Automotive News - August 18, 2008 - (Page 29) AUGUST 18, 2008 • 29 BREMBO Brand’s big selling point: Quality continued from Page 3 Who’s that sporting Brembos now? Like a pair of quirky Italian eyeglass frames, Brembo calipers and rotors have become a kind of designer-label accessory to lend high-performance credibility to street models. Brembos, which made their name on the Formula One racetracks of Europe in the 1970s, have long been sported by such Euro racers as Porsches, Ferraris and Maseratis. More recently, they have popped up on the all-American 2009 Chevrolet Corvette ZR-1, the Ford GT and Dodge Viper. Lately, they have appeared on the Lexus IS-F and Audi S8, and in 2010 they will be on the new Chevrolet Camaro and Hyundai Genesis coupe. They are particularly helpful for Nissan’s street cred because before this summer’s release of the GT-R, Nissan did not sell a high-end performance car. The GT-R was produced by Nissan’s internal racing division, and although it beat Porsche and Ferrari nose-to-nose on German racetracks, the Japanese newcomer is much less wellknown among high-performance enthusiasts. The Brembos will help, says Peter Bedrosian, senior product planning manager for sports cars at Nissan North America Inc. in Nashville. “We believe there’s a great customer recognition of the Brembo name,” Bedrosian says. “But it’s also about performance. They really know how to build brakes.” — Lindsay Chappell America. Despite his affection for balmy Southern California, Smith believed it was crucial to move to Detroit where North America’s program decision makers are. He passed on an option to put the headquarters in Charlotte, N.C., where he also oversees a U.S. racing division. Why Charlotte? Because with little notice, Brembo has emerged as a leading supplier of brakes in the good-old-boy universe of NASCAR racing. Brembo’s efforts appear to be paying off. In one recent U.S. program, General Motors sourced the entire “corners” of a new vehicle with brake systems supplier Robert Bosch. Corners are a relatively new sourcing concept that includes the contract for brakes, wheels, steering components, sensors and various other parts. But according to a Brembo source, GM specified that the brakes on the Bosch corners must be Brembos. The China issue Using North American factories to make what most suppliers consider a bland commodity product runs counter to the industry trend of lowcost-country outsourcing. Stephen Spivey, an analyst with Frost & Sullivan who has tracked the vehicle brake industry, says the vast majority of North American rotors are being imported from China. “But that’s Brembo’s selling point,” Spivey says. “Frankly, the Chinese metallurgy isn’t that good. And Brembo really prides itself on its manufacturing. So as a result, everything that comes in a Brembo box is a premium.” Brembo produces rotors in China, but exclusively for vehicles sold there. Its aspirations for more North American business are instead riding on what customers perceive as highend quality — not low price. Meanwhile, the company’s Italian r&d operations have been developing lighter-weight components, replacing traditional iron content with aluminum and carbon composites. CFO Orsi believes the U.S. industry’s push for weight reductions also will favor Brembo. One new question is whether Brembo will continue to be perceived as premium as the brand name becomes more common. Will the cachet fade as Brembos begin showing up on Chevrolets and Hyundais? Orsi scoffs at the suggestion. “Some enthusiasts are attracted to the name because of our association with racing,” he says. But Brembo is more concerned with what automakers think than what car buyers think. He says, “The general public doesn’t know who made their brakes.” c ■ Fuel-efficient Fusion The restyled 2010 Ford Fusion will go into production in December. Dealers should get the updated mid-sized sedan shortly after the first of the year. With the 2010 model, Ford is adding a hybrid version. The car also gets new sheet metal up front and significant styling changes to the interior, front and rear end. With the new pairing of a 2.5-liter fourcylinder engine and a six-speed automatic transmission joining the lineup, Ford aims to make the Fusion a fuel-economy leader in its segment. BRENDA PRIDDY & CO. CHOICE Chrysler to suppliers: Let’s work together continued from Page 8 der way to improve its relations with suppliers. Campi is happy about ranking last among the six largest North American automakers in the most recent Planning Perspectives Inc. study, he joked, because those relations can go no place but up. At one point, Chrysler’s supplier relations were far better. In the early 1990s, its SCORE program, which shared savings