Automotive News - October 6, 2008 - (Page 14) 14 • OCTOBER 6, 2008 Government’s a player in Europe, too Arjen Bongard The three U.S. automakers — Ford Motor Co., General Motors and Chrysler LLC — successfully petitioned their government to back a $25 billon loan program to help them and other auto companies solve their uncompetitiveness problem. Meanwhile, the Bush administration was preparing an unprecedented $700 billion rescue package to try to prevent a global financial crisis. That came after it had put down $85 billion to save — and nationalize — AIG, the country’s biggest insurer. And that action came shortly after Washington had bailed out America’s two largest mortgage institutions, Freddie Mac and Fannie Mae. EDITORIAL STAFF 313-446-0361 E-mail autonews@crain.com Web site www.autonews.com Keith E. Crain Publisher and Editor-in-Chief comment European carmakers complain bitterly about overregulation in their core markets, but those rules have contributed to the continuing success of the industry. Peter Brown Associate Publisher and Editorial Director DETROIT 313-446-0361 Fax: 313-446-0383 1155 Gratiot Ave. Detroit, MI 48207-2997 David Sedgwick Editor dsedgwick@crain.com Edward Lapham Executive Editor elapham@crain.com Richard Johnson Managing Editor rjohnson@crain.com John K. Teahen Jr. Senior Editor Mary Beth Vander Schaaf Deputy Managing Editor Charles Child International Editor David Kushma Retail Editor Dave Guilford News Editor James B. Treece Industry Editor Jesse Snyder Senior Writer Karen Faust O’Rourke Insight Editor COPY EDITORS: Bob Allen, Tom Fetters, Patricia C. Foley, Kenn Jones, Gregory Skwira Susan Zavela Bamford/Graphics Editor Rick Kranz/Product Editor REPORTERS: Leslie J. Allen, David Barkholz, Mary Connelly, Ralph Kisiel, Jamie LaReau, Arlena Sawyers, Robert Sherefkin, Richard Truett, Bradford Wernle, Amy Wilson Mary Raetz Director, Automotive News Data Center Debi Domby, Camille Pippen Research Assistants Dan Jones Office Manager Robertta Reiff Editorial Assistant Corinne M. Price, Michael Garrison Information Center LOS ANGELES Mark Rechtin/Bureau Chief 310-739-8009 Fax: 310-832-6362 Kathy Jackson/Reporter 323-370-2481 Fax: 323-655-8157 Alysha Webb/Reporter awebb@crain.com 6500 Wilshire Blvd. Los Angeles, CA 90048-4947 NEW YORK Diana T. 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And Germany’s regional state of Lower Saxony holds, for the time being, a blocking minority in Volkswagen AG. Moreover, last week, the governments of Belgium, Luxembourg and the Netherlands had to engage in a $16 billion rescue of Fortis, Belgium’s biggest bank. And in Britain, the government said it intended to bail out Bradford & Bingley by taking over the institution’s $90 billion mortgage portfolio. U.S. automakers can argue legitimately that Washington should help out. Leaving aside their failure to adapt model policies to changing times, the Detroit 3 have a point that their crippling pension and health insurance liabilities are a direct result of the government’s unwillingness — A new wave? Are those moves, which have been taking place in the country that arguably invented free-market capitalism and minimal government intervention, the beginning of a new wave of big government? Maybe. Governments have always been players in global industry. Paris makes sure key industries stay French. It retains a 15 percent stake in Renault. The German government weighs in directly and indirectly when a big bank such as Dresdner Bank might or inability — to address such issues. Though European competitors don’t have those liabilities on their books, they, too, get official help, but in a different way. Carmakers complain bitterly about overregulation in their core markets. But those rules, coupled with a general European acceptance of more government, have contributed to the continuing success of the industry. Impetus for change Take the block exemption for car retailing. When new rules were introduced in 2002, automakers did not like being forced to change long-established distribution practices. But now that the rules are up for review, the consensus seems to be that things are working well and that it would be best to leave well enough alone. A lot of the current anxiety over pending carbon dioxide emission legislation also focuses on perceived wily Brussels bureaucrats trying to put another competitiveness roadblock in front of the European car industry. In practice, Brussels is helping the auto industry by providing a badly