Automotive News - August 18, 2008 - (Page 3) AUGUST 18, 2008 • 3 82nd year — No. 6321 N. America: Brembo’s big break? High-end brake brand eyes a mass market Lindsay Chappell lchappell@crain.com Ligocki will head Mexican/Chinese car deal MEXICO CITY — Former Ford of Mexico CEO Kathleen Ligocki, 51, is returning to Mexico to head a project to build Chinese FAW cars in 2010. Salinas Group has named her CEO of its automobile division, GS Motors. Salinas Group is a financial service, communications and retailing giant here. The company plans to produce Chinese-designed cars at a plant to be built in Mexico with China’s First Automobile Works Group, or FAW. Ligocki was CEO of Ford of Mexico from 2000 to 2001. More recently, she was CEO of supplier Tower Automotive Inc. from 2003 until she resigned last year. — Stephen Downer Suit: Report of store’s death is premature Varsity Lincoln-Mercury in suburban Detroit has filed a lawsuit accusing Star Lincoln-Mercury, owned by Hoot McInerney, of sending damaging mailings to Varsity’s customers. In the lawsuit, lawyers for Varsity claim that starting on July 24 Star and McInerney mailed letters to at least 65 Varsity customers whose leases on vehicles were about to expire. The letters allude to the difficult economic climate and then say, “It has come to my attention that your Lincoln-Mercury dealer has decided to close his doors.” The letters say McInerney would be “honored to serve you.” In court filings, Varsity says it is not going out of business and alleges the letters hurt its reputation and business. It seeks damages in excess of $25,000 plus costs and fees. — Jamie LaReau Walk around the new $70,000 Nissan GT-R sports car and you’ll quickly notice the bright orange brake calipers glaring from behind the car’s racing wheel rims. That’s no design accident. They are Italian Brembo-brand brakes, and Nissan marketers want you to know it. “Brembo” is plainly stamped on them. Brembo, for years regarded as a boutique brand for exotic sports cars and European racers, is striving to transform itself into more of a massmarket brake maker in North America. How? By using its name recognition, strong racing connections and weight-saving engineering to pitch new business. Last year, Brembo got a leg up on its plans for North America when it purchased the brake component division of U.S. supplier Hayes-Lemmerz International Inc. Corrado Orsi, CFO for Brembo S.p.A. in Curno, Italy, estimates that Brembo now has about 13 percent of the North American original-equipment rotor market, representing about $140 million. The company envisions new business, from Detroit as well as import brands but declines to detail a forecast. Brembo’s orange brake calipers give the brand visibility on a Nissan GT-R sports car. Brembo, regarded as a brand for exotic sports cars and European racers, wants to move into the mass market in North America. Brand has designer-label cachet ➤ 29 Top competitors in North America are the major global systems suppliers: Robert Bosch, Continental Automotive Systems North America and TRW Automotive Holdings Corp. Brembo will remain a supplier of high-end rotors and complete brakes, according to the company strategy. But it envisions that high-end identity expanding from the exclusive world of Ferraris and Porsches and into the more visible world of brands such as Nissan and Hyundai. Fast brake Brembo’s strategy to win brake business in North America Manufacture in North America Target upscale and middlemarket vehicles Pitch its racing connections Reduce weight with advanced engineering Americanization “Strategically, we believe long-term in the North American market,” Orsi says. He says that a new North American manufacturing drive and increased involvement in complete brake systems — not just rotors — will make that happen. can factories. All Hayes brakes now become Brembo brakes. The acquisition also prompted Brembo to move its Brembo North America headquarters from Costa Mesa, Calif., to suburban Detroit, with an eye to increasing its dealings with the Detroit 3. Brembo’s Detroit relationships will be overseen by a salt-and-pepperhaired Brit named Adrian Smith, who moved from Italy last year to become general manager of Brembo North see BREMBO, Page 29 The Hayes-Lemmerz acquisition