Automotive News - October 20, 2008 - (Page 3) OCTOBER 20, 2008 • 3 83rd year — No. 6330 Honda’s Fukui favors fed loans, confirms V-8 Hans Greimel hgreimel@crain.com 2 quit Ford board DETROIT — Two Ford Motor Co. board members quit Friday, citing the pressures of running their own multinational companies. John R.H. Bond, 67, chairman of English telecommunications giant Vodafone Group PLC, and Jorma Ollila, 58, chairman of Finnish telecommunications company Nokia Corp., told Ford they are quitting because of the increased demands of running their own companies. The resignations were effective immediately. Both joined Ford’s board in 2000. A Ford spokesman said the company has no plans to replace the resigning directors. — Richard Truett TOKYO — Honda Motor Co. CEO Takeo Fukui says he’s fine with direct loans from the U.S. government to the Detroit 3. Meanwhile, he will fortify the Acura brand with a new V-8. “I think it’s only natural that the U.S. government tries to provide some support to U.S. manufacturers,” Fukui said last week in an interview, referring to $25 billion in governmentbacked loans for U.S. automakers. Takeo Fukui: U.S. government loans will avert a possible backlash against Japanese automakers and help Honda suppliers. Foreign automakers building cars in the United States also are eligible for the loans. But Fukui said Honda has no intention of seeking any: “At Dealers: Acura V-8 on the way ➤ 6 this point in time, no.” Fukui supports the loans partly because he fears a backlash against Japanese automakers if an American rival goes under. But the loans also will help Honda suppliers, he said. “It’s not just that the help is only being provided to American manufacturers. If I consider all the parts and components manufacturers, that would not be only U.S. companies,” Fukui said. Separately, he confirmed plans for Honda to launch its first V-8 engine in an Acura. Fukui said Acura, with U.S. sales down 15.3 percent through September, needs something extra under the hood, especially in its flagship RL sedan. “I don’t think that the Acura RL 3.7-liter is sufficient. We can’t compete with other premium brands.” The upcoming engine will “be completely different from conventional, past-generation ones and have excellent fuel efficiency,” he said. c To move the metal, Mike Kahn moves the store What propels fastest-growing dealership group? Shifting stores to prime real estate Alysha Webb awebb@crain.com Reports: Ford will sell Mazda shares TOKYO — Ford Motor Co. has a plan to sell shares in Mazda Motor Co. to about 20 Japanese companies, including insurers, and likely will outline the deal by next month, according to news reports in Japan. Ford is considering selling some of its 33.4 percent stake in Mazda as it struggles with weak sales and the global credit crunch, a person familiar with the matter told Reuters. Japanese media have said Ford is looking to trim its share in Mazda to about 13 percent and that Mazda also will buy back some of the shares. Ford also has approached supplier Denso Corp. about buying Mazda shares, according to the media reports. Denso declined to comment. Ford and Mazda have declined to comment on reports. — Reuters Mike Kahn Age: 48 Owns: Superior Automotive Group, Long Beach, Calif. Number of stores: 7 in California (4 Nissan, 2 Toyota and 1 Chrysler-Jeep-Dodge) 2007 sales: 10,695 new, 4,348 used Rank: No. 73 on Automotive News list of top 125 dealership groups, up from No. 106 in 2006. 2007 revenue: $506.5 million Web site: superiorautogroup.net tions. Indeed, his “my way is by the highway” approach seems to typify an aggressive new breed of dealer. Kahn describes himself as half real estate pro, half car dealer. He owns commercial and residential properties and hotels and says it is the real estate side of his operations that has “provided the fuel to get through these hard times in the car business.” Superior Automotive’s retail sales rose 52.9 percent to 10,695 units last year, helped by the addition of one store. The sales increase boosted Superior from 106th place on Automotive News’ 2007 list of the top 125 dealership groups to 73rd. No group climbed as many places on the list last year. Superior’s gross revenue shot up 62.3 percent compared with 2006, to $506.5 million. Kahn says sales and profits are down this year, but “we’re certainly hopeful we will be profitable.” Texas promo: Buy a GM vehicle, get GM stock Two Texas dealers are trying to turn General Motors’ low stock price into profits: They’re offering customers 50 GM shares to buy a new GM vehicle by the end of the month. Sibling dealers Will and Corrie Churchill, who own Frank Kent Motor Co. in Fort