Automotive News - November 3, 2008 - (Page 36)

36 • NOVEMBER 3, 2008 Ford and GM jockey for steel discounts Robert Sherefkin and David Barkholz rsherefkin@crain.com DETROIT — General Motors and Ford Motor Co. appear to be putting off until the last minute their bulk purchases of steel to take advantage of rapidly falling prices. Falling vehicle production in North America and the consumer shift to smaller vehicles are depressing steel prices, analyst Charles Bradford says. This is the season for GM and Ford to negotiate steel contracts. The deadline is the end of the year, when most of their contracts expire. But this year, GM and Ford are tak- ing negotiations slow to lock in the best possible prices, says Bradford, a metals analyst with Soleil Securities Inc., of New York. Tumbling coils The spot prices for commoditygrade, hot-rolled coil steel have tumbled in recent weeks. In July, they were $1,060 a ton, but they fell to $600 this month, Bradford says. During that slide, the price fell $95 a ton in a single week. Automakers are major buyers of higher-grade coated steels for body panels and typically buy at lower contract prices. The automakers declined to comment on their steel-buying strategies. Alan McCoy, a spokesman for AK Steel Holding Corp., says the company does not discuss customer sales. It’s unclear how Chrysler LLC is handling steel purchases. The automaker’s annual steel buy is much less than GM’s planned global purchase of 6 million tons for 2009. Steel makers are preparing for tougher times. Last week, for example, AK Steel warned of difficult times ahead, even as it posted record thirdquarter earnings. The company was tight-lipped about its 2009 outlook. Automakers are “recovering from cardiac arrest” after ArcelorMittal, the world’s largest steel maker, this year demanded a $500-a-ton increase from its North American automaker customers, Bradford says. AK Steel appears to be trying to bring supply in line with demand with its fourth-quarter plans to cut steel shipments by 11 percent year over year to about 1.4 million tons, says Clark Blake, a debt analyst with Gimme Credit Inc., of New York. Auto-share declines McCoy says AK Steel has cut automotive sales from 60 percent of its total sales five years ago to about 30 percent today. In 2007, automotive sales were 40 percent of the integrated steel maker’s $5.92 billion in sales. About 10 percent of AK Steel’s sales last year came from GM. Last week, AK Steel reported that third-quarter earnings jumped 73.7 percent to $188.3 million, as higher prices for steel overcame weaker demand from automotive, appliance and construction markets. The West Chester, Ohio, company said sales rose 25.3 percent to $2.16 billion. It reported a “richer shipment mix, higher contract and spot-market pricing, and increases in raw material and energy surcharges.” c ■ 50 with Chevrolet Kermit Hicks of Hicks Chevrolet-Buick in Greencastle, Pa., receives a 50-year award for Chevrolet from General Motors. Pictured, from left, are Walt Syzslo, Chevrolet’s Northeast regional distribution manager; Ann Syzslo, Chevrolet’s Northeast regional sales manager; Kermit Hicks; and Tamara Jackson, Chevrolet’s zone manager. ■ Silver dealer Jim Ritz, left, of Brighton ChryslerDodge-Jeep in Brighton, Mich., receives a 25-year award for Chrysler and Dodge from Jack Gannon, dealer network development manager at Chrysler LLC’s Great Lakes Business Center. ■ 25 with Ford Gregg Waddell, left, of Gateway Ford in Ponchatoula, La., receives a 25-year award for Ford from Jim Benintende, Ford Motor Co.’s Memphis regional sales manager. Dealer anniversary awards We invite news items and top-quality photographs for the dealers section. Please include your telephone number or e-mail address. We do not run items for anniversaries of fewer than 25 years. Photos for 25-45 years (one-column photos) should include only two people posed shoulder to shoulder. Photos for 50 or more years (two- column photos) should have no more than six people. Please include names (left to right), titles, dealership name and city, franchise(s) held and franchise for which award is given. You may send a photo electronically in jpg format and at high resolution (300 dpi). E-mail items to: autonews@crain.com Or send them to: Dealers Section, Automotive News, 1155 Gratiot