Automotive News - August 18, 2008 - (Page 32) 32 • AUGUST 18, 2008 Chamco cases bounce around court system Diana T. Kurylko dkurylko@crain.com Customer SUBARU Incentives Cash rebate Finance rate Cash rebate Finance rate Cash rebate Finance rate Incentives in this table are a summary of retail programs offered. Programs may vary by region and model. BMW Expires Sept. 2. 2008 models 3 series, 5 series, 6 series, 7 series, M5, M6, X3, X5 Z4, Z4 M – – 0.9% 1.9% Torrent G5, Solstice, Vibe G6, G8 Saab 9-3, 9-5, 9-7X Saturn Aura, Sky, Vue (excl. hybrid) Outlook $1,500 $1,000 $500-$1,000 – 3.9-6.9% 5.9-6.9% 2.9-6.9% 5.9-7.9% SX4 Reno, Forenza $750-$1,500 1.9-6.9% $500 3.9-6.9% TOYOTA MOTOR SALES Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Lexus RX 350 – 2.9-3.9% ES 350, IS – 2.9-4.9% Toyota Camry (excl. Hybrid) $0-$1,000 0-4.9% Matrix $0-$750 0-4.9% Tacoma 2.9-4.9% 2008 models Toyota Tundra, Sequoia $3,000-$5,500 0% 4Runner $2,500-$3,000 0-3.9% Sienna $1,800-$2,000 0-3.9% Tacoma $0-$2,500 0-3.9% Camry $0-$1,500 0-3.9% Highlander $750-$1,500 0-4.9% Matrix $0-$1,000 0-3.9% Camry Solara, RAV4 $0-$1,000 3.9-4.9% FJ Cruiser $0-$1,000 – Avalon – 0-4.9% The legal maneuvering in the Chamco lawsuits continues as the would-be importer of Chinese cars lands — at least for now— in the hands of the federal court system. At issue is whether lawsuits filed between Chamco and executives who left the company will stay in New Jersey, the company’s home state, or move to California. Creditors in California have filed two petitions seeking to put the company and its importing arm, ZX Automobile Co. of North America, into involuntary Chapter 7 bankruptcy. Chamco, of Parsippany, N.J., had sought to import two light trucks from Chinese automaker Hebei Zhongxing Automobile Co. Ltd. In June, after Chamco’s legal disputes landed it under the control of a court-appointed trustee, Hebei Zhongxing said it had terminated its contract with Chamco. Chamco’s legal troubles erupted on March 3. Mario Ferla, then COO, sports car builder Steve Saleen and six other Chamco executives sued E. Michael Daspin — Chamco’s founder, who is alleged in shareholder lawsuits to control the company through his wife, Joan — and others, alleging fraud. The Ferla group of executives then moved with 43 Chamco employees to another building. But Daspin and employees loyal to him, who claim to control a majority of shares, voted the same day to fire the Ferla team and later filed countersuits. New Jersey Superior Court Judge Catherine Langlois ordered retired jurist Gerald Escala to determine who owns how much of Chamco, manage the company’s affairs, scrutinize the books and supervise the election of a new board of directors. CHRYSLER LLC $500-$1,500 0-6.9% $500 5.9-6.9% CEO Bill Pollack: Chamco still plans to import Chinese vehicles. Bankruptcy Court for the Central District of California, also in Santa Ana. But Daspin, his family members and Chamco CEO Bill Pollack say the lawsuits should go back to the state court in New Jersey. The California bankruptcy court has scheduled a Wednesday, Aug. 20, hearing to decide whether to continue the two bankruptcy petitions or dismiss them, which would allow the New Jersey civil suits to continue. A decision to put Chamco and its ZX Auto unit into bankruptcy would make it more likely that the civil suits would be heard in California, one source close to the case says. But if the California court dismisses the bankruptcy petitions, U.S. District Court Judge Jose Linares in Newark, N.J., will decide on Sept. 15 whether to hear the civil cases in federal court or send them back to a New Jersey state court. Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Dodge Journey $1,000-$1,500 – 2008 models Chrysler 300 (incl. SRT8 and C) $3,750-$4,500 0-5.9% Aspen $4,000 0% Sebring, PT Cruiser (excl. convertible) $1,250-$3,500 0-5.9% Town & Country $2,000-$3,000 0-5.9% Pacifica, PT Cruiser convertible $1,000-$2,500 0-5.9% Dodge Ram 1500 $5,000-$6,000 0% Ram 2500/3500 $4,500 0-7.9% Durango $4,000 0% Charger, Magnum $1,500-$3,500 0-5.9% Grand Caravan $2,000-$3,000 0-5.9% Avenger, Dakota $1,500-$3,000 0-5.9% Caliber, Nitro $1,250-$1,750 0-5.9% Jeep Grand Cherokee $2,500-$5,500 0% Commander $3,500-$4,500 0% Patriot, Liberty $1,500-$2,000 0-5.9% Compass, Wrangler $500-$750 0-5.9% AMERICAN HONDA MOTOR CO. Expires Sept. 2. 2009 models Honda Pilot 2008 models Acura MDX, RDX, TL, TSX Honda Odyssey, Ridgeline, S2000 Accord Pilot Element – 1.9-5.49% – 1.9-3.9% – – – – 0.9-2.9% 0.9-6.9% 1.9-3.9% 1.9-6.9% HYUNDAI Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Sonata $2,000 – Azera $500 – Genesis – 0.9-3.9% 2008 models Azera, Santa Fe, Sonata $2,500-$3,500 – Entourage, Tucson $1,000-$2,000 – Accent, Elantra, Tiburon $500-$1,750 – Veracruz $1,500 – VW GROUP OF AMERICA Expires Sept. 2. 2009 models Volkswagen Eos, GTI, Passat, Rabbit, Tiguan – 3.9-5.9% 2008 models Audi A6, A8, Q7, RS4, S4, S8 – 0.9% A3, A4, TT – 0.9-2.9% R8 – 5.94-8.19% Volkswagen New Beetle convertible, GTI – 0% Touareg 2, GLI, Jetta, New Beetle sedan, Rabbit, Eos, R32 – 0-2.9% Passat – 0-3.9% JAGUAR Expires Oct. 2. 2008 models XJ – 2.9-5.8% FORD MOTOR CO. Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Ford Fusion $1,000 2.9-6.9% Escape, Focus, Mustang $500 2.9-7.9% Flex – 0.9-6.9% Lincoln MKZ $1,000-$1,500 2.9-6.9% MKS – 0.9-4.9% Mercury Mariner, Milan $500-$1,000 2.9-6.9% 2008 models Ford F-450 Super Duty $5,500-$6,500 0.9-4.9% F-250 Super Duty, F-350 Super Duty $4,500-$6,500 0.9-4.9% F-150 $3,500-$4,000 0-6.9% Expedition, Expedition EL $3,000-$4,000 3.9-7.9% Edge $2,500-$3,500 0-6.9% Explorer, Ranger $2,000-$3,500 0-7.9% Escape, Mustang $1,500-$3,000 0-7.9% Econoline, Fusion $1,000-$2,500 0-7.9% Focus, Explorer Sport Trac, Taurus, Taurus X $1,000-$2,000 3.9-7.9% Escape Hybrid – 4.9-8.9% Lincoln Mark LT $6,500-$7,500 3.9-7.9% Navigator, Town Car $3,000-$5,000 0.9-8.9% MKX, MKZ $1,500-$3,500 0-3.9% Mercury Grand Marquis $4,500 3.9-7.9% Mariner $1,500-$3,000 0-7.9% Milan, Mountaineer, Sable $0-$2,500 0-7.9% Mariner Hybrid – 4.9-8.9% KIA Expires Sept. 2. Amanti, Sorento Optima, Sedona, Spectra, Sportage Rio, Rondo 2008 models $1,500-$5,000 1.5-3.9% $1,000-$3,000 2.9-4.5% $500-$2,000 1.9-5.9% VOLVO Expires Sept. 30. 2008 models S80, XC90 S60, V70, XC70 C70, S40, V50 C30 – – – – 0-3.9% 4.9% 5.9% 6.9% LAND ROVER Expires Sept. 30. 