Automotive News - August 18, 2008 - (Page 22) 22 • AUGUST 18, 2008 MANAGEMENT BRIEFING SEMINARS Ford will share parts on global cars — really James B. Treece jtreece@crain.com TRAVERSE CITY, Mich. — The next-generation Ford Focus small car will prove that Ford Motor Co. finally has figured out how to build a global car. The North American and European versions of the Focus will share 90 percent of their parts, up from about 20 percent for the current editions, Mark Fields, Ford’s president of the Americas, said last week at the Management Briefing Seminars here. In addition, the North American car and other small-car derivatives built off a new global platform will deliver a double-digit percentage profit improvement compared with the current North American Focus, Fields said. He declined to specify the current car’s profitability. Ford will introduce the new Fiesta small car in North America in early 2010. The re-engineered Ford Focus will follow later that year. The improved productivity will come from engineering and sourcing cars globally, Fields said. By reducing build combinations, Ford gains engineering efficiencies, cuts prototype expenses and further drives quality improvements, he said. Dealers will benefit from reduced inventory age, lower floorplan costs, simplified vehicle orders and quicker days to turn. “We’ve reduced the number of orderable combinations in North America — including series, packages and options — by 90 percent for the Ford brand alone in the 20082009 model years,” Fields said. The Focus will offer “approximately 150 combinations by the 2010 model year,” he said, “more than a 95 percent reduction” from the 2008 model. Ford’s previous attempts at global cars largely foundered. The Escort in the 1980s and the Ford Contour and Mercury Mystique in the 1990s ended up quite distinct from the European cars they were supposed to share parts with. But today, North American and European consumer tastes and requirements “are converging, and that’s helping us tremendously,” Fields said. In addition, he said: “We now have a truly global product development organization. That really forces, in a positive way — the product development, manufacturing, marketing and sales, and financial community to work together in a global way.” c Chrysler plans unibody, fuel-efficient Grand Cherokee David Barkholz dbarkholz@crain.com Chrysler’s Tom LaSorda: “One advantage of private ownership is that we can sell nonearning assets to generate cash.” TRAVERSE CITY, Mich. — Chrysler LLC will make its next-generation Jeep Grand Cherokee in 2010 with a unibody construction and a fuel-efficient V-6 engine being developed under the code-name Phoenix, Chrysler co-President Tom LaSorda said. The automaker will spend $1.8 billion to refit its Jefferson North Assembly Plant in Detroit to produce the Grand Cherokee and other undisclosed vehicles off the same platform, LaSorda told reporters over lunch last week at the Management Briefing Seminars here. Chrysler worked with MercedesBenz to develop the platform, he said. The expanded Detroit plant will be flexible to allow multiple vehicle models to be built on the same assembly line, LaSorda indicated. In his speech at the conference, LaSorda said the expansion and new-vehicle program will help create 400 jobs in Michigan. The plant now builds the Jeep Grand Cherokee and Commander. In other remarks, LaSorda said, “One advantage of private ownership is that we can sell nonearning assets to generate cash.” He said Chrysler has “identified over $1 billion in assets” that could be sold. He said the automaker has sold more than $500 million in assets, including land around its suburban Detroit headquarters and its Tritec engine plant in Brazil. LaSorda also said the all-new 2009 Dodge Ram pickup would be priced at $22,170. That’s a drop in price from last year’s model. A 2008 Ram with similar features had a sticker price of $23,050 and didn’t include an automatic transmission, which a Chrysler spokesman said will come standard on the new Ram. During the media luncheon, LaSorda added that Chery Automobile Co. is making a number of engineering changes to a small car that it is developing with Chrysler. He said the subcompact car could be ready for sale next year. c David Sedgwick and Andrew Grossman contributed to this report Expert: CAFE debate irrelevant David Sedgwick dsedgwick@crain.com TRAVERSE CITY, Mich. — The auto industry’s debate over corporate average fuel economy has become irrelevant, said Amory Lovins, chairman of the Rocky Mountain Institute, a think tank in Snowmass, Colo. The sharp increase in fuel prices has created a stampede to small cars that has overwhelmed debate about the need for a 35 mpg CAFE standard. In his presentation at the Management Briefing Seminars here last week, Lovins offered some predictions and prescriptions for automakers: Whether oil prices soar or crash, consumers will act as if prices will stay high. A carbon cap-and-trade law is inevitable, but limits on consumption won’t have much impact on oil prices. Oil prices will remain volatile so automakers must make decisions that will remain valid no matter what. Market competition will demand fuel economy better than the 35 mpg CAFE standard mandated by 2020. Although Lovins said the market is outpacing government edicts, he had a few proposals for government intervention: Congress could create a so-called feebate. Buyers of gasoline hogs would get taxed; purchasers of fuel-efficient vehicles would get a rebate. The result would be an incentive to buy more fuel-efficient vehicles, he said. The government could buy and dispose of clunkers to get the biggest polluters off the roads. A government subsidy for low-income families to buy new cars could create demand for as many as 1 million new vehicles a year. c JOE WILSSENS
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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