Automotive News - August 18, 2008 - (Page 4) 4 • AUGUST 18, 2008 Ford reins in F-150 order combinations Amy Wilson awilson@crain.com DETROIT — Ford Motor Co. has come a long way from “You can have any color as long as it’s black.” The 2009 Ford F-150 pickup can be ordered in nearly 10 million combinations of trim series, colors, engines, body styles and options. It seems a staggering number — but it represents substantial progress. The 2008 F-150 could be ordered in billions of combinations. That’s not a typo: Billions. With the input of dealers, Ford said Ford cut ordering complexity of the 2009 F-150 by more than 90 percent. it reduced the ordering complexity of the 2009 F-150 by more than 90 percent. Company executives declined to disclose exact numbers, but it ap- proaches an estimated 99 percent reduction in possible combinations. The F-150 is part of a bigger effort to reduce complexity at Ford Motor Co. The automaker says it is slashing the number of build combinations by 90 percent across the 2009 Ford-brand lineup. Pickup buyers want lots of variations. But with sales of about 400,000 F-150s annually, Ford determined it could meet those demands and still dramatically slash possible combinations. “If you could build thousands times more than what you’re selling, you were building custom units each time they went down the line,” said Mike Crowley, Ford truck and SUV group marketing manager. So Ford marshaled a dealer task force to help and went to work. The improvement was made by standardizing equipment, creating new packages of popular equipment and eliminating unpopular items, Crowley said. Still lots of choices Planners strived to maintain a wide variety of choice on features impor- tant to customers. No body styles or wheelbases were eliminated. With the addition of the luxurious Platinum trim series, the number of high-level combinations — before such things as colors and options are figured in — increased. The benefits of reduced complexity are many. For Ford, it reduces engineering investment, streamlines manufacturing and purchasing, and improves quality. Vehicles in dealership stock are likely to sell faster, see F-150, Page 29 Nissan will buy more in Mexico Lindsay Chappell lchappell@crain.com ■ Fiesta time Last week, Ford Motor Co. began building the redesigned Ford Fiesta in Cologne, Germany. The new Fiesta goes on sale in Europe this fall. A slightly modified version will go into production in Mexico in early 2010 for sale in North America. Ford says the Fiesta is the first of several small cars it will sell around the world. NASHVILLE — In a bid to trim transportation and material costs, Nissan North America will buy more parts in North America. Unfortunately for U.S. suppliers, most of Nissan’s new opportunity will be in Mexico. The Japanese automaker has a major assembly plant in Mexico for small cars. But Mexico’s supplier industry is undeveloped, so many parts, such as aluminum castings and plastic pieces, must be shipped in. According to Nissan, the automaker and its major suppliers are importing 36 percent of its Tier 2 and Tier 3 content from outside Mexico. Over the next two to three years, Nissan expects to reduce that to 10 percent. Suppliers say they are being told that more investment is coming to Mexico, where Nissan manufactures in-demand small cars, the Nissan Versa and Sentra. Mexico also is doing a brisk business exporting Versas to Europe and Russia, where the Versa is sold as the Tiida. Nissan must ship in all of the engines that go into its Mexican vehicles, primarily from Japan. The company has said it is studying plans to create more manufacturing capacity for four-cylinder engines for North America. Next month, Nissan is expected to lay out additional plans for changes in North American procurement. John Miller, Nissan North America’s vice president of purchasing, will take over an unidentified special project that is “essential to the company’s achievement of its new five-year plan,” called Nissan GT 2012, a company statement says. Among the targets of GT 2012 is the achievement of “cost leadership,” although Nissan CEO Carlos Ghosn has not specified what that will entail. Replacing Miller as vice president of North American purchasing is Catherine Perez, a Renault appointee. Perez has been vice president of purchasing projects, responsible for powertrain sourcing in the Renault-Nissan Purchasing Organization. That sevenyear-old entity, which is managed primarily from France, has been extending its authority over more of Nissan and Renault’s global purchasing. Renault said this year that the joint purchasing unit handled 90 percent of Renault and Nissan parts. That is up from 43 percent five years ago. c Industry tries lean lobbying at conventions Harry Stoffer hstoffer@crain.com Party animals Automakers, suppliers and dealers have their own ways to reach political leaders at upcoming presidential nominating conventions. GM: Provide 735 vehicles to convention-goers Gates Corp.: Provide site for live national TV broadcasts NADA: Send top brass to convention sites, cosponsor events Tough times and tighter ethics rules have led automakers to curtail spending on lavish parties and glamorous shows at national political conventions. But industry leaders won’t all be sitting at home when Democrats and Republicans assemble in the next couple of weeks. Democrats gather Aug. 25-28 in Denver to nominate Barack Obama for president, and Republicans convene Sept. 1-4 in Minneapolis to nominate John McCain. Daimler AG, parent company of Mercedes-Benz, is making big splashes, featuring events for convention-goers from states where its main U.S. operations are. Daimler wants to remind political leaders that even without Chrysler LLC the company is an important U.S. economic force, said Jake Jones, Daimler vice president of external affairs and public policy in its Washington office. Daimler, which sold Chrysler in 2007, has more than 24,000 U.S. employees. Self-described good government groups still complain about coziness at conventions between special interests and policymakers. But industry leaders say they must stay involved. Forging new ties The conventions provide opportunities “to develop relationships for working with the next administration,” regardless of who wins in November, David Regan said. He’s vice president of legislative affairs for the National Automobile Dealers Association. NADA is a cosponsor of a Denver party for so-called Blue Dog Democrats, business-friendly moderates and conservatives within America’s liberal party. As of last week, NADA still was looking for a sponsorship opportunity in Minneapolis, Regan said. NADA President Phil Brady is scheduled to attend events in Denver and Minneapolis. Chairman Annette Sykora, also a Texas dealer, is scheduled to be in Minneapolis, Regan said. Gates Corp., a major supplier of belts, hoses and other parts, found a novel way to raise its profile. Gates, headquartered in Denver, has arranged for the MSNBC network to do its live TV broadcasts from the company parking lot throughout the Democratic convention, said Meg VanderLaan, vice president of corporate communications and public affairs for Gates. General Motors will be among the most visible companies. GM is providing 450 cars and trucks for Democrats to use and 285 vehicles for Republicans — nearly all of them gasoline-electric hybrids and flex-fuel vehicles running on E85. The GM platform In return, GM gets to display its products — current and future — at convention sites, making them “a really good platform to highlight all that we are doing” with advanced technology and alternative fuels, GM spokesman Greg Martin said. Vice Presidents Ken Cole and Beth Lowery will head the GM contingent. But even GM has dropped sponsorship of social events. One reason: New federal ethics rules prohibit events that “salute” individual lawmakers or feature high-priced entertainers. And then there is the nation’s economic downturn. “That’s definitely a major factor for all of us,” said Linda Becker, spokeswoman for Chrysler, a big backer of past convention activities. She said Chrysler is sending a small contingent, led by John Bozzella, vice president of global external affairs and public policy. 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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