Automotive News - January 21, 2008 - (Page 32)

32 • JANUARY 21, 2008 Be sure and attend Ron’s workshop “F&I in an X & Y World” at NADA! GO-REAHARD.COM Buckle up for a rocky ’08, economists warn Lindsay Chappell lchappell@crain.com Canada light-vehicle sales, December & 12 months Canada sales by model available online at: www.autonews.com/datacenter Dec. 2007 Dec. 2006 12 mos. 2007 12 mos. 2006 DETROIT — It’s going to be ugly. Economists for the Detroit 3 and others say 2008 will be a tough year of lower industry sales, nervous customers and buyers shifting to lessprofitable vehicles. Ellen Hughes-Cromwick, chief economist for Ford Motor Co., predicted 2008 U.S. light-vehicle sales of 15.7 million, a decline of about 450,000 vehicles from 2007. In 2007, the industry sold 16.2 million light vehicles, a 2.5 percent decline from 2006. Hughes-Cromwick’s Detroit 3 colleagues were similarly pessimistic, if less specific, last week at a meeting of the Society of Automotive Analysts held in conjunction with the Detroit auto show. Said Ted Chu, General Motors’ lead economist: “The U.S. economy is at its weakest point since 2001. We’re going to have a down year.” Chu resisted a specific sales forecast but spoke in general terms of the 16 million neighborhood. Paul Traub, senior economist for Chrysler LLC, also wouldn’t get specific. He only would forecast a range of 15 million to 16 million total vehicle sales, which he said included expectations of about 450,000 mediumand heavy-duty trucks. Subtracting those commercial vehicles leaves a 2008 light-vehicle forecast as low as 14.55 million sales — which would be a much steeper industry decline than GM or Ford has discussed publicly. The group blamed converging economic factors for the dour outlook. Chief among them: the crisis in American home financing. Tight home credit has made many consumers cautious and has taken the wind out of new-home construction. In turn, that hobbles sales of large pickups. “The big worrisome area is consumer attitudes,” Traub said. The economists also cited a shift in product preferences as consumers grow nervous. Fewer high-profit trucks and SUVs are selling, while more buyers are looking for small cars and crossovers. Mike Jackson, chairman of AutoNation Inc., told the analysts he was impressed by the new vehicles at the nearby auto show, including new full-sized pickups from Ford and Chrysler. But he expressed fear that the glittery new models on the show floor would not be enough to stimulate buyers whose mortgage payments are rising or who are nervous about losing their jobs. “I think the economy trumps the show,” said the chairman of the nation’s largest dealer group. “It’s a little painful to say.” Jackson warned the analysts: “Product and price are not going to be able to shape the market. There is real structural weakness.” c Since 2004, Ford has cut production costs of the Escape Hybrid by 30 percent, Nancy Gioia says. A 2008 model is shown. Gioia: Ford hybrids will be profitable by year end Richard Truett rtruett@crain.com Need Salespeople, Tech’s, Managers, & Other Employees? The Auto Industry’s #1 Recruiting, Training & Job Placement Agency Salespeople~BDC~Detailer~Porter~Technician Body Tech~Service Advisor~Service Manager Parts Counter~Parts Manager~Sales Manager Finance Manager~Office Staff~GSM~GM 800-421-4550 www.clickhereforadvice.com Brian C. Hall, President & CEO DETROIT — By the end of the year, Ford Motor Co. expects its hybrid vehicle program to be making money. Nancy Gioia, Ford’s director of sustainable mobility technologies and hybrid vehicle programs, said that since production started in 2004, Ford has chopped about 30 percent of the cost out of making the Escape, Mercury Mariner and Mazda Tribute hybrid SUVs. She said the improvements have come from better batteries, upgrades to the electrical system that governs the hybrid powertrain and less-complex controls. Gioia said last week at the Detroit auto show that Ford expects its hybrid vehicles to make money when production of hybrid versions of the Ford Fusion and Mercury Milan begin this year. Ford sells about 21,000 Escape and Mariner hybrids per year. Ford has not said how many hybrid Fusions Ford’s Nancy Gioia: Hybrid production costs are falling. and Milans it expects to sell, but the price of batteries and the vehicles’ hybrid transmission will drop when volume increases. The Escape, Mariner, Tribute, Fusion and Milan will share the same basic powertrain and battery pack. Gioia also said Ford is exploring gasoline-electric hybrids that use the company’s new EcoBoost system. EcoBoost uses a turbocharger and direct fuel injection to improve fuel economy and lower emissions. Gioia said a hybrid with EcoBoost could have a much smaller gasoline