Automotive News - September 29, 2008 - (Page 12) 12 • SEPTEMBER 29, 2008 opinion Chic small cars? Check them out at the Paris show When U.S. auto executives convene this week at the Paris auto show, they’ll get a look at Europe’s newest batch of small cars — the fuel-efficient minis and micros that Americans attending the show normally pass right by. This year they ought to spend some time checking out these Europeonly city cars. Some of them are beautiful. Several command a nice price. Clearly, small cars are a factor in America’s future, and there is a lot to learn from German, French and Italian volume manufacturers and their suppliers. In Europe, small cars long have been in the mainstream. They are family vehicles, not When small cars fill just basic transportation. So they must be attractive. a higher purpose Americans will get a taste of that as cars such as the Ford in people’s lives, Fiesta arrive in the United States. The Fiesta, which deautomakers can add buts here in 2010, reflects content and charge Ford of Europe’s kinetic design philosophy. Design adds value. But for a higher price. the Europeans, content is king. That means more than just upgrading the interior on base models. Much higher fuel prices than in the United States and a more restricted infrastructure force Europeans into small vehicles. Those conditions also force the Continent’s six major volume makers, including Ford and General Motors, to be smart. There is hardly a big pickup or SUV or even a true luxury car to be found in their product lineups. The prestige sedans, with their fat margins, are left mainly to Mercedes, BMW and Audi. So how do Europe’s mass marketers get by selling only cars — and mostly small cars at that? By adding content. When small cars fill a higher purpose in people’s lives, automakers can do that and charge a higher price. That has to happen in America. U.S. automakers already are seeing higher transaction prices on cars such as the Chevrolet Cobalt and Ford Focus. But they have a long way to go. People want smaller, fuel-efficient vehicles, but they still want nice cars. This is central to the strategy for making money on small cars. Consumers want sunroofs, leather, navigation systems. And they want style. It can be done. For proof, just look around the stands at the Paris show. OK, so the Wall Street folks are losing a lot of money, and the treasury secretary from Wall Street wanted the better part of a trillion dollars to bail out Wall Street. To borrow a quote from a U.S. general in World War II: “Nuts.” I wonder what would have happened if the secretary of the treasury had been from General Motors rather than Goldman Sachs. Our government probably would be a lot more concerned about saving the manufacturing base of our nation, and we would be more than happy to let a bunch of Wall Street executives and their firms pay for their bad decisions by losing some money. Well, the nation would be OK without a Wall Street bailout. The auto industry has more than a million employees whose livelihoods would be threatened by failure. That’s a lot more than the employees of a few companies in New York, to say nothing of the industrial might of the nation. DAILY AUTO NEWS >> You can get the news you need every day. Go to www.autonews.com/signup and sign up for our daily e-mail newsletter. Bailouts are a bad idea There is a bias toward Wall Street, especially among those who made their millions there. The idea that our treasury secretary owes his fortune to his career as an investment banker should disqualify him immediately from any discussion of using taxpayer dollars to prop up Wall Street. He is compromised. My guess is that most members of Congress also are compromised and should eliminate themselves as well. It might make sense, for a study of the problem, to find some academics who have no ties to the companies that will prosper from a bailout. Those Wall Street companies bought portfolios of bad home loans to make money. The companies are at risk because of their bad judgment, and they should take their losses. After all, the mortgages haven’t gone away. The homeowner still has the same mortgage regardless of who owns it. At the same time, the auto industry has had to jump through hoops just to get $25 billion in low-interest loans that will be paid back. And the domestic automakers and suppliers want the loans to help finance technology that will help meet new government mandates. Once again, there has been some screwy thinking in Congress. We shouldn’t be jumping into decisions that will increase the indebtedness of the American people. This is no simple problem with a simple solution. Let’s not give Wall Street hundreds of billions of dollars on a whim. The nation, including the auto industry, needs the attention that it deserves. The mess on Wall Street is only a distraction from a thorough study of our manufacturing base. It’s time for the members of Congress to sit back and take a deep breath. It’s time for us to call, write or e-mail our lawmakers and tell them not to do anything rash. This problem is way too important for us to leap into a hasty response with insufficient information and deliberation. When I worked out of the New York zone in 1965, Bill Massey, the Cadillac zone manager, taught us that when we made a dealer contact to be sure to find at