Automotive News - August 25, 2008 - (Page 4) 4 • AUGUST 25, 2008 Nissan to leap into U.S. commercial-truck fray in 2010 Rick Kranz rkranz@crain.com PEBBLE BEACH, Calif. — Nissan is targeting one of Ford’s and General Motors’ last strongholds: commercial vans. In 2010, Nissan will start producing vehicles to take on the Ford E series, Chevrolet Express, Dodge Sprinter and various light commercial and medium-duty trucks in the United States. Last year, Dodge, Ford, Chevrolet and GMC sold 325,744 full-sized vans, down 8.4 percent from 2006. Nissan will produce the vehicles in Nissan’s Larry Dominique: “The beauty of light commercial vehicles is that there are a very limited number of players.” its Canton, Miss., plant. To make room for them, the automaker plans to have Chrysler LLC develop and assemble the next-generation Nissan Titan pickup. “The beauty of light commercial vehicles is that there are a very limit- ed number of players,” said Larry Dominique, vice president of product planning at Nissan North America Inc. “For us, that equals a good market opportunity.” To sell the new vehicles, the company will sign up Nissan and other interested dealers in the next four months or so. “We know we need three, four or five products coming down the pipeline very rapidly for these dealers to come on board,” Dominique said at an Infiniti press event here. He declined to describe the models planned for the United States, but he said light commercial vehicles “are everything from full-sized vans, small vans, different pickup truck variations, cutaways, ambulances. It could be buses in the future.” Upfitters use medium-duty cabs and frames to produce dump trucks, tow trucks, large school buses, UHaul-like cargo carriers, cab-over-engine trucks and other vehicles. Details about Nissan’s plans will be announced in January at the Detroit auto show. Joe Castelli, former director of marketing for Ford’s commercial trucks, is Nissan North America’s vice presi- dent for light commercial vehicles and fleet. He joined Nissan in December. Castelli said Nissan has a global stable of commercial components and chassis that can be adapted to the United States. In Japan and Europe, Nissan’s commercial vehicles are branded Atlas and Atleon. Dominique said that Nissan’s light commercial vehicles are selling well in Japan and Europe and that sales are growing in China. Said Dominique: “The U.S. is one of the last untapped markets for Nissan.”c Mahindra delays U.S. launch Indian truckmaker plans to start sales in 4th qtr. of 2009 Lindsay Chappell lchappell@crain.com Don Beyer will play 2 roles at the Democratic National Convention: auto industry leader and high-level party insider. The Georgia distributor of Indian pickups is raring to go, but the man whose name is on the trucks — Anand Mahindra — says not so fast. Mahindra & Mahindra Ltd., of Mumbai, India, has told its independent U.S. distributor to delay the 2009 retail launch for six months while the manufacturer spends most of next year evaluating its trucks on U.S. roads. The request will mean that Mahindra brand diesel pickups will start sales in the fourth quarter of 2009 instead of spring 2009, says John Perez, CEO of Global Vehicles USA Inc. in Alpharetta, Ga. A Mahindra diesel SUV will follow in 2010. Few of the 324 dealers who have signed up to sell Mahindra have constructed stores. Perez says the manufacturer has informed him that Mahindra intends to clock about 3.2 million road miles on a fleet of 25 trucks in the United States before the pickups go on sale. In August, Perez spoke with Anand Mahindra, the family-owned truckmaker’s global managing director. Says Perez: “Mr. Mahindra said to me, ‘My family’s name is going onto this vehicle, and it’s not going to fail.’ ” The small pickups will use an untested, clean-burning, four-cylinder diesel engine that has not yet been approved by the EPA. The agency has imposed tighter new 50state diesel emission requirements for 2010. Mahindra will apply for certification in January, and Perez says he has no worry about receiving approval. The Mahindra startup — the first effort by an Indian automaker to tap the U.S. market — is undergoing other changes as well, Perez says. A plan to market Mahindra hybrid diesel vehicles has been delayed for an undetermined time. Perez says he is uncertain when those vehicles might be available in the United States. Global Vehicles now plans to sign up 450 Mahindra dealers around the country by the end of 2009. The company originally hoped for about 300 dealers in time for its spring launch. Global is collecting fees of about $200,000 per franchise, al- Dealer Beyer now selling a 2009 Obama Harry Stoffer hstoffer@crain.com ADEEL HALIM/REUTERS Before Mahindra begins selling its trucks in the United States, the company plans to spend most of the next year evaluating the vehicles on U.S. roads. Above, engineers at a factory in India work on Mahindra’s Scorpio SUV. More dealers The plan to sell Mahindra pickups and SUVs in the United States is evolving. Here are recent changes. Retail launch is delayed 6 months until fourth quarter of 2009. U.S. distributor seeks more dealers in western states. Distributor plans 50% more U.S. dealers at launch. New Indian factory promises ample supply of vehicles. Company gets a fix-it list for pickups, SUVs from J.D. Power Leery of blundering in the United States, Mahindra & Mahindra Ltd. hired J.D. Power and Associates to make a few recommendations to improve Mahindra’s pickup and SUV. Power gave the Indians an earful. The California consulting firm handed Mahindra a list of 196 recommended changes. Mahindra has executed them all, says John Perez, the Atlanta area businessman whose Global Vehicles USA Inc. will distribute the vehicles. Among the changes: different seats, different headliners, more cupholders, a redesigned front console, a larger glove box and a more solid sound when the doors close. Power also recommended restyling the truck’s grille, advising the manufacturer that it “looked a little sad,” Perez says. Mahindra decided to take extra time on the road to test the revised vehicles. The brand is now scheduled to launch in the fourth quarter of 2009. — Lindsay Chappell though the fees have changed as the project has unfolded over the past two years. A new auto assembly plant in Chennai, India, could supply as many as 400,000 vehicles a year for the United States, if sales warrant. But Perez says Global Vehicles’ initial sales target is closer to 50,000 a year. Perez says the new schedule will give Global more time to sign up retailers in the western United States — particularly California, where Global’s representation is weak. But he says the factory’s slower- than-expected entry has nothing to do with the depressed U.S. market for light trucks. Perez says Mahindra’s small diesel pickups and SUVs will deliver more than 30 mpg.c Rich Americans can buy only so many new cars and trucks, Virginia auto dealer Don Beyer reasons. So what’s needed is a president who would “put a lot more money in the hands of the middle class,” he says. That’s one reason Beyer says he is putting his recognized political skills to work for the campaign of Democrat Barack Obama. A Democratic dealer is unusual enough. But at this week’s Democratic National Convention in Denver, Beyer, 58, will play two roles: auto industry leader and high-level party insider. Beyer is on the convention’s credentials committee. He also is a member of Obama’s finance committee, serving as chairman in the mid-Atlantic region. Because Obama’s campaign has opted out of public financing, private fund raising is crucial. Beyer told Automotive News that since February 2007, he and his wife have raised more than $1 million for Obama. In 2004, Beyer headed fund raising for the presidential campaign of current Democratic National Committee Chairman Howard Dean and, later, for the political action committee of former Virginia Gov. Mark Warner. Warner, who is running for the U.S. Senate this year, will be the keynote speaker at the Democratic convention. Beyer was Virginia’s lieutenant governor from 1990 to 1998. He lost a bid for governor in 1997. On the automotive side, Beyer and his family operate eight import-brand franchises at five Virginia dealerships. He was chairman of the American International Automobile Dealers Association in 2006. Many of Beyer’s industry colleagues are anxious about the prospect of an Obama presidency, but Beyer insists they shouldn’t be. Echoing Obama’s criticism of his Republican opponent, U.S. Sen. John McCain of Arizona, Beyer said the industry “should be far more nervous about eight more years of the economic policies we’ve had.”c
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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