engine without hurting performance. c BMW division (D/I) Mini (I) Total car (D/I) Total truck (D/I) BMW (D/I) Chrysler Division (D/I) Dodge Jeep Total car (D/I) Total truck (D/I) CHRYSLER LLC† FERRARI (I) Ford division Lincoln Mercury Jaguar (I) Land Rover (I) Volvo (I) Total car (D/I) Total truck (D/I) FORD MOTOR CO. (D/I) Buick Cadillac Chevrolet (D/I) GMC Hummer Oldsmobile Pontiac Saab (D/I) Saturn Total car (D/I) Total truck (D/I) GENERAL MOTORS (D/I) Acura (D/I) Honda Division (D/I) Total car (D/I) Total truck (D/I) HONDA (D/I) Hyundai division (D/I) Kia (I) Total car (D/I) Total truck (D/I) HYUNDAI-KIA (D/I) MASERATI (I) Total car (D/I) Total truck (D/I) MAZDA (D/I) Maybach (I) Mercedes-Benz (D/I) Smart (I) Total car (D/I) Total truck (D/I) MERCEDES-BENZ GROUP† Total car (D/I) Total truck (D/I) MITSUBISHI (D/I) Infiniti (D/I) Nissan Division (D/I) Total car (D/I) Total truck (D/I) NISSAN (D/I) Total car (I) Total truck (I) PORSCHE (I) Total car (D/I) Total truck (D) SUBARU (D/I) Total car (I) Total truck (D/I) SUZUKI (D/I) Lexus (D/I) Toyota Division (D/I) Total car (D/I) Total truck (D/I) TOYOTA MOTOR (D/I) Audi (I) Bentley (I) Volkswagen division (D/I) Total car (D/I) Total truck (D/I) VOLKSWAGEN AG (D/I) Domestic car Import car Total car Domestic truck Import truck Total truck TOTAL CANADA 2,131 286 1,757 660 2,417 2,524 11,897 4,564 3,859 15,126 18,985 11 14,674 419 18 51 267 398 3,834 11,993 15,827 997 799 11,282 5,250 80 – 5,953 167 1,218 9,938 15,808 25,746 2,275 15,542 10,990 6,827 17,817 4,089 1,878 2,715 3,252 5,967 8 2,883 1,928 4,811 – 1,412 245 1,281 376 1,657 865 681 1,546 415 4,970 3,084 2,301 5,385 48 62 110 1,189 129 1,318 292 243 535 1,223 13,865 7,389 7,699 15,088 714 18 1,971 2,523 180 2,703 35,508 17,158 52,666 56,307 10,958 67,265 119,931 1,506 337 1,310 533 1,843 3,141 12,306 3,142 5,292 13,297 18,589 10 16,639 478 34 81 278 558 5,011 13,057 18,068 1,745 855 16,616 5,139 163 – 9,706 189 1,410 17,093 18,730 35,823 1,786 14,165 10,269 5,682 15,951 4,700 1,383 3,213 2,870 6,083 8 3,219 1,396 4,615 – 1,493 72 1,230 335 1,565 381 309 690 482 4,636 3,440 1,678 5,118 66 31 97 1,192 72 1,264 442 388 830 1,058 11,131 8,087 4,102 12,189 625 29 2,990 3,481 163 3,644 45,715 18,029 63,744 54,705 7,938 62,643 126,387 24,031 3,703 20,684 7,050 27,734 30,739 154,256 47,693 61,656 171,032 232,688 110 216,777 6,661 335 738 2,963 8,874 63,834 172,514 236,348 15,899 8,593 177,861 64,553 1,269 – 104,561 2,209 25,810 190,967 209,788 400,755 20,119 150,188 116,570 53,737 170,307 75,005 34,820 59,943 49,882 109,825 113 59,160 27,499 86,659 6 16,108 2,433 14,424 4,123 18,547 9,696 7,063 16,759 6,756 70,027 54,860 21,923 76,783 1,164 823 1,987 15,703 801 16,504 7,324 4,681 12,005 13,388 187,938 137,156 64,170 201,326 8,230 182 36,909 43,432 1,889 45,321 562,864 293,932 856,796 679,507 117,468 796,975 1,653,771 *Estimate 20,020 3,410 18,176 5,254 23,430 40,043 151,196 29,314 68,612 151,941 220,553 120 223,763 4,779 336 943 2,570 9,911 79,842 162,460 242,302 21,810 9,255 195,446 58,140 2,002 8 107,842 2,640 21,033 208,335 209,841 418,176 20,356 145,629 115,678 50,307 165,985 70,059 29,569 61,350 38,278 99,628 93 60,515 20,492 81,007 8 14,536 3,023 13,755 3,812 17,567 7,235 3,722 10,957 6,779 59,976 38,026 28,729 66,755 1,296 572 1,868 15,288 902 16,190 6,658 4,500 11,158 12,001 183,779 141,668 54,112 195,780 8,221 143 35,123 42,185 1,302 43,487 591,754 287,078 878,832 612,463 123,761 736,224 1,615,056 †DaimlerChrysler sold the Chrysler group on Aug. 3, 2007 Note: (D) = produced in North America; (I) = imported to Canada; vehicles are domestic unless noted Source: Automotive News Data Center and Association of International Automobile Manufacturers of Canada Canada sales up 2.4% in ’07 Ryan Beene rbeene@crain.com Sales of cars and light trucks in Canada slipped 5.1 percent in December to 119,931 vehicles. Canada sales for all of 2007 totaled 1,653,771 vehicles, up 2.4 percent from 2006. Sales leader General Motors capped off a tough sales year with a bad December. The automaker sold 25,746 vehicles in December, plummeting 28.1 percent from a year earli- er. For the year, GM sold 400,755 cars and light trucks in Canada, a 4.2 percent decrease. Ford Motor Co. also had a rocky year. Ford sold 15,827 vehicles in December, down 12.4 percent. Total sales for 2007 were 236,348 vehicles, a 2.5 percent drop. In contrast, Chrysler LLC’s sales rose 2.1 percent in December to 18,985 vehicles. For the year, Chrysler sold 232,688 cars and light trucks, a 5.5 percent increase. c http://www.autonews.com/datacenter http://GO-REAHARD.COM http://www.clickhereforadvice.com http://www.clickhereforadvice.com

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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