Automotive News - August 4, 2008 - (Page 6) 6 • AUGUST 4, 2008 Industry nemesis again turns up heat on climate Harry Stoffer hstoffer@crain.com WASHINGTON — Automakers say a new law requiring vehicles to average at least 35 mpg by 2020 ensures that they will do their part to combat climate change. Not everyone is convinced. Dan Becker, a longtime advocate of higher fuel economy standards, heads a new group called the Safe Climate Campaign. He outlined its goals: Dan Becker, former Sierra Club global warming director, has a new job heading the Safe Climate Campaign. Strengthen laws on vehicle emissions. Enable states to enforce their own standards. Hold automakers accountable for the environmental impact of their products. Get consumers excited about climate-friendly vehicles. Becker, 52, conceded that his agenda sounds “strikingly similar” to what he did for 18 years at the Sierra Club’s office here. He stepped down last year, saying it was time to move on but vowing not to disappear. Becker told Automotive News that his new campaign got a $125,000 grant from the Energy Foundation, an organization that pools and redistributes money from other philanthropic groups. One of his first tasks will be to raise more money, he said. Political trends suggest Becker and his allies will find a receptive audience when they argue that automakers must do more. Presidential candidates John McCain and Barack Obama both have supported fuel-efficiency standards higher than 35 mpg. c GM’s Harley Earl pushed for an “architect of stature” for the Tech Center. At Tech Center, form follows function It’s an architectural showcase on 900 acres in a Detroit suburb, designed by two of the 20th century’s premier architects. Its style and grace long have been extolled as a fitting place for technological visions to spring into reality. But the General Motors Technical Center might have wound up a nononsense affair designed by engineers rather than visionaries. The Tech Center, which opened in 1956, was to be the home of GM’s technical innovation, and the company first thought GM’s engineers should design their new home themselves. But Harley Earl, GM’s master stylist, argued that that the birthplace of grand ideas deserved a setting that was beautiful as well as functional. He advocated hiring “an architect of stature,” and Chairman Alfred Sloan agreed. Board member Lammot DuPont had to be convinced that “dressing up the place” wouldn’t cost a lot more and wouldn’t get in the way of the center’s serious engineering mission, Sloan would write later. The architects of stature were Eero Saarinen and his father, Eliel, who had moved to the United States from Finland in 1923. Eero Saarinen designed the Gateway Arch in St. Louis in 1947. The Saarinens submitted plans in July 1945, but GM’s expansion for the postwar automotive boom delayed construction until 1949. Today the center is widely respected as an architectural masterpiece. It was recognized by the American Institute of Architects in 1986 as the most outstanding architectural project of its era. In 1990, the site was listed on the National Register of Historic Places. For the rest of the story, read Automotive News’ GM 100th anniversary edition, How General Motors Changed the World, on Sept. 15. For information about the special edition, go to www.autonews.com/gm100. It’s a body, er, a bus by Fisher Bill Shea bshea@crain.com DETROIT — Greg Fisher is getting back into the coachbuilding business. Fisher is the grandson of Fisher Body Co. co-founder Albert Fisher — who, along with his brothers, ran the car body company whose iconic coach symbol was stamped on General Motors vehicles for most of the 20th century. Fisher Body later became a GM division. Now that insignia will adorn sleek silver buses. “We’re essentially getting the band back together after 100 years,” Fisher said. He aims to build the Fisher GTB-40 bus, a 40-foot ultralightweight hybrid that boasts twice the fuel efficiency of current hybrid buses. It uses a lightweight, nitrogen-strengthened stainless steel unibody; has no traditional engine for propulsion; and relies on Swiss-made batteries to drive motors for each wheel. The buses are half the weight of other hybrid Greg Fisher: The and diesel models. bus is “a different A small diesel enmousetrap.” gine powers a generator that keeps