Automotive News - March 3, 2008 - (Page 22)

22 • MARCH 3, 2008 China venture eyes 20,000 Fiesta hatchback sales SHANGHAI — Changan Ford Mazda Automobile Co. expects to sell 20,000 Ford Fiesta hatchbacks in China in 2008, sources told Automotive News China (www.autonewschina.com). The model, shown as the Verve at the Guangzhou auto show and around the world in 2007, could begin sales in China as soon as September, sources say. It will be built at Changan Ford Mazda’s plant in Nanjing in eastern China’s Jiangsu province. Chery designs venture’s vehicles SHANGHAI — Chery Quantum Auto Co., a new joint venture of Chery Automobile Co. and the Israeli investment company Quantum, will manufacture Cherydesigned vehicles and target international markets. Chery owns 55 percent of the venture. The venture, with an annual capacity of 150,000 vehicles, is to start production at the end of 2009 in a new factory near Chery’s existing plants in Wuhu. Chery Quantum plans to build compact and midsized vehicles, including sedans, SUVs and hatchbacks, says Volker Steinwascher, CFO of the venture. Its first car will be a sedan similar to Chery’s A6, says Steinwascher. All Chery Quantum vehicles will be sold under a new brand to be disclosed later. that the company plans to start assembling Highlanders in April or May of 2009. Dongfeng, YuAn plan minicars GUANGZHOU, China — A joint venture of Dongfeng Motor Corp. and YuAn Group plans to launch minicars in China this year. The venture, Dongfeng YuAn Vehicle Co., plans to target families and small businesses. “The cars will roll off the production line at the end of this year if everything goes well,” said Pang Hai, deputy general manager of the venture. Dongfeng YuAn, headquartered in Shiyan city, Hubei province, is a 50/50 joint venture of Dongfeng and YuAn, a Chongqing company that makes auto parts and motorcycles. Toyota plans crossovers in China GUANGZHOU, China — Toyota Motor Corp. plans to start producing two crossovers, the Highlander and RAV4, in China in the first half of 2009. Toyota began building its high-end Land Cruiser and Land Cruiser Prado SUVs in China in 2003, targeting government and military clients. The Highlander and RAV4 are aimed at families. Sources with Guangzhou Toyota Motor Co. told Automotive News China (www.autonewschina.com) Web classified ad firms renew marketing to dealers, buyers Arlena Sawyers asawyers@crain.com Online publishers of vehicle classified ads are rolling out new campaigns aimed at attracting users and persuading dealers to shift ad spending from newspapers. Third-party classified companies, led by AutoTrader.com and Cars.com, make money by charging for listings and generating sales leads for dealerships. More than two-thirds of newvehicle buyers use the Internet in their searches, according to J.D. Power and Associates. But barely one-fifth of those buyers contact dealerships online, Power says, and that rate has largely stalled since 2004. So the classified companies are ramping up marketing aimed at dealers and consumers. “The greatest number of customers seek information about your inventory online,” said Chip Perry, CEO of AutoTrader.com. “So why do (dealers) go to the newspaper? It’s a habit — we’ve done it for years.” Perry said companies such as his allow dealers to monitor prices and post multiple photos of vehicles they want to sell. They also accommodate online videos that include personalized comments about dealerships and vehicles. Since AutoTrader.com launched click-to-play video last year, Perry said, about 3,000 dealers have paid to include video in their listings. “The video multimedia side of Internet advertising is still very much in its infancy,” Perry told Automotive News. AutoTrader.com posts more than 3 million vehicle listings from 40,000 dealers and 250,000 private owners. Cars.com also enables dealers to post click-to-play videos. Dealers spend an average of $104 to market a vehicle on his company’s Web site, says Cars.com CEO Mitch Golub. That figure includes the cost of posting vehicle listings and obtaining leads. Golub compares that figure with data compiled by the National Automobile Dealers Association that conclude the average dealer spends $590 to advertise a car or truck in all media. “During economically challenging times, marketing and advertising is one of the dealer’s biggest expenses,” Golub says. “We are by far the most cost-effective medium.” Golub said the number of online leads Cars.com provided dealerships last year increased 40 percent over 2006. The company is spending $200 million on a new marketing plan that includes an ad campaign and a revamped consumer Web site. Under a new partnership with Yahoo.com, Cars.com publishes 2.6 million vehicle listings. About 16,000 dealers list vehicles on Cars.com, Golub says. In 2006, NADA says, the average dealer spent 27.3 percent of his or her ad budget on newspapers, compared with 11.5 percent on the Internet. Figures are unavailable for 2007. c http://www.autonewschina.com http://AutoTrader.com http://www.autonewschina.com http://AutoTrader.com http://AutoTrader.com http://AutoTrader.com http://Cars.com http://Cars.com http://cirrusdesign.com http://Cars.com http://Cars.com http://cirrusdesign.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

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.