Automotive News - October 6, 2008 - (Page 3) OCTOBER 6, 2008 • 3 83rd year — No. 6328 Chrysler exec to outline EV strategy at green conference Electric vehicles will be front and center at the Automotive News Green Car Conference/Exhibition on Nov. 13 in suburban Detroit. ENVI President Lou Rhodes will update attendees on Chrysler LLC’s progress toward electric vehicles. ENVI, a company within Chrysler, is bringing electric-drive vehicles to market. Rhodes also is Chrysler’s vice president for advance vehicle engineering. He leads the teams responsible for engineering Chrysler products in the early stages of design. On Sept. 23, Chrysler unveiled three electric vehicles and said it would bring one of them to market by 2010. Separately, David Vieau, CEO of A123 Systems, will describe his company’s development of lithium ion batteries during a panel discussion on powertrains. His company is one of two suppliers competing to produce the Chevrolet Volt’s battery pack. The green conference also will feature a product showcase of green vehicles, parts and technology. And the first Automotive News PACE Environmental Awards will be presented. c GM to shut Ohio SUV plant 2 years ahead of plan DETROIT — General Motors is ending production of its slow-selling mid-sized SUVs on Dec. 23, two years earlier than announced in June. GM is pulling ahead the closure of its Moraine, Ohio, assembly plant because of market conditions, said GM spokesman Chris Lee. Moraine builds the Chevrolet TrailBlazer and TrailBlazer SS, GMC Envoy and Envoy Denali and Saab 9-7X. In June, GM said it would close Moraine in 2010 or sooner, Lee said. The closing will idle about 1,100 hourly workers represented by the IUE-CWA electrical workers union. An additional 100 salaried employees work there, Lee said. Lee said negotiations are under way with the union to determine whether workers would be offered buyouts and retirement incentives that were offered to employees in June. — David Barkholz The green scene What: Automotive News Green Car Conference/Exhibition When: Thursday, Nov. 13 Where: Rock Financial Showplace, Novi, Mich. Cost: $795, or special rate of $675 for Automotive News subscribers To register: www.autonews.com/green Questions: green@autonews.com or 313-446-0485 Host sponsor: Ernst & Young Automakers are high on electrics Dave Guilford dguilford@crain.com Deripaska sells Magna stake to his creditors MOSCOW — Billionaire Oleg Deripaska has divested his 20 percent stake in Canadian auto supplier Magna International Inc. as the global financial crisis deals its first major blow to Russia’s richest man. Deripaska said Friday that he had returned the stake to the creditors that helped fund the $1.4 billion deal a year ago. The sale follows weeks of speculation that parts of his heavily indebted business are struggling to find money in the liquidity squeeze, amid the worst stock market plunge in a decade. — Reuters VW commits to minority purchasing goals in Tenn. DETROIT — Volkswagen AG says that 5 percent of the suppliers that will launch its Chattanooga, Tenn., assembly plant will be owned by minorities. That means 5 percent of the plant’s purchasing budget will be directed to the minority suppliers, VW officials told Automotive News on Friday. And by 2015, VW is targeting 10 percent of its purchasing budget for minority suppliers. In addition, 10 percent of the budget for constructing the $1 billion plant will be directed to minorityowned firms, Thomas Loafman, purchasing chief for Volkswagen Group of America, told a gathering here of the Rainbow/PUSH Coalition and its 9th Annual Automotive Symposium. The plant is scheduled to be finished by the end of 2010; vehicle production is set for early 2011. — Robert Sherefkin PARIS — Although overshadowed by the flood of hybrids, electric vehicles are winning converts at the world’s automakers. No gasoline backup engine. No onboard generator. And, their advocates add, no emissions. At last week’s Paris auto show, automakers showed off the new wave of electric cars. True, some were from tiny companies, and some were enhanced golf carts made to putter around gated communities. But Nissan, Mitsubishi, Subaru, Smart and coachbuilder Heuliez showed vehicles designed for general use. Though electrics won’t hit the mainstream for several years, proponents fiercely argue that they will eventually win significant market share. Introducing the Nissan Nuvu electric concept, product