Automotive News - September 29, 2008 - (Page 6) 6 • SEPTEMBER 29, 2008 Revived Mercury will focus on 3 segments Rick Kranz rkranz@crain.com As Mercury is recast and new models arrive next decade, the brand will concentrate on three vehicle segments. “What Mercury people told us is please stay in the core of the market,” said Jim Farley, Ford Motor Co.’s group vice president of marketing and communications. “And the core of the U.S. market right now, other than full-sized trucks and full-sized SUVS, is the C Mercury’s lineup will have a new small car, the Milan sedan and the Mariner crossover. A camouflaged Milan was snapped during testing. JIM DUNNE AND BRIAN WILLIAMS/BRENDA PRIDDY & CO. segment, the C-D segment and the crossover segment,” Farley said in an interview last week at a Ford event in Detroit. “You add up those segments, and they are more than half of the industry.” That means Mercury’s line will consist of a new small car on the redesigned front-drive Ford Focus platform, the Milan sedan and the Mariner crossover. A restyled, reengineered Milan, along with a hybrid version, will be offered for the 2010 model year. The small Mercury will arrive in the 2011 model year. Mercury also markets the Sable and Grand Marquis cars and Mountaineer SUV. Ford Motor is likely to discontinue those models. Mercury’s models will have unique sheet metal from the A-pillar forward along with a trunk lid and rear fascia that differentiate each model from a Ford. That strategy is currently applied to the Milan and Mariner. “You can expect similar differentiation to what we have today,” said Derrick Kuzak, Ford’s product chief. “It has been reasonably successful.” Farley said Mercury’s vehicles will need to have styling distinctive from Ford’s because Ford Motor is pushing a dealer consolidation plan that puts Ford, Mercury and Lincoln under one roof.c Lithia CEO Sid DeBoer: Expansion of used-vehicle stores will resume when the nation’s economy improves. Farley: Ford’s marketing chief Leuliette: Dura’s CEO since July Farley, Leuliette will kick off World Congress Jim Farley, Ford Motor Co.’s top marketing executive, and Tim Leuliette, CEO of Dura Automotive Systems, will be among the speakers opening the 33rd Automotive News World Congress in Detroit on Tuesday morning, Jan. 20. Since joining Ford from Toyota Motor Sales U.S.A. Inc. in November 2007, Farley, 46, has overhauled the marketing team and worked to retool Ford’s image. As group vice president of marketing and communications, he launched a Ford brand campaign and got dealers more involved in local advertising and marketing decisions. Farley has been elected an Automotive News All-Star for four consecutive years, dating back to his days at Toyota. He ran the Toyota and Lexus divisions and was instrumental in the successful launch of the Scion brand. Leuliette, 58, took the helm at Dura in July, just after the supplier emerged from 20 months in Chapter 11 bankruptcy reorganization. The company still must cut costs by $100 million and develop new business in North America, Europe and China. Before joining Dura, Leuliette was CEO of Metaldyne Corp. He began his career at Ford and later was director of product planning at American Motors Corp. Leuliette also has worked at ITT Automotive, Siemens Automotive and AlliedSignal Automotive and was COO of Penske Corp.c Lithia puts brakes on used-car stores Donna Harris dharris@crain.com ■ The new Soul (and nose) of Kia The Kia Soul, a small car unveiled in Seoul last week, has what design chief Peter Schreyer calls the brand’s new “signature feature”: a “tiger-nose” grille. “From now on,” he says, “we’ll have it on all our cars.” Schreyer says the look is meant to give people “a certain awareness of Kia all over the world.” North American sales are scheduled to start in April. Can Ford light fire under Fiesta? Jamie LaReau jlareau@crain.com DETROIT — Ford Motor Co. wants to create buzz about the new European Fiesta subcompact car well before it arrives for sale in the United States in 2010. Ford may bring foreign versions of the car in to use in promotions. “We have some really big advantages at Ford that aren’t necessarily monetary,” Jim Farley, Ford’s group vice president of marketing and communications, said during an interview with Automotive News. “We have time on our side. “We are producing a Chinese fourdoor Fiesta in a month or so in China. We are producing a three-door and five-door Fiesta in Europe. There is nothing that precludes us from bringing a sampling of those products to the United States next summer and pre-marketing