equally between suppliers and the automaker, was widely praised for slashing costs and building rapport with suppliers. On Thursday, Aug. 14, Chrysler called 160 supplier executives to its headquarters to detail for them the automaker’s balance sheet and earnings performance. Campi said the move was to mitigate their worries about Chrysler in light of industry concerns after General Motors’ $15.5 billion second-quarter net loss. Campi has assigned Sig Huber, for- merly with Toyota purchasing, to head a supplier relations team. It will initially focus on managing risks from distressed suppliers. Stabilizing production Chrysler also has vowed to do a better job of keeping to stable production schedules so suppliers can avoid overtime or massive production cuts on short notice. For example, Chrysler will place parts orders at least 30 days in advance with at least 80 percent accuracy. If Chrysler must change more than 20 percent of the order after placing it, the automaker will pay a penalty. In some cases, orders now are placed as little as four days ahead of vehicle production. Chrysler plans to have a test plant for the program by Dec. 1. c F-150 Ford simplifies cars more than pickup continued from Page 4 Complexity conundrum To simplify engineering, manufacturing and ordering, Ford is drastically reducing the number of available combinations for its vehicles. The number of build combinations for 2009 Ford-brand vehicles will drop by 90%. The Ford F-150 goes from billions of combinations for the 2008 model to fewer than 10 million for the 2009. The Ford Expedition goes from 250,000 combinations for the 2008 model to fewer than 10,000 for the 2009. The 2009 Lincoln MKS debuts with about 300 combinations. The 2010 Ford Focus will have 150 combinations, a drop of 95% from the 2008 model. Most car lines will now have fewer than 1,000 combinations. which will cut incentive and floorplanning costs for the company and dealers. It benefits customers, too, Ford and dealers say. Buyers will find it easier to configure their vehicles and are more likely to find what they want on a dealership lot. One such buyer accelerated the efforts at Ford. He happens to be the company’s CEO. Alan Mulally experienced the complexity of a Ford order guide firsthand when he bought an E-series van for his mother’s senior center in Lawrence, Kan. “He was the one who drove us to go further and faster than we would have on our own,” Crowley said. The company’s cars are being simplified even more than the F-150. For instance, the 2009 Lincoln MKS is available in about 300 combinations. By the 2010 model year, the Ford Focus will be available in about 150 combinations — a 95 percent reduction compared with 2008, Mark Fields, Ford’s president of the Americas, said last week. Eliminating ‘mistakes’ For the 2009 F-150, planners used computer software to figure out popular combinations. Those are marked as fast-turning configurations in dealer order guides. The changes will dramatically re- duce dealers’ chances of ending up with “mistakes” — oddball vehicles — on their lots, dealers said. “Dealers would sit with items on the lot for six to 12 months if you ordered it the wrong way,” said Rich Savino, dealer principal of Able Ford in Rockville Centre, N.Y., and a member of the dealer task force advising Ford on the issue. “Floorplan expense was high. When you sold it, you didn’t really have a happy customer because it wasn’t configured like their next-door neighbor’s truck.” Dealers told Automotive News they now expect F-150 stock to turn much faster. To cut the number of F-150 combinations down, Ford, for example, made air conditioning standard and eliminated a manual transmission option, Crowley said. Rear-seat DVD systems were eliminated because the take rate was low and dealers can in- stall headrest DVD systems if customers wants them. A new package of convenience features was created from eight frequently ordered stand-alone options such as keyless entry keypads and power-adjustable pedals. By grouping those features together, Ford was able to eliminate the number of wiring harnesses used in the truck, Crowley said. Because of expected higher take rates for those features, Ford can discount the package and give customers more for their money. Although 2009 F-150s won’t start to arrive at dealerships until late October, the new order guides already are helping, dealers said. “It will take some of the confusion out from the dealership standpoint as well as the customer standpoint,” said Craig Kinsel, dealer principal at Kinsel Ford-Lincoln-Mercury in Beaumont, Texas. “It makes the whole thing cleaner.” c
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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