Automotive News - August 18, 2008 - (Page 1) autonews.com ® AUGUST 18, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY Smart answer: A tiny Hyundai from India Kathy Jackson kjackson@crain.com Short set Hyundai may slot its little India-built i10 between the Smart ForTwo and Honda Fit. LENGTH LOS ANGELES — Hyundai Motor Co. is nearing a decision to bring a small car sized between the Smart ForTwo and the Honda Fit to the United States — and may source it from India. Company insiders say the car will be the i10, a five-door hatchback produced in Chennai, India, that gets up to 56 mpg. The i10 went on sale last October and is sold in about 70 countries. The car could be marketed here as a Hyundai or Kia or both. “We’re really watching sales of the Smart car,” said a Hyundai source who asked not to be identified. “If the Smart ForTwo Hyundai i10 Honda Fit 106.1 in. 140.4 in. 161.6 in. The i10 would put on pounds for the U.S. “We will put about 400 or so pounds into it and bring it up to U.S. safety standards,” said the Hyundai source. “This is a real working prototype. When we get cars at this stage, there’s a good chance they’re a go.” The five-speed manual version Smart does well, we will probably definitely get this car.” The i10 is 140 inches long — 21 inches shorter than the Fit and 34 inches longer than the Smart ForTwo. Hyundai sources say the i10 would need beefing up for the United States. weighs 1,892 pounds, and the fourspeed automatic is 2,094 pounds. The 1.5-liter Fit hatchback weighs 2,432 pounds; the Smart weighs 1,808 pounds. Hyundai engineers in the United States have been charged with pumping up the engine. The i10’s 80-hp, 1.2-liter engine is more powerful than the Smart’s engine and delivers a combined 47 mpg. The 66-hp, 1.1-liter version gets about 56 mpg. Standard features on the most upscale version include keyless entry, antilock brakes, fog lamps and dual airbags. Prices in India range from about $7,800 to $11,200. c Ford’s option plan: Keep it simple To cut costs and simplify manufacturing, Ford will cut the number of build combinations for 2009 models by 90 percent. | PAGE 4 | Sharing the pain More automakers let suppliers raise prices as raw-material costs soar; will vehicle prices soar, too? Robert Sherefkin and David Barkholz rsherefkin@crain.com Honda’s hybrid arrives in April Honda will take on Toyota’s Prius with a hybrid-only hatchback that arrives in April. | PAGE 6 | TRAVERSE CITY, Mich. — In a bow to inflationary pressures, automakers are working out new ways to increase prices paid to suppliers pounded by the soaring cost of raw materials. General Motors and others are using world price indexes to grant automatic price increases to suppliers whose commodities are becoming more expensive. The trend to pass-throughs is far from universal, and suppliers say it’s developing in patchwork fashion. But even limited acceptance of raw-material price escalators adds to pressures on carmakers to raise prices. Suppliers say automakers are increasingly willing to index the price of raw materials such as aluminum, copper, precious metals and, in some cases, materials made from petroleum or natural gas and used to make tires and rubber components. “The fragility of the supply base is forcing the auto companies to agree to more material pass-throughs,” consultant John Casesa, managing partner of Casesa Shapiro Group, said here last week at the Management Briefing Seminars. JOE WILSSENS Gary Convis, CEO of Dana Holding Corp., said in a speech at the conference that the company started the year paying $307 per ton for steel for driveline components. “We had set our budget for $410 per ton for the year,” Convis said, but “$525 flew by us in May. It is slowly resting today at $850.” Big brake: Italian star tries to make it big in America Brembo aspires to be more than a sexy brand for race cars and hot sports cars such as the Nissan GT-R. It is trying to win brake contracts for mass-market vehicles in North America. | PAGE 3 | Never 100% Each of the Detroit 3 has its own policy on helping suppliers with raw material prices. Toyota Motor Corp., Nissan Motor Co. and Honda Motor Co. executives could not be reached for comment. But Japanese automakers generally are more willing to grant pass-throughs, suppliers say. “But they’re not going to give you 100 percent,” cautioned one executive for a European supplier. “Everyone wants to understand what you are doing to offset those price increases.” Bo Andersson, GM’s group vice president of global purchasing, told Automotive News that GM allows suppliers to index copper, aluminum and precious metals to an international market standard. see MATERIALS, Page 30 Bo Andersson: GM will help suppliers cover rising commodity costs. Chrysler creates supplier VIP team Chrysler will name special “Suppliers of Choice” who will get special treatment in future product programs. First member of the club: Denso. | PAGE 8 | Toyota idles factories — but can’t lay anybody off Lindsay Chappell lchappell@crain.com They will relearn how to pick up screws. They will study safety practices. They will take classes on work- place diversity and ethics, study corporate history, clean up the mess of urban vandals and probably even plant flowers. But one thing Toyota’s 4,500 idle North American workers will not do is get laid off. As the U.S. auto industry sheds workers, and even Nissan offers buyouts, Toyota is sticking by its proud — and expensive — tradition of no layoffs during hard times. “This was the first chance we’ve really had to live out our values,” says Latondra Newton, general manager of Toyota’s Team Member Development Center in Erlanger, Ky. “We’re not just keeping people on the payroll because NEWSPAPER we’re nice. At the end of all this, our hope is that we’ll end up with a more skilled North American work force.” On Aug. 8, Toyota halted production of Tundra pickups and Sequoia SUVs at plants in San Antonio and Princeton, Ind., for three months, idling 4,500 workers. It’s an expensive proposition. Toyota won’t estimate the financial hit. But keeping 4,500 of its workers on the clock at full pay and benefits for see TOYOTA, Page 30 A good day at work: $22 million jackpot It’s tough to make bucks selling cars and trucks these days — but there’s always the lottery. At a GM dealership in a tiny Ontario town, employees are splitting the second-largest lottery pot in Canadian history. | PAGE 34 | http://autonews.com