least one process or suggestion to help the dealers. If you could not, move on the next dealer. What a powerful message. That policy brought in huge dollars as well as dealer loyalty for GM. Those were the golden years. TOM PAYETTE Louisville, Ky. The writer is retired. He worked as a Cadillac field representative, a dealership sales and general manager, and a dealer. Ford field rep didn’t help at all To the Editor: Jack Jackson’s Sept. 1 letter regarding the lack of support from General Motors field personnel hits the nail right on the head and mirrors a recent experience we had with our Ford parts and service zone manager. A few weeks ago, a prominent community member who is one of our best customers had a significant problem with his near-new Ford Expedition that we were unable to repair despite repeated contacts with the Ford tech hotline and a Ford field service engineer. The zone manager was completely unhelpful. Even after admitting the applicability of Wyoming’s lemon law, he refused to offer any assistance. We ended up buying the Expedition back ourselves because of Ford’s unwillingness to take care of our mutual customer. Now we have a $20,000 Expedition that will not run sitting on our back lot and little hope of receiving any assistance from Ford in the repair or disposal of it. Such poor decision making by factory employees who can make a difference will make it harder for us to satisfy our ever-shrinking customer base. Happy customers are one of our most important assets. I hope our manufacturer realizes that before it’s too late. STEVE MARSHALL Laramie, Wyo. The writer is a new-car dealer. THE WEEKLY NEWSPAPER OF THE INDUSTRY Established in 1925, published every Monday by Crain Communications Inc. Credit’s no problem, but a weak brand is To the Editor: I do not agree with Chrysler LLC exec Deborah Meyer that “financing is the biggest challenge that customers have in the marketplace” (“#1 sale-killer: Credit, not fuel prices,” Sept. 15). From my experience selling both strong and weak brands, I can tell you that one of the characteristics of a weak brand is a decline in purchase consideration by educated, well-informed consumers who also tend to have better credit scores. Left behind are the less-qualified buyers. That leaves dealers wondering why everyone walking into the showroom has bad credit. Blaming declining sales on tight credit probably sounds good to Cerberus managers, who have very little retail understanding, but it’s not true. There is plenty of credit available to qualified buyers. What Chrysler is really looking at is a symptom of its overall health — quality, value and the consumer’s level of confidence in its brands. LARRY MERRIAM President Key Auto Group Inc. (HyundaiMitsubishi) Bridgeport, Conn. Keith E. Crain, Publisher and Editor-in-Chief Peter Brown, Associate Publisher and Editorial Director David Sedgwick, Editor Edward Lapham, Executive Editor HOW TO REACH US Web site: www.autonews.com Editorial staff autonews@crain.com Phone: 313-446-0361 Fax: 313-446-0383 Circulation Advertising subs@crain.com rgreer@crain.com Phone: 888-446-1422 Phone: 313-446-6050 Fax: 313-446-6777 Fax: 313-446-8030 Editorial data/research To locate information that has been published in Automotive News, call 313-446-1662. Customer service To start or renew a subscription or to report an address change or a delivery problem, e-mail subs@crain.com or call 888-446-1422 (in the U.S. or Canada) or 313-446-1662 (in all other locations). AUTOMOTIVE NEWS (ISSN 0005-1551) is published weekly at 1155 Gratiot Ave., Detroit, MI 48207-2997. Periodicals postage is paid at Detroit, MI and at additional mailing offices. Postmaster: Send address changes to AUTOMOTIVE NEWS, Circulation Department, 1155 Gratiot Ave., Detroit, MI 48207-2912. Canadian Post International Publications Mail Product (Canadian Distribution) Sales Agreement #40012850, GST#136760444. Canadian return address: 2-7496 Bath Road, Mississauga, ON L4T 1L2 Printed in the U.S.A. Helping dealers helped GM To the Editor: Jack Jackson’s comments parallel my 50 years of experience with General Motors (“Field reps blamed for GM’s problems,” Letters, Sept. 1). When I started with Cadillac in 1957 as a field representative, we were instructed to make sure dealers were given help to assist in their success. GM recognized in its first 50 years that assisting dealers benefited GM. That changed in the mid1970s, and apparently the situation has not improved since. http://www.autonews.com/signup http://www.autonews.com
Table of Contents Feed for the Digital Edition of Automotive News - September 29, 2008 GM, Ford and Chrysler place new-product bets Credit freeze could mean cash crisis Mr. Big Volume reaches the end of the line Korea's revolving door Mazda quits Ford Credit for Chase Mitsubishi, UAW reach tentative agreement Volt could break feds' 100 mpg ceiling Chase cuts back on auto leasing Target for Traverse: No. 1 in large crossovers BMW's new 7 series: Timing may be all wrong Tucson revisited Can Ford light fire under Fiesta? Lithia puts brakes on used-car stores Revived Mercury will focus on 3 segments VW taps 'zealots' to promote diesels Farley, Leuliette will kick off World Congress The new Soul (and nose) of Kia Hyundai: Drivetrain key to more mpg Taxpayers at risk if firms get fed loans - then fail GM plans