Automotive News - March 3, 2008 - (Page 12)

12 • MARCH 3, 2008 opinion Don’t let Calif. impose fuel rules on the nation For years, the auto industry has called California’s effort to reduce emissions of carbon dioxide from automobiles little more than a backdoor attempt to impose its own stringent fuel economy standards. And for years, the California Air Resources Board has denied the charge — because under a federal law enacted in 1975, states cannot set mpg standards. But data recently released by CARB confirm that California’s proposed greenhouse gas rules would force automakers to meet tougher de facto fuel economy standards, no matter what they’re called. Under the proposal, new cars and trucks sold in California would have to average almost 44 mpg by 2020, according to CARB’s own analysis. Under a new federal energy law, cars and trucks must average at least 35 mpg by 2020. At least 15 other states plan to adopt the California regulations. So automakers would have to produce two fleets of vehicles — one for California et al. and one that meets federal corporate average fuel economy standards. Meeting CAFE will be expensive. Meeting California standards, too, could be crippling. Automakers might be forced to build a single fleet that meets California standards, even though they already say they may have trouble selling vehicles to Americans that meet the less stringent federal standards. Global warming and fuel economy are national issues so there should be a reasonable national standard. Letting a state establish that national standard would be wrong. Like it or not, California must live by the law of the land. These days, we give Ron Gettelfinger a lot of credit for what he and the UAW did during the last contract negotiations. Gettelfinger deserves every bit of that credit. But he, the UAW and, most important, the Detroit 3 owe a great deal to Doug Fraser, the leader of the UAW during some of the union’s earlier challenges. Fraser died recently at the age of 91. Fraser understood that you must have a successful company to have well-paid workers. I got the chance to know Fraser during a long, drawn-out study of mass transit in Detroit. He was chairman of a task force and study group that was looking into the issue, and I was asked to serve on his committee. It was a task that I enjoyed with Doug at the helm. The study lasted a year or so. I got to know Fraser quite well, and I enjoyed our association thoroughly. He was smart and DAILY AUTO NEWS >> You can get the news you need every day. Go to www.autonews.com/signup and sign up for our daily e-mail newsletter. Doug Fraser was a great leader bright and had a great sense of humor. Although the study group came to naught, I looked back on those meetings and understood why he had been so effective as the head of the UAW. He was patient, and he listened to everyone’s point of view regardless of how off the mark it was. He put together a report that made the study worthwhile even though its recommendations were never implemented. Fraser was the right person for the UAW when he was president in the late 1970s and early 1980s. He kept Chrysler Corp. afloat, and he had the confidence of Chrysler management, the UAW members and the U.S. Congress. He was good at building bridges; he must Fraser was good at building bridges; he must have been a great role model for Gettelfinger. have been a great role model for Gettelfinger. Fraser was a very special person at the UAW, and I was pleased that he became a professor at Wayne State University after he retired from the union. He was a great teacher for the same reasons that he had been a great union leader. Doug Fraser set a standard that should be a benchmark for the future. Gettelfinger understands that. Let’s hope other UAW leaders realize that as well. More on Doug Fraser ➤ 17 My bet is that Ford Motor CEO Alan Mulally and his team will give Lyons a lot better opportunity than he and his team gave me. JOE B. KINSEL JR. President Kinsel Ford-Lincoln-Mercury Beaumont, Texas Well done, Doug The passing of Doug Fraser marks the end of an era for the auto industry. Fraser, who died late last month at age 91, was the last of the generation of early UAW leaders who brought economic order to the fledgling auto industry through collective bargaining. Together, management and labor built a great economic engine, helping to create the American middle class in the decades after World War II. Fraser headed the union from 1977 to 1983. He was a labor leader in the image of his mentor, Walter Reuther, but Fraser didn’t let his fervor interfere with economic reality. When Chrysler Corp. teetered on the brink of bankruptcy in the late 1970s, Fraser showed his moxie and leadership. He persuaded Chrysler workers