Automotive News - August 25, 2008 - (Page 12) 12 • AUGUST 25, 2008 opinion It’s show and tell for auto industry in Washington As the recent Washington debate over fuel economy standards showed, the auto industry has little clout left in the nation’s capital. And as Mary Ann Wright of JCI-Saft affirmed this month at the Management Briefing Seminars in Traverse City, Mich., most players in the political arena are largely ignorant of the issues that face the auto industry. The industry must work harder at government relations. But it can best inform policymakers and regulators by taking a leadership role in dealing with environmental and safety issues, not by trying to lobby delegates at the Democratic and Republican national conventions. This summer, a few automakers, suppliers and industry groups will try to show the flag at the parties’ conventions. But their actions border on the pitiful. They have done the same sort of thing before, and it hasn’t made much of a lasting impression. Automakers, suppliers and dealers must begin the long, slow, hard slog of explaining the state of the industry to policymakers by their actions, not just their words. It seems as if the industry is waiting for the presidential candidates to come calling in hopes of winning auto industry voters in the battleground states of Michigan and Ohio. The issues are too critical for the industry and for America to play a waiting game that threatens to marginalize the industry further. Events beyond the industry’s control — such as high fuel prices, consumer demand for cars that exceed federal fuel economy standards, and nonindustry investors such as T. Boone Pickens working on alternative energy sources — could leave the industry on the outside looking in. The time to act is now. If the auto industry leads in the quest for sustainable solutions, government and other industries will follow. A couple of weekends ago in different parts of the country, Americans once again demonstrated that they love cars. In Detroit, the Woodward Dream Cruise drew well over a million people with more than 30,000 old cars — many of them classics — cruising Woodward Avenue as if it were still the mid-1950s. Meanwhile, a few thousand miles away, the Pebble Beach Concours d’Elegance again was host to some of the finest automobiles in the world on the 18th fairway of California’s famed Pebble Beach golf course. They were about as different as two automotive events could be, but they demonstrated convincingly that the love affair with the automobile is alive and well. While thousands of automobiles participated on Woodward, the event was 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. The love affair continues very much for everyone. There was no entry fee to watch or drive, and most of the cars were postwar Detroit iron with a few hot rods thrown in for good measure. With more than a million people showing up, rain or shine, it is indeed a show for everyone. Pebble Beach, on the other hand, raises a million dollars for local charities and has only 250 of the finest automobiles from around the world dating back to the earliest part of the last century. It is a display of the most handsome cars. This year, Pebble Beach celebrated the V-16 Cadillac with some of the most spectacular Cadillacs from a bygone era at General Motors. As always, it was a celebration of the finest automobiles that have been built in the past 100-plus years. This industry is experiencing a very tough time. But if there is a glimmer of hope for the long-term success of the auto industry, it’s the passion that American drivers have for their cars. Sure, there are and always will be people who see the automobile as nothing more than a utilitarian device to provide basic transportation. But there are millions of drivers who have a passion for their vehicles, and they will continue to have that passion regardless of the price of gasoline or diesel fuel or batteries or hydrogen. They love their cars, and they love the history of the car. The Woodward Dream Cruise and the Pebble Beach Concours d’Elegance are two wonderful demonstrations of the passion that people — young and old — have for automobiles. It’s a love affair. Price cuts both ways It’s good news for suppliers that in the spirit of collaboration and compassion, automakers are letting them pass along some material cost increases to the vehicle producers. But suppliers should try not to get too excited when they jump for joy. In the true spirit of partnership, suppliers also must be prepared to pass windfall savings back to the manufacturers when prices go down. Of course, automakers would quickly pass the savings along to consumers through a retail price cut. Of course they would. Falling commodity prices would be a good thing. But suppliers must be careful what they wish for. How important is it to buy American? 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 rgreer@crain.com Phone: 888-446-1422 Phone: 313-446-6050 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. To the Editor: Executive Editor Edward Lapham’s comments about imported vehicles (“Is animosity toward foreign cars finally a thing of the past?” Comment, Aug. 11) raised a question that I’ve often wondered about: Should Americans care about buying American? Other countries seem much more loyal to their domestic brands. Should we be as well? Does it matter? What’s the economic impact of domestic vs. transplant vs. import? We’ve all read about globalization and free trade and the natural equilibrium that is supposed to occur. Does that mean that we should let this go unmanaged, raising less-developed countries’ standard of living and seemingly stagnating ours? I often wonder about another wellknown expression: “He who has the gold rules.” We seem eager to ship our gold overseas. With the United States about to be displaced as the world’s No. 1 economy, should we revisit that? It would be interesting to see an analysis showing the economic contribution of a typical $20,000 vehicle purchase (domestic vs. transplant vs. import) to our economy. How many dollars stay in the United States in each case? Perhaps it doesn’t really matter — or perhaps it does, and we should be educated and focus on revitalizing our manufacturing industries. After all, it is an election year, and our future leaders need some direction. DAVE SWAIN Farmington Hills, Mich. The writer works for a supplier of technology and information technology services. people who glean their income from it try to tear it down and destroy it. Did you forget that General Motors, Chrysler and Ford are one of the key reasons you can work in a free country with a free press? My greatest fear is that one or more of our American automotive manufacturers will fail. History repeats itself, and there will be a World War III. Who will manufacture our war materials if we don’t have a strong industrial base? Where will we get our steel? Who built the Japanese and German war machines? Takeover by foreign interests will not make our country strong or make it better. You should try to promote American interests. The issues you pound on are not valid. American quality, durability, fuel economy and performance are second to none in the world. The biggest difference is that you compare mass merchandisers with specialty manufacturers who cherrypick segments of the business and do not fully meet the needs of the American public. America will suffer if one or more of the domestic manufacturers fail. It will destroy a fragile economy. You know it’s true. DAVID L. SHAWVER Director of Service Matheny Motor Truck Co. Parkersburg, W.Va. Great product will bring buyers back To the Editor: Regarding the letter from Thomas A. Wills (“Why won’t consumers buy Detroit cars?” Aug. 4): He is correct in saying that we have the vehicles for the time. The problem is, we lost market share, and customers went elsewhere because they wanted different styles or fuel economy. The problem is getting a customer back. The answer is simple. General Motors has to develop the best-looking cars in the market. That is what will bring customers back. see LETTERS, Page 14 U.S. is in big trouble if automakers fail To the Editor: With the American automotive business in great peril, it amazes me that http://www.autonews.com/signup 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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