Automotive News - February 18, 2008 - (Page 24)

24 • FEBRUARY 18, 2008 VW ponders Phaeton’s U.S. flop, may try again Rick Kranz rkranz@crain.com As Volkswagen’s U.S. executives ponder whether to bring back the Phaeton, they are trying to figure out what went wrong the first time. VW’s big luxury sedan flopped after it debuted here in November 2003. The decision to drop it from the U.S. lineup was made less than two years later. “We did a lot of things wrong with the car,” said Stefan Jacoby, CEO of the Volkswagen Group of America. “It was too high-priced, and at the beginning we had some quality issues that we were not fast enough to solve.” Jacoby didn’t give a timetable for the redesigned Phaeton, but the car is The Volkswagen Phaeton, left, is still being sold in Europe. A redesign is scheduled for 2010. Short, unhappy life VW Phaeton U.S. sales 2007 17 2006 235 2005 820 2004 1,939 2003* 343 Total 3,354 *Went on sale Nov. 2003 Source: Automotive News Data Center expected to debut in Europe in 2010. It will be shorter than the first one, to differentiate it from the Audi A8. As for a U.S. sticker, Jacoby said: “$55,000 would be a good price.” Annual sales in the United States ranged from 17 units to 1,939. Initial forecasts called for 5,000 units annually. Critics here blamed the price — ranging from about $70,000 for the V-8 model to more than $100,000 for the 12-cylinder with all-wheel drive. Some said U.S. car buyers still view VW as an entry-level brand. When launched in Europe in 2002 and the United States in 2003, the Phaeton was priced to go head to head with the BMW 7 series and Mercedes-Benz S class. Despite all the problems, Jacoby said VW made a mistake by dropping the Phaeton from its U.S. lineup. “You need a little more patience when introducing a car in this market,” he said. “It is not easy. Germans have high expectations, but we are easily disappointed. It takes time. “When you meet a Phaeton driver today, they are impressed. They love this car.” Asked whether another name will be used for the redesigned car, Jacoby said: “Names are brands. I’m against (dropping) a name and introducing another. “The Phaeton is the name of Volkswagen’s luxury. We are proud of this name, and this name fits this car.” c David McGuffie came to Covisint in 2004 from Ford. McGuffie is Covisint’s president Tom Henderson thenderson@crain.com DETROIT — David McGuffie has been named president of Covisint. He succeeds Bob Paul. Paul was promoted to president and COO of Covisint’s Detroit parent, Compuware Corp. McGuffie, 47, came to Compuware when Covisint was acquired in 2004. Since then, he has been senior vice president of information technology for Covisint. He was responsible for product development and the daily operations of the Covisint service. Before joining Covisint, McGuffie spent 15 years at Ford Motor Co., holding a number of information technology positions. Compuware makes software used to develop information technology systems. Paul, 45, had been president and COO of the Covisint business unit since its acquisition by Compuware. He will report to Compuware founder and CEO Peter Karmanos. Compuware is investigating a possible initial public offering of Covisint, a fast-growing provider of secure Web-based exchanges of data and business transactions, much of it in the auto industry. Until last fall, Compuware didn’t break out Covisint’s revenue in its quarterly earnings report. Covisint posted revenue of about $9.5 million in the first quarter of Compuware’s fiscal year, which ended June 30, and $10.1 million for the quarter that ended Sept. 30, up 40 percent from a year earlier. Paul said in a recent interview that he expects Covisint’s revenue to continue to grow briskly. He told Crain’s Detroit Business that “65 percent growth over the last fiscal year is attainable.” c Philip Nussel contributed to this report http://www.usemafs.com http://www.usamafs.com http://www.usemafs.com

Table of Contents Feed for the Digital Edition of Automotive News - February 18, 2008

