Automotive News - July 14, 2008 - (Page 44)

44 • JULY 14, 2008 Purves: Thumbs-up for BMW innovations WOODCLIFF LAKE, N.J. — Tom Purves spent nine years as president of BMW of North America LLC before becoming CEO of Rolls-Royce on July 1. He talked with Staff Reporter Diana T. Kurylko about a variety of subjects. The 7-series rear end — dubbed by critics the “Bangle butt” after BMW chief designer Chris Bangle — was quite controversial. I never remember as many people putting their thumbs-up to me as the first day I drove that car into New York City. It was a spaceship for Americans. So when we say we were vindicated, I think BMW broke ice. If you look at the first Lexus, there is some possibility that you could see a certain Mercedes-Benz-ishness about it. And if you look at the present big Lexus, you could see a certain BMW-ness about it. If ever there was a compliment, that would be it. So I wouldn’t see it as a vindication, but our competitors are actually giving us compliments by following. You staunchly defended BMW’s complicated and much-maligned iDrive controller, used for everything from audio to interior temperature control. It was controversial. You had to experience it over a reasonable period of time to really get the hang of it. Once you did that, you realized how convenient and good this thing was. Those of us who have driven a lot of SUBARU Customer Incentives Cash rebate Finance rate Cash rebate Finance rate Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. BMW Expires Sept 2. 2008 models 5 series, 6 series, 7 series, M6, X5, M5 3 series, X3, Z4, Z4 M CLK class CLS class, C class, GL class, M class – 0.9-2.9% – 2.9% questionanswer there were. But we’ve been through these situations before, and we’ve always seen the car business increasing in scale. What do you take away from your American experience? It’s given me a broader perspective. It’s made me understand that you should never underestimate capitalism in America. It helps me to relate more clearly to the biggest market and the biggest potential market of the future, whether it’s for BMW or for Rolls-Royce or for Mini. Frankly, I think I’m just a bit more reflective also about everything that comes across my desk, in a way that maybe I would’ve been anyway, with age. There was a real point at which people were looking at who would be number one in sales — Mercedes or BMW. All that changed. It’s no longer a contest in that respect. Well, it’s true that in the ’90s and when I came here, there was a lot of excitement about those sales figures. I even remember press meetings at the Detroit show where we were excited to say we sold more cars than Mercedes-Benz. I think the truth is that we are now confident that we’ve very much established our own way of going to market, our own products, our own brand position, and we can build for the future. We’re perhaps a little less fixated on that than we were. c MITSUBISHI – – 2.9% 3.9% CHRYSLER LLC Expires July 31. In lieu of rebates, cut-rate financing is available. 2009 models Dodge Journey $1,000 – 2008 models Chrysler Aspen, 300C $4,000-$4,750 0-5.9% Pacifica, PT Cruiser (excl. convertible) $1,500-$4,000 0-5.9% 300 (excl. SRT8 and C), Town & Country $2,000-$3,000 0-7.9% Sebring $500-$2,500 0-5.9% PT Cruiser convertible $1,000 0-5.9% Dodge Ram 1500 $5,000-$6,000 0-4.9% Ram 2500/3500 $4,500-$5,000 0-4.9% Durango $3,500-$4,500 0-5.9% Charger, Dakota, Magnum $1,500-$3,250 0-5.9% Grand Caravan $2,500-$3,000 0-7.9% Avenger, Caliber, Nitro $500-$2,000 0-5.9% Jeep Grand Cherokee $3,500-$8,000 0-5.9% Commander $4,000-$7,750 0-5.9% Liberty $1,500-$2,000 0-5.9% Compass, Patriot $750-$1,500 0-5.9% Tom Purves: Rivals took cues from the maligned 7 series. the present 7 series find the modified version on the 5 and 6 series to be different, not better. I don’t think we lost a single sale because of it. The economy is melting, fuel prices are skyrocketing, the housing market is collapsing. What challenges does your successor, Jim O’Donnell, face that you didn’t? Nobody should be under any illusions about the tough economic conditions. I have always been clear that the luxury-car business has much more to do with property values than it does with stock values. We’re facing a scenario where we’ve got to be pragmatic. It will be a tough period before we ride out the economy, the weakness of the dollar and the challenges associated with rising oil prices. So when I say I am I leaving Jim with challenges, I think the answer is there are enormous challenges for whoever is in the industry today, more than Expires July 31. In lieu of rebates, cut-rate financing is available. 2009 models Galant $2,000 0-3.9% Lancer, Eclipse, Eclipse Spyder – 3.9-5.9% 2008 models Endeavor, Raider $4,000 0-3.9% Eclipse, Galant $2,500-$3,000 0-2.9% Eclipse Spyder $2,000 0-4.9% Lancer, Outlander $0-$1,000 0-4.9% TOYOTA MOTOR SALES Expires July 31. In lieu of rebates, cut-rate financing is available. 