Automotive News - August 25, 2008 - (Page 3) AUGUST 25, 2008 • 3 82nd year — No. 6322 Dodge dealers: We’re in a box Without knowing storage option’s price, some retailers delay ordering Ram trucks Bradford Wernle bwernle@crain.com S&P lowers outlook on Sonic, Group 1 Standard & Poor’s on Friday revised its outlook on Sonic Automotive Inc., of Charlotte, N.C., and Group 1 Automotive Inc., of Houston, to negative. Before the revision, the ratings agency had listed its outlook for both public dealership groups as stable. In a statement, S&P credit analyst Nancy Messer wrote that tough economic conditions will continue to pressure the balance sheets of each of the auto retailers. — Craig Trudell When Dodge unveiled its redesigned 2009 Ram 1500 pickup at the Detroit auto show in January, Doug Alley liked what he saw. Alley, a Dodge dealer in Kingsport, Tenn., said he was especially enamored of the RamBox, a lockable storage option in the bed of the crew cab version. Chrysler LLC CEO Bob Nardelli and co-President Jim Press hyped the feature as a game-changer. But because Dodge has not set a price on the RamBox, many dealers say they can’t order it. Dealers say they have heard discussions of an option price of $1,600 to $2,100. Alley said he is not ordering any crew cabs, even though the crew cab version is scheduled to reach dealerships in October. Other dealers have similar complaints. “Until I’ve seen the RamBox and how it’s priced, you’re not going to be getting any orders from me,” Alley told Automotive News. “I think the RamBox is going to be a big seller if it’s priced reasonably. I don’t want a bunch of trucks sitting on my lot without it. What the hell is the problem? Where’s it at?” Box score The RamBox option on the 2009 Dodge Ram 1500 Consists of 2 weatherproof, lockable storage units, one on each side of the truck bed Can store 240 12-ounce beverage cans with ice (drain plugs included) Includes adjustable bed divider/extender and cargo rail system with cleats Is available only on Ram 1500 crew cab versions built at St. Louis North plant No problems Marc Seguin, senior manager of Dodge Truck marketing, says Dodge will set a price for the RamBox by midSeptember. He says the 2009 Ram 1500 has no production problems. “We’re trying to get a balance between volume and price,” Seguin see RAMBOX, Page 43 Hyundai affiliate to build transmission plant Korea’s Hyundai Powertech will build a $150 million factory in West Point, Ga., to supply six-speed automatic transmissions to affiliate Kia Motors Corp. The project suggests that the next-generation Kia Sorento SUV will get an upgrade from the five-speed automatic gearbox in the current model, but a Kia spokesman would not confirm it. Kia plans to build the Sorento at its assembly plant under construction in West Point beginning in November 2009. Powertech America, which is 100 percent owned by Hyundai Motor Co., also will supply Hyundai’s assembly plant in Montgomery, Ala. — April Wortham White House names acting NHTSA chief WASHINGTON — David Kelly will be acting administrator of the National Highway Traffic Safety Administration, the White House announced last week. Kelly has been chief of staff to Administrator Nicole Nason, who left the agency, apparently for a private sector lobbying position. Her departure has never been formally announced. A year ago, Nason said she intended to serve until the end of the Bush administration in January, but word of her departure leaked out last month. Nason’s last day was Thursday, industry sources said. A NHTSA spokeswoman declined to comment. — Harry Stoffer TOM SMART/DESERET NEWS Larry Miller, left — the larger-than-life Utah icon who built a business empire that encompasses 42 auto dealerships, the Utah Jazz of the National Basketball Association, a racetrack and a minor league baseball team — has handed over control to his eldest son, Greg Miller, 42. How the kid got in the picture When Larry Miller suffered a heart attack in June, the country’s 4th-largest private dealership group had to make a change at the top Jesse Snyder jsnyder@crain.com Key players Top franchises in the Larry H. Miller group, by revenue 1. Toyota-Scion-Lexus 34% 2. Chrysler-Jeep-Dodge 15% 3. Chevy-Buick-Pontiac 12% 4. Honda 7% (tie) Ford 7% (tie) Hyundai 7% Source: Company CORRECTIONS A story on Page 36D of some editions of the Aug. 11 issue gave an incorrect figure in euros for the cost of a hypothetical car sold in Germany. The article should have quoted Larry Denton, then CEO of Dura Automotive Systems Inc., as saying, “There’s no reason I can buy a German car for 60,000 euros (or about $88,000 at current exchange rates), and then when it’s shipped here, I buy it for $65,000.” Stories on Page 26 and 30 and a table on Page 27 of this issue give the wrong model year for the upcoming Chevrolet Cruze. The U.S. model will debut in 2010 as a 2011 model. For every success story at a big family-owned dealership group, there is a succession story, and it is not always pretty. Type A, hands-on dealer entrepreneurs usually have no more important task — and maybe none more difficult — than handing the whole shebang off to the next generation. And it’s that much trickier when the change happens unexpectedly — as in Utah this summer, when largerthan-life Larry Miller, the 64-year-old local icon who runs the country’s fourth-largest private dealership group, suffered a major heart attack. Larry’s 42-year-old son, Greg, who once chafed under the elder Miller’s watch-and-learn tutorial style, had been spending most of his time launching a motorcycle and race car track in Tooele, Utah. Suddenly he was the new CEO, stepping in for a famous father with a famous attention to detail. “If he could, he would write every sales contract,” Greg Miller says of Larry, who is still recuperating at home after 59 days in the hospital. “He is not a good delegator.” And there is a lot to delegate at the Larry H. Miller Group of Cos. It has more than 80 subsidiaries. The core $2.8 billion automotive group encompasses 42 dealerships in Utah, New Mexico, Arizona, Colorado, Idaho and Oregon, plus its own finance and insurance companies. Automotive News lists the Miller Group as the 10th-largest U.S. dealership group. Miller also owns the Utah Jazz of the National Basketball Association and a chunk of the arena in which the team plays. The group’s sports-entertainment division has six cinemas, 25 sports apparel stores, radio station KJZZ-FM, a racetrack, office buildings, a restaurant and catering operation and the Salt Lake Bees, the AAA minor league affiliate of the Los Angeles Dodgers major league baseball team. As Miller built a single Toyota dealership into his sprawling sixstate empire, he also forged a hybrid see MILLER, Page 41 Now you can talk back: Join our online community Automotive News is opening its Web site to let visitors post comments on stories and take part in forums. We want you, our readers, to be a bigger part of our community. Here’s how. Go to our Web site, www.autonews.com, and follow the links to register. Set up your own personal page to determine how others in the Automotive News social network will see you online. Pick your personal avatar image that will accompany your posted comment. Choose from among a dozen avatar images already available, or upload your own image. You can pick a handle — an alias you want to be known as online — or use your full name. Once registered, you can post comments on any of the stories on the Web site or simply recommend a story to others. In the coming weeks, you’ll be able to participate in online forums on a variety of topics — or start immediately with four topics covering dealer marketing. Click on the new “Forum” button on the top of our Web site to see the topics available. To the left of Forum is another new button, “Blogs.” Several Automotive News veteran editors are writing blogs. Community Editor Jesse Snyder’s “It Seems to Me” blog will discuss daily what’s happening in our community. Please join us. We’d like to know what’s on your mind. c 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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