Ford cuts equipment combinations on '09s Lenders shun subprime market Toyota dealers test satellite service centers Despite cost, more carmakers use laminated glass Merger produces turnaround firm Chrysler would shut to move Plastech work Jeep accessories: Mo' for Mopar Auctions: Repos are rising Automakers face more child safety rules Supplier Personnel Family-owned stores could be tough sell for consolidation What would lineup be with brands under single roof? Mercedes will pay $9.5 million to settle suit Beru revamps strategy to boost profits, growth Jaguar: Dealers take 10,000 customer deposits for XF sedans Chrysler exec: Performance segment will survive Mahindra to offer hybrids in U.S. Mazda ad agency hires VW and Mini creative whiz Icy weather and perhaps boredom chill roadster sales GM, Saturn: What's after Reynolds? Ford: Mid-sized model year for mid-sized cars Kia's new American boss: Let's boost sales Rolls gets sporty Luxury brands push to meet demand in Russia Dealer is makers' best voice in D.C. Get real, Kia, Hyundai Face it, Detroit: Trimming dealers will be expensive GM has confidence in the Chevy Volt It's no wonder auto sales are declining A workable idea: GM dealer buyouts It's deja vu again with reborn 2CV Nothing beats face to face There's a person behind that e-mail Buying cars online makes perfect sense Bush seeks to save 2008-11 CAFE rules Personnel Lear investor: No regrets about blocking buyout GM CFO is mum on more aid to Delphi Dealers Road to tomorrow is paved with plastics Council aims to keep Ford current on environmental issues VW ponders Phaeton's U.S. flop, may try again McGuffie is Covisint's president In hydrogen race, Mazda seeks quicker route Suit seeks to enforce title-washing remedy Suppliers to the 2008 Buick Enclave Mercedes, Audi warn dealers: No sales for export Sykora wants CAFE flexibility Minority dealers see tough times in 2008 Arlena Sawyers Toyota goal: Create stress-free store NADA's Taylor predicts 15.7 million U.S. sales this year Honda widens support for dealer ad groups Jay's jabs Survival 101: Get lean, work harder Microsoft will test dealership system Farley wants market-by-market sales strategy Entertaining the troops Report: Detroit 3 cutbacks curb rental-fleet sales Dilts: High interest rates hurt industry GM asks for dealer assistance on quality On the Record Fisker: We're close to making plug-in car J.D. Power exec: Internet leads are slipping away Minority auto group nears 2 deals Garmin makes navigation technology deal Tenneco wins Ford work B-P-G focuses on new product push Volvo offers cash to thin the herd Cadillac challenges dealers to boost sales Chevrolet can stay No. 1, if it will fight GM will push a green marketing message Saturn is expected to be GM's growth brand Certified used sales help Honda dealer profits Hummer counts on pickup to perk sales Mazda will boost marketing budget, unveil Mazda6 Saab dealers to get new vehicles Toyota wants even better customer loyalty Infiniti stresses profits and customer satisfaction Mitsubishi CEO sets tough U.S. sales goal Nissan exec: New models will boost per-store sales Suzuki dealers cheer return of incentives Ford to boost dealer margins Jag dealers anxiously await the XF Ford executives vague about Mercury future Subaru dealers want diesels, hybrids Acura upscale shift inspires 'great faith in the future' BMW readies national loaner-car program Land Rover: Future upbeat, unclear VW dealers get vehicles on wish list Chrysler dealers OK with consolidation plan Mercedes pushes dealership standards Porsche shrinks as luxury segment lapses Large Hyundai dealers get more room to roam Execs' exit stuns Kia dealers Ford recalls 180,000 trucks over door part, fuel hose GM posts massive loss; eyes N.A. profits by 2011 Big-truck sales fall 33.5% in Jan. WTO rips China's tariffs on imported auto parts Fiesta will rejoin the party in the U.S. UAW's Valentine to Delphi: Hands off our pensions Rx for dealership flux: NFL draft + Mideast bazaar Toyota gets the boot in Mexico Nissan triples female managers Silverado hits a million, rolls on

Automotive News - February 18, 2008

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