Automotive News - August 25, 2008 - (Page 6) 6 • AUGUST 25, 2008 Cadillac will offer 4-cylinder sedan in ’10 Rick Kranz rkranz@crain.com PEBBLE BEACH, Calif. — Cadillac will introduce a small sedan with a four-cylinder engine in the United States — a prospect unthinkable just 12 months ago. The rear-drive sedan will debut in late 2010 as a 2011 model. Cadillac executives are arguing over whether to offer a V-6 option. “There is a big debate as to whether it is four only. I think that is a bridge too far,” said Cadillac General Manager Jim Taylor at a press event here. “There is a piece of the team who is thinking, ‘Well, with this whole fuel economy and gas thing, we ought to go all the way, say, to fours.’ We are resisting that at this stage.” Also in the equation are new federal Cadillac’s Jim Taylor: Execs are debating whether to offer a V-6 option. fuel economy standards that begin to take effect in the 2011 model year. The car, whose name has not been announced, will be positioned under the CTS. In Europe, Cadillac markets the BLS, a small front-drive sedan and wagon. It shares a platform with the Saab 9-3 and is powered by a four-cylinder diesel or gasoline engine. Both engines are turbocharged. BLS sales have been disappointing. Taylor said his team is discussing whether to call the U.S. car the BLS. He said the V-6 debate centers on whether U.S. buyers would accept only a four-cylinder engine — even if it gets a turbocharger like Saab’s. “I don’t think Americans are going to become un-American that fast,” said Taylor. “They still want power. We still have big open roads. People do not want to stop enjoying driving.” c Lawsuit alleges insider trades by CarMax execs Arlena Sawyers asawyers@crain.com Top executives of CarMax Inc. engaged in illegal insider trading this year while deceiving stockholders about the company’s financial condition, a federal lawsuit alleges. In the suit, filed this month in Alexandria, Va., shareholder Peter Rangos claims the executives knew but did not disclose that the used-vehicle retailer would not meet internal sales targets in the three months that ended May 31. At the same time, the suit alleges, four CarMax vice presidents and a board member sold 365,816 shares of company stock at a profit of more than $7.6 million between April 14 and May 15. The complaint alleges the executives illegally used inside information when they sold the stock. CarMax spokeswoman Trina Lee said the company is “reviewing the allegations in the complaint and intends to vigorously defend” itself. In June, CarMax said its net earnings in the quarter that ended May 31 dropped 55 percent from the yearago quarter, to $29.6 million. “Upon this news, shares of the company’s stock fell $2 per share or approximately 11 percent,” the suit says. Named in the suit are Keith Browning, CarMax executive vice president and CFO; Michael Dolan, executive vice president and chief administrative officer; Richard Smith, senior vice president and chief information officer; Joseph Kunkel, senior vice president of marketing and strategy; and board member Hugh Robinson. Rangos’ lawyer, Jeffrey Berens, said he wants to have the suit certified as a class action. That class would encompass buyers of CarMax stock between April 2 and June 17, court papers said. According to a court document, Rangos paid $32,370 or $19.50 a share for 1,660 shares of CarMax stock on May 28 and June 2. Last month, he sold the stock for $23,572 or $14.20 a share. Last week, CarMax stock traded at less than $15 a share. c The Infiniti G37 hard-top convertible has all new sheet metal from the end of the doors to the end of the vehicle. Infiniti’s stylish stretch G37 hard-top convertible is wider, longer than the coupe Rick Kranz rkranz@crain.com PEBBLE BEACH, Calif. — To create the 2009 Infiniti G37 hard-top convertible, it all came down to proportions. By adding a little here and there, designer Shiro Nakamura says, his team was able to camouflage the tall trunk required to store the convertible’s bulky top. The car, based on the G37 coupe, will be unveiled at the Los Angeles auto show in November. It goes on sale in the first quarter of 2009. Nakamura, global design director for Nissan Motor Co., put a high priority on “maintaining the good proportions of this car.” “There were lots of discussions with engineers and suppliers. By slightly widening, slightly lengthening the car, it all balances fine,” he said at an Infiniti press event here. All sheet metal from the end of the doors to the end of the car was replaced. New rear fenders flare out slightly to accommodate the retractable roof. The rear track also was widened, and the taillights were redesigned. The convertible is several inches longer than the G37 coupe. Specific dimensions were not revealed. “From the rear quarter view it looks different — its own car,” Nakamura said. “Normally with this kind of metal top configuration, it is not easy to store the roof” and make the car’s overall styling attractive, he said. “Actually, this is quite high.” But with the car’s new dimensions, Nakamura said, stylists were able to make the rear portion appear lower than it is. c Brilliance will display two sedans, a coupe and a hatchback at the Detroit auto show in January. The company sent its BS4, shown, and BS6 to the United States in June 2007 for emission and crash tests. Honda: Dealerships will have Fits more than a month early Craig Trudell ctrudell@crain.com New Fit is bigger and sportier ➤ 41 to allot between 80,000 and 90,000 units of the 2009 model for the United States. Honda has five plants making the vehicle, but its Suzuka, Japan, factory is the only one shipping Fits to the United States. Martin said Honda has the option of increasing Fit production at the Suzuka plant if U.S. demand for the Fit continues to rise. The base sticker of the 2009 Fit, including destination, will be $15,220. Honda raised the price on the new model by $600 from the 2008 model. The Fit will get up to 35 mpg on the highway and 28 mpg in the city. c China’s Brilliance to show cars in Detroit Lan Lan lanlan@autonewschina.com BEIJING — Brilliance Jinbei Automotive Co., a small Chinese automaker, will display two sedans, a coupe and a hatchback at the Detroit auto show in January. The company says it wants to start selling cars in the United States next year, but the cars have not passed U.S. government tests for safety and emissions. Brilliance says it has hired engineering consultants to upgrade its cars. In recent years, various Chinese automakers have announced ambitious plans to sell cars in the United States. But they later delayed or postponed their plans when they realized the substantial investment required to pass U.S. tests, meet high expectations of American consumers and establish dealerships. At the Beijing auto show in April, Brilliance Vice President He Guohua told Automotive News China that Brilliance sent its BS6 and BS4 cars to the United States in June 2007 for emission and crash tests. He said Brilliance has hired the engineering arm of Porsche AG to work on the crash safety of the two models and FEV Inc., a U.S. engine technology company, to reduce emissions. Brilliance’s spokeswoman says her company expects to sell cars in the United States sometime in 2009. She declined to provide details on the company’s plans for U.S. dealers and distribution. Brilliance and joint venture partner BMW AG produce BMW brand cars in China. In 2007, Brilliance produced 125,313 of its own vehicles, according to Automotive Resources Asia, a unit of J.D. Power and Associates. c Dealers will get the redesigned Honda Fit subcompact more than a month sooner than planned, a Honda Motor Co. spokesman said. The 2009 Fit will arrive in dealerships Tuesday, Aug. 26. Honda’s earlier plans were for the updated Fit to arrive in October. “We basically increased supply as much as we could to meet demand, and we were still going to be sold out of the 2008 model,” spokesman Chris Martin said. “We had to do something so that our dealers would not be without the small cars that buyers are seeking.” In the first seven months of the year, Fit sales in the United States rose 72.9 percent to 52,053 units. In July alone, Honda sold 12,266 Fits, up 93.4 percent. In June, Honda said it would boost output of the Fit to meet soaring demand. At that time, the automaker planned to increase its U.S. allotment to 80,000 units from 60,000. Honda is now projecting annual demand of 85,000 units for the Fit, Martin said. The automaker plans The 2009 Fit arrives in dealerships this week.
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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