Ave. Detroit, MI 48207-2997 ■ 35 with Honda Gary McGrath, right, of McGrath Honda in Elgin, Ill., receives a 35-year award for Honda from Garth Krueger, American Honda Motor Co.’s Chicago district sales manager. Citizenship Jake Sweeney of Jake Sweeney Chevrolet in Cincinnati has invited the SPCA Cincinnati mobile unit to spend a day at the dealership three times this year. The SPCA, an animal shelter and humane society, offers cats and dogs for adoption to the store’s customers. Nine animals have been adopted. The dealership makes a small donation to the SPCA for each animal adopted. Acura Nov. 5 — Manheim Central Florida, Orlando, Fla. American Honda Finance Corp. Nov. 4 — ADESA Kansas City, Lee’s Summit, Mo.; Manheim Detroit, Carleton, Mich. Nov. 5 — ADESA Washington, D.C., Dulles, Va.; Manheim New Jersey, Bordentown, N.J. Nov. 6 — ADESA Dallas, Mesquite, Texas; ADESA Lexington, Lexington, Ky.; Manheim Atlanta, Red Oak, Ga.; Manheim Chicago, Matteson, Ill.; Manheim Southern California, Fontana, Calif. Nov. 7 — ADESA Boston, Framingham, Mass.; ADESA Long Island, Yaphank, N.Y. Audi Financial Services Nov. 4 — ADESA Boston, Framingham, Mass.; Metro Phoenix Auto Auction, Phoenix Nov. 5 — Manheim Central Florida, Orlando, Fla.; Manheim New Jersey, Bordentown, N.J. Nov. 6 — ADESA New Jersey, Manville, N.J.; Manheim Riverside, Riverside, Calif. ADESA Indianapolis, Plainfield, Ind.; ADESA Kansas City, Lee’s Summit, Mo.; ADESA Seattle, Auburn, Wash.; Manheim Arena Illinois, Bolingbrook, Ill.; Manheim Detroit, Carleton, Mich.; Manheim New England, North Dighton, Mass.; Manheim Orlando, Ocoee, Fla.; Manheim Philadelphia, Hatfield, Pa.; Manheim Riverside, Riverside, Calif.; Manheim St. Louis, Bridgeton, Mo. Nov. 5 — ADESA Atlanta, Fairburn, Ga.; Columbus Fair Auto Auction, Obetz, Ohio; Flint Auto Auction, Flint, Mich.; Greater Rockford Auto Auction, Rockford, Ill.; Greensboro Auto Auction, Greensboro, N.C.; Manheim Dallas, Dallas; Manheim Denver, Aurora, Colo.; Manheim Minneapolis, Maple Grove, Minn.; Manheim Pittsburgh, Cranberry Township, Pa.; Manheim San Antonio, San Antonio; Southern Auto Auction, East Windsor, Conn.; Tri-State Auto Auction, Cicero, N.Y. Nov. 6 — Manheim Cincinnati, Hamilton, Ohio; Manheim Fredericksburg, Fredericksburg, Va. Nov. 7 — ADESA Long Island, Yaphank, N.Y. Nov. 4 — Kansas City Auto Auction, Kansas City, Mo.; ADESA Phoenix, Chandler, Ariz.; Manheim Seattle, Kent, Wash.; Manheim New York, Newburgh, N.Y. Nov. 5 — Manheim Baltimore-Washington, Elkridge, Md.; Manheim Metro Dallas, Grand Prairie, Texas; ADESA Indianapolis, Plainfield, Ind.; Manheim Southern California, Fontana, Calif.; Manheim San Antonio, San Antonio Nov. 6 — Manheim Pennsylvania, Manheim, Pa.; Manheim Minneapolis, Maple Grove, Minn.; Manheim St. Louis, Bridgeton, Mo. Nov. 10 — Manheim Nashville, Mount Juliet, Tenn.; ADESA Buffalo, Akron, N.Y. Jaguar Nov. 4 — Manheim St. Louis, Bridgeton, Mo. Nov. 6 — Manheim Riverside, Riverside, Calif. Manheim Milwaukee, Caledonia, Wis. Nov. 6 — Manheim Riverside, Riverside, Calif. Subaru of America Inc. Nov. 4 — Manheim Phoenix, Tolleson, Ariz. Nov. 5 — Manheim New Jersey, Bordentown, N.J. Nov. 6 — Manheim Denver, Aurora, Colo. Kia Motors America Inc. Nov. 5 — Greensboro Auto Auction, Greensboro, N.C.; Columbus Fair Auto Auction, Obetz, Ohio Nov. 7 — Manheim Nevada, Las Vegas Toyota Financial Services Nov. 4 — Manheim Georgia, Atlanta; Manheim Orlando, Ocoee, Fla.; Manheim Statesville, Statesville, N.C. Nov. 5 — Manheim San Francisco Bay, Hayward, Calif. Nov. 6 — ADESA Dallas, Mesquite, Texas; ADESA Lexington, Lexington, Ky.; ADESA New Jersey, Manville, N.J.; Manheim Arizona, Tolleson, Ariz. Nov. 7 — ADESA Boston, Framingham, Mass.; ADESA Los Angeles, Mira Loma, Calif.; Manheim Pennsylvania, Manheim, Pa. Nov. 10 — Manheim Georgia, Atlanta; Manheim Orlando, Ocoee, Fla.; Manheim Orlando, Ocoee, Fla.; Manheim Statesville, Statesville, N.C. Land Rover North America Nov. 4 — Manheim St. Louis, Bridgeton, Mo. Nov. 6 — Manheim Riverside, Riverside, Calif. General Motors Nov. 3 — Manheim Houston, Houston Nov. 4 — ADESA Birmingham, Moody, Ala.; Columbus Fair Auto Auction, Obetz, Ohio; Manheim Oklahoma City, Oklahoma City; Manheim Minnesota, Shakopee, Minn.; Manheim Utah, West Bountiful, Utah; Southern Auto Auction, East Windsor, Conn. Nov. 5 — ADESA