Automotive News - October 20, 2008 - (Page 38) 38 • OCTOBER 20, 2008 final assembly comment CONVERGENCE >> Get the latest on automotive electronics and technology from the Convergence 2008 conference in Detroit next week at www.autonews.com. GM’s quandary: Finding loans for the imperfect G eneral Motors sales chief Mark LaNeve is in the fight of his life, and he’s got one hand tied behind his back. At the very moment he is trying to fend off a sales meltdown, GMAC is slashing leases, subprime loans and long-term loans to anyone who isn’t named Bill Gates. In the old days — when GM actually controlled its captive lender — the two cooperated DAVID SEDGWICK closely. But now IS EDITOR OF that GM controls AUTOMOTIVE only 49 percent NEWS. of GMAC, it no longer calls the shots. And now we witness an unseemly spectacle: General Motors has launched an ad campaign to assure customers that they can indeed get a loan — even if it isn’t from GMAC. If anything is keeping LaNeve awake at 2 a.m., this is it. October sales appear to be tanking, with annualized sales that could dip under 12 million units. And now it appears GM could lose its subprime customers. Last week, GMAC announced it will offer loans to prime consumers with credit scores over 700. In other words, you’ll need bulletproof credit to get a loan. According to Experian, only 44 percent of all new- and used-car buyers have credit scores over 680. General Motors dealers will have to line up other banks to make those loans now that GMAC is cutting back. LaNeve hinted at his frustration recently when he conceded that GM did “hardly any leasing in September.” In a conference call with reporters, he added plaintively that he sure wished GMAC would put more money into leasing. A GMAC spokesman magnanimously suggested that the once-captive lender might return to leasing — someday. Credit is the mother’s milk of the auto industry. With its ready access to credit, Toyota has a huge marketing advantage over its Detroit 3 rivals. Just like everyone else, Toyota got hammered on the sales front in September. But Toyota can fight back. It already has launched a 0 percent interest promotion. I’m guessing it’s not done. And when Toyota launches another salvo of incentives, what will LaNeve do then? Booth’s new berth sparks CEO speculation at Ford T he shift of Ford of Europe chief Lewis Booth to North America — replacing Don Leclair as corporate CFO — has revived talk about who might succeed Alan Mulally as CEO of Ford Motor. In March, then-Ford personnel chief Joe Laymon created a firestorm when he disclosed to Automotive News the company’s short list of internal candidates to become the next boss. Besides Booth and Leclair, Laymon’s list included Mark Fields, president of the Americas; Jim Farley, group vice president of marketing and communications; Joe Hinrichs, group vice president of global manufacturing; and Stephen Odell, then COO of Ford of Europe. Leclair has retired. And age has seemed a handicap for Booth, 59, since Mulally, 63, isn’t expected to depart any time soon. But the Liverpool, England, native’s new Lewis Booth: In the race to be Mulally’s eventual successor? assignment could boost his prospects. The question: Is there a reasonable opportunity for the generation wedged between Mulally and Ford’s Fab 40somethings? Fields is 47; Farley, 46; and Hinrichs, 41. Indeed, plenty of attention may now be focused on another bright Brit — Odell, who this month took over as CEO of Volvo. Ford’s struggling Swedish company could provide Odell, 53, the turnaround opportunity of a lifetime. ‘Flash’ draws modest cash at theaters F lash of Genius, The Tesla Roadster Tough times at Teslaespite a backlog of unfilled orders and lots of good press for its electric cars, upstart Tesla Motors is finding that reaching full production is complex and costly. Late last week, the Silicon Valley company announced cutbacks to conserve cash. Tesla is closing its recently opened engineering center in suburban Detroit and laying off an undisclosed number of its 200 U.S. workers. The company is delaying development of a new electric sedan as it consolidates operations at its San Carlos, Calif., headquarters. Production of the Tesla Roadster, which is based on a Lotus sports car, started in March. Fewer than 50 have been delivered. the little-guyfights-big-corporation story about the inventor of the intermittent windshield wiper, has been less than