the Fiesta for eight months before it launches.” But doing so would require moving marketing money from 2010 to 2009, “which is not normal,” Farley said. “It means there’d be less money for the launch.” Ford is betting its future on an expanded small-car lineup while re- ducing full-sized pickups and SUVs. The new European Fiesta will go on sale in the United States as a 2011 model — and will be a key vehicle for Ford’s future. “We can use the global sequence of launch to our advantage in North America by actually getting vehicles, just like I did with Scion and just like Roger Penske did with Smart,” said Farley, who earlier in his career headed marketing for Scion. “You use those products — they might be slightly different from the production version — but you use those to build awareness.” c VW taps ‘zealots’ to promote diesels April Wortham awortham@crain.com Key facts When: Jan. 19-22 Where: Detroit Marriott Renaissance Center Cost: $1,495 early registration fee by Dec. 1 (save $200); daily fee $850 Information: 313-446-0485 or autonews.com/worldcongress Exclusive lead sponsors: PricewaterhouseCoopers and IBM LOS ANGELES — Volkswagen Group of America is enlisting the help of “diesel zealots” to spread the word about its new Jetta TDI clean diesel. The 2009 Jetta TDI, which went on sale in August, is the first diesel-powered vehicle to meet emissions standards in all 50 states. So the sedan has been the subject of much attention in Internet blogs and chat rooms over the past 18 months, said VW spokeswoman Jennifer Jacoby. Jacoby said VW has been monitoring the chats and openly sharing information with diesel enthusiasts so they can spread the word on the merits of clean diesel. The 2009 Jetta TDI is the first diesel-powered vehicle to meet emissions standards in all 50 states. “We are going to tap into them to be our advocates,” she said at a media event here this month. Engaging diesel enthusiasts is key to VW’s two-stage campaign to build awareness about clean diesel technology and change perceptions about diesel among U.S. consumers. VW recently launched a diesel section on its Web site that gives a history of VW’s diesel heritage and tests consumers’ knowledge of diesel technology today. More than 25,000 people have signed up through the Web site for more information on clean diesels and the Jetta sedan and SportWagen TDIs, Jacoby said. Phase two will begin in the first quarter of 2009 and use the Jetta campaign as a “launching pad” for future clean diesel cars, she said. “For most Americans, the term diesel brings up connotations of the 1970s smelly, dirty, loud diesel,” she said. “We also need to establish that diesel is a viable option for anyone looking at alternative-fuel vehicles. Hybrid is not the only answer.”c Lithia Motors Inc. is putting its chain of used-vehicle stores on hold as the public dealership group cuts costs. Lithia launched the L2 Auto chain in August 2007. At the time, CEO Sid DeBoer called L2 a stateof-the-art sales network that would allow used-vehicle buyers to complete most of their transactions online. He said the concept had unlimited growth potential. But in June, Lithia closed its L2 store in Loveland, Colo., merging its operations with those of Lithia’s new-vehicle dealerships in the market. In Cedar Rapids, Iowa, Lithia added a Kia franchise to its L2 store — a move that company executives said was aimed at boosting profits with service and parts sales. L2 stores in Lubbock and Amarillo, Texas, remain open and are “doing well,” DeBoer told industry analysts in a recent earnings call. Lithia also operates an L2 store in Boise, Idaho. Reached last week by Automotive News, DeBoer declined to comment further on L2. After launching L2 as a standalone retail network, Lithia this year brought L2 under its corporate umbrella. L2 offers fixed prices on all products and services. Its used vehicles pass a 160-point inspection and carry a 60-day warranty. The stores have a three-day return policy on vehicle purchases. Lithia invested in future retail sites for new-vehicle dealerships and L2 stores, DeBoer said, but has put those properties up for sale. Buy-sell agreements are pending on some locations. Lithia will resume plans to expand L2 when the national economy improves, DeBoer said. But he conceded he expects the industry’s slump to last through next year. Said DeBoer: “We are right-sizing this company to a new operating environment.”c http://www.autonews.com/worldcongress
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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