Automotive News - May 19, 2008 - (Page 1)

autonews.com ® MAY 19, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY Ford eyes smaller F-150 cousin Pared-down pickup would boost CAFE Amy Wilson and Robert Sherefkin awilson@crain.com Talk from the Top In exclusive interviews, four auto company leaders lay out their strategies for dealing with tough times. GM’s Troy Clarke needs small cars. — PAGE 28 Industry is in “white water,” says Ford’s Mark Fields. DETROIT — Ford Motor Co. is developing a lightweight, more fuel-efficient pickup truck to slot in below its flagship F-150. The new pickup truck, code-named P525, is being engineered on the F- 150’s platform. But it will be lighter and slightly smaller, supplier and industry sources told Automotive News. The pickup is scheduled to go into production during the first half of 2011 at Ford’s Michigan Truck Plant in Wayne, Mich., sources said. Ford may call the truck the F-100, bringing back a nameplate used for decades beginning in the 1950s. The new truck is larger than the Ford Ranger. But it might help take the place of that compact pickup, which could go out of production in 2009 when Ford’s Twin Cities plant in St. Paul., Minn., closes. Ford hasn’t said whether the Ranger will continue. The new pickup is in Ford’s cycle plan, sources said. But it has not received final approval. Mark Fields, Ford president of the Americas, would not confirm plans for a slimmed-down truck in a recent interview. But he did acknowledge that Ford must take weight out of its pickup trucks to meet new fuel- economy standards. “When you see what the F series makes up in terms of the composition of our vehicle lineup, clearly that’s one area we really have to focus on,” Fields said. The new pickup truck will have unique sheet metal and innovative storage space, sources said. It could be powered by a version of Ford’s new V-6 EcoBoost engine, which uses turbocharging and gasoline direct injection. c — PAGE 30 50 years, 50 people People are the soul of an automaker. To tell the story of Nissan’s 50 years in the United States we profile 50 remarkable individuals. They were the key players during a half-century that included hit cars, anti-import fervor, Infiniti’s infamous “Rocks and Trees” ad campaign, a takeover by Renault — and now more than 1 million sales a year in America. A special section starts after Page 24. Tom LaSorda tells why he’s still at Chrysler. — PAGE 31 NISSAN IN AMERICA 50 Robert Sherefkin and Bradford Wernle rsherefkin@crain.com Toyota’s Jim Lentz faces weak sales in Florida, California. — PAGE 32 Read all 50 Nissan profiles at www.autonews.com/nissan50 Mr. K: Nissan’s founding father in America Video captures love affair with Z car To commemorate Nissan’s Z car, Los Angeles Bureau Chief Mark Rechtin has produced a video with exclusive interviews, commercials and photos. Go to www.autonews.com/zvideo Chrysler fuel incentive was grass-roots idea Chrysler’s $2.99-a-gallon gasoline sales incentive was an idea that bubbled up from the ranks during a meeting of dealership sales managers. Making it a reality was tricky. | PAGE 3 | Sonic: Mercedes tries to ‘extort’ store upgrades Donna Harris dharris@crain.com Chrysler seeks 25% slash in parts prices DETROIT — Chrysler LLC purchasing czar John Campi told hundreds of supplier executives last week that the automaker wants to cut component costs by 25 percent over three years. Spokesman Kevin Frazier says Chrysler will make some significant changes in its manufacturing and purchasing operations to help suppliers hit the 25 percent target. Chrysler says it will: Give suppliers 30 days’ notice of its production schedule, rather than the one-week notice typical today. If Chrysler eliminates unpredictable production spikes, suppliers can reduce overtime and eliminate excess purchases of raw materials. Share more parts among nameplates. For example, a handful of wiring harnesses could replace dozens. Reduce late engineering changes, which drive up costs. Suppliers will split the resulting savings with Chrysler, Frazier says. But if those changes fail to deliver the 25 percent cost-cutting target, suppliers will have to cut prices to hit the target. Executives at two major suppliers, who asked not to be identified, confirmed they were told that Chrysler wants to cut costs by 25 percent over the next three years. Cost savings could allow suppliers to lower prices without cutting profits, Campi told a closed-door gathering of 380 supplier executives in suburban Detroit last week, see SUPPLIERS, Page 43 Sonic Automotive Inc. has accused Mercedes-Benz USA of seeking to “extort” millions of dollars in unneeded dealership improvements from the public retailer. Sonic, the nation’s third-largest dealership group, has an agreement to buy a Mercedes store in Charlotte, N.C., Sonic’s hometown. But Sonic President Scott Smith says Mercedes-Benz won’t approve the purchase unless Sonic meets the automaker’s demands for upgrades at four of the nine Mercedes dealerships it already owns. The retailer is suing Mercedes-Benz in a North Carolina court, asserting that the automaker cannot legally tie the acquisition to renovations at other dealerships. Smith says Sonic is upgrading its stores adequately for far less money than Mercedes-Benz’s “Autohaus” plan demands. At one dealership, Smith says, MercedesBenz wants Sonic nearly to double the see SONIC, Page 43 On the Web This week at autonews.com Wednesday: Telematics Detroit 2008 conference starts in suburban Detroit. Thursday: Ford Motor Co.’s board is expected to respond to investor Kirk Kerkorian’s pending stock tender offer. All week: Negotiations continue between the UAW and American Axle & Manufacturing Holdings Inc. NEWSPAPER http://autonews.com http://www.autonews.com/nissan50 http://www.autonews.com/zvideo http://www.autonews.com