gave the Italians three North Ameri- Ford adds 7 preferred suppliers; total rises to 65 Amy Wilson awilson@crain.com Preferred by Ford Ford has added 7 companies to its Aligned Business Framework program for preferred suppliers. PRODUCTION SUPPLIERS Lincoln crossover will get MKT nameplate DETROIT — Lincoln said Friday its new three-row crossover set for 2009 will carry the MKT nameplate. The vehicle is based on the MKT crossover concept shown at the 2008 Detroit auto show. In July, Ford Motor Co. said it will build a large crossover for Lincoln in 2009, but few details were confirmed. Lincoln officials said last week that the MKT will go on sale next year. It will be powered by a 3.7-liter V-6 or by a 3.5-liter V-6 with Ford’s EcoBoost technology. — Amy Wilson CORRECTIONS A story on Page 8 of the Aug. 11 issue ascribed a 19 percent portion of Dana Holding Corp.’s first-half revenues to the wrong automaker. Ford accounted for that portion of Dana’s first-half revenues. A caption for a photo accompanying an item about Nissan on Page 50 of the Aug. 11 issue misidentified a pickup. A Nissan Titan was pictured. DETROIT — Ford Motor Co. has added seven companies to its list of preferred suppliers. They are the first additions to Ford’s Aligned Business Framework program in nearly a year. Tony Brown, Ford’s purchasing chief, announced the additions last week at the Management Briefing Seminars in Traverse City, Mich. The new companies include two production suppliers: Linamar Corp., an Ontario company that supplies power transfer units; and Neapco LLC, a Pennsylvania company that supplies driveshafts. Ford now has 65 preferred vendors. Ford also has removed one company from its preferred-supplier list. Chassis Systems, a joint venture of Dana Holding Corp. and GKN, was named a preferred supplier in December 2005. Chassis Systems primarily supplied Land Rover and exited the ABF program after Ford sold Jaguar and Land Rover to Tata Motors, a Ford spokesman said. Brown credits the preferred-supplier initiative with improving Ford’s relationships with parts makers. In recent years, Ford has scored poorly in industry surveys on automakersupplier relationships. But last week, Ford showed an 18 percent improvement in the annual Planning Perspectives Inc. survey ranking au- Linamar, of Guelph, Ontario, provides power transfer units. Neapco LLC, of Pottstown, Pa., provides driveshafts. NONPRODUCTION SUPPLIERS JOE WILSSENS Ford’s Tony Brown: The preferred-supplier program “challenges suppliers and Ford alike to put the old way of doing business behind us.” tomakers on their cooperation with suppliers. Speaking Friday, Aug. 15, at the Management Briefing Seminars in northern Michigan, Brown said the Aligned Business Framework is just one step in the long-term goal of improving relations with suppliers. “But it’s important to stress that building better relationships is at the foundation of ABF,” Brown said. “It challenges suppliers and Ford alike to put the old way of doing business behind us.” The Aligned Business Framework program began in September 2005. Over time, Ford said, it would trim its supply base from around 2,500 companies when the initiative began to no more than 700 or 800. Brown identified 20 commodities — including major components such as seats, brakes and transmissions — that would be supplied by a small group of preferred suppliers. Ford said those 20 commodities make up half of the company’s annual $70 billion expenditures on parts. Duerr AG, of Stuttgart, provides paint systems. Imagination Ltd., of London, provides auto show exhibits. Jack Morton Worldwide, of New York, provides event marketing. Microsoft Corp., of suburban Seattle, provides software. Synovate, of London, provides marketing and sales services. Note: For a list of all 65 Ford preferred suppliers, go to www.autonews.com. Source: Ford Motor Co. Ford promises to give preferred suppliers additional business and work with them early in vehicle development. The other five preferred suppliers announced last week are nonproduction suppliers, providing items such as software or marketing services. c April Wortham contributed to this report http://www.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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