2009 models Toyota Camry (excl. Hybrid) $0-$1,000 0-5.9% Matrix $0-$750 0-4.9% Corolla $0-$750 0-3.9% 2008 models Toyota Tundra, Sequoia $0-$5,500 0% 4Runner $0-$3,000 0-3.9% Sienna $0-$2,000 0-3.9% Tacoma $0-$2,000 0-4.9% Camry $0-$1,500 0-3.9% Highlander $750-$1,000 0-4.9% Camry Solara $0-$1,000 2.9-4.9% FJ Cruiser, RAV4, Matrix $0-$1,000 – Avalon – 0-4.9% FORD MOTOR CO. Expires July 31. In lieu of rebates, cut-rate financing is available. 2008 models Ford F-Super Duty $2,000-$5,000 0.9-6.9% F-150 $2,000-$3,000 1.9-8.9% Edge, Ranger $2,000-$3,000 0-4.9% Econoline $1,000-$2,500 0-4.9% Explorer $0-$2,500 0-7.9% Fusion, Mustang $1,500-$2,000 0.9-7.9% Expedition, Expedition EL $2,000 3.9-7.9% Escape $1,000-$2,000 1.9-5.9% Explorer Sport Trac, Focus, Taurus, Taurus X $1,000-$1,500 3.9-7.9% Escape Hybrid – 4.9-8.9% VW GROUP OF AMERICA Expires Sept. 2. 2008 models Audi A6, A8, Q7, RS4, S4, S8 A3, A4, TT R8 – 0.9% – 0.9-2.9% – 5.9% VOLVO Expires Sept. 30. 2008 models S80, XC90 S60, V70, XC70 C70, S40, V50 C30 – – – – 0-3.9% 4.9% 5.9% 6.9% GENERAL MOTORS Expires July 31. In lieu of rebates, cut-rate financing is available. 2008 models Buick Lucerne, LaCrosse $0-$1,000 0% Enclave – 5.9-6.9% Cadillac DTS, XLR $0-$4,000 0-4.9% Escalade, SRX, STS $0-$3,500 0-7.9% CTS – 0-4.9% Chevrolet Avalanche, Silverado 1500, Suburban, Tahoe, TrailBlazer $0-$2,000 0-6.9% Express cargo $1,500-$2,000 2.9-6.9% Express $1,500 2.9-6.9% Silverado 2500HD, Silverado 3500HD, HHR, Equinox, Colorado $0-$1,500 0-6.9% Cobalt, Impala $1,000 0-6.9% Aveo $500 5.9-6.9% Corvette, Malibu, Uplander – 0-6.9% GMC Envoy, Savana cargo, Sierra 1500, Yukon, $0-$2,000 0-6.9% Yukon XL Canyon, Sierra 2500HD, Sierra 3500HD $0-$1,500 0-6.9% Savana $1,500 2.9-6.9% Acadia $500 5.9-6.9% Hummer H3 $0-$7,000 0-6.9% H2, H2 SUT $0-$5,000 0-6.9% Pontiac Grand Prix $0-$2,000 0-6.9% G5, Torrent, Vibe $0-$1,500 0-6.9% G6, Solstice $0-$1,000 0-6.9% G8 $500 5.9-6.9% Saab 9-3, 9-7X $0-$4,500 0-7.9% 9-5 – 5.9-7.9% Saturn Vue (excl. hybrid) $0-$1,500 0-6.9% Aura, Sky $0-$1,000 0-6.9% Outlook $500 5.9-6.9% Dealer Incentives Incentives in this table are a summary of dealer programs offered. Programs may vary by region and model. BMW Expires Sept. 2. 2008 models 7 series M, Z4 $5,000 $2,500-$3,500 PURVES Mini stands out as a career memory continued from Page 4 head of global sales and marketing. Although observers had him pegged as a successor to Norbert Reithofer as CEO of BMW AG, Krause left this spring to take a top position at Germany’s Deutsche Bank AG. United States weren’t good. But Purves had unique qualifications that helped him champion the small car. As Rover Group’s sales and marketing boss, he oversaw worldwide Mini brand sales. “I knew how important the U.S. was to making the Mini project a success,” Purves said. A solid business case had to be made, and after several years of debate, it still appeared the Mini wasn’t U.S.-bound, Purves said. “When I came here, we were really in the last throws of the important dice,” he said. Purves was approached by two younger members of his team — Jack Pitney, who ran public relations, and Stefan Krause, head of financial services. The duo headed a small team that wanted the go-ahead to do marketing and demographic research to convince board members in Germany that Mini would sell in the United States. It worked. Mini came here in 2002. The two young heroes — Pitney and Krause, both in their 30s — skyrocketed up the corporate ladder. To the surprise of many, Purves appointed Pitney to run Mini USA and mentored him. Pitney is now vice president of marketing for BMW of North America. The Germany-born Krause rose even faster to CFO and ultimately to the elite BMW management board as Retirement postponed Krause’s departure set a new plan in motion for Purves’ future. He would have been required to retire in November by parent company BMW AG, which mandates all top executives leave at age 60. To replace Krause, BMW in March promoted Rolls-Royce Chairman Ian Robertson to BMW’s management board. Robertson, who also had worked for Rover Group, suggested Purves take Robertson’s old job. Perfectly coiffed, elegantly attired and well-spoken, Purves epitomizes Rolls-Royce’s British elegance. It was a perfect fit, and the BMW board agreed. Purves started his auto career at Rolls-Royce as an apprentice in 1966 at age 17 and then moved into sales. “At the age of 21 or something, I was driving around visiting our retailers in north of England and Scotland in a Rolls-Royce Super Shadow,” said Purves, who spent 19 years at Rolls-Royce. States in 1999, Purves didn’t want the same fate for the 1 series and advocated waiting for the new body styles. The 1 series isn’t necessarily as small as BMW can go in the United States before it bumps into Mini turf, said Purves, but with a quick qualifier. “I would say that BMW can go where it wants to go so long as it delivers the BMW experience,” he said. “And the moment that it does not do that, then it’s in difficulty whether it’s up the http://Edmunds.com