Table of Contents Feed for the Digital Edition of Automotive News - August 18, 2008 Automotive News - August 18, 2008 Smart answer: A tiny Hyundai from India Toyota idles factories — but can't lay anybody off Sharing the pain N. America: Brembo's big break? Ford adds 7 preferred suppliers; total rises to 65 Suit: Report of store's death is premature Lincoln crossover will get MKT nameplate Ligocki will head Mexican/Chinese car deal Industry tries lean lobbying at conventions Ford reins in F-150 order combinations Nissan will buy more in Mexico Leland, master of precision and luxury cars Honda will launch Prius fighter in April Porsche bolsters warranty on pre-owned vehicles CTS wagon arrives in spring GM: Aerodynamic design boosts Volt's range Denso is Chrysler 'Supplier of Choice' Kudos to Ford for improving supplier relations How do we define 'automaker'? Concept of leasing had been polluted Totaled cars: We don't need a new law Hybrids too quiet? Sounds like trouble Marketing tips for the 21st century Scion tries to get leg up when flexing its hip Scion ads show community of cool — but no owners July trucks sales fall; rate of decline slows Hargrove forecast: Good for now, bad for long term Mitsubishi plans plant to meet battery demand Mini Cooper D(iesel) delivers, but not here yet Logistics company's goal: Cut fuel use even more Transporter joins the cars it delivers in going green Saturn, Scion lost that special feeling Expert: CAFE debate irrelevant Chrysler plans unibody, fuel-efficient Grand Cherokee Panel: CAFE will change U.S. car mix Toyota revs up its aftermarket parts business Dealers Who's that sporting Brembos now? Moody's cuts GM rating Analyst Merkle moves Ford will sell stock BMW recalls 320,000 vehicles Intermet in Chapter 11 again GM adds 4 XFE models Delphi ends battery venture Chamco cases bounce around court system Mercedes sues Cobasys over batteries For a while, the party's over at Toyota Buy Hummer? Nyet, says Russian automaker What cars will be the cruisers of tomorrow? GM sets 'em up for Dems, GOP Chung sprung A good day at work: $22 million Automotive News - August 18, 2008 Automotive News - August 18, 2008 - (Page Intro) Automotive News - August 18, 2008 - Sharing the pain (Page 1) Automotive News - August 18, 2008 - Sharing the pain (Page 2) Automotive News - August 18, 2008 - Ligocki will head Mexican/Chinese car deal (Page 3) Automotive News - August 18, 2008 - Nissan will buy more in Mexico (Page 4) Automotive News - August 18, 2008 - Nissan will buy more in Mexico (Page 5) Automotive News - August 18, 2008 - CTS wagon arrives in spring (Page 6) Automotive News - August 18, 2008 - CTS wagon arrives in spring (Page 7) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 8) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 9) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 10) Automotive News - August 18, 2008 - Denso is Chrysler 'Supplier of Choice' (Page 11) Automotive News - August 18, 2008 - Totaled cars: We don't need a new law (Page 12) Automotive News - August 18, 2008 - Totaled cars: We don't need a new law (Page 13) Automotive News - August 18, 2008 - Marketing tips for the 21st century (Page 14) Automotive News - August 18, 2008 - Marketing tips for the 21st century (Page 14a) Automotive News - August 18, 2008 - Marketing tips for the 21st century (Page 14b) Automotive News - August 18, 2008 - July trucks sales fall; rate of decline slows (Page 15) Automotive News - August 18, 2008 - Mitsubishi plans plant to meet battery demand (Page 16) Automotive News - August 18, 2008 - Mitsubishi plans plant to meet battery demand (Page 17) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 18) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 19) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 20) Automotive News - August 18, 2008 - Saturn, Scion lost that special feeling (Page 21) Automotive News - August 18, 2008 - Chrysler plans unibody, fuel-efficient Grand Cherokee (Page 22) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 23) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 24) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 25) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 26) Automotive News - August 18, 2008 - Panel: CAFE will change U.S. car mix (Page 27) Automotive News - August 18, 2008 - Dealers (Page 28) Automotive News - August 18, 2008 - Who's that sporting Brembos now? (Page 29) Automotive News - August 18, 2008 - Delphi ends battery venture (Page 30) Automotive News - August 18, 2008 - Delphi ends battery venture (Page 31) Automotive News - August 18, 2008 - Mercedes sues Cobasys over batteries (Page 32) Automotive News - August 18, 2008 - Mercedes sues Cobasys over batteries (Page 33) Automotive News - August 18, 2008 - A good day at work: $22 million (Page 34) Automotive News - August 18, 2008 - A good day at work: $22 million (Page 35) Automotive News - August 18, 2008 - A good day at work: $22 million (Page 36)
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