Automotive News - September 29, 2008 - (Page 3) SEPTEMBER 29, 2008 • 3 83rd year — No. 6327 Volt could break feds’ 100 mpg ceiling WASHINGTON — General Motors is asking the EPA to declare the Chevrolet Volt an electric vehicle for regulatory purposes. If that’s granted, the vehicle could get a government rating of more than 100 mpg and would be the first massproduced vehicle to get such a designation. GM spokesman Rob Peterson confirmed the request Friday. Normally, a vehicle is run on an EPA test loop to provide data for calculating fuel economy. But for electrics, which have no emissions, the government uses an Energy Department mathematical formula to translate energy use into some equivalent of miles per gallon. — Harry Stoffer and Richard Truett Mitsubishi, UAW reach tentative agreement Mitsubishi Motors North America Inc. on Friday reached a tentative labor agreement with its U.S. factory workers after three weeks of operating without a contract. Workers at the Normal, Ill., plant learned of the agreement during lunch. Neither side would comment on the specifics or say when a ratification vote would be taken. The factory, which builds the Galant sedan, Eclipse coupe, Eclipse Spyder and Endeavor crossover, has been the linchpin of Mitsubishi’s North American business plan. But Mitsubishi’s U.S. struggles have kept the plant running below capacity for years. It remains to be seen whether the new contract will reduce union wages at the plant, as the UAW has agreed to do at other U.S. automakers. — Lindsay Chappell Hyundai brooms many of its Korean executives — not just Americans Gary Anglebrandt autonews@crain.com news ANALYSIS Hyundai Motor exec moves to Hyundai Mobis SEOUL — South Korea’s Hyundai Motor Co. said Friday that Vice Chairman Kim Dong-jin had resigned to become vice chairman at affiliate Hyundai Mobis. Hyundai Motor Group posted Kim to head the auto parts maker, “our key pillar for growth,” South Korea’s largest carmaker said in a statement. Kim’s appointment is part of the group’s efforts to focus more on components and expanding its global influence. — Reuters SEOUL — When a top executive departs Hyundai or Kia in the United States, people grumble about how Koreans distrust outsiders. Having worked in Korea during the past five years, I have heard the same grumbling. It’s often true. Koreans are famously wary of outsiders. Every year, crowds take to the streets of Seoul to protest something foreign. This year’s target was American beef imports. At Hyundai Motor America, top executives Bob Cosmai and Steve Wilhite were pushed out in the past few years. At Kia Motors America, Peter Butterfield was ousted in 2005, and Len Hunt departed in February. Nevertheless, the notion that Hyundai discriminates only against foreign executives is off base. In fact, Hyundai axes Korean executives frequently, too. Even the son of Hyundai Motor Co.’s chairman isn’t safe. Chung Eui-sun lost his job as Kia CEO in March, although he now is president in charge of overseas sales. At Hyundai, executive turnover says more about Korea’s corporate culture than it does about Americans. To prove my hunch, I pored over recent annual reports of Hyundai and Kia. Sure enough, it turns out that Hyundai is an equal-opportunity pinkslipper. From the beginning of 2004 until the end of 2007, 41 names left the rolls of Hyundai Motor Co.’s top five levels of executives at the company’s domestic operations. In the first half of this year, 12 more names left out of a total of 61. For MORE ON KOREAN AUTOMAKERS Drivetrain key to more mpg at Hyundai ➤ 8 Kia, Hyundai mold separate identities ➤ 16 Hyundai shifts its U.S. ad agency ➤ 16 Hyundai sets high hybrid goals ➤18 Experts: Learn Korean hierarchies ➤29 Kia Motors Corp. during the same period in Korea, 41 top executives left. All of the departed executives at both Kia and Hyundai were Korean. The reason for this shuffling is the chairmendominated system of large Korean companies, called chaebol. ‘We call them slaves’ “Executives are sometimes compared to a candle by the window. The wind blows them out,” says Kim Tae-nyen, a director at the Korea Automobile Manufacturers Association. see KOREA, Page 29 Mazda quits Ford Credit for Chase Donna Harris dharris@crain.com Chase cuts back on auto leasing ➤ 4 said O’Sullivan. Chase is the No. 3 U.S. auto lender, according to Experian Automotive’s AutoCount. Ford Credit is No. 5. Randy Hiley, a Mazda dealer in suburban Dallas, called the switch of lenders “a positive move.” “Chase should be a good fit,” Hiley told Automotive News. “They are financially sound, and their borrowing costs are much lower than Ford’s. This should make us more competitive.” Chase spokesman Mary Kay Bean cited the bank’s “specific experience working with manufacturers of mainly small and mid-sized vehicles,” such CORRECTIONS A photo on Page 111 of the Sept. 15 General Motors special edition is misidentified as the Buick Roadmaster. It is a Super. A photo on Page 112 of the edition is misidentified as the 1956 Chevrolet Bel Air. It is a 1957 model. A story on Page 3 of the Sept. 22 issue had the wrong name for supplier Tenneco Inc. Mazda North American Operations and Ford Motor Credit Co. are parting ways. Starting next month, Mazda will use Chase Auto Finance as its chief source of financial services to U.S. dealers and customers. Chase will offer Mazda dealers subvented retail and lease programs, Mazda CEO Jim O’Sullivan told dealers last week in an e-mail message. Mazda American Credit, a brand of Ford Credit, now provides those services. “This action has mutual benefits in the tough business environment and tight credit markets that are challenging the entire industry,” as Subaru and Saturn. In addition to consumer loans and leases, Bean said, Chase will provide Mazda dealers inventory financing and such products as extended service plans and guaranteed asset-protection insurance. Ford Credit spokeswoman Brenda Hines said the change by Mazda will allow the captive “to focus on supporting the other Ford Motor Company brands.” Ford Credit provides financing to Ford, Lincoln, Mercury and Volvo dealers. Although Ford has sold Jaguar and Land Rover, the captive will finance those brands’ U.S. dealers through May 2009. Hines said Ford Credit will contin- ue to floorplan Mazda dealerships that also sell Ford brands. Customers who are financed through Mazda American Credit will still do business with Ford Credit, O’Sullivan said in the e-mail. Mazda spokesman Jeremy Barnes said Chase initially will provide financial services to Mazda under its own name. Mazda may develop a new brand for its finance products, Barnes added. O’Sullivan said the change of lenders does not affect Mazda’s broader relationship with Ford Motor Co. Ford owns 33.4 percent of Mazda Motor Corp. At the beginning of 2008, Mazda had 662 U.S. franchises. c NEWSCOM Korea’s revolving door
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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