to accept wage and benefit concessions so the automaker could secure the federal loan guarantees it needed to survive. As a result, they prospered. In Doug Fraser, the industry had a leader and a friend. We will miss him. 550 hp? 620 hp? Is GM crazy? To the Editor: I recently read about the 2009 Chevrolet Corvette ZR1 (the “super Vette”) that will have 620 hp, the Corvette Z06 with 505 hp and the 2009 Cadillac CTS-V with 550 hp. I have to ask: Why? What are the leaders of General Motors thinking? Do those supposedly intelligent men know what the speed limits are on city streets and highways? What in the world is someone going to do with 550 or 620 hp in an automobile? Regardless of how fast those cars may be, they will never be able to outrun a patrolman’s radio to the next patrolman waiting up the road. GM continues to tell the public that it’s losing money. I wonder why. When illogical company executives dream up or approve such ridiculous, gasguzzling, impractical products, it’s time to replace those executives with people who actually care about making GM profitable. One has to wonder what it costs to produce such vehicles and how much profit is made from the total sales of those limited-production vehicles. What’s the purpose of all that nonsense? Granted, The ZR1, Z06 and CTS-V are all beautiful machines. But how stupid. Come on, GM, get real. It’s time to start turning a profit. DOUG GARDNER La Crosse, Wis. The writer is a salesman at an auto dealership. How ironic: Lyons learns caution To the Editor: I had to bust out laughing when I read the Feb. 11 article about the delay in the opening of Steve Lyons’ Ford dealership in Arizona. How incredibly ironic that he is quoted as saying that 2008 is a “wait and see” year. The article says “he knows it’s better to be cautious” and quotes him again: “The worst thing you can do is jump in and find out the market is not ready.” All of this is from a former Ford executive who did everything in his power to litter the automotive landscape with more and ever-bigger Ford and Lincoln-Mercury dealerships. He is just one of the many arrogant Ford executives who pushed dealers to the limit to build unnecessary dealerships with no concern whatsoever for the financial wisdom behind those structures or for the possibility that the market might not be ready. THE WEEKLY NEWSPAPER OF THE INDUSTRY Established in 1925, published every Monday by Crain Communications Inc. Keith E. Crain, Publisher and Editor-in-Chief Peter Brown, Associate Publisher and Editorial Director David Sedgwick, Editor Edward Lapham, Executive Editor HOW TO REACH US Web site: www.autonews.com Editorial staff autonews@crain.com Phone: 313-446-0361 Fax: 313-446-0383 Circulation Advertising subs@crain.com lschlagheck@crain.com Phone: 888-446-1422 Phone: 313-446-6790 Fax: 313-446-6777 Fax: 313-446-8030 Editorial data/research To locate information that has been published in Automotive News, call 313-446-1662. Customer service To start or renew a subscription or to report an address change or a delivery problem, e-mail subs@crain.com or call 888-446-1422 (in the U.S. or Canada) or 313-446-1662 (in all other locations). AUTOMOTIVE NEWS (ISSN 0005-1551) is published weekly at 1155 Gratiot Ave., Detroit, MI 48207-2997. Periodicals postage is paid at Detroit, MI and at additional mailing offices. Postmaster: Send address changes to AUTOMOTIVE NEWS, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. Canadian Post International Publications Mail Product (Canadian Distribution) Sales Agreement #40012850, GST#136760444. Canadian return address: 2-7496 Bath Road, Mississauga, ON L4T 1L2 Printed in the U.S.A. I experienced the incredible pressure that Ford can bring to bear. Ford forced me to build a new, stand-alone Signature Lincoln-Mercury showroom adjacent to my beautiful, big Ford dealership. I didn’t have the opportunity to wait for Ford’s new products. I didn’t have the opportunity to find out whether the market was ready. I had only the opportunity to face the elimination of Blue Oval and Lincoln Premier money if I failed to build the structure. This is just one example of the incredible shortsightedness that permeated Ford and Lincoln-Mercury divisions during Lyons’ tenure, and we are all now suffering the consequences. I look forward to delivering this message to Lyons in person whenever we meet at a Ford or Lincoln-Mercury meeting in the future. In the meantime, he should break ground on his new multimillion-dollar facility and have faith. He should have the same faith that his people told me to have. see LETTERS, Page 14 http://www.autonews.com/signup http://www.autonews.com

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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