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Automotive News - May 19, 2008 Ford eyes smaller F-150 cousin Sonic: Mercedes tries to 'extort' store upgrades Chrysler seeks 25% slash in parts prices Dealership managers pushed Chrysler's latest incentive Crain names 4 new VPs Automotive News staffers win Wheel Awards GM will keep cutting sales to fleets GM studies the future of full-sized trucks American Axle plans to expand in Asia At Lexus, the sales laggards are cars VW positions Tiguan as 'GTI' of small SUVs Tata enters race for 100-mpg car Harley Earl was the daddy of auto design Focus will follow Fiesta as a global vehicle Lexus shows how it sweats details Industry slows tide of state CO2 rules Chevy tweaks Cobalt to add fuel economy Be careful; don't do anything dumb Looking ahead to different industry They thought they knew everything Cerberus doesn't belong in autos Dealers as scapegoats Smart, steady growth works best for suppliers Farley's smart to value Ford's heritage Absurd logic in the U.S., cowardice in Germany BMW, Daimler keep a wary eye on U.S. economy James Franey Dealers' approach can lessen pain of staff cuts GM plans to distinguish Opel with image makeover Make or buy? Software can estimate costs for company Honda, Toyota see robots in their futures Bosch aims to lead in hybrids technology King of hearts Clarke aims to get GM back on track in N.A. Fields navigates Ford through 'white water' LaSorda steers Chrysler's global ventures Toyota's Lentz: A crash course in hard times Truck sales fall 13% in April Modine sells Thermacore unit Alcoa to close Mexico plant Toyoda Gosei expands in Mexico Hayes Lemmerz plans to close Georgia factory Japan's sales slide 2% in 1st quarter; output climbs Dealers Hyundai let U.S. direct Sonata freshening After .com and .edu, is it time for .car? Panoramic sunroof of Lincoln MKS boosts Inalfa sales Chrysler hedged gas price bet Smart phones help dealerships retain customers CAW completes pacts with GM, Chrysler early GM, UAW resolve 2 disputes New media buyer for Chrysler Visteon names Stebbins CEO Convertible registrations drop Ferrari: From denial to debut Buildings Porsches in U.S.? Depends whom you ask Toyota will go slow in Tupelo Ghosn is glum on prices, U.S. sales prospects Pischetsrieder has earned a celebratory cigar NHTSA spins VINs, averts meltdown F_RD GU_S WI_ BUI-_KS 50 PEOPLE FOR 50 YEARS Yutaka Katayama Clarence Talley Jim Morton Pete Brock Marvin Runyon Yoshikazu Hanawa Bill Bruce Shin Maki Jack Collins Mitsuya "Scape" Goto Bob Link Soichi Kawazoe Jerry Hirshberg Takashi Ishihara Roy Rogers John Parker Bob Thomas Teruo Uchino Morrie Sage Bob Thomas Nobe Wakatsuki Earl Hesterberg Carlos Ghosn Lee Clow Jerry Benefield Yutaka Kume Doug Betts Tim McCarthy Jed Connelly Atsushi Nakatsuji Dave Hubbard Joe Opre Patrick Pelata Yoshiyuki Kimura Diane Allen Mad Mike Taylor Chuck King Larry Dominique Mark Igo Mitsuhiko Yamashita Shiro Nakamura Tom Mignanelli Dick Roberts William Cushing Emil Hassan Chester Luby Jane Nakagawa Louis Schweitzer MR. K Ray Lemke Richard McCutcheon

Automotive News - May 19, 2008

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