high-tech small engines for Volt and Cruze Buick looks upscale Denso says U.S. woes will cut its profits Denso: No plans to make hybrid parts in U.S. Bailouts are a bad idea Chic small cars? Check them out at the Paris show Credit's no problem, but a weak brand is Helping dealers helped GM Ford field rep didn't help at all Who knew? Electric cars are fun to drive Where is the power going to come from? Hyundai shifts its U.S. ad agency Hyundai, Kia mold separate identities Behind on hybrids, Hyundai sets high goals Dealers Flashes of genius, years of turmoil No cop-out; car designed for police use PICTURE THIS: A trip to the bank RV sales drop 31.9% in June Mexico sales off 4.8% in Aug., 1.2% for 8 mos. Suzuki to aim pickup at motorcycle owners Experts: Learn Korean hierarchies Readers' comments on Bill Heard's collapse Bill Ford sells some Ford stock CarMax net income falls ArvinMeritor raises forecast Toyota plans CNG concept Chrysler cuts 250-300 salaried workers Minority supplier drops stamping business Will Cerberus buy up Chrysler to wave bye-bye? Rioters kill supplier exec in India No pickup seen for pickups Piech's ploy was masterstroke in war with Porsche Honda's highway groove music: It sounded better on vinyl St. Louis dealer to paper that outsourced typesetters: 'Deal me out' Automotive News - September 29, 2008 Automotive News - September 29, 2008 - (Page Intro) Automotive News - September 29, 2008 - (Page Bellyband1) Automotive News - September 29, 2008 - (Page Bellyband2) Automotive News - September 29, 2008 - Mr. Big Volume reaches the end of the line (Page 1) Automotive News - September 29, 2008 - Mr. Big Volume reaches the end of the line (Page 2) Automotive News - September 29, 2008 - Volt could break feds' 100 mpg ceiling (Page 3) Automotive News - September 29, 2008 - Tucson revisited (Page 4) Automotive News - September 29, 2008 - Tucson revisited (Page 5) Automotive News - September 29, 2008 - The new Soul (and nose) of Kia (Page 6) Automotive News - September 29, 2008 - The new Soul (and nose) of Kia (Page 7) Automotive News - September 29, 2008 - Buick looks upscale (Page 8) Automotive News - September 29, 2008 - Buick looks upscale (Page G1) Automotive News - September 29, 2008 - Buick looks upscale (Page G2) Automotive News - September 29, 2008 - Buick looks upscale (Page G3) Automotive News - September 29, 2008 - Buick looks upscale (Page G4) Automotive News - September 29, 2008 - Buick looks upscale (Page G5) Automotive News - September 29, 2008 - Buick looks upscale (Page G6) Automotive News - September 29, 2008 - Buick looks upscale (Page G7) Automotive News - September 29, 2008 - Buick looks upscale (Page G8) Automotive News - September 29, 2008 - Buick looks upscale (Page G9) Automotive News - September 29, 2008 - Buick looks upscale (Page G10) Automotive News - September 29, 2008 - Buick looks upscale (Page G11) Automotive News - September 29, 2008 - Buick looks upscale (Page G12) Automotive News - September 29, 2008 - Flashes of genius, years of turmoil (Page 9) Automotive News - September 29, 2008 - Denso says U.S. woes will cut its profits (Page 10) Automotive News - September 29, 2008 - Denso says U.S. woes will cut its profits (Page 11) Automotive News - September 29, 2008 - Ford field rep didn't help at all (Page 12) Automotive News - September 29, 2008 - Ford field rep didn't help at all (Page 13) Automotive News - September 29, 2008 - Where is the power going to come from? (Page 14) Automotive News - September 29, 2008 - Where is the power going to come from? (Page 15) Automotive News - September 29, 2008 - Hyundai, Kia mold separate identities (Page 16) Automotive News - September 29, 2008 - Hyundai, Kia mold separate identities (Page 17) Automotive News - September 29, 2008 - Behind on hybrids, Hyundai sets high goals (Page 18) Automotive News - September 29, 2008 - Behind on hybrids, Hyundai sets high goals (Page 19) Automotive News - September 29, 2008 - Dealers (Page 20) Automotive News - September 29, 2008 - Dealers (Page 21) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 22) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 23) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 24) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 25) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 26) Automotive News - September 29, 2008 - Mexico sales off 4.8% in Aug., 1.2% for 8 mos. (Page 27) Automotive News - September 29, 2008 - Suzuki to aim pickup at motorcycle owners (Page 28) Automotive News - September 29, 2008 - Experts: Learn Korean hierarchies (Page 29) Automotive News - September 29, 2008 - Readers' comments on Bill Heard's collapse (Page 30) Automotive News - September 29, 2008 - Chrysler cuts 250-300 salaried workers (Page 31) Automotive News - September 29, 2008 - Minority supplier drops stamping business (Page 32) Automotive News - September 29, 2008 - Minority supplier drops stamping business (Page 33) Automotive News - September 29, 2008 - St. Louis dealer to paper that outsourced typesetters: 'Deal me out' (Page 34) Automotive News - September 29, 2008 - St. Louis dealer to paper that outsourced typesetters: 'Deal me out' (Page 35) Automotive News - September 29, 2008 - St. Louis dealer to paper that outsourced typesetters: 'Deal me out' (Page 36)
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