needed impetus for long-overdue change. As European carmakers prepare to meet a tough fleetwide CO2 emission limit of 130 grams per kilometer by 2012, or possibly by 2015, they have embarked on an unprecedented drive to alter radically or even do away with the internal combustion engine as we’ve known it for more than 100 years. Sometimes governments have to jump in with money. Sometimes they have to make new rules. That’s the reality in Europe and in the United States. You may e-mail Arjen Bongard at abongard@craincom.de The Chevy Cruze should be big news continued from Page 12 to fail in Europe like the Cimarron failed here. Sure, a new four-cylinder Cadillac might not be a Caddy in the traditional sense. But it seems to me that tradition, as in business as usual, is what has gotten Detroit into its current mess. So why not try something new, something daring? That, too, is part of Cadillac’s heritage. Besides, from what I know of Bob Lutz, he’s not about to let another Cimarron happen. CHRIS POOLE Editor-at-Large Consumer Guide Auto Peoria, Ariz. It could improve Caddy’s image To the Editor: John K. Teahen Jr. implies that a four-cylinder Cadillac would tarnish the image of Cadillac. If Cadillac could offer a fourcylinder as advanced in power, efficiency and refinement as what Audi, Volkswagen (2.0-liter directinjection turbo), Honda and Acura currently offer, it could benefit Cadillac’s image immensely. A world-class Cadillac fourcylinder would be part of what is really needed to put Cadillac on the shopping list of young, successful customers, most of whom will not shop Cadillac because of its image. Today’s young, affluent and welleducated consumer is much less To the Editor: Regarding Editor David Sedgwick’s Sept. 22 column: I agree completely that General Motors is missing a fantastic marketing opportunity (“Volt: A pricey short hauler?”). I live in a commuter town where the price of getting to and from work can rival one’s house payment. At nearly every gathering with neighbors and friends, someone tells of considering, for the first time, buying a certain nondomestic vehicle for its impressive mileage. When I say the Chevy Cruze, with estimated mpg in the mid-40s, is only about 18 months away, they are surprised and definitely excited. While they have heard of the Chevy Volt, no one seems aware that the Cruze will arrive about the same time with only a gasoline engine. Yes, the Volt might create a wonderfully green halo for GM, but at the end of the day, people will go with the technology and price that People have heard of the Chevy Volt, the letter writer says, but no one seems to know that the Cruze, above, will arrive at about the same time. work for them — or their kid going off to college. GM should be creating a buzz for the Volt and the Cruze. The Volt will be irresistible to some, but others will prefer to park on the sidelines until the Volt proves itself. GM should be sure they are parking in a Cruze. SUSAN GARDNER Assistant Vice President, Sales Checker Motors Corp. Brighton, Mich. Checker supplies metal stampings and welded assemblies to automakers, including GM. concerned with the number of cylinders under the hood than with refined power and fuel efficiency. Cadillac’s 3.6-liter, direct-injection V-6 is more fuel efficient and more powerful than the old dinosaur North Star V-8. And buyers of the current STS have made it clear that they no longer desire a V-8, nor will they pay for it. This is not 1982, and General Motors no longer builds crappy Cimarrons. GM cars are much better than they were 25 years ago, but they (as with the other domestics) are still a long shot away from many Asian and German automobiles in technical refinement, long-term durability and image. ED HAASE Ashburn, Va. The writer formerly worked for an automotive supplier. Simple steps would revive industry To the Editor: If we want to revitalize the domestic automotive industry, a few simple changes would make our models somewhat viable. Stop paying executives for losing! (We could save millions.) Eliminate all the built-in incentive money in vehicles. Have a maximum of three versions per model. Build a quality product. Eliminate unions in production plants — do good work, and you keep your job. I have oversimplified, but with this basic foundation, you could compete with anyone. CHRIS VINZENZ Toronto The writer is a manager for a franchi 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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