Automotive News - May 26, 2008 - (Page 1)

autonews.com ® MAY 26, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY GM seeks Volt tax break to avoid $40k sticker Jamie LaReau jlareau@crain.com Proposals for federal tax credits could knock up to $7,000 off the Volt’s price. Greg Martin. “We need to make sure the legislative language does include extended-range electric vehicles.” The Volt concept is powered by an electric motor running off lithium ion batteries. A small gasoline engine recharges the batteries after the vehicle has traveled 40 miles or so. Owners can recharge the batteries overnight by plugging the car into an electrical outlet. A source familiar with GM’s Volt program says some proposals for federal tax credits could knock up to $7,000 off the Volt’s price. Company insiders now predict 10,000 to 30,000 Volt sales in the first year, with volume growing as it hits DETROIT — General Motors expects its gasoline-electric Chevrolet Volt to come to market in 2010 priced close to $40,000, say sources close to the project. That’s pricey compared with rivals such as the Toyota Prius hybrid, but taxpayers may help lower that sticker. GM is lobbying Congress to create tax credits benefiting “extendedrange electric vehicles” such as the plug-in Volt, says GM spokesman full production. GM is counting on the Volt to be a high-volume seller after the first few years. GM expects to bring the Volt to market by November 2010, sources say. “There haven’t been any recent developments that threaten the timing,” says a source familiar with the project. “To the contrary, our confidence in the lithium ion battery continues to grow. But we still have a lot of development and testing to go.” see VOLT, Page 55 Bad times? Not for CEO paychecks Leslie J. Allen lallen@crain.com What downturn? For CEOs in the auto industry, hard times didn’t necessarily translate to low pay in 2007. That was especially true for CEOs of parts suppliers. Take Alexander Cutler of Eaton Corp., a maker of truck and automotive parts. He was the industry’s topearning CEO, according to Automotive News’ annual executive compensation survey of about 35 publicly traded automakers, parts suppliers and dealership groups in North America. Equilar Inc. compiled the data. Cutler’s total compensation rose from $14.3 million in 2006 to $24.5 million in 2007. Nearly half of his compensation last year came from exercised stock options. He also pocketed $9.5 million in bonus and incentive pay. Exercised stock options and awards were behind the hefty compensation in 2007 for Cutler — and for several other supplier CEOs. The CEOs who ranked Nos. 2, 3 see PAY, Page 55 In & Out Ford is boosting production of the Focus, top, while slashing production of the Expedition. The next ad frontier: The blogosphere GM is trolling the Internet for demographically correct bloggers, betting that test-drive junkets and a little VIP treatment will create good buzz in cyberspace. | PAGE 4 | Hyundai digs deep for Genesis launch Hyundai, seeking to build street cred and shed a bargain-basement image, will shell out $80 million for the marketing launch of its Genesis luxury sedan. | PAGE 6 | Guns & Gas: Buy an ’08, get a .44 It’s your choice: Missouri car dealer Mark Muller will fill either your gas tank or your holster. His new promotion: Buy a car and get a $250 gas card or a $250 certificate redeemable at a local gun shop. | PAGE 58 | Fortunate five Here are the 5 top-earning automotive CEOs in 2007. 1. Alexander Cutler, Eaton: $24.5 million 2. John Plant, TRW: $22.7 million 3. Robert Keegan, Goodyear: $18.8 million 4. Christopher Kearney, SPX: $14.9 million 5. Theodore Solso, Cummins: $13.2 million Source: Equilar Inc. Ford’s big cuts aim for a Honda-sized lineup Richard Truett and Amy Wilson rtruett@crain.com On the Web This week at www.autonews.com Today: Get the latest reports Full speed toward smaller ➤ 53 output of the Ford Focus and Fusion, and also the Mercury Milan. Asked whether Ford’s model mix should be more like that of Toyota and Honda, Ford CEO Alan Mulally said: “Absolutely. We just don’t have enough of those small or mediumsized vehicles yet, and that’s what we need to concentrate on.” With its fuel-efficient vehicle lineup — and with gasoline prices edging toward $4 a gallon — Honda brand last month overtook Ford to become America’s No. 3 brand in retail sales. Through April, here’s the new pecking order: Toyota, Chevrolet, Honda, Ford. DETROIT — Ford Motor Co. is undergoing wrenching production changes — fewer trucks, a lot more cars — to become a little bit more like Honda. Last week, Ford announced plans to slash truck production while boosting NEWSPAPER Retail sales do not include sales to corporate fleet customers like WalMart, or daily rental fleets like Hertz. According to Ford analyst George Pipas, retail sales account for 65 percent of Ford brand’s total sales. If so, the Ford brand’s retail sales through April were approximately 421,000 units. Honda brand — which says it doesn’t sell vehicles to fleets — sold 437,102 cars and trucks. Ford isn’t about to abandon trucks — not with a redesigned F-150 appearing this fall. And the Ford brand still leads the Honda brand in overall sales. Through April, the Ford brand sold 647,140 cars and light trucks, see FORD, Page 53 from the Automotive News Data Center on used-car prices for April and RV sales for March. Wednesday: The auto industry’s top marketing executives speak at the 2008 Automotive News Marketing Seminar in Los Angeles. Friday: Get an updated report on U.S. gasoline prices. All week: GM resumes production after the conclusion of the UAW’s 12week strike at American Axle. http://autonews.com http://www.autonews.com

