Automotive News - May 26, 2008 - (Page 32)

32 • MAY 26, 2008 Outgoing Visteon CEO to receive $2.5 million Andrew Grossman agrossman@crain.com Continental exec: We’re done selling VDO assets April Wortham awortham@crain.com Outgoing Visteon Corp. CEO Michael Johnston will receive $2.5 million in pay when he leaves the post June 1, according to a report filed by the supplier with the U.S. Se- curities and Exchange Commission. A compensation plan approved by the Visteon board in February called for the company to give Johnston, 60, a prorated portion of a $2.5 million bonus if he left his post before year end. He was to receive the full $2.5 million if he stayed on through Dec. 31 or was fired without cause. But the new “transition bonus” payout reflects an amendment Visteon’s board made to that deal this month when it announced Johnston’s resignation. Visteon spokeswoman Julie Fream said the board thought the change was necessary “to ensure an orderly transition” from Johnston to his successor, current president and COO Donald Stebbins. Johnston took home $8.9 million last year, according to calculations conducted by Equilar Inc. for Automotive News. Johnston will keep his job as Visteon’s executive chairman. If he leaves that post before year end, he’ll be required to give back part of his severance pay, according to the filing. Stebbins, 50, will receive a base salary of $1.2 million, according to the SEC filing. Stebbins also will be eligible for bonuses worth as much as 115 percent and 475 percent of his salary. His pay totaled $3.48 million last year, according to Equilar. c The Honda Fit is to have a gasoline-electric hybrid version in the early 2010s. A 2009 Fit Sport is shown. Honda plans Fit hybrid Hans Greimel hgreimel@crain.com TOKYO — Honda’s fuel-sipping Fit will turn an even deeper shade of green with plans to launch a gasolineelectric hybrid version of the subcompact in the early 2010s. The hybrid Fit, announced here last week, will be the fourth hybrid from Honda Motor Co. by 2015, as the Japanese automaker chases rival Toyota in the lowemission car race. Honda had planned to introduce a dedicated hybrid vehicle early next year, to challenge the Toyota Prius, followed by a sporty hybrid and a redesigned Civic hybrid. The greener Fit’s arrival dispels Honda’s earlier skepticism about the viability of mounting pricey hybrid systems on small, low-priced cars that already get great mileage. President Takeo Fukui has changed his tune — in time with changing market realities. “The Fit has great fuel efficiency to begin with, and if you put in a hybrid, it’s going to get even better,” Fukui said while announcing the car at a news conference. “So with crude oil prices going up this much, I think a Fit hybrid is now starting to make sense.” The price difference between the hybrid Fit and regular Fit needs to be less than 200,000 yen ($2,000) in order for the hybrid to win customers, Fukui added. He said the Fit will be the last of the four hybrids to hit the market but should be released by 2015. c LOS ANGELES — Continental AG won’t sell any major pieces of the former Siemens VDO beyond what it already has announced, the supplier’s North American CEO says. Instead, Continental will acquire more nonautomotive business to rebalance its portfolio, William Kozyra said last week in an interview here with Automotive News. Continental’s $16.71 billion acquisition of Siemens VDO last year left it with 70 percent automotive business and 30 percent nonautomotive. Speaking at a technology event here last week, Kozyra said Continental wants to return to the 60-40 balance it posted before the VDO acquisition. But that won’t happen through any further divestitures of VDO assets. Continental announced in December it would sell its electric motor drives business to fellow German supplier Brose Group, a unit of Brose Fahrzeugteile GmbH & Co. It also has put its fuel supply business unit up for sale, but no buyers have come forward, Kozyra said. “There might be one or two very small areas that we will sell, but that won’t affect that 70-30 number,” he said. “It will likely be through nonautomotive acquisitions.” c William Kozyra: Continental aims for 60 percent automotive business and 40 percent nonautomotive. http://www.Pick-n-ClickAds.com http://www.Pick-n-ClickAds.com

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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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