Worth, Texas, began their promotion last week and will offer it to the first 100 customers, said Will Churchill. The dealership sells Buick, Pontiac, GMC, Hummer and Cadillac. The 50-share incentive was worth $321.50 on Friday at GM’s closing stock price of $6.43. As of Friday, WIll Churchill said four customers had taken advantage of the deal. — Chrissie Thompson LOS ANGELES — Mike Kahn runs what may be the fastest-growing dealership group in America, moving up more places than any other company on Automotive News’ latest ranking of the country’s largest auto retailers. His secret: relocation, relocation, relocation. The 48-year-old Southern California native — a former amateur boxer who started out selling bean bag chairs on the street — became a car dealer seven years ago. Kahn’s Superior Automotive Group, based in Long Beach, now has seven stores spread across California: four Nissan dealerships, two Toyota stores and a Chrysler-Jeep-Dodge site. Kahn’s MO: Buy prime California properties near freeways and big shopping centers and then aggressively pursue strong new-vehicle franchises to plunk down on the sites. As a business model, it may not be entirely original. But Kahn seems particularly good at it. When trying to match locations with franchises, he won’t be deterred — even by opposition from the likes of Toyota. “He is a substantial real estate dealer as well as a car dealer,” said dealership broker Sheldon Sandler, CEO of Bel Air Partners in Skillman, N.J. “I don’t think there are many dealers who have gone to the level of real estate entrepreneurship that he has. He has a broader vision about the relationship between real estate and car dealers than you would ordinarily find.” ALYSHA WEBB By relocating his stores near freeways and shopping malls, Mike Kahn has made Superior Automotive Group the country’s fastest-growing dealership group. Freeways and auto malls are his favored spots. Kahn says they have visibility and volume. The dealerships are usually shifted over to property Kahn owned before purchasing the dealership. In 2004 he bought a busy half-mile stretch along Route 60 in the Los Angeles suburb of City of Industry. The property included an Ikea furniture store, a Circuit City electronics outlet and several other retailers. Kahn see KAHN, Page 33 A keen eye Kahn, who wears tailored shirts and cuff links covered with diamonds, calls himself an opportunist, with a keen eye for promising retail loca- 5 relocations Five of Kahn’s seven stores were relocated after he bought them. CORRECTIONS A cutaway of the 2009 Dodge Ram pickup on Page 22W in some editions of the Sept. 22 issue had the wrong part and supplier for the ignition. Marquardt supplies the wireless ignition node on the Ram 1500, which was shown. Omron supplies the wireless control module on the Ram 2500 and 3500. Get your daily Automotive News — in video form, starting Nov. 3 Looking for expert reporting on the day’s top automotive stories in one concentrated dose? On Nov. 3, Automotive News will launch a daily video news program called “Automotive News Today.” The 3-minute show will be hosted by veteran broadcast journalist Tom Worobec. “Automotive News Today” will be available after 4 p.m. Monday through Friday on our Web site to registered users and to recipients of the weekday afternoon e-mail newsletter. Worobec will supplement his overview of the day’s breaking news with commentary from our reporters and editors in Detroit, New York, Washington, Los Angeles, Nashville, Munich, Tokyo and Shanghai. For coverage of the news that affects automakers, dealers and suppliers, watch “Automotive News Today.”c Veteran broadcast journalist Tom Worobec will host “Automotive News Today.” http://www.superiorautogroup.net
Table of Contents Feed for the Digital Edition of Automotive News - October 20, 2008 Automotive News - October 20, 2008 Amazingly, vehicle inventories are low An upside of the big slide: Raw material prices dip â for now With GMAC out, banks trickle in Get your daily Automotive News - in video form, starting Nov. 3 Honda's Fukui favors fed loans, confirms V-8 To move the metal, Mike Kahn moves the store Hyundai airbag flaw tied to drink spills Texas promo: Buy a GM vehicle, get GM stock Chrysler's uphill road in China GM/Chrysler? Anything's possible GM/Chrysler deal? Companies' pension plans may need cash Acura dealers: A V-8 engine is on the way Buyers pursue former Heard stores Honda: We're still lending Gilles, Ligocki will speak at congress Fed list promotes high-mileage cars Party time: Saturn turns to grass-roots marketing Online inventory service aims to cut dealer costs Document fees must not become a dirty little secret Just put up a 'For Sale' sign Cash for clunkers? Scrap the idea Arbitration can work for everyone It's time we control our own destiny GM missed boat on Cheyenne, Volt Sept. truck sales fall 7.4% Microheat seeks Chapter 11 At Bosch, r&d spending remains strong GM's new diesel opens up, loses weight Urea must flow or new diesels won't go Hankook plans to bring fuel-saving tire to North America Odell: I can help Volvo tap more potential So far, BMW cruises above the credit crisis Jatco builds China plant to meet expanding CVT demand 10 appointed at American Axle Personnel Milestones Obituaries Supplier Personnel Biking buddies Ford targets fleets with parental control key European sales fall; VW group bucks the trend 11 innovators win honorable mention 25 finalists selected for 2009 PACE awards Suppliers to the 2009 BMW X6 GMAC's loan cutbacks cost GM thousands of auto sales Credit tops agenda for NADA chief 'Flash' draws modest cash at theaters Booth's new berth sparks CEO speculation at Ford Economy's skid sends ritzy toys to eBay Report: Mazda scraps plan for U.S. plant GM's quandary: Finding loans for the imperfect Taylor to Hummer - and then ... ? Tough times at Tesla Automotive News - October 20, 2008 Automotive News - October 20, 2008 - (Page Intro) Automotive News - October 20, 2008 - With GMAC out, banks trickle in (Page 1) Automotive News - October 20, 2008 - With GMAC out, banks trickle in (Page 2) Automotive News - October 20, 2008 - Texas promo: Buy a GM vehicle, get GM stock (Page 3) Automotive News - October 20, 2008 - Companies' pension plans may need cash (Page 4) Automotive News - October 20, 2008 - Companies' pension plans may need cash (Page 5) Automotive News - October 20, 2008 - Gilles, Ligocki will speak at congress (Page 6) Automotive News - October 20, 2008 - Gilles, Ligocki will speak at congress (Page 7) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 8) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 9) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 10) Automotive News - October 20, 2008 - Online inventory service aims to cut dealer costs (Page 11) Automotive News - October 20, 2008 - Arbitration can work for everyone (Page 12) Automotive News - October 20, 2008 - Arbitration can work for everyone (Page 13) Automotive News - October 20, 2008 - GM missed boat on Cheyenne, Volt (Page 14) Automotive News - October 20, 2008 - GM missed boat on Cheyenne, Volt (Page 15) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16A) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16B) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16C) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 16D) Automotive News - October 20, 2008 - Microheat seeks Chapter 11 (Page 17) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 18) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 19) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 20) Automotive News - October 20, 2008 - Hankook plans to bring fuel-saving tire to North America (Page 21) Automotive News - October 20, 2008 - Odell: I can help Volvo tap more potential (Page 22) Automotive News - October 20, 2008 - Odell: I can help Volvo tap more potential (Page 23) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24A) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24B) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24C) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 24D) Automotive News - October 20, 2008 - So far, BMW cruises above the credit crisis (Page 25) Automotive News - October 20, 2008 - Obituaries (Page 26) Automotive News - October 20, 2008 - Biking buddies (Page 27) Automotive News - October 20, 2008 - Biking buddies (Page 28) Automotive News - October 20, 2008 - Biking buddies (Page 29) Automotive News - October 20, 2008 - Biking buddies (Page 30) Automotive News - October 20, 2008 - Biking buddies (Page 31) Automotive News - October 20, 2008 - European sales fall; VW group bucks the trend (Page 32) Automotive News - October 20, 2008 - European sales fall; VW group bucks the trend (Page 33) Automotive News - October 20, 2008 - Suppliers to the 2009 BMW X6 (Page 34) Automotive News - October 20, 2008 - GMAC's loan cutbacks cost GM thousands of auto sales (Page 35) Automotive News - October 20, 2008 - Credit tops agenda for NADA chief (Page 36) Automotive News - October 20, 2008 - Credit tops agenda for NADA chief (Page 37) Automotive News - October 20, 2008 - Tough times at Tesla (Page 38) Automotive News - October 20, 2008 - Tough times at Tesla (Page 39) Automotive News - October 20, 2008 - Tough times at Tesla (Page 40)
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