Automotive News - August 25, 2008 - (Page 1) autonews.com ® AUGUST 25, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY Looming cuts worry L-M dealers Retailer briefings on consolidation begin this week Amy Wilson awilson@crain.com DETROIT — Ford Motor Co. is speeding up dealership consolidation, and some Lincoln-Mercury dealers worry that they will bear the brunt of the closures. In meetings beginning this week, Ford executives will brief LincolnMercury dealers on the revised plan. The first meeting is here on Wednesday, Aug. 27. Three more will follow the week of Labor Day. The automaker already has trimmed at least 400 dealerships in the past two years. Much of the reduction has been achieved by joining stand-alone Lincoln-Mercury stores and Ford stores. As Ford worked to improve its product lineup and cut dealerships, autonews.com Lincoln-Mercury dealer Chris Lemley opposes Ford Motor’s dualing strategy. Read his comments at www.autonews.com Lincoln-Mercury has “been kind of like the stepchild a little bit,” says George Benson, owner of a struggling Lincoln-Mercury dealership in Pittsburgh. He’s eager to hear the company’s plans to further trim the dealership roster. “Then you know what to expect, and you know what to do,” he says. Managing expectations The meetings starting this week are for stand-alone Lincoln-Mercury dealers. In a letter to dealers, Ford Motor officials said they would share the business outlook and product see FORD, Page 43 Back to the future General Motors celebrated its 100th anniversary at the Concours d’Elegance in Pebble Beach with an eye-popping display of 1950s-vintage concept cars that foretold the future. | PAGE 40 | Study: Toyota top U.S. lender Donna Harris dharris@crain.com A change of plan at GM General Motors has torn up a significant part of its product plan. Why? The spike in gasoline prices is rocking GM. GM’s complete future product plans. PAGES 26-32 Chevrolet and Buick rear-drive cars are toast. PAGES 26, 28 Cloud hangs over big SUVs. PAGES 26, 31 More hybrids and small engines in the works. PAGE 32 In the first half of 2008, Toyota Financial Services replaced longtime leader GMAC Financial Services as the biggest U.S. auto lender, a new study suggests. The shifts in the captives’ rankings reflect changes in the relative financial health of their parent companies. Automakers use their captives to provide consumer incentives that greatly affect their dealers’ ability to sell new and used vehicles. AutoCount, a research unit of the Experian Automotive marketing information company, estimates Toyota Financial had a 6.35 percent share of the U.S. market for vehicle finance and lease contracts from January through June, compared with 6.20 percent for GMAC. The study does not provide figures on contract volume. Because GMAC has made major cutbacks in U.S. auto leasing this summer, Toyota’s captive finance company could remain ahead of its General Motors competitor for all of 2008, the AutoCount study suggests. GMAC spokeswoman Sue Mallino says the company is still No. 1 when two wholly owned subsidiaries are included in its U.S. market share. GMAC’s first-half share, combined with those of Nuvell Credit Corp. and National Auto Finance Co., was 6.72 percent, according to the AutoCount study. AutoCount’s calculation of Toyota Financial’s market share does not include lending by World Omni Financial Corp. World Omni provides captive financial services to dealerships see LENDERS, Page 42 Swift succession Greg Miller, the new CEO at Larry H. Miller Group, a huge Utah dealership chain, steps in for a famous father with famous attention to detail. | PAGE 3 | KGP PHOTOGRAPHY Snapped during testing is the restyled and re-engineered 2010 Chevrolet Equinox. Van-tastic opportunity Nissan is targeting one of Ford’s and General Motors’ last strongholds: commercial vans. The beauty of the segment is the limited number of players, says Nissan’s Larry Dominique. | PAGE 4 | The 2011 Chevrolet Cruze, achieving 45 mpg, will replace the Cobalt. ® GM CORP. Bad blood: Campi takes big risks with Chrysler’s supplier relations David Barkholz and Robert Sherefkin dbarkholz@crain.com Suppliers rethink Chrysler ties ➤ 42 Campi says he’ll stick with the strategy. This