Automotive News - October 6, 2008 - (Page 12) 12 • OCTOBER 6, 2008 opinion Let’s get clunkers off the road and spur the economy Now that Washington is throwing hundreds of billions of tax dollars at financial and economic problems, there is one more program with proven benefits that Congress ought to fund: a national scrappage incentive that would get polluting clunkers off the road and stimulate demand for new vehicles. It’s not a new idea. Several states, including Texas and California, have had successful programs. In Texas, consumers in some high-pollution counties can get as much as $3,500 to scrap polluting cars and trucks A federal incentive and replace them with new or latemodel vehicles. Since the program that would pay began last December, 15,000 Texconsumers to scrap ans have scrapped clunkers. The Texas program might serve as a polluting vehicles model for a national effort. Canada and Ireland also have would churn cash used the concept. In Italy, newinto the economy, car sales were up 6.8 percent last year, spurred by that country’s clean the air and most recent scrappage incentive. Since owners of older vehicles save lives. tend to spend less to maintain them, many old cars don’t even meet the emissions or safety standards under which they were manufactured, let alone newer standards. They can be rundown, dirty and dangerous. According to the California Air Resources Board, by 2010 about 30 percent of the vehicles driven in that state will be at least 13 years old. Those elderly vehicles will account for 25 percent of miles driven but 75 percent of pollutants emitted by vehicles, CARB says. With the U.S. auto market likely to be in the doldrums until 2010, getting clunkers off the road would create demand for new vehicles. That would keep factories humming, suppliers supplying, dealers selling and auto workers working. Nationally, about 250 million vehicles are on the road, according to R.L. Polk & Co. So a federal incentive that would pay consumers to scrap polluting vehicles — say, even 5 percent of the total — would churn cash into the economy, clean the air and save lives. A national program must not specify the purchase of a particular brand or type of vehicle. Safeguards would have to ensure that a consumer who can’t afford a new vehicle isn’t lured into one simply because he has a windfall that enables him to qualify for subprime financing — especially when a late-model used car or truck would suffice. Still, the right national scrappage incentive program would be a classic win-win opportunity to do well by doing good. We watched gasoline prices rise to more than $4 a gallon in the United States in a very short time earlier this year. The simple solution for an automaker would have been to scrap everything it makes in the United States and bring over all the high-mileage cars from Europe — that is, if it has a footprint in Europe. But let’s not get in too great a rush. It’s not that simple. Europe has some great cars. General Motors’ Opel subsidiary and Ford of Europe make fuel-efficient vehicles that are well-received all over Europe. But you can’t just pick them up and drop them into the United States without making some time-consuming changes. Obviously, the vehicles must meet U.S. emissions and safety standards. And, of course, you’ll change some engineering settings for the suspension and engine — modest tweaks, but necessary. DAILY AUTO NEWS >> You can get the news you need every day. Go to www.autonews.com/signup and sign up for our daily e-mail newsletter. Europe: Still very different from us Then you might want to change the interior a bit — nothing drastic, maybe just some fabric replacements. But, please, don’t throw out all those pickups and SUVs. There are still hundreds of thousands of Americans willing to drive fewer miles or pay a higher price to enjoy what they want. There aren’t as many as before, but it is still a substantial market. What’s going to confuse things even more isn’t the stabilization of gasoline prices, although that certainly isn’t helping folks figure out what’s going on. No, the big issue is the financial meltdown and the availability — or lack of availability — of credit in the automobile business. The U.S. auto industry is changing rapidly, but there are many basics that we can’t ignore. Lousy credit and high fuel prices make it a far different business. Europe has some great cars. But