Automotive News - October 20, 2008 - (Page 6) 6 • OCTOBER 20, 2008 Buyers pursue former Heard stores Chrissie Thompson and April Wortham cethompson@crain.com Buyers are closing in on five or six deals to purchase closed Bill Heard Enterprises Inc. dealerships, Heard Enterprises lawyer Robert Rubin said at a court hearing last week. The dealership group, formerly the world’s top seller of Chevrolets, is peddling its 14 closed stores after filing for Chapter 11 protection Sept. 28. “We’re trying to accomplish in two to three weeks what usually takes two to three months to do,” turnaround consultant Fred Caruso told Automotive News. Caruso, of Development Specialists Inc. in Chicago, is in charge of selling the stores for Heard Enterprises. Rubin also told the U.S. Bankruptcy Court in Decatur, Ala., of “substantial interest” in one Georgia store. “These are good deals, and we had several other offers that were not good deals,” he said. Bankruptcy Court documents say Heard Enterprises must sell all its General Motors dealerships by today, Oct. 20, or lose its GM sales and service agreement for the remaining stores. But that deadline stemmed from GMAC LLC’s worry that the stores’ inventory would lose value if the sales dragged out. GMAC is a Heard Enterprises creditor. Now GMAC has the court’s permission to claim all vehicles not needed to sell the dealerships. GMAC plans to remove many used and 2008 new models from the lots of the 10 stores whose floorplans it financed, said Charles Tatelbaum, a lawyer representing GMAC. “These vehicles depreciate very quickly between now and the end of the year,” he told the court. “It’s to everyone’s benefit to liquidate them as soon as possible.” With that decision, Rubin told the court, today now is “sort of a target date.” c Gilles: Chrysler design chief Ligocki: Chinese cars from Mexico Gilles, Ligocki will speak at congress Chrysler’s new design boss, Ralph Gilles, and veteran supplier executive Kathleen Ligocki will be featured speakers at the 33rd Automotive News World Congress in Detroit. Gilles will speak Wednesday evening, Jan. 21. Ligocki will speak Tuesday morning, Jan. 20. Gilles, who is famed for leading the styling of the 2005 Chrysler 300, was appointed vice president of design for Chrysler LLC in September. Previously, he led design for Jeep and trucks. Gilles oversaw styling of the new Dodge Ram pickup, debuting this fall. In August, Ligocki was named CEO of GS Motors, a subsidiary of Grupo Salinas, of Mexico City. GS plans to produce Chinese-designed cars at a plant to be built in Mexico City with China’s First Automobile Works. Before moving to GS, Ligocki was CEO of Tower Automotive. She led the supplier through a Chapter 11 restructuring that culminated in a reorganization plan and the sale of the company to Cerberus Capital Management LP. Ligocki previously held a variety of senior positions at Ford Motor Co., including CEO of Ford of Mexico from 2000 to 2001. c Honda: We’re still lending Alysha Webb awebb@crain.com LOS ANGELES — Credit is tight these days, but Honda dealers say the company’s finance arm is still making consumer loans aggressively. Honda Financial Services also is offering special rates. “Honda is financing just like they always have,” says John Hawkins, president of Great Metro Autogroup. “The one caveat is they verify everything.” Great Metro, in suburban Los Angeles, includes a Honda and an Acura dealership. Honda brand sales fell 23.2 percent last month compared with September 2007, to 86,629 vehicles. But the slowdown is the result of low consumer confidence, not a lack of credit, says Honda spokesman Chris Martin. Some captives, such as GMAC Financial Services, have cut back on financing. But Martin says: “If you walked into a Honda store two years ago and walked into a Honda store today, you would be just as likely to get a loan.” Honda’s residual values allow it to make riskier loans, says Bert Boeckman, owner and president of Galpin Motors Inc. in Southern California. “When they stretch on a deal, their potential loss is less,” says Boeckman. Last week, GMAC announced stringent credit restrictions. GMAC said it would finance only retail customers with credit scores of 700 and above. But Honda Financial Services is