Automotive News - August 25, 2008 - (Page 46) 46 • AUGUST 25, 2008 final assembly comment Detroit dealers duel over bulk mailing T wo large Detroit area Lincoln-Mercury dealers will duke it out in court after one filed suit alleging that its reputation was damaged by its rival’s bulk mailing. Varsity Lincoln-Mercury, owned by Lou and Mike Stanford, filed suit against Star Lincoln-Mercury, owned by Hoot McInerney. Varsity alleges that Star mailed letters in July to 65 of Varsity’s lease customers saying, “Your Lincoln-Mercury dealer has decided to close his doors.” The letter went on to promote Star’s services. “Ridiculous,” fumed Jeff Meek, Varsity’s lawyer. Varsity “is a strong dealership. To say they are going to close their doors is ludicrous.” A letter from Ford Vice President Jim Farley was included in the lawsuit. The letter notes that PHOTO Varsity Lincoln-Mercury has ISTOCK outsold every other Lincoln-Mercury dealership in the nation from 1997 through 2007. McInerney acknowledges that the wording in the letter was a mistake. Last week he sent out a retraction letter to the 65 recipients of the first letter expressing regret for the mistake and apologizing for any “anxiety” it caused. “We’re sorry we made a mistake,” McInerney told Automotive News. “We should have caught it.” Meek says the retraction is good — but too late. Varsity had asked for a retraction in July, when it first discovered the mailings, but never got one. Meek said his client seeks damages in excess of $25,000. Times change, but supplier talk doesn’t across an Iran…other day:upbeat headline the “ ‘A brand new way to do business’/GM and suppliers to be partners.” No, the story wasn’t about the happy talk of the need for collaboration, heard at the Management Briefing Seminars this month. The headline was from the Feb. 25, 1985, issue of Automotive News. It quoted Donald Pais, who was then director of materials management for General Motors’ ChevroletPontiac-Canada group. The rhetoric never seems to change. EDWARD LAPHAM One executive IS EXECUTIVE who was in EDITOR OF Traverse City, AUTOMOTIVE Mich., for this NEWS. year’s seminars told me that the presentation by Ford purchasing boss Tony Brown about the companies’ preferred suppliers sounded a lot like the spiel that former Ford purchasing boss Carlos Mazzorin used to deliver nearly a decade ago. In the same session, John Campi, Chrysler’s executive vice president of procurement, used a PowerPoint slide that showed his view of healthy supplier relations. It had three main elements: lowest total cost, highest quality and fastest time to market. Maybe it was the body heat in that crowded room, but seeing Campi’s slide made me flash back to a similar graphic that GM’s Inaki Lopez showed me nearly two decades ago. It, too, described the ideal relationship with suppliers. Though worded differently, Lopez’s three benchmarks that suppliers had to meet were the same: quality, service and price. Lopez in But in 1992, most 1992: quality, service, price suppliers were certain that Lopez really only cared about lowering GM’s cost and would use any excuse to tear up supply contracts and renegotiate prices. Times and circumstances change. You can call companies that sell stuff to automakers vendors, suppliers, partners or collaborators. But by any name, suppliers still depend on their customers. And like shoppers everywhere, automakers want the best price they can get. The rhetoric never changes, because the basic relationships don’t change. Edward Lapham writes commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. A bumpy ride for dealer/lawmaker Buchanan N Story links Nissan suicides, work pressure I t was a rare dose of sour ink for Carlos Ghosn, the turnaround taskmaster who has ridden a wave of good press clippings since fixing Nissan and getting the top job at Renault as a reward. The September issue of Portfolio, a business magazine, has a 4,200word article titled “Speed Kills.” The topic: five Renault product development employees in France who committed suicide between October 2006 and February 2008. The magazine suggests the deaths may have resulted in part from the intense pressure Ghosn placed on Renault’s engineering staff to rush out new models. According to Portfolio, one technician who hanged himself in February 2007 left a note on his son’s blackboard that said: “Tell Mr. Ghosn I can’t handle the pressure anymore.” Two deaths occurred at the Technocentre complex near Paris. The magazine says French labor inspectors recommended to prosecutors that Renault be investigated for “moral and institutional harassment of workers.” Renault denies any link between the suicides and work pressures but added in a statement to the magazine: “We are profoundly shaken by these events and took prompt action to assess the situation and address specific points on which improvements could be made.” Ghosn told Portfolio: “I am trying to motivate people to want to do more than they thought they could do.” Reflecting on the suicides, Ghosn added: “But if you say people’s motivation is the greatest wealth and asset of the company, scenes like these cannot be ignored.” o one will ever describe auto dealer Vern Buchanan’s first term in Congress as a honeymoon. The latest brickbat: A complaint last week to the Federal Election Commission alleges that former employees of Buchanan’s Florida dealerships were coerced into contributing to his 2006 campaign and were reimbursed illegally with corporate cash by managers. The complaint came from the group Citizens for Responsibility and Ethics in Washington. A Buchanan spokeswoman said his campaign did not condone any improper fundraising. In May, a lawsuit was filed alleging that Sarasota Ford, Buchanan’s flagship store, broke the state whistle-blower law by dismissing a finance director for refusing to go along with fraudulent business practices. Buchanan is chairman of Buchanan Automotive Group, with 16 dealerships, but he is not involved in day-to-day operations, the company says. In November 2006, Buchanan, a Republican, won election in Florida’s 13th U.S. House District by fewer than 400 votes. Democrats alleged voter machine malfunctions and sought unsuccessfully to unseat him last year. But he’s back for more, seeking a second term in the Nov. 4 election. Garbage in, good stuff out T he latest clean-fuel initiative has a certain symmetry: fuel from garbage for garbage trucks. Clean Energy Fuels has acquired Dallas Clean Energy, owner of the McCommas Bluff landfill gas-processing plant, the third-largest U.S. landfill gas operation. The landfill, owned by the city of Dallas, is scheduled to close in 2042 — but is expected to keep producing what the company calls “pipeline-quality methane gas” for 30 years. Clean Energy, founded by financier T. Boone Pickens in Seal Beach, Calif., supplies natural gas for U.S. and Canadian car and truck fleets. The company fuels more than 14,000 vehicles daily. Andrew Littlefair, Clean Energy’s CEO, said in a statement: “Refuse companies in particular are seeking our help in making the connection between the methane gas from their landfills and its use for transportation fuel for their truck fleets.” CHRYSLER ATLANTIC Creed’s creations T revor Creed, Chrysler’s outgoing design chief, could put together quite a greatest-hits album from his 23 years at the company. Some of our favorites: Production vehicles: The Dodge Viper, Plymouth Prowler, 1994 Dodge Ram and the new Dodge Challenger. Creed and a hit: the Viper CHRYSLER ME FOUR TWELVE Concepts: The Chrysler Chronos, Atlantic and ME Four Twelve; the Dodge Copperhead, M80, Demon and Super8 Hemi; the Jeep Willys, Jeepster and Varsity. Chrysler said last week that Creed, 62, will retire at the end of the month. He will be succeeded by Ralph Gilles, 38, who led the design teams that created the Chrysler 300 and the redesigned Ram truck, which will arrive this fall. CHRYSLER CHRONOS http://autonews.com http://autonews.com/edwardlapham
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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