Memphis, Memphis, Tenn.; Flint Auto Auction, Flint, Mich.; Manheim Portland, Portland, Ore.; Manheim Statesville, Statesville, N.C. Nov. 6 — ADESA Golden Gate, Tracy, Calif.; ADESA Shreveport, Shreveport, La.; Manheim Arena Illinois, Bolingbrook, Ill.; Manheim Denver, Aurora, Colo.; Manheim Nashville, Mount Juliet, Tenn.; State Line Auto Auction, Waverly, N.Y. Nov. 10 — Manheim Orlando, Ocoee, Fla. Lexus Financial Services Nov. 4 — Manheim Orlando, Ocoee, Fla. Nov. 5 — Manheim Milwaukee, Caledonia, Wis.; Manheim San Francisco Bay, Hayward, Calif. Nov. 6 — Manheim Arizona, Tolleson, Ariz.; Manheim Pennsylvania, Manheim, Pa. Nov. 7 — ADESA Los Angeles, Mira Loma, Calif. Chrysler LLC Nov. 3 — Manheim New England, North Dighton, Mass.; ADESA Indianapolis, Plainfield, Ind.; Manheim Orlando, Ocoee, Fla. Nov. 4 — Manheim Dallas, Dallas; Manheim Phoenix, Tolleson, Ariz. Nov. 5 — ADESA Kansas City, Lee’s Summit, Mo.; ADESA Golden Gate, Tracy, Calif.; TriState Auto Auction, Cicero, N.Y. Nov. 6 — Manheim Detroit, Carleton, Mich.; Greensboro Auto Auction, Greensboro, N.C.; Manheim Philadelphia, Hatfield, Pa.; ADESA Seattle, Auburn, Wash. Mercedes-Benz Financial Nov. 4 — ADESA Boston, Framingham, Mass.; Manheim Orlando, Ocoee, Fla. Nov. 5 — Manheim New Jersey, Bordentown, N.J.; Manheim Milwaukee, Caledonia, Wis. Nov. 6 — Manheim Pennsylvania, Manheim, Pa.; Ma

Table of Contents Feed for the Digital Edition of Automotive News - November 3, 2008

Credit? Come and get it, industry groups say GM's product delays signal dire health Ford sticks with small-car plans Mitsubishi CEO: Let's halt Galant production in U.S. A dealer â and his reputation â on the ballot Help vehicles shed pounds American Axle posts loss UAW hires bailout adviser Ford to spend $200 million to upgrade 2 Ky. plants No off-lease cars? Certified will find others Arlena Sawyers China's stock market plunge has spooked car shoppers Advantage, Ford: Mulally likes owning Ford Credit Supplier execs join innovation panel at congress Quietly, Mini seeks 500 drivers to lease electric car for a year Reynolds bolsters document business Winterkorn: Audi needs to build in U.S. The great revenue drop of 2008 Bidders bet they can rebuild Heard 1 size fits all NADA: Give us tax incentives, dealer loan guarantees Campaigns' climate, energy plans hit economic wall Detroit 3 need and deserve U.S. help now Chrysler needs a buyer, but not GM Dealers pay fair share of taxes Washington hurts, not helps, electrics Compressed natural gas is the best fuel New ads aim to raise Suzuki's low profile Suzuki's new ad strategist: This brand has soul Fuel efficiency is coming â it just takes time Electrics edge closer by 2010 Tougher CAFE standards loom R&d chiefs shift gears for an electric future Japan carmakers lead charge into electrics Buffett backs BYD's sketchy plan for U.S. electric car Q&A: BYD envisions 2010 exports to U.S., Europe Girding the power grid for an electric fleet Hype powers plug-in vehicles Coachbuilders see salvation in electric cars Electric vehicles are charging into Europe Expect stop-start's big start to arrive in 2010 Flexibility will help Honda survive the storm Nardelli: Bailout not perfect â but needed Audi goes high-tech to boost service Acura offers quick service to win business Toyota's fashion fan Picture this Hondaâs N.A. operating profit falls 80.6% in quarter Aug. RV shipments fall 44% VW drops hints about car for new Tenn. plant Mexico sales fall 10.7% in September Honda to boost CR-V, end Civic output in Ohio Ford and GM jockey for steel discounts Dealers Ford Credit seeks to tap $700 billion package GM will end a used-car incentive early Nissan, Mitsubishi, Mazda recast fiscal 2009 forecasts Metaldyne to bondholders: Take 30% or Chap. 11 looms Detroit 3 ties hurt profits of dealer groups GM takeover would eviscerate Chrysler ranks, model lineup Mitsubishi plans electric hauler To match Toyota, Nissan offers 0% loans Sticker, sticker at the mall, what's the cheapest of them all? The Versa Waiting is what it's all about, Alfa Buy Chrysler? GM should sell Buick to SAIC Pickups pumped up by pump price plunge Chrysler hybrids, we hardly new ye Ghosn: Your best partner is a president in your pocket Sonic wins, but Mercedes wants last word

Automotive News - November 3, 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.