the batteries charged longer. Energy from the brakes is captured for reuse. “It’s really a different mousetrap, a different widget,” Fisher said. The buses are estimated to get 10 mpg compared with the 4 to 5 mpg for hybrid buses on the road today, resulting in a projected savings of $2.5 million in fuel costs over the typical 12-year life span of a bus. That savings is realized despite a $550,000-per-unit price — compared with today’s hybrids, which cost about $200,000 less. c JIM CALLAWAY Dealership manager Andy Furman, who hatched the effort: Ex-convicts represent “an untapped market.” Ohio Chevrolet dealership targets a captive market Alysha Webb awebb@crain.com In its quest for customers, a Chevrolet dealership in Cincinnati is thinking big — as in the big house. Jake Sweeney Chevrolet is writing to wardens of nearby state prisons, soliciting potential buyers among inmates who are to be released soon. The plan is too new to have paid off, says Andy Furman, the dealership manager who hatched it. But Furman, who oversees the store’s marketing, calls ex-convicts “an untapped market.” The dealership isn’t overly concerned about credit risks among inmates. Tom Wilson, the sales manager, notes that some prisoners scheduled for release “haven’t been in there for very long.” Fred Manegold, the dealership’s general manager, predicts that newly released inmates will prefer used vehicles to new ones. The dealership sells about 1,000 new and 2,500 used cars and trucks a year, he says. One prison targeted by the dealership is Lebanon Cor- rectional Institution, 20 miles northeast of Cincinnati. The Ohio prison releases about 50 inmates a month from its population of 2,600 prisoners, spokeswoman Ellen Myers says. The prison doesn’t advertise private businesses to inmates, Myers says. But because of the dealership’s promotion, she says, prison officials are prepared to tell them, “If you have automotive needs, there are many options out there, such as Jake Sweeney.” General Motors spokeswoman Susan Garontakos calls the promotion “a demonstration of the innovative ideas our dealers have for selling vehicles and for helping people transition into their life within the community.” Furman says his dealership’s prison marketing effort is well-suited to the Chevrolet brand, which he labels “everyman’s car.” Furman hosted a popular sports talk radio show in Cincinnati for 20 years before he joined Jake Sweeney Chevrolet. He has other ideas for shaking up the dealership’s marketing and advertising. c Right products, diverse customers raise suppliers’ profits David Barkholz dbarkholz@crain.com DETROIT — BorgWarner Inc. and TRW Automotive Holdings Corp. are proving that suppliers based in North America can make money, even in this market, with the right products and a diverse customer base. Riding the success of turbochargers and other fuel-saving engine products, BorgWarner’s second-quarter net earnings rose 16 percent to $87.5 million. Sales climbed 11 percent to a record $1.52 billion. BorgWarner CEO Tim Manganello: Europe continues to be a big market for turbochargers. Despite troubles in North America, improvements in Europe and Asia allowed the company to post higher profits. CEO Tim Manganello said automakers, particularly in Europe, continue to turn to turbochargers to boost power on fuel-efficient fourcylinder engines. Even so, BorgWarner, of suburban Detroit, will cut 1,000 North American jobs, or 16 percent of its work force, in the third quarter. The move is a reaction to slumping North American vehicle sales. TRW, which generates much higher sales in Europe than North America, also posted better sales and earnings in the quarter. TRW’s net income jumped 30.9 percent to $127 million in the second quarter. TRW, with about 57 percent of its 2007 sales in Europe, benefited from higher vehicle production in Europe and China, plus continuing global growth in safety products. It also benefited from currency exchange rates. TRW, also of suburban Detroit, makes electronic stability control systems, suspension and steering systems and seat belts and airbags. Sales in the second quarter increased 18.4 percent to $4.45 billion. c http://www.autonews.com/gm100 http://www.autonews.com/gm100
