Automotive News - March 3, 2008 - (Page 20)

20 • MARCH 3, 2008 Autonet finds success at NADA with wi-fi for cars Leslie J. Allen lallen@crain.com A last-minute decision to display at the National Automobile Dealers Association convention proved lucrative for Autonet Mobile Inc. The Marin County, Calif., company makes a box that turns a vehicle into a mobile wi-fi hot spot. The system connects to the Internet through cellular data, rather than voice, networks. Customers pay about $39 a month for a constant Internet connection that lets passengers use their laptops, gaming units and other mobile devices in the car. Autonet CEO Sterling Pratz said he arrived at the San Francisco convention last month thinking nobody would find his re- mote booth in a back corner of the west convention hall. Before the conference, he had signed up fewer than 10 dealerships to install Autonet units in their vehicles. They included Toyota of Sunnyvale and California’s Price Family Dealerships. That changed quickly. “We had more than 200 dealers show up. We were totally shocked,” Pratz told Automotive News. He said that of the 200, about 150 said they wanted to become distributors. As of late last month, he was already signing up 25 dealer groups. Autonet also supplies Internet units to Avis Rent A Car System LLC, which offers the service as Avis Connect. Autonet’s latest deal is with Freightliner LLC, which will in- stall units in its SportsChassis line of highend truck cabs and RVs. For passenger vehicles, Autonet primarily plans to sell its technology through auto dealers. It is working with Delphi Corp. to develop a version that automakers can install as original equipment. Pratz said aftermarket companies have inquired, but for now Autonet is emphasizing dealer distribution. Said Pratz: “I’ve found the dealerships are a great distribution channel for us. They’re looking for a way to capture their crowd. They know today that when someone comes in and they want a part, they’ll just find it somewhere else. So they might as well sell it to them and capture the revenue on it.” c Despite its obscure location, Autonet attracted more than 200 dealers to its booth at the NADA convention. No matter how difﬁcult the request, Key AutoFinance has been there for us with creative thinking and responsiveness. ROBERT LANPHERE, JR. President, Lanphere Enterprises GM to sell medium-truck business, keep dealer network Arlena Sawyers asawyers@crain.com There’s no such thing as an ordinary, everyday ﬁnancial challenge for your auto dealership. That’s why, at Key AutoFinance, we’ve never offered ordinary, everyday ﬁnancial solutions. For more than 50 years, we’ve crafted ﬁnancing strategies for our clients without any formulas other than to leave no stone unturned. Rely on our dedicated Key AutoFinance professionals to help you get the most growth out of your business in all these ways: New, used and program inventory ﬁnancing Working capital term loans, acquisition ﬁnancing and lines of credit Real estate loans to construct, improve or acquire dealership properties Deposit accounts and cash management, including automated ﬂoor plan sweep service Key’s Inventory Management System: secure online access to ﬂoor plan information and transaction initiation Additional services like Investment Management, Equipment Leasing and Payroll Services To learn how Key AutoFinance solutions can help strengthen your dealership, call 1-888-288-6539 or visit key.com/KAFdealer. Credit products are subject to credit approval. ©2008 KeyCorp. DETROIT — General Motors plans to sell its medium-truck business to Navistar International Corp. But GM says it will maintain its network of 500 U.S. dealerships that sell Chevrolet and GMC medium-duty trucks. “The sale is for the vehicles, the manufacturing assets, but not ownership of our sales and service agreement,” said Mark Karney, GM’s marketing director for medium-duty trucks. “That remains with GM.” Last December, Navistar agreed to buy GM’s GMT560 truck business. GM hopes to complete the sale by mid- Karney: GM keeps 2008, Karney dealer network. told Automotive News. Terms were not disclosed. Antitrust lawyers in the U.S. Justice Department are reviewing the proposed sale. GM held 13.8 percent of the medium-duty truck market last year, down from 13.9 percent in 2006. Navistar sells its medium-duty trucks under the International brand. Last year, International had 16.2 percent of the medium-duty market, down from 20.8 percent in 2006. GMT560 trucks include the Chevrolet Kodiak and GMC TopKick. They are used primarily as dump trucks, tow trucks and beverage delivery trucks. The proposed sale would give Navistar control over manufacturing and product planning of GM mediumduty trucks, but GM would retain the Chevrolet and GMC brand names. Navistar would establish a support network for GM dealers for matters such as parts supply. But the dealer networks that sell and service GM and Navistar medium-duty trucks would remain separate, Karney said. Mike Matheny, a GM medium-duty truck dealer in Parkersburg, W.Va., says the Navistar sale would be good for his business. The planned sale “brings more resources in terms of dollars, engineering and focus on the product,” Matheny says. “It’s a winwin for everyone.” c http://key.com/KAFdealer http://key.com/KAFdealer

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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