you can’t just pick them up and drop them into the United States without making some time-consuming changes. Anyone who was at the Paris motor show last week understood the differences in vehicles there. There are great cars in Europe that could have a place in North America with slight changes. But many are sold by companies that don’t have representation in the United States. It’s not an easy game to play these days, but the Paris show proved again that the difference between success and failure in this business is great product. There are some great global products that could be sold anywhere. But the U.S. market needs unique products, too. It just complicates the ballgame. How would a four-cylinder destroy the Cadillac brand? Obviously, Teahen lacks experience driving a modern four-cylinder car. Cadillac is trying to get out of the car business for people his age and is trying to get into the Gen X crowd. Cadillac’s priority is the desire to give consumers what they want. If Cadillac sticks with the same old cars of yesteryear, we will watch it fall with the likes of Lincoln. I’ll be driving by Teahen as he’s stopped at the gas station feeding his 14-mpg V-8 Caddy and I’m getting 32 mpg on my A4. DAVID SULLIVAN III Ann Arbor, Mich. The writer works for an automotive supplier. Shouldn’t Cadillac try something new? To the Editor: I’m surprised and disappointed by John K. Teahen Jr.’s comments on the prospect of a four-cylinder Cadillac. After all, Cadillac made its name with four-cylinder cars and built twins and “one-lungers” before that. OK, that was some 100 years ago, before Cadillac was a luxury brand. But it’s where “Standard of the World” came from, so there is a precedent. How could Teahen seem to forget that in General Motors’ centennial year? Teahen really must travel more outside the United States. Europe is teeming with punchy, high-tech and very refined four-cylinder cars. You can even buy some of them here. (Ever driven an Audi A4 2.0T?) GM has equal know-how, so who’s to say a four-cylinder Cadillac couldn’t be just as appealing here in America? Indeed, such a car could be the next step in Cadillac’s much-ballyhooed renaissance. Forget the BLS. That’s just another fast-buck marketing ploy that deserved see LETTERS, Page 14 THE WEEKLY NEWSPAPER OF THE INDUSTRY Established in 1925, published every Monday by Crain Communications Inc. Keith E. Crain, Publisher and Editor-in-Chief Peter Brown, Associate Publisher and Editorial Director David Sedgwick, Editor Edward Lapham, Executive Editor HOW TO REACH US Web site: www.autonews.com Editorial staff autonews@crain.com Phone: 313-446-0361 Fax: 313-446-0383 Circulation Advertising subs@crain.com rgreer@crain.com Phone: 888-446-1422 Phone: 313-446-6050 Fax: 313-446-6777 Fax: 313-446-8030 Editorial data/research To locate information that has been published in Automotive News, call 313-446-1662. Customer service To start or renew a subscription or to report an address change or a delivery problem, e-mail subs@crain.com or call 888-446-1422 (in the U.S. or Canada) or 313-446-1662 (in all other locations). AUTOMOTIVE NEWS (ISSN 0005-1551) is published weekly at 1155 Gratiot Ave., Detroit, MI 48207-2997. Periodicals postage is paid at Detroit, MI and at additional mailing offices. Postmaster: Send address changes to AUTOMOTIVE NEWS, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. Canadian Post International Publications Mail Product (Canadian Distribution) Sales Agreement #40012850, GST#136760444. Canadian return address: 2-7496 Bath Road, Mississauga, ON L4T 1L2 Printed in the U.S.A. A 4-cylinder is just what Cadillac needs To the Editor: I am shocked by John K. Teahen Jr.’s column “A 4-cylinder Cadillac? Get real” (Sept 22). First of all, let’s look at the success of the Audi A4. autonews.com Did you know that you can write a letter to the editor on our Web site? Here’s how. Go to www.autonews.com. At the top of our home page, put your cursor on the tab that says “Opinion & Feedback.” Click on the section below that says “Send us a Letter.” That will bring up a letter form. Follow the directions. The A4 has had a four-cylinder engine for years. It’s fun and quiet and gets great gasoline mileage, even with allwheel drive. I have a 2008 A4 2.0T quattro, and I just averaged 32 mpg driving back to Michigan from New York. The new 2009 A4 2.0T has 258 poundsfeet of torque at 1,500 rpm. The Cadillac CTS 3.6-liter V-6 has 253 pounds-feet of torque at 3,100 rpm. Numerous software upgrades are available for the Audi to double the torque, which would blow the doors off anything but a CTS-V. People buy cars for the name. Once you leave the Detroit area, people do not know what car has what powertrain. A Cadillac is a Cadillac. A Mercedes is a Mercedes. The reason the Cadillac BLS failed in Europe was it was a terrible job of badge engineering with a brand that has zero credibility outside the United States. http://www.autonews.com/signup http://www.autonews.com http://www.autonews.com http://www.autonews.com http://www.autonews.com