2008 models LR2 – 5.9% Import deal in doubt Even if Chamco frees itself from legal entanglements, it is unclear whether it will import Chinese cars. Chamco has signed 37 dealers who paid franchise fees of up to $300,000. In a letter to Automotive News, Pollack insisted that Chamco still plans to import and distribute Hebei Zhongxing vehicles in North America “under the terms of our exclusive import and distribution agreement.” “We will fully enforce our exclusive agreement if any other entity attempts to interfere with it,” he added. But a July 31 letter to Escala from Hebei Zhongxing, signed by attorney Luo Xuedong, said: “Our position on the termination is fully compliant with the contract.” Hebei Zhongxing also demanded that Chamco “cease and desist from all public/media communications, including your website, erroneously indicating any aspect of cooperation between ZX Auto and Chamco.” Pollack, reached by phone last week, rejects the letter: “They have not validly terminated the agreement.” c MAZDA Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models CX-7 – 3.9% 2008 models RX-8 $3,500 0-1.9% B series, Mazda6, Tribute $2,000-$2,750 0% MX-5 Miata, Mazda3, Mazda5, Tribute Hybrid – 0% CX-7, CX-9 – 0-1.9% Dealer Incentives Incentives in this table are a summary of dealer programs offered. Programs may vary by region and model. BMW Expires Sept. 2. 2008 models 7 series, M, Z4 $2,500-$5,000 GENERAL MOTORS Expires Aug. 19. 2009 models Cadillac SRX, STS, XLR Escalade 2008 models Saab 9-3, 9-5, 9-7X $1,500 $1,000 $3,000-$4,500 MERCEDES-BENZ Expires Sept. 2. 2009 models R class – 2.9% Change of venue? But earlier this month, the New Jersey court gave up its jurisdiction over the cases. In an order, Langlois said that she did so because of the California bankruptcy petitions filed by contractors, lawyers and employees claiming they are owed money. The New Jersey cases are now before a U.S. District Court Judge in Newark, N.J., who faces a tug of war. The former Chamco executive group headed by Ferla wants the three lawsuits transferred to the U.S. District Court in Santa Ana, Calif. The two bankruptcy cases are in the U.S. MITSUBISHI Expires Sept. 2. In lieu of rebates, cut-rate financing is available. 2009 models Galant $2,000 0-9.9% Lancer, Eclipse Spyder – 3.9-10.9% 2008 models Endeavor, Raider $4,000 0-5.9% Galant $3,000 0-6.9% Eclipse $2,500 0-6.9% Eclipse Spyder $2,000 0-10.9% Lancer $0-$1,000 1.9-9.9% Outlander $1,000 0-10.9% Lancer Evolution – 2.9-5.9% AMERICAN HONDA MOTOR CO. Expires Sept. 2. 2008 models Acura MDX RDX, TL, TSX Honda Ridgeline Odyssey, Pilot Element $3,500 $1,000-$2,500 $4,500 $2,500-$4,000 $1,000-$1,500 GENERAL MOTORS Expires Aug. 19. In lieu of rebates, cut-rate financing is available. 2009 models Cadillac CTS – 1.9-6.9% Escalade – 6.9% Chevrolet Aveo, HHR, Avalanche, Cobalt, Colorado, Equinox, Malibu, Suburban, Tahoe – 6.9% GMC Acadia, Yukon, Yukon XL – 6.9% Hummer H3 $3,500 6.9-7.9% H2 $2,500 6.9-7.9% H3T $1,500 1.9-4.9% Pontiac Vibe $500 5.9-6.9% G6, G8, Solstice, Torrent – 6.9% Saturn Sky, Outlook, Aura – 6.9% 2008 models Buick Lucerne, LaCrosse $1,000 5.9-6.9% Enclave – 5.9-6.9% Cadillac DTS, XLR $4,000 0-4.9% Escalade, SRX, STS $3,000-$3,500 0-4.9% CTS – 0-4.9% Chevrolet Silverado 1500, Avalanche, Suburban, $0-$2,000 0-6.9% Tahoe TrailBlazer $2,000 1.9-5.9% Express cargo, Tahoe Hybrid $1,500-$2,000 2.9-6.9% Equinox, Express, HHR, Silverado 2500HD, Silverado 3500HD $1,500 2.9-6.9% Colorado $0-$1,500 3.9-6.9% Impala $1,000 2.9-6. http://Edmunds.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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