Automotive News - January 21, 2008 - (Page 1)

autonews.com ® JANUARY 21, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY GM will push metro megastores Goal is to put all brands under 1 roof Jamie LaReau jlareau@crain.com DETROIT — General Motors is preparing to make public a plan to encourage the creation of superstores in major metro areas that would carry every GM brand. At next month’s annual convention of the National Automobile Dealers Mark LaNeve: GM’s four-channel plan is solid. Association in San Francisco, GM will describe its efforts to collect all its brands under one roof. GM is trying to whittle down the number of dealerships in certain regions, said Mark LaNeve, GM’s vice president of vehicle sales, service and marketing. “We’ve got a big effort going on in the major markets,” LaNeve told Automotive News last week. The big stores — which LaNeve dubbed “GM Collections” — would allow GM to maintain a high profile in cities where real estate is costly. In many cities, domestic-brand dealers are selling because the real estate is more valuable than the franchise. To create enough showroom space for extra franchises, dealers would be encouraged to move service and parts operations to satellite centers. The superstore approach likely would make GM brands more attractive to big dealer groups such as AutoNation Inc. and Sonic Automotive Inc. The big stores also would help GM organize its dealerships around four brand groups: 1. Chevrolet 2. Buick-Pontiac-GMC 3. Saturn 4. Cadillac-Hummer-Saab. Results are mixed Progress has been spotty. General Motors has consolidated a large number of Buick, Pontiac and GMC franchises. But it has not aggressively pursued the consolidation of Cadillac, Hummer and Saab franchises. At any rate, LaNeve emphasized see MEGASTORE, Page 51 Campi will move fast to buy global Bradford Wernle and David Barkholz bwernle@crain.com DETROIT The Detroit auto show is the place for automakers to hint at production plans, test wild designs, ponder new technologies — and begin revealing strategies for the year ahead. Coverage starts on Page 6. DETROIT — Chrysler’s straighttalking new purchasing boss says he will buy a whole lot more parts in low-cost countries like China and India — and he won’t waste any time getting started. John Campi, who took command of the company’s $40 billion parts budget this month, also wants to shift more design and information technology work to India. Campi says he can’t believe Chrysler — which buys virtually all of its parts in North America — hasn’t gone more to low-cost countries. “I am amazed at what we are not doing,” he said in an interview at the Detroit auto show. “I’m surprised and somewhat appalled that we don’t have a more balanced footprint with our supply base.” ROGER HART Toyota bulks up its lineup with the Venza crossover. ROGER HART Cadillac rolled out its CTS coupe concept, above, at the auto show last week. JOE WILSSENS Mercedes-Benz will challenge the BMW X3 with the GLK. Effort was botched In fact, Chrysler has tried. But Campi says the company’s attempt to buy more parts overseas — Project Magellan, which was started a year ago — was a disaster and was scrapped. Blunt talk is typical of the 63-yearold Campi, who has hit Chrysler like a whirlwind. He arrived as an adviser to purchasing chief Simon Boag in October. On Jan. 3 he replaced Boag, who had been in the job for only seven months. With a dry wit and no-nonsense manner, Campi minces no words when discussing his first impressions of Chrysler. For instance, he says Project Magellan “damaged Chrysler’s see GLOBAL, Page 51 Ford rolls out new F series — but will it stay No. 1? Amy Wilson awilson@crain.com On the Web This week at www.autonews.com: Monday: U.S. dealers can take part in Automotive News’ annual dealer attitude survey at autonews.com/08dealersurvey. The survey period ends Tuesday, Jan. 22. Tuesday: Live coverage of the Automotive News World Congress in Detroit at www.autonews.com/worldcong, with speeches by Ford CEO Alan Mulally and Chrysler CEO Bob Nardelli. Wednesday: Live coverage continues of the World Congress, with speeches by GM Vice Chairman Bob Lutz and Volkswagen Group of America CEO Stefan Jacoby. DETROIT — The best-selling vehicle in the U.S. auto industry — the Ford F-series pickup — might lose its sales crown in 2008. The full-sized pickup segment faces another tough year. Combine Ford Motor Co.’s already-shrinking lead with its strategy of cutting production and incentives, and the F series might not be able to fight off an incentive-laden Chevrolet Silverado for a 32nd straight year. Ford marketing chief Jim Farley says another year at the top is “certainly our goal. But there are a lot of market forces, and we can’t predict what competitors do.” With the race narrowing, it is crucial that Ford successfully launch the new version of its crown jewel: the reengineered and restyled 2009 F-150. The new model, going on sale this fall, features new exterior styling meant to echo its big brother, the Super Duty. The F-150 will face a re-engineered and restyled 2009 Dodge Ram, also on sale this fall. For the first time, Dodge is offering a true ROGER HART Competition and Ford’s recovery plan may cost the F-150 its crown. crew cab model, and Dodge executives expect the updated Ram to increase its share. Meanwhile, General Motors’ top sales executive says the automaker wants to boost pickup share and is see F SERIES, Page 50 NEWSPAPER http://autonews.com http://www.autonews.com http://autonews.com/08dealersurvey http://www.autonews.com/worldcong