chief Carlos Tavares said Nissan will roll out electric vehicles in 2010 and sell them globally in 2012. “They will be real cars meeting the diverse needs of drivers globally,” said Tavares, Nissan’s executive vice president for corporate and product planning. Automakers and governments will move to electrics because they are zero-emission vehicles, Tavares said. “We are all on the same mission. The ultimate goal is zero emissions.” PHILIP MEECH Nissan unveiled the Nuvu electric concept car at the Paris auto show. Nissan plans to sell electrics globally in 2012. this today.” The MiEV probably will be sold in the United States by 2011 to 2012. He said that quick battery-charging technology, which can restore 80 percent of a battery’s charge within 30 minutes, will overcome limited range — electrics’ flaw in the past. The MiEV has a range of about 100 miles in mixed driving conditions, and about 75 miles in city driving. But to build recharging infrastructure, Wada cautioned, “We need some support from the government, from the power companies.” Pitt Moos, product manager for Smart electric drive vehicles, said that some obstacles are less daunting than they seem. He dismissed quickcharging, saying it wears down batteries. Most recharging will take place at vehicle owners’ homes, Moos said. Because battery-powered electric cars can be plugged into the electric grid, they have an advantage over fuel cell vehicles, which require a new Charging ahead Automakers say these factors may make electric cars mainstream products. Government incentives for zero-emission electrics Electric companies’ help to create a recharging infrastructure Financial, social pressure for consumers to buy greener cars Lower long-term cost of operating electrics Progress to cut battery costs, improve performance year, with broader production by 2012. Moos said Smart sees electrics as city cars, with a 60-mile range that meets the daily driving needs of 90 percent of motorists. “If you need to make a longer run, don’t use an electric car,” Moos said. “Use something else.” Battery swaps Tavares said that Nissan plans a mix of strategies to deal with different driving patterns. Charging at home and charging stations in long-term parking areas will play a major role, he said. Nissan also envisions swaps in which batteries are leased to customers. When taking long trips, they will be able to stop at service stations to swap a depleted battery for a fresh one. “As a customer, you are not concerned about ‘Is this battery reliable? Will it run out?’ ” Tavares said. “We take care of that.” c Government, utilities are key Kenichiro Wada, project manager for the Mitsubishi MiEV, sees electric vehicles holding a 10 to 15 percent global market share within a decade, with higher rates in Japan and Europe. Vehicles like the MiEV are feasible now, he said. “This is the future — this is the real future,” Wada said. “Some automakers only provide a mock-up. Mockups have no meaning. You can drive hydrogen infrastructure, he said. “For electric vehicles, the infrastructure is there,” Moos said. City cars Parent company Daimler plans a limited run of Smart electrics next Versical, Nussel take new Automotive News posts Automotive News has appointed Dave Versical editor of its online edition, and Philip Nussel has been named managing editor. Versical returns to the publication to oversee a range of autonews.com products, including news, video, Webinars and conferences. During his previous 18-year stint at Automotive News, Versical, 53, was a reporter, national editor and managing editor. Most recently, he led coverage of the U.S. auto, airline and railroad industries for Bloomberg News. Versical has an undergraduate degree from Michigan State University and a master’s degree in journalism from Northwestern University. Nussel, 43, joined Automotive News in 2005 as industry editor and has been directing news operations for autonews.com for the past year. He has been a business editor at The Detroit News and deputy business editor at the Detroit Free Press. He also is a former managing editor of Crain’s Detroit Business, a sister publication of Automotive News. Nussel is a graduate of the University of Michigan. c Versical: Heads online edition Nussel: Manages online edition http://www.autonews.com/green http://www.autonews.com/green 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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