Table of Contents Feed for the Digital Edition of Automotive News - August 4, 2008 Automotive News - August 4, 2008 Losing leases: It hurts already Crisis at Chrysler: Buyers bail GM's really bad news: Its revenue Lincoln reworks bonus plan for dealers Pain spreads beyond Detroit: Nissan offers employee buyouts Mitsubishi changes dealer advisory board GM repeats employee discount program Ford merges brands' sales, marketing After 5 funky years, Toyota's Scion now finds itself in a funk It's a body, er, a bus by Fisher At Tech Center, form follows function Industry nemesis again turns up heat on climate Right products, diverse customers raise suppliers' profits Last-minute leases swamp Chrysler With leases off the table, Chrysler offers new sales incentives GM favors 4 endorsed vendors of dealer management systems GKN to supply F-150 FX4's differential For sale: 2 Metaldyne plants 1 week's notice: Chrysler dealers deserved better Get used to the roller coaster That 1934 Reo had a clutch pedal We sell what the public wants Decision makers can't use hindsight Detroit's truck trauma is self-inflicted Why won't consumers buy Detroit cars? Speaking of ads, don't overlook VW Software helps dealers manage parts Service survey: Customer satisfaction rises Researcher: Vehicles can prevent crashes Personnel Microsoft will offer Live Search Dealers Picture This Nissan offers buyouts to its Tenn. workers Lincoln-Mercury exec joins Kia Kaline out at Ford Penske earnings drop slightly Asbury will move; profits slip S&P downgrades American Axle Best sales news: July is over Now THAT'S resale value ... Sirius-XM satellite radio deal: A mixed bag Don't be misled by Chery's sales; it's a key player McCurdy applies some political (tire) pressure A star is born: The saga of the shrinking sticker Our flag is still there Obama-mobile? Or McCain-carrier? Automotive News - August 4, 2008 Automotive News - August 4, 2008 - (Page Intro) Automotive News - August 4, 2008 - GM's really bad news: Its revenue (Page 1) Automotive News - August 4, 2008 - GM's really bad news: Its revenue (Page 2) Automotive News - August 4, 2008 - Ford merges brands' sales, marketing (Page 3) Automotive News - August 4, 2008 - After 5 funky years, Toyota's Scion now finds itself in a funk (Page 4) Automotive News - August 4, 2008 - After 5 funky years, Toyota's Scion now finds itself in a funk (Page 5) Automotive News - August 4, 2008 - Right products, diverse customers raise suppliers' profits (Page 6) Automotive News - August 4, 2008 - Right products, diverse customers raise suppliers' profits (Page 7) Automotive News - August 4, 2008 - With leases off the table, Chrysler offers new sales incentives (Page 8) Automotive News - August 4, 2008 - With leases off the table, Chrysler offers new sales incentives (Page 9) Automotive News - August 4, 2008 - For sale: 2 Metaldyne plants (Page 10) Automotive News - August 4, 2008 - For sale: 2 Metaldyne plants (Page 11) Automotive News - August 4, 2008 - Decision makers can't use hindsight (Page 12) Automotive News - August 4, 2008 - Decision makers can't use hindsight (Page 13) Automotive News - August 4, 2008 - Speaking of ads, don't overlook VW (Page 14) Automotive News - August 4, 2008 - Service survey: Customer satisfaction rises (Page 15) Automotive News - August 4, 2008 - Personnel (Page 16) Automotive News - August 4, 2008 - Dealers (Page 17) Automotive News - August 4, 2008 - Dealers (Page 18) Automotive News - August 4, 2008 - Picture This (Page 19) Automotive News - August 4, 2008 - Picture This (Page 20) Automotive News - August 4, 2008 - Picture This (Page 21) Automotive News - August 4, 2008 - Picture This (Page 22) Automotive News - August 4, 2008 - Picture This (Page 23) Automotive News - August 4, 2008 - Nissan offers buyouts to its Tenn. workers (Page 24) Automotive News - August 4, 2008 - S&P downgrades American Axle (Page 25) Automotive News - August 4, 2008 - S&P downgrades American Axle (Page 26) Automotive News - August 4, 2008 - Best sales news: July is over (Page 27) Automotive News - August 4, 2008 - Best sales news: July is over (Page 28) Automotive News - August 4, 2008 - Best sales news: July is over (Page 29) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 30) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 31) Automotive News - August 4, 2008 - Obama-mobile? Or McCain-carrier? (Page 32)
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