Table of Contents Feed for the Digital Edition of Automotive News - October 6, 2008 Automotive News - October 6, 2008 Many dealers floored by floorplan limits, costs THE GREAT COLLAPSE September was awful, and 2009 looks ugly GMAC is out of leasing — at least for now Versical, Nussel take new Automotive News posts GM to shut Ohio SUV plant 2 years ahead of plan VW commits to minority purchasing goals in Tenn. Chrysler exec to outline EV strategy at green conference Automakers are high on electrics Dealers give mixed reactions to Chrysler incentive program Chrysler boosts 2009 vehicle prices Lenders move fast to liquidate Heard's stores Mazda Kiyora Toyota, Audi mull tiny cars for U.S. Audi to decide next year on U.S. production Volvo plans diesel hybrid by 2012 Coupelike styling is back in a big way Honda Insight target price: Around $19,000 Mercedes plans U.S. sales of hybrids in S, E, C classes BMW is working on 2 small crossovers VW-Porsche feud risks growth plans Let's get clunkers off the road and spur the economy Europe: Still very different from us It could improve Caddy's image Shouldn't Cadillac try something new? A 4-cylinder is just what Cadillac needs Government's a player in Europe, too The Chevy Cruze should be big news Simple steps would revive industry Ford stops buying nonessential factory supplies Chevy, Mazda execs to speak at congress Automakers find India tough market to conquer Mahle CEO: Most engines will be smaller by 2012 GM begins streamlining purchasing TL stretches factory's flexibility Personnel Study: Dealers gain on independent shops Chrysler offers service contracts on certified vehicles No label Flashes of genius, years of turmoil VW seeks excitement with Routan, CC, Rabbit Sales soft, but Europeans plan to expand lineups 2010 redesign planned for Bentley flagship Alfa beyond Competizione Ferrari: Recession-proof and turning ... green? Maserati: Sporty gets even sportier Uncertainty surrounds Volvo's product plan Rolls-Royce goal: Add customers Panamera: Can Porsche defy skeptics again? Audi longs to join luxury big-leaguers in U.S. BMW plans more variants beyond sedans, wagons Under new owner, Aston Martin back in the race Lagonda's forte: Luxurious sedans that go very fast Couped-up? Lamborghini considers a sedan 250-mph Bugatti boosts the excitement Mercedes returns to the luxury suite Mini follows BMW's lead Smart ambitions, like car, remain small Suppliers cut staff, output to cope with downturn Driver monitoring systems differ High-tech mirrors are poised to make big gains IAC will open first India plant Supplier personnel Engineers call for common electric car standards Land Rover aims to boost the fuel economy of its SUVs Maybach adds open-top 62S Landaulet Saab gets a crossover in 2009; everything else is on hold Jaguar regains its focus on low volume, high end Dealers Economic winds batter Sept. sales Jaguar Land Rover joins group Ford aids minority suppliers CarMax plans 600 job cuts Ruling could ease disputes Feds seek more time for roof strength rule Suzuki seeks floorplan credit partner for dealers Toyota battles Detroit 3 with cheap loans $25 billion: How'd they do that? Peapod: Innovator's little big idea FOR SALE: Heard condos, mansion, jet Is film a flash in the pan? Ford hopes so VW: Next New Beetle will be 'more mature' Renault's U.S. ally of choice? Probably not Chrysler Automotive News - October 6, 2008 Automotive News - October 6, 2008 - GMAC is out of leasing — at least for now (Page 1) Automotive News - October 6, 2008 - GMAC is out of leasing — at least for now (Page 2) Automotive News - October 6, 2008 - Automakers are high on electrics (Page 3) Automotive News - October 6, 2008 - Lenders move fast to liquidate Heard's stores (Page 4) Automotive