Automotive News - July 28, 2008 - (Page 12) 12 • JULY 28, 2008 opinion NHTSA’s Nason is leaving some big jobs undone As the nation’s top auto safety regulator, Nicole Nason faced tough odds against her effectiveness. But she didn’t do all she could have to beat those odds. Nason is bailing out as chief of the National Highway Traffic Safety Administration with five months left in President Bush’s term. She is leaving major tasks undone, especially a long-awaited rewrite of the vehicle roof-strength standard and a rule that will enforce sharply higher fuel economy standards for the 2011-15 model years. NHTSA career professionals do most of the work on such rules. But the administrator signs off on the final product and gets the credit or blame — along with his or her bosses at the Department of Transportation and in the White House. Advocacy groups and industry leaders praise Nason for an overdue updating of the government’s vehicle safety rating program and for involving them in planning for future safety technology. But her tenure also featured controversy over restrictions on media access to agency officials. She denied NHTSA had such a policy. Data suggest that under Nason, NHTSA has essentially stopped imposing fines for safety violations. An agency spokesman disputes some detail of the data but declines broader explanation. To be sure, Nason’s opportunities to make a mark were limited. She became NHTSA chief in May 2006, just as the Bush administration was showing lame-duck symptoms. Congress effectively dictated NHTSA’s agenda for the past several years, ordering higher fuel economy standards and setting deadlines for safety rules. But Nason told Automotive News last September that the NHTSA job was the best of her life and she wanted to keep it until January 2009. Her plans changed — again, without explanation. Sometimes success is measured simply by seeing a job through to its end. The automobile business has turned upside down in the past few months. About the only thing that really scares people in the business is that the price of fuel might continue to drop, throwing the market into another tizzy. If gasoline prices stabilize, it should be possible to plan for a longer time than a couple of months. Manufacturing has to become as flexible as possible, with the ability to switch models and size classes on the assembly line almost overnight. If fuel prices continue to fluctuate widely, it will drive every manufacturing executive nuts. In the long term, fuel will remain extremely expensive. That will affect the preferences of North American vehicle buyers. Small cars are the future in North America. It will be a challenge to put them 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. It’s still true: Product is king into production as rapidly as necessary. And they will compete with the best in the world. Most of the world has been engineering and designing small cars for decades. Small cars designed by the Detroit 3 have always been sold outside the United States, from Australia to Brazil to Europe and everywhere inbetween. Detroit should understand that not only are big pickups and SUVs losing their appeal; the cars on the drawing boards aren’t going to work anymore. The Detroit 3 must change their entire product portfolios — and do it overnight. Every product is going to make a huge difference to Detroit’s success or failure. Suddenly, overseas experience is a The Detroit 3 must change their entire product portfolios overnight. Every product will make a huge difference to Detroit’s success or failure. sought-after commodity. It’s hard for auto executives who have spent their careers in the United States to understand the power of small cars. It’s second nature for executives who have spent part of their careers overseas or were promoted from an overseas post. It will be exciting to watch as companies change their product portfolios over the next couple of years. They are on the right track if fuel prices don’t fall dramatically. Who would have thought that you might not want cheaper fuel right now? equates to 15 mpg. So you are right back to your SUV. ROX COVERT Covert Auto Group Inc. (Cadillac-BuickChevrolet-GMC-Ford-Pontiac-Saturn) Austin, Texas Don’t advertise them until they’re on sale To the Editor: Regarding the Chevy Traverse launch (“Chevy to launch Traverse ads during Olympics,” June 30): Was this a misprint? “Chevrolet’s marketing plan for the Traverse bucks tradition. Typically, an automaker waits until it has about 10,000 to 15,000 vehicles on dealership lots before advertising it.” General Motors almost always markets its vehicles long before they hit the showrooms. Recent examples are the Pontiac G6 and Solstice and the new Chevrolet Malibu. How long has Chevy been promoting the new Camaro, which may be available years from now? I have heard many GM dealers complain that customers come in looking for the new units, but the vehicles are not available yet. When the vehicles finally reach the showrooms four to six months later, those customers have bought something else. Regarding new products, many sales reps have complained: “If I could get them, I could sell every one of them today.” HAROLD BROWN Dayton, Ohio Still a bad idea The proposed merger of Sirius Satellite Radio Inc. and XM Satellite Radio Inc. remains a bad idea. The Federal Communications Commission should reject it. It’s not too late. Two of the five FCC commissioners appear to favor the merger, and one opposes it. The XM-Sirius hookup probably will hang on a single vote. The companies promised to compete when they won government approval of the satellite radio concept. Now they seek to change the rules because their business model doesn’t work and they’re losing money. XM and Sirius want a monopoly. That’s wrong. Let them fight it out. THE WEEKLY NEWSPAPER OF THE INDUSTRY Established in 1925, published every Monday by Crain Communications Inc. Chrysler’s no ‘fuel economy laggard’ To the Editor: Just for the record, the Germans may have “dumped Chrysler,” as Peter Brown states in his July 7 comment (“Caught flat-footed/It’s a panic — but don’t panic”). However, don’t forget the very healthy cash reserves Chrysler had at the time of Daimler’s hostile takeover. Chrysler was riding high at that time on the successes of new trucks and LH-platform vehicles. Brown says Chrysler is saddled with “fuel economy laggards” Totally untrue. Our new Chrysler Sebrings and Dodge Avengers are rated as high as 30 mpg highway. Our Dodge Chargers and Chrysler 300s are rated as high as 26 mpg highway. Not shabby for a full-sized, quality ride. We also include a lifetime powertrain warranty to the original owner. What we apparently don’t have is the ability to get this information out to the general public, as well as to the automotive media. F. WILL DODGE President Fair Haven Chrysler-Dodge Fair Haven, Vt. 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. Safety matters much more than mpg To the Editor: I always enjoy reading Peter Brown’s columns, but I feel he has gone too far with “It’s a panic — but don’t panic.” Would Brown subject his family and others to a small car that has the variables of every possible safety issue known to mankind? Is life more important than the price of a gallon of gasoline? If you have a family of four and your kids decide to take a friend, you have to take two small cars at 30 mpg, and that We invite letters from our readers. Please limit your letter to 250 words and tell us whether we may print it. We reserve the right to edit it. 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Table of Contents Feed for the Digital Edition of Automotive News - July 28, 2008 Automotive News - July 28, 2008 A scared-stiff industry stomps on the brakes No-lease edict stuns Chrysler dealers Hummer: Bonuses, buyouts Amid the gloom, Mercury celebrates Ford banks on Mulally's small-car plan PACE awards open for innovative suppliers GM expands employee discount plan through July American Axle blames strike for big quarterly loss Mercedes expects U.S. sales to fall; B class may come in 2011 Chevy plans new U.S. subcompact by '11 GM or Reynolds? Dealers must decide now