Automotive News - March 3, 2008 - (Page 10)

10 • MARCH 3, 2008 TIM DEESE’S Honda CEO Fukui: No recession in U.S., despite soft sales in spots Hans Greimel hgreimel@crain.com PROGRESSIVE technology doesn’t work UNLESS your manager is TRAINED IN THE BASICS!!! Make 2008 you’re most profitable year. Let us show you how!! Call Joan 904 264 7408 or visit www.probac.com Training Used Car Managers for over 26 years TOKYO — Recession is in the eye of the beholder. And to Honda Motor Co. CEO Takeo Fukui, the U.S. market isn’t in one. “It is true that in states like Florida and California, the numbers are going down,” Fukui said here last week. “But if you look at the U.S. as a whole, I don’t think we’re seeing a recession. There are still good business opportunities. There is firm demand for automobiles.” Fukui’s optimistic outlook clashes with the gloomy vision of Nissan Motor Co. CEO Carlos Ghosn. Just days earlier, Ghosn told reporters in Seoul that the U.S. auto industry is in recession, even if the overall economy is not. High material costs are particularly painful, he said. Honda’s soft sales in Florida and California are being offset by record sales along the East Coast and in the Midwest, Fukui said. Those markets show “no signs of shrinking.” The market is shifting, he added. That shift, away from big SUVs and toward cars, is especially good for Honda because of its strength in fuelefficient vehicles, Fukui said. In January, combined sales of Honda and Acura Division in the United States dropped 2.3 percent to 98,511. The overall market fell 4.2 percent. Incentives are slightly higher than in 2007, but Fukui said Honda doesn’t plan to increase them to help sell cars in what’s expected to be a tough year. “Rather than relying on increased incentives to sell vehicles,” he said, “it’s more important to offer customers good products at the appropriate price range.”c Lead Solutions Honda’s Takeo Fukui: To become a mainstream fuel, ethanol must be derived from nonfood sources. Honda: Use of ethanol limited, must be biomass See More Prospects Hans Greimel hgreimel@crain.com Lead Prospector Internet There are a lot of potential customers, but only certain prospects are online and actively shopping for a car right now. Lead Prospector Internet from First Advantage CREDCO can help you find your next online customer, fast. Integrated on major dealer sales, finance and CRM platforms, Lead Prospector Internet delivers highly motivated leads directly to you, so you can quickly contact in-market consumers - and see more prospects! Sign Up Today • 866.491.4256 First 50 Customers Get 2nd Month FREE!* CREDCOservices.com/SeeMore *Offer expires March 31, 2008. Good for first 50 customers that sign up. First month of leads activity must equal a full calendar month to qualify for second free month. One rooftop per offer. Call for details. TOKYO — Honda says the world needs to sober up to limitations of ethanol-powered cars. Ethanol, made from plant matter such as corn, is seen as a promising renewable alternative to gasoline. But Takeo Fukui, president of Honda Motor Co., says if the fuel is to go mainstream, it will have to be derived from nonedible biomass, not food crops. That is because supplies of crops such as corn and sugar cane are limited and can’t meet demand for food and fuel. Furthermore, even if ethanol is widely produced from biomass such as leaves and stalks, it will only meet 20 percent of the current demand for gasoline, he said here last week . As for using corn and sugar cane to produce ethanol, the Honda chief said, “If you think about the future and the fact that you would need an extremely large volume of ethanol, I think it would be an unthinkable scenario.” Using food crops can be a stopgap in the short term, when biofuel demand is low. But long term, there is no other option but biomass cellulose from nonedible plant parts, he said. Honda conducts research into ethanol-powered cars. But the program is overshadowed by its other green initiatives, such as hydrogen fuel cells, hybrid vehicles and clean diesel engines. General Motors sees biofuels as the best near-term solution to slashing petroleum dependency. GM Vice Chairman Bob Lutz said last month that if all the flex-fuel vehicles that GM, Ford Motor Co. and Chrysler LLC have planned for 2020 were to run on ethanol, it would displace about 18 percent of America’s projected oil use.c http://www.probac.com http://www.probac.com http://autonews.com/GM100 http://CREDCOservices.com/SeeMore http://CREDCOservices.com/SeeMore

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

Bob Nardeli's new big-idea guy New Kia boss reaches out to restless dealers Scion hits a wall Lithia losses raise caution flag Detroit 3 shun talk of NAFTA do-over Lincoln names new marketing manager Mercedes to launch hybrid sedan in '09 Mazda has new top marketing exec M-B will hit the road with 50-state diesels Pontiac puts big ad bucks into traditional media for G8 Reynolds, ADP diverge on growth strategies Ford plans to cut fleet sales 10% in 2008 Mazda: New models, styling will boost its loyalty rate Run-up to axle strike adds to supplier woes Webasto's fast heater will debut by 2010 Russian plant wants to be world's biggest A Lancer is hatched Chrysler throws out purchasing rulebook Honda sets lofty hybrid goal, with Civic's help Honda: Use of ethanol limited, must be biomass Honda CEO Fukui: No recession in U.S., despite soft sales in spots 550 hp? 620 hp? Is GM crazy? Doug Fraser was a great leader How ironic: Lyons learns caution Well done, Doug Don't let Calif. impose fuel rules on the nation Blame the dealer, not the brand Cutting weight doesn't cut safety When Lutz dumps on global warming ... JM exec Czubay: A taste for hogs, pierogi Doug Fraser: A good man to have known Fraser led UAW with 'combination of substance, politics and charm' Autonet finds success at NADA with wi-fi for cars GM to sell medium-truck business, keep dealer network Web classified ad firms renew marketing to dealers, buyers Chery designs venture's vehicles China venture eyes 20,000 Fiesta hatchback sales Toyota plans crossovers in China Dongfeng, YuAn plan minicars BMW shakes up global marketing, sales ranks Delphi divestiture boosts forging supplier Is Blackhawk purchase bucking a trend? Repair company grows as Detroit 3 struggle BorgWarner unit expands German automakers seek more parts sourced in North America Hyundai picks ArvinMeritor Japan parts firm to build Miss. plant Nissan to increase spending on IT Purchase keeps Tenn. plant open Automakers hit with apartheid claims Mexico sales flat in January Ford prices '09 Flex atop crossover line Hamp rejoins Visteon board RV deliveries decline 3.4% in December Subaru lowers Forester price Personnel Bright future for LED headlight suppliers? Valeo's Morin to Pardus: Learn before you leap German automakers aren't worried about U.S. recession Porsche's Wiedeking: We must retool VW Europe's loud debate over quieter tires Noise level depends on the tires, the road Auto industry robotics spending jumps 43% in 2007 Electronic brakes struggle to get traction Big Texas dealer returns to some domestic brands AutoNation chief sees tough '08, better '09 In downturn, Sonic looks beyond new cars GM promotes service, parts leads for dealerships 10 cool dealership technologies found at NADA Dealers Kia will build transmissions at Georgia plant Gibson leaves DealerTrack board Akebono closing Kentucky plant Feds issue Ford fire warning Magna net income drops VW to use Siemens' software A tale of 2 exhaust systems EU wants CO2 in ads; battle looms Maize malaise stalls ethanol Tata to siesta during Ford's Fiesta Honda moves its American bike offshore Honda will recycle cycle plant Tom LaSorda's multimillion-dollar smile

Automotive News - March 3, 2008

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