offering some “crazy stuff,” says Terry Cokeing, finance manager at Honda Windward in Kaneohe, Hawaii. For example, through November, consumers with a credit score of 580 can get a 36-month loan on a 2008 Ridgeline pickup for 3.9 percent, says Cokeing. A buyer with a credit score of 710 or above can get 0.9 percent for 36 months, says Robert Kim, general sales manager at DCH Gardena Honda in suburban Los Angeles. Adds Kim: “Our finance director was able to work with Honda to get a 480 score financed.” c PHILIP MEECH The Toyota iQ, which debuts Nov. 20 in Japan, is the first product from Toyota’s effort to rethink vehicle packaging. Tiny Toyota may come to the U.S. Hans Greimel hgreimel@crain.com Key facts TOKYO — Toyota expects to sell the small, four-seat iQ in the United States after it improves the car’s safety equipment. The Japanese version starts at ¥1.4 million ($13,860). The car goes on sale in Japan on Nov. 20 and in Europe in early 2009. Toyota is targeting monthly sales of 2,500 units in Japan and 6,000 in Europe. Last week, chief engineer Hiroki Nakajima said he expects a U.S. launch in the “midterm,” before the first model update. The company needs to develop different airbags and improve bumper strength to help the iQ pass U.S. safety standards, he said. The car comes with a 1.0-liter gasoline engine in Japan, but there is room under the hood for a 1.5-liter powerplant if more output is needed for American drivers, Nakajima said. The iQ uses a new platform and blends several innovations, including a small air conditioner and an unusual transmission placement, to eke out extra cabin space from the car’s 118-inch length. The iQ is Toyota’s first production vehicle to exhibit “vehicle packaging innovation,” an engineering push prioritized five years ago within the company, Nakajima said. The idea is not simply to downsize a car but to rethink the entire way its components fit together. c When: Jan. 19-22 Where: Detroit Marriott Renaissance Center Cost: $1,495 early registration fee by Dec. 1 (save $200); daily fee $850 Information: 313-446-0485 or autonews.com/worldcongress Exclusive lead sponsors: PricewaterhouseCoopers and IBM Acura dealers: A V-8 engine is on the way Alysha Webb awebb@crain.com “Crazy stuff”: A credit score of 580 can get a 36-month, 3.9 percent loan on a 2008 Ridgeline pickup. LOS ANGELES — Acura dealers say they have been told that Acura will offer a V-8 engine option within 18 months. “It’s confirmed,” says Dave Conant, principal owner of the multibrand Conant Auto Retail Group in Cerritos, Calif., which includes one Acura dealership. Dealers say an eight-cylinder is a must for Acura to compete against luxury brands such as MercedesBenz and BMW. “To elevate the brand, they’ve got to have” a flagship sedan with an eightcylinder engine, says Mark McKellop, general manager of Acura of Mission Viejo in suburban Los Angeles. The store is part of the Conant group. Honda has long talked about mak- Acura’s Jeff Conrad: Acura looks “pretty smart” for not having big engines in times of high fuel prices. gests the engine may be available sooner. “Dealers have been led to believe the next RL would have a V-8,” says John Hawkins, president of Great Metro Autogroup in suburban Los Angeles. Great Metro includes one Acura dealership. A redesigned RL is due in 2010, dealers say. A reskinned RL went on sale this summer with a 300-hp, 3.7liter, V-6, the most powerful engine ever for an Acura sedan. c The reskinned Acura RL went on sale this summer with a 300-hp, 3.7-liter V-6. Some dealers expect a V-8 to debut on the redesigned RL due in 2010. ing Acura a top-tier luxury brand. At a dealers’ meeting in April, Acura “put the stake in the ground” and made it official, says Jeff Conrad, vice president of the Acura division at American Honda Motor Co. But Conrad would not confirm that a V-8 is coming. Instead, he said Acura looks “pretty smart” for not having big engines in times of high fuel prices. A new, large luxury sedan, due out in 2011 or 2012, may be fitted with a V-8. But Acura’s 18-month pledge to its retailers at the April meeting sug- http://www.autonews.com/worldcongress
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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