Table of Contents Feed for the Digital Edition of Automotive News - January 21, 2008

Campi will move fast to buy global Ford rolls out new F series — but will it stay No. 1? GM will push metro megastores BMW: We may need a 'green' brand Competition claims traditions German summit Toyota: We have enough plants for now Chinese pitch innovation, not just price Mercedes in, Cadillac out as sponsor of Masters golf tournament Auto show walkaround: Chasing the YIPS around Detroit New Acura TSX will get a diesel Toyota: We'll crack 35-mpg CAFE before 2020 Audi predicts 1 million global sales in 2008 Toyota crosses over into tricky segment LETTER TO THE EDITOR: Digital edition is a 'quantum leap' KEITH CRAIN: Here they come, ready or not EDITORIAL: Incentives war isn't the answer to sales downturn LETTER TO THE EDITOR: Toyota over Chevy? Don’t be too sure DIGITAL EDITION: You did your homework Chrysler concepts show brand tweaks Chrysler: 'Hemi is not powertrain of the future' Some of what we heard at the Detroit auto show Corvette has a future — but maybe a lighter, greener one Nissan exec: Cube is coming to America Subaru relies on new Forester Farley: Ford must groom the market Ford still funds Jag, Land Rover product development Ford will probably develop its new rwd cars in the U.S. Volvo considers North American production Good design: Solving problems, making a statement Horbury wants a more aerodynamic F-150 Hyundai upgrades next Sonata's interior M-B could build C class in U.S. VW hints at vehicles for new N.A. plant Customer demand for CTS sedans strains production capabilities at Cadillac GM to test ZR1 carbon fiber weight savings Honda Pilot has more room, power Indiana plant will boost Honda's flexibility Zetsche sees 20% diesel mix for Mercedes-Benz GM hopes to have E-Flex test vehicles ready by June GM to increase Enclave output Cadillac aims high with Provoq Pontiac to launch G8 marketing in March Big-truck sales fall 43.5% in Dec. Personnel Buckle up for a rocky '08, economists warn Canada sales up 2.4% in '07 Gioia: Ford hybrids will be profitable by year end American Honda opens workplace diversity office Dealers From CDs to Sync: Auto industry races to adapt in-car IT trends Microsoft exec sees a car as 'another room in the house' China's Geely plans plant in Mexico Chrysler exec: China exporters need time Murtaugh: Nissan deal won't affect Chrysler-Chery venture Strike by writers makes TV iffy for auto marketers Super Bowl auto advertisers get pre-game jitters Final Say GM bumps buyout total to 46,000 GM considers U.S.-made Astra Good Karma: Mean, green, fighting machine Purves confirms it: The end is near Rehab for designers: A change can do you good Tata's achievement: Redefining 'cheap' Fans remember auto commercials with sports themes Which brand is stronger — Scion or Prius? Engine advances bring cleaner emissions a step closer Suppliers to the 2008 Ford Focus Varable compression ratio makes a comeback Change the engine's stroke Integrate components to boost efficiency Reduce the size of the engine Eliminate the cams and count the savings ZF expects surge in new orders American Axle's rising son may be another Dauch Honda taps Web for workers Trelleborg unit adds tech center Kia restricts hiring at Ga. plant to Web applicants Magna pursues Ogihara Supplier personnel Age of intelligent transportation is getting closer Plastic spoiler saves weight Automotive News' cartoonist looks at 2007 8 will enter European Automotive Hall of Fame Pininfarina lifted family business to new heights Merciless cost cutter Calvet rescued PSA Opel boys turned bicycle venture into automaker Giacosa fathered the Fiat 500 JCI to supply batteries to Chinese automakers Automakers will spend more on digital ads Ford snares star role in return of 'Knight Rider' GM Certified markets online to Hispanics Writers' strike could benefit auto marketers

Automotive News - January 21, 2008

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