in the mpg derby? | PAGE 1 | On the Web This week at www.autonews.com: Wednesday: Live coverage of the Chicago Auto Show. Go to www.autonews.com/Chicago. Thursday: Dealership giant AutoNation and supplier BorgWarner issue financial reports for the fourth quarter and 2007. NEWSPAPER http://autonews.com http://autonews.com/nada http://www.autonews.com http://www.autonews.com/Chicago
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