News - October 6, 2008 - Lenders move fast to liquidate Heard's stores (Page 5) Automotive News - October 6, 2008 - Volvo plans diesel hybrid by 2012 (Page 6) Automotive News - October 6, 2008 - Volvo plans diesel hybrid by 2012 (Page 7) Automotive News - October 6, 2008 - BMW is working on 2 small crossovers (Page 8) Automotive News - October 6, 2008 - BMW is working on 2 small crossovers (Page 9) Automotive News - October 6, 2008 - VW-Porsche feud risks growth plans (Page 10) Automotive News - October 6, 2008 - VW-Porsche feud risks growth plans (Page 11) Automotive News - October 6, 2008 - A 4-cylinder is just what Cadillac needs (Page 12) Automotive News - October 6, 2008 - A 4-cylinder is just what Cadillac needs (Page 13) Automotive News - October 6, 2008 - Simple steps would revive industry (Page 14) Automotive News - October 6, 2008 - Simple steps would revive industry (Page 15) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page 16) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-1) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-2) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-3) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-4) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-5) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page S-6) Automotive News - October 6, 2008 - Chevy, Mazda execs to speak at congress (Page 16A) Automotive News - October 6, 2008 - Automakers find India tough market to conquer (Page 16B) Automotive News - October 6, 2008 - Automakers find India tough market to conquer (Page 16C) Automotive News - October 6, 2008 - GM begins streamlining purchasing (Page 16D) Automotive News - October 6, 2008 - Personnel (Page 17) Automotive News - October 6, 2008 - Personnel (Page 18) Automotive News - October 6, 2008 - Personnel (Page 19) Automotive News - October 6, 2008 - Chrysler offers service contracts on certified vehicles (Page 20) Automotive News - October 6, 2008 - Flashes of genius, years of turmoil (Page 21) Automotive News - October 6, 2008 - Sales soft, but Europeans plan to expand lineups (Page 22) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 23) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 24) Automotive News - October 6, 2008 - Alfa beyond Competizione (Page 25) Automotive News - October 6, 2008 - Rolls-Royce goal: Add customers (Page 26) Automotive News - October 6, 2008 - Rolls-Royce goal: Add customers (Page 27) Automotive News - October 6, 2008 - Panamera: Can Porsche defy skeptics again? (Page 28) Automotive News - October 6, 2008 - Panamera: Can Porsche defy skeptics again? (Page 29) Automotive News - October 6, 2008 - BMW plans more variants beyond sedans, wagons (Page 30) Automotive News - October 6, 2008 - Couped-up? Lamborghini considers a sedan (Page 31) Automotive News - October 6, 2008 - Smart ambitions, like car, remain small (Page 32) Automotive News - October 6, 2008 - Suppliers cut staff, output to cope with downturn (Page 32A) Automotive News - October 6, 2008 - Driver monitoring systems differ (Page 32B) Automotive News - October 6, 2008 - High-tech mirrors are poised to make big gains (Page 32C) Automotive News - October 6, 2008 - Engineers call for common electric car standards (Page 32D) Automotive News - October 6, 2008 - Jaguar regains its focus on low volume, high end (Page 33) Automotive News - October 6, 2008 - Dealers (Page 34) Automotive News - October 6, 2008 - Dealers (Page 35) Automotive News - October 6, 2008 - Dealers (Page 36) Automotive News - October 6, 2008 - Dealers (Page 37) Automotive News - October 6, 2008 - Dealers (Page 38) Automotive News - October 6, 2008 - Dealers (Page 39) Automotive News - October 6, 2008 - Dealers (Page 40) Automotive News - October 6, 2008 - Economic winds batter Sept. sales (Page 41) Automotive News - October 6, 2008 - Economic winds batter Sept. sales (Page 42) Automotive News - October 6, 2008 - Feds seek more time for roof strength rule (Page 43) Automotive News - October 6, 2008 - Toyota battles Detroit 3 with cheap loans (Page 44) Automotive News - October 6, 2008 - Toyota battles Detroit 3 with cheap loans (Page 45) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 46) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 47) Automotive News - October 6, 2008 - Renault's U.S. ally of choice? Probably not Chrysler (Page 48)
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