Table of Contents Feed for the Digital Edition of Automotive News - May 26, 2008

Automotive News - May 26, 2008 Bad times? Not for CEO paychecks GM seeks Volt tax break to avoid $40k sticker Ford's big cuts aim for a Honda-sized lineup Automotive News gets new marketing communications director Toyota pushes N.A. suppliers to match offshore prices VW predicts 5% U.S. sales gain Toyota plans 3 plants for hybrid batteries GM's American Axle strike tab: $2.82 billion Lawsuit in Florida targets congressman's dealership Orbiting the blogosphere Kia to build small cars in U.S. plant VW Mexico exec will run North American purchasing Fiat mulls 500 minicar for U.S. GM scraps big rwd sedans for Chevrolet and Buick Hyundai spends like never before to launch Genesis luxury sedan Surprise: Suzuki slides as fuel prices rise GM paid Walter Chrysler a whopping $600,000 a year Chrysler sends mystery shoppers to dealerships Toyota owes royalties on some hybrids GM, American Axle to resume output Ford predicts bigger demand for smaller engines in Escape This is Volvo? Ads sell chic, not just safety An overnight success in 50 years Obama's comments were out of line Japan does it; why shouldn't we? 25% is high, but Chrysler is wise to revisit SCORE Safety efforts must focus on the driver Blame the dealer for poor service Don't judge Ford quality by just one car Ford quality is best in many years Mitsubishi considers piggybacking with Caterpillar suppliers to cut costs Nissan to make lithium ion batteries 'Boss Ket,' Connery inspire Tim Jackson Germany leads rise in Europe sales Court: Buyers must act in good faith to win lemon law damages Nissan wants suppliers to reduce utility bills Bajaj: From scooters to autos The next $2,500 car? Infiniti will look different, add engine power in Europe Lamborghini boss wants to keep the big engines Lamborghini ups ante in 'entry' supercars Continental exec: We're done selling VDO assets Honda plans Fit hybrid Outgoing Visteon CEO to receive $2.5 million Audi production chief: Cooperation with Porsche will grow Picture this RV shipments fall in March M-B will buy Chrysler studio Supplier personnel VW expects to reap big share of U.S. diesel market Valeo CEO Morin: Pass rising costs to consumers Suppliers to the 2008 Nissan Altima Dealers Auction workshops demystify Web buying April used-vehicle prices: Light trucks fall and cars rise Volvo certified plan offers free satellite radio Mulally: Full speed toward smaller Toyota plans credit card Sanfilippo switches agencies International idles plant Honda Pilot starts at $28,230 Plastech plans assets auction What counts GM's 2-pronged strategy for Calif. rules: If you can't beat 'em . . . meet 'em New wheels for the cop shop The cost of luxury? For Hyundai, it would have been $2.5 billion New tools allow early design input from consumers Lexus in the sky with carbon: How ex-Beatle's PR effort tanked Buy an '08 . . . get a .44 $4 gasoline gives new cachet to aging econo-beaters Time tips its hat to Tata Car marketers: Magazines must widen ad reach Automakers seek 'one-to-one' approach to magazine ads Auto ads go to the movies Here's the next big thing: Ads tailored to you GMC courts women with Acadia

Automotive News - May 26, 2008

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