Table of Contents Feed for the Digital Edition of Automotive News - July 14, 2008

Small-car boom misses Chrysler Ford's large rwd car plan is iffy Suppliers: Inflation is looming Hummer H3T price: $31,495 VW may build next Passat in U.S. plant Glut of trucks pulls Prius to U.S. Ford sues U.S. over taxes Restyled Ridgeline Volvo will tighten U.S. dealer network As BMW's chief in N.A., Purves got biggest thrill out of Mini Despite pricey fuel, Jetta diesel in demand Everybody's a critic: How dealers cope with online reviews Hyundai goes big on Genesis lease The shift to automatic: A transmission transition Jaguar-Land Rover dealer: Stand-alone would bankrupt me Chevy christens compact Cruze Fiat, BMW will team up on platforms, parts Revision: Bosch still tops Auto News supplier list GM to build Volts in U.S. for Europe GM ads will push mpg for 90 days A missed opportunity 2008 sales forecast? 14,652,757 Suzuki cuts U.S. work force 8% CAFE standards: Stop whining and get to work Uncertainty is the name of the game Honda dealer rubs salt in a wound Careless driver was to blame for crash Unsafe driving wasn't Ford's fault For doomsayers, business is booming again Best ad slogans have staying power Bird Dog Club creator hunts dealer poachers Dealers How to design a Lamborghini? Passion for speed certainly helps Dressed to kill Check for children Delinquency rate on indirect loans skyrockets Group promotes payment assurance Ford has big plans for small vehicles in North America Mulally pushes Ford toward fuel efficiency Ford brand will draw on European lineup With no new vehicles planned, Mercury's future is bleak Engines promise power plus fuel economy Horbury: We'll keep our vehicle designs fresh Ford aims to move Lincoln upscale Toyota's Lentz: Don't panic over collapse; market will stabilize Personnel Chrysler's car sales sag in June — even more than trucks PG sells majority of auto glass business to private-equity firm Chrysler's Campi makes nice Suit against Ford is reinstated BMW reassesses Mini demand JCI plant cuts shift, work force CAW board endorses local president Purves: Thumbs-up for BMW innovations Current trend in Europe: Electric cars Solid reviews for Ford's new Flex Philosopher has insight for ailing U.S. auto industry The 'B' word brings media deathwatch at GM Chrysler to dealers: Don't panic

Automotive News - July 14, 2008

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