Automotive News - October 6, 2008 - (Page 46) 46 • OCTOBER 6, 2008 final assembly comment CREDIT CRISIS >> Get the latest coverage on how the nation's credit crisis is affecting the auto industry at www.autonews.com. Percent approved Is film a flash in the pan? Ford hopes so U nfortunately, I didn’t get to see either Flash of Genius or An American Carol when they opened last weekend. Flash of Genius is the story of inventor Robert Kearns and his patent-infringement fight with Ford, Chrysler and other automakers that he claimed stole his design for intermittent windshield wipers. Having been a reporter during the era of all that EDWARD LAPHAM litigation — IS EXECUTIVE which started in EDITOR OF 1978 and AUTOMOTIVE dragged on until NEWS. 1995 — I know that Kearns won two famous cases, one against Ford and one against Chrysler. Even so, there are those who still argue that Ford could not possibly have stolen the Kearns design. Either way, you know it doesn’t matter to Hollywood. It apparently doesn’t matter to Ford, either. The official view is that it’s just a movie, so people will realize that what they see on the big silver screen happened decades ago and that the facts probably have been doctored to enhance the story line. But if that theory is true, why do so many otherwise rational people suspend reality and succumb to Michael Moore’s celluloid fantasies? One Ford insider didn’t expect the movie to be very popular, thereby limiting any potential damage to the Blue Oval. So the company didn’t buy out all of the movie theaters in select markets the way it did in Detroit in 1987 when Ford: The Man and the Machine presented an unflattering view of Henry Ford, as played by Cliff Robertson. But this time, actor Greg Kinnear, who portrays Kearns, is already being touted as an Oscar nominee by some entertainment blogs. Flash of Genius may draw more attention than originally believed. Maybe I should see it this week. It could be interesting and instructive to see just how evil Hollywood thinks Ford execs were back then. On the other hand, An American Carol is a parody of Charles Dickens’ A Christmas Carol that lampoons the snot out of Michael Moore. Now that sounds like an Oscar winner. FOR SALE: Heard condos, mansion, jetuto dealerships aren’t the only things Bill Heard Enterprises Inc. is looking to unload. Attorneys for the bankrupt Chevrolet dealership group told an Alabama judge last week they also were preparing to sell the familyowned group’s beachfront condos and corporate jet. In July, Bill Heard, the group’s 74-yearold president, told the Columbus, Ga., LedgerEnquirer the group had sold its other corporate jet. During the same interview, Heard said he put his $17 million Georgia lakefront mansion on the market “because my wife and I wanted to downsize.” The mansion is still for sale, but it won’t be nearly enough to cover Bill Heard Enterprises’ approximately $40 million in unsecured debt. The group owes another $229 million to the floorplan financing companies that financed vehicle inventory at its 14 dealerships. Heard attorneys are looking anywhere they can for cash. That includes $3.7 million in a trust fund set up for Heard’s sons, William III and Edward, who are part owners in the group. The underlying assets in the trust fund are insurance policies on the lives of Heard and his wife. Asked last week by U.S. Bankruptcy Judge Jack Caddell whether any of the group’s executives were getting “golden parachutes” out of the bankruptcy case, Heard attorney Robert Rubin responded with an emphatic “no.” “As a matter of fact,” he said, “there were three Heards on the payroll, and they all have been terminated.” Loan approvals fall Percentage of new-car loans approved in the United States 100% 80% 60% 40% 20% 0 Subprime MAR APR MAY JUN JUL AUG SEP Near prime Prime Source: CNW Marketing Research A bad time for subprime I Renault’s U.S. ally of choice? Probably not Chrysler W hen Cerberus began talking about buying Daimler’s remaining 19.9 percent of Chrysler, the speculation began: Who might then buy Chrysler from Cerberus? One oft-mentioned name was Renault. But a top Renault executive surely doesn’t talk as if he’s romancing Chrysler. Executive Vice President Patrick Pelata said Renault still sees great synergy in a combination of a Japanese automaker, a European automaker and an American automaker. Pelata: Still Renault already prefers GM controls Nissan. So Renault’s preferred American partner? It’s still General Motors. Renault CEO Carlos Ghosn took an unsuccessful run at bringing GM into the group in 2006. But at the Paris auto show last week, Pelata noted that GM President Fritz Henderson came to the Renault stand. Pelata said that if he had been there, he would have asked Henderson, “Are you changing your mind?” For any combination, Pelata told Automotive News, “The question is: ‘How are you going to challenge Toyota?’ ” As he tells it, that combination probably doesn’t include Chrysler. The GEM Peapod goes on sale next year. f you’re trying to sell a car to a customer with a shaky credit rating — forget it. In September, automotive lenders approved only 20 percent of subprime consumer loan applications, according to CNW Marketing Research. That’s a sharp drop from 47 percent in April. From April to September, approvals of prime and near-prime loans dropped slightly. Some dealers say lenders were even less willing to approve subprime loans in late September as credit markets waited for Congress to approve the $700 billion federal financial rescue plan. From January through July, subprime and below subprime loans accounted for about 11 percent of new-car purchases, according to Experian Automotive, an information services company. It was 14 percent in the same period last year. Peapod: Innovator’s little big idea S o what does a chief innovation officer do, anyway? That’s what some asked when Peter Arnell, a New York marketing and idea guy, was given that title at Chrysler last year. The answer, or at least the first tangible result of Arnell’s work: He was listed as the lead designer of the pint-sized GEM Peapod Neighborhood Electric Vehicle, which goes on sale next year. The vehicle’s center console accommodates Apple’s iPod and iPhone. The Peapod’s mesh seats resemble Herman Miller Aeron office chairs. Chrysler CEO Bob Nardelli wants Arnell to have more input on materials and electronics that go into Chrysler’s interiors, but it’s unclear when Arnell’s ideas will migrate to future Chrysler models. The Peapod has a maximum speed of 25 mph and can be operated legally in most Arnell: Peapod states on roads lead designer with speed limits of 35 mph or less. Nardelli and Arnell go way back. When Nardelli was chairman of Home Depot, he called on Arnell to generate ideas for homeimprovement products. Arnell has a history with Chrysler, too. He was the creative force behind Chrysler’s disastrous 2004 Pacifica ad campaign featuring singer Celine Dion. The costly campaign was pulled after one year because dealers protested that the pitch was much less than perfect. $25 billion: How’d they do that? I t was overshadowed by the $700 billion U.S. financial rescue proposals, but President Bush signed a bill last week providing $25 billion in direct low-interest federal loans to automakers and suppliers for plant retooling. Now that the bill is law, details are emerging of the behind-the-scenes maneuvering needed to pass it. Industry insiders say that despite talk of organized labor’s waning influence, the UAW was the driving force behind the loan program. And how about that visit House Speaker Nancy Pelosi, D-Calif., made to a Ford assembly plant in Louisville, Ky., last June? It looked like a photo op for the re-election campaign of Rep. John Yarmuth. But that’s where the speaker was told privately of the urgency of funding industry loans this year. In the end, she and others delivered. 2008 VW NEW BEETLE VW: Next New Beetle will be ‘more mature’ V Edward Lapham writes commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. olkswagen says it’s time for the New Beetle to grow up. “The future New Beetle should look less toyish and become a much more mature product,” Walter de’ Silva, VW group design director, told Automotive News Europe. De’ Silva wants the next New Beetle’s interior to be more functional. The current version has been criticized because of the large space between its A-pillars and steering wheel and for a lack of roominess despite being built on the same platform as the Golf. VW insiders say the next New Beetle hatchback will be launched in 2010, followed a year later by the cabriolet. http://www.autonews.com http://www.autonews.com http://www.autonews.com/edwardlapham
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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