month Chrysler LLC hauled one of its biggest suppliers into court to resolve a dispute that in the past would have been settled with backroom diplomacy. It is the second time that has happened this year. And Chrysler forced another supplier into bankruptcy instead of helping bail it out. Why risk bad blood with crucial partners at such a difficult time? Suppliers say a weakened Chrysler has less clout when it comes to making parts makers bend to its will. Disputes are more apt to end DETROIT — Chrysler purchasing honcho John Campi says his hardnosed style of supplier relations — which critics say amounts to using the courts to bring companies to heel — is paying off handsomely. NEWSPAPER up in court. Indeed, surveys show that Chrysler’s supplier relations have deteriorated this year, and a growing number of suppliers aren’t sure they want to continue selling parts to the company. But the strategy also reflects a tough-minded purchasing boss in Campi, an automotive outsider with a decisive style and scant regard for deep-rooted industry traditions. When troubled Plastech Engineered Products Inc. quietly asked Chrysler and other automaker customers for a third bailout in February, Campi canceled purchase orders see CHRYSLER, Page 42 On the Web This week at www.autonews.com: Today: Coverage begins of auto industry activities at the Democratic National Convention in Denver. Wednesday: Ford Motor Co. begins a series of meetings to brief Lincoln-Mercury dealers on the acceleration of dealer consolidation plans. Thursday: Toyota Motor Corp. is expected to lower its global sales forecast during its annual business briefing. http://autonews.com http://autonews.com http://www.autonews.com http://www.autonews.com
Table of Contents Feed for the Digital Edition of Automotive News - August 25, 2008 Automotive News - August 25, 2008 Looming cuts worry L-M dealers Bad blood Study: Toyota top U.S. lender How the kid got in the picture Hyundai affiliate to build transmission plant White House names acting NHTSA chief S&P lowers outlook on Sonic, Group 1 Now you can talk back: Join our online community Dodge dealers: We're in a box Company gets a fix-it list for pickups, SUVs from J.D. Power Mahindra delays U.S. launch Dealer Beyer now selling a 2009 Obama Nissan to leap into U.S. commercial-truck fray in 2010 China's Brilliance to show cars in Detroit Lawsuit alleges insider trades by CarMax execs Honda: Dealerships will have Fits more than a month early Infiniti's stylish stretch Cadillac will offer 4-cylinder sedan in '10 Chrysler redesigns new design boss' spot in exec ranks Genesis aims at low-priced luxury Letter to the Editor It's show and tell for auto industry in Washington Price cuts both ways The love affair continues Advance ads cost a lot, but help little Dealer-customer mandatory arbitration works Lithia sheds 2 of its Detroit 3 stores Japan sales slide; output, exports keep expanding L.A. dealers split on taking thumbprints of buyers Picture This With redesigned TL, Acura adds power, awd Personnel Chevrolet adjusts plans for coming decade GM revamps its vehicle lineup to succeed in a changed world Caddy relies on model updates over product development Buick buzzes about China Dismal sales make future of Hummer uncertain Budgets may crimp the lineup at Saturn Dreams aside, Pontiac will rely on small fwd cars Will GMC overhaul truck offerings? GM downsizes product lineup GM's powertrain plan: Less weight, better technology Hummer hopes pickup brings new buyers Dealers 'Ambush' boosts GM Certified DealerTrack adds market price checks Wholesale used-vehicle prices inch up in July Mexico sales up 2.6% in July; '08 near pace of '07 Collectors revive GM classics Honda's new Fit subcompact: Bigger, sportier Survey: Suppliers reconsider business with Chrysler Web site offers vehicle listings from Detroit 3 Nissan trains inspectors to improve quality A bumpy ride for dealer/lawmaker Buchanan Detroit dealers duel over bulk mailing Story links Nissan suicides, work pressure Times change, but supplier talk doesn't Garbage in, good stuff out Creed's creations Automotive News - August 25, 2008 Automotive News - August 25, 2008 - (Page Intro) Automotive News - August 25, 2008 - (Page BRC1) Automotive News - August 25, 2008 - (Page BRC2) Automotive News - August 25, 2008 - Study: Toyota top U.S. lender (Page 1) Automotive News - August 25, 2008 - Study: Toyota top U.S. lender (Page 2) Automotive News - August 25, 2008 - Dodge dealers: We're in a box (Page 3) Automotive News - August 25, 2008 - Nissan to leap into U.S. commercial-truck fray in 2010 (Page 4) Automotive News - August 25, 2008 - Nissan to leap into U.S. commercial-truck fray in 2010 (Page 5) Automotive News - August 25, 2008 - Cadillac will offer 4-cylinder sedan in '10 (Page 6) Automotive News - August 25, 2008 - Cadillac will offer 4-cylinder sedan in '10 (Page 7) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 8) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 9) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 10) Automotive News - August 25, 2008 - Genesis aims at low-priced luxury (Page 11) Automotive News - August 25, 2008 - The love affair continues (Page 12) Automotive News - August 25, 2008 - The love affair continues (Page 13) Automotive News - August 25, 2008 - Dealer-customer mandatory arbitration works (Page 14) Automotive News - August 25, 2008 - Dealer-customer mandatory arbitration works (Page 15) Automotive News - August 25, 2008 - Lithia sheds 2 of its Detroit 3 stores (Page 16) Automotive News - August 25, 2008 - Lithia sheds 2 of its Detroit 3 stores (Page 16a) Automotive News - August 25, 2008 - Lithia sheds 2 of its Detroit 3 stores (Page 16b) Automotive News - August 25, 2008 - Japan sales slide; output, exports keep expanding (Page 17) Automotive News - August 25, 2008 - Japan sales slide; output, exports keep expanding (Page 18) Automotive News - August 25, 2008 - Japan sales slide; output, exports keep expanding (Page 19) Automotive News - August 25, 2008 - Picture This (Page 20) Automotive News - August 25, 2008 - Picture This (Page 21) Automotive News - August 25, 2008 - Picture This (Page 22) Automotive News - August 25, 2008 - With redesigned TL, Acura adds power, awd (Page 23) Automotive News - August 25, 2008 - Personnel (Page 24) Automotive News - August 25, 2008 - Personnel (Page 24a) Automotive News - August 25, 2008 - Personnel (Page 24b) Automotive News - August 25, 2008 - Personnel (Page 24c) Automotive News - August 25, 2008 - Personnel (Page 24d) Automotive News - August 25, 2008 - Personnel (Page 25) Automotive News - August 25, 2008 - GM revamps its vehicle lineup to succeed in a changed world (Page 26) Automotive News - August 25, 2008 - Caddy relies on model updates over product development (Page 27) Automotive News - August 25, 2008 - Budgets may crimp the lineup at Saturn (Page 28) Automotive News - August 25, 2008 - Budgets may crimp the lineup at Saturn (Page 29) Automotive News - August 25, 2008 - Dreams aside, Pontiac will rely on small fwd cars (Page 30) Automotive News - August 25, 2008 - GM downsizes product lineup (Page 31) Automotive News - August 25, 2008 - GM's powertrain plan: Less weight, better technology (Page 32) Automotive News - August 25, 2008 - Dealers (Page 33) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 34) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 35) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 36) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 37) Automotive News - August 25, 2008 - Wholesale used-vehicle prices inch up in July (Page 38) Automotive News - August 25, 2008 - Mexico sales up 2.6% in July; '08 near pace of '07 (Page 39) Automotive News - August 25, 2008 - Collectors revive GM classics (Page 40) Automotive News - August 25, 2008 - Honda's new Fit subcompact: Bigger, sportier (Page 41) Automotive News - August 25, 2008 - Survey: Suppliers reconsider business with Chrysler (Page 42) Automotive News - August 25, 2008 - Survey: Suppliers reconsider business with Chrysler (Page 43) Automotive News - August 25, 2008 - Nissan trains inspectors to improve quality (Page 44) Automotive News - August 25, 2008 - Nissan trains inspectors to improve quality (Page 45) Automotive News - August 25, 2008 - Creed's creations (Page 46) Automotive News - August 25, 2008 - Creed's creations (Page 47) Automotive News - August 25, 2008 - Creed's creations (Page 48)
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