boffo at the box office — drubbed in its opening weekend by a talking chihuahua. In the weekend after its Oct. 3 opening, the film ranked 11th with gross receipts of $2.3 million. No. 1 Beverly Hills Chihuahua grossed $29.3 million. The following weekend, Oct. 10-12, Flash slipped to 16th with gross receipts of $867,780. (The little dog, distressingly, remained No. 1.) Reviewers praised Greg Kinnear as inventor Robert Kearns, who accused Ford and other automakers of stealing his idea. But their overall take on Flash of Genius was mixed. Some examples: Roger Ebert said the film “tells this story in faithful and often moving detail. If it has a handicap, it’s that Kearns was not a colorful character; more of a very stubborn man with tunnel vision.” Todd McCarthy of Variety called the movie “indifferent” and the pacing “listless.” The New York Times’ Stephen Holden says it is “a meticulously constructed mechanism, one that wants to convey the same mixture of idealism, obsession and paranoia found in whistle-blower movies like Silkwood and The Insider.” Rolling Stone’s Peter Travers: “It’s a David-and-Goliath tale that recalls Frank Capra’s Mr. Smith Goes to Washington and Francis Coppola’s Tucker: The Man and His Dream. A fresh take would have helped.” Economy’s skid sends ritzy toys to eBay W hen the economy sours and rich — or once-rich — folks catch cash-flow fever, exotic cars are one of the first things to end up on the auction block. These days, venues such as eBay Motors are loaded with exotic cars. One truly rare model appeared on eBay last week: a 1993 Jaguar XJ220 supercar. Just 281 were built from 1992 to 1994, and the XJ220 once held the title as the world’s fastest production car at 217 mph. But it was expensive — Bidding for this Jaguar XJ220 starts at $100,000 on eBay. about $650,000 — and many lingered unsold for years in a London warehouse. The 549-hp, twin-turbo supercar never was certified for sale in the United States. But the feds since have authorized importation. There probably are fewer than a dozen in the United States. The eBay car, located in Florida, is dark blue with gray leather and has 1,796 miles on the odometer. The starting bid: $100,000 — or an outright purchase for $240,000. Report: Mazda scraps plan for U.S. plant North American A tumblingleda shaky relationship market and has to scrap with Taylor to Hummer — and then ? I You may e-mail David Sedgwick at dsedgwick@crain.com. Jim Taylor: Moving on? t’s quite a career change: from midwife to undertaker. Jim Taylor, who played a key role in the birth of a revitalized Cadillac, is the new CEO of Hummer, a brand likely headed out of the General Motors fold. And if Hummer leaves GM, will Taylor, 52, go along? Taylor became Cadillac’s general manager in August 2004. Previously, he had been vehicle line executive for Cadillac’s Sigma platform vehicles — the CTS and STS sedans, and the SRX crossover. The creased styling and rear-drive performance of the CTS, in particular, won Cadillac credibility as it began to shed its image as an old man’s car. Mark McNabb, 46, remains in charge of the Cadillac-SaabHummer premium sales channel. In April, GM hired McNabb, a former Nissan, Infiniti and Mercedes-Benz marketing executive, passing over Taylor. GM spokeswoman Joanne Krell said last week that Taylor may remain with GM as head of Hummer if GM decides to keep the brand. If Hummer is sold, she said, Taylor would be at “a decision point” as to whether to leave GM. Ford Mazda plans for a second U.S. plant, according to a report in the Japanese newspaper Nikkei. Mazda says there was never such a plan in the first place. And Ford blew off (but didn’t deny) Nikkei’s report that Ford may dump some or all of its 33.4 percent stake in Mazda to raise cash. “If we have something to announce, we will let you know,” said a Ford publicist. The newspaper reported that Mazda had been planning to use a shuttered Ford plant, or perhaps build a new one with Ford as a partner, to boost U.S. production in 2010. Mazda builds the Mazda6 mid-sized car at a suburban Detroit plant run jointly with Ford, which assembles the Mustang at the same factory. A Mazda spokesman said: “We have no plans to open another North American plant. We cannot make any comments on speculation or rumor.” The Mazda6 http://www.autonews.com
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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