Automotive News - August 25, 2008 - (Page 41) AUGUST 25, 2008 • 41 Honda’s new Fit subcompact: Bigger, sportier Kathy Jackson kjackson@crain.com Honda refits Honda’s new Fit is bigger and more powerful. 2009 FIT 2008 FIT LOS ANGELES — The Honda Fit is a big hit, what with fuel prices near alltime highs. And company executives expect the redesigned 2009 version, which arrives in dealerships this week, to be just as hot. The new Fit is longer, wider and heavier and boasts more passenger and cargo space. It has a more powerful engine with better fuel economy on the automatic version. The exterior design is sportier. “The 2009 Fit arrives during conditions like the ’70s, when gas prices started to rise,” says Dan Bonawitz, head of corporate planning and logistics at American Honda Motor Co. “Small on the outside, big on the inside — this is the right car at the right time.” The basics: The Fit is a five-seat hatchback that comes in three trims: base, Sport and Sport Navi. The new 1.5-liter I4 engine delivers 117 hp, an increase of 8 hp, and 106 pounds-feet of torque. The five-speed manual transmission gets 27 mpg in the city and 33 on the highway, down one mile each from the 2008 model. But on the five-speed automatic, mileage is up one mpg for both city and high- Wheelbase Length Width Height Curb weight Base engine Horsepower Torque, lbs.-ft. EPA mpg* Base price** Honda expects the Sport version, shown, to represent 70 percent of Fit sales. 98.4 in. 161.6 in. 66.7 in. 60.0 in. 2,489 lbs. 1.5-liter I4 117 @ 6,600 rpm 106 @ 4,800 rpm 27 city/33 hwy. $15,220 96.5 in. 157.4 in. 66.2 in. 60.0 in. 2,432 lbs. 1.5-liter I4 109 @ 5,800 rpm 105 @ 4,800 rpm 28 city/34 hwy. $14,620 *Manual transmission **Prices include $670 for shipping ’09 Fits to arrive this week ➤ 6 way driving, to 28/35. Passenger volume is 90.8 cubic feet, compared with 90 cubic feet for the 2008 model. Most of the added space is in the rear. With the rear sear folded down, cargo volume is 57.3 cubic feet, compared with 41.9 cubic feet for the current model. The cab-forward design makes for larger front windows for better visibility. Tires are one size larger — 15 inches on the base model and 16 inches on the Sport. Notable features: The Fit gets Honda’s ACE body structure, which protects occupants during frontal crashes. Other new safety features include active head restraints for the driver and front passenger. The rear passenger seats now fold flat with one touch of a button. The new Sport Navi trim offers a satellite navigation system and stability assist for the first time. What Honda says: “The Fit has two kinds of customers,” says Jeff Swedlund, the Fit’s senior product planner. “The Gen Y looking for value and features and the downsizers who want something smaller and are concerned about the environment. The features are aimed at satisfying both types of customers.” The market: The major competitors are the Toyota Yaris, Scion xD and Nissan Versa. Swedlund expects the number of new entrants in the segment to triple by 2010. Honda expects to sell at least 80,000 Fits annually, with the Sport representing 70 percent of sales. About 10 percent of the mix will be the top-of-the-line Sport Navi model with stability assist and navigation. Compromises and shortcomings: Customers can get stability assist only with the top-of-the-line Sport Navi model, priced at $19,430. The skinny: Sales of small cars are heating up in this country, and it doesn’t appear to be a fad. But consumers are not just looking for bland tin cans. Besides good fuel economy, they want all of the bells and whistles, and they want it all at a small-car price. So the Fit fits the bill. c MILLER Entire family helps run the business continued from Page 3 entrepreneur-corporate management structure. The layers of professional managers, advisory council and weekly family huddles accommodated both decentralized control and Miller’s intense, detailed scrutiny. The entire Miller family is involved. Larry and his wife, Gail, own the Larry H. Miller Group of Cos. Sons Greg, Roger, Stephen and Bryan work within the group. Daughter Karen is on the advisory board, which meets every Monday. Dealing with the giant group’s complexity never has been easy. Larry Miller first tried to add professional management in 1992, but it didn’t work immediately. The current structure is the fourth version. working side by side with his dad wasn’t always easy. In less than a year, Greg says, “I told him: ‘I have to have my teeth in something. I can’t just watch.’ Engage me or let me go.” When Larry Miller suffered the heart attack in June, Greg Miller was involved mainly in launching the company’s motorcycle and race car track. On July 16, Larry became chairman, and Greg was named CEO. At the same time, 12-year veteran Tony Schnorr, previously operations manager for automotive, became the group’s president, and Rick Nelson retired as president and COO. The elder Miller is still recuperating. “He’ll work as much as he sees fit,” Greg Miller says. Reassuring employees Paul West, a Baltimore-based 20group consultant for the National Automobile Dealers Association, has known both Larry and Greg Miller for years. West says both must work harder to complete the transition because it happened suddenly. Even when succession is planned, it’s hard for dealer principals to give up control, he adds. “Principals tend to give up daily operations, but normally they try to keep control,” West says. As the Millers work on their new roles, Greg says his management style must, by necessity, differ from his father’s. “It’s hard for me to understand how he can handle that level of detail. I could never do that,” Greg says. “I have to be selective about what I do. I have to be better at delegating, about choosing which (business indicators) to monitor.” Greg Miller recognizes the challenges of operating in the current U.S. car sales downturn. But he sees his most immediate task as reassuring 3,500 employees that the company will not change abruptly. Greg says his job is “to not screw up what people have worked so hard to build.” c The son also rises For Larry Miller, transferring leadership to his eldest son is hard. But it would have been far tougher without Greg Miller’s almost three decades of preparation. Greg Miller has worked in each auto dealership department, run several startups and two dealerships, handled construction and launched the family’s first racetrack. Along the way he founded and sold his own company. At a press conference Aug. 8, Larry Miller said Greg was fully in charge. “I won’t be looking over Greg’s shoulder second-guessing him,” Larry Miller said. “He’s the guy. And he has a great circle of associates around him.” In 1979, Larry Miller opened his Toyota dealership in Salt Lake City. As soon as school ended that summer, Greg Miller, then 13, started working at the store, sweeping the south parking lot his first day. Greg moved into data entry in the parts department. By 16, his new driver’s license in hand, he started delivLarry Miller, who opened his Toyota dealership in 1979 in Salt Lake City, has turned over operations to his eldest son. ering parts to local repair shops. “I was in heaven. I’d tell myself, ‘They’re paying me to drive?’ I loved that,” he says. “It was the first time I relished efficiency. I’d mentally map out my route and pack my parts so the last ones in were the first ones out.” At 18, he started selling cars. But Greg wanted to prove himself. In 1986, he left the company and started his own business, a car graphics shop in Moab, Utah. He sold it to his employees in 1989. “I did it to prove I was my own success and not just part of my dad’s company,” he says. “I did it so I could cash my own check.” Back at the family business, Greg Miller engaged in a series of startups and turnarounds, running radio station KJZZ-FM and the Salt Lake Golden Eagles minor league hockey team until it was sold to the Detroit Red Wings of the National Hockey League. He then oversaw construction of company dealerships. In 1994, Greg Miller ran the launch of South Town near Salt Lake City. It began as two used-car dealerships but now is the largest auto mall in the state. me, ‘What experience do you have managing a dealership?’ and have to show them the balance sheet from that quarter.” So that fall, Greg Miller became general manager of a new dealership, Stockton To Malone Honda. An experienced general manager, Ed Mansfield, tutored Greg a few days a month. “He taught me hard lessons, made me see you pay a price to be a Tier 1 GM,” Greg Miller says. “I earned my wings at the Honda store.” In 2001 he took over the family’s original Toyota store and achieved record earnings. “I learned you surround yourself with class A personnel at every position,” he says. But Larry Miller wanted Greg back at headquarters. “Having you running a single store is a luxury this family can’t afford, he kept saying.” Greg Miller agreed in 2005 and became senior vice president. But Earning his wings In March 1997 his father’s general manager died, and Greg Miller returned to headquarters. He joined his father and the COOs of the two divisions in a four-member executive committee. “I was 31. It was pretty cool,” Greg recalls. “We made all the important decisions on every aspect of the operation, right down to players the Utah Jazz would draft.” But leaving South Town with a final quarterly loss of $330,000 rankled. “I didn’t want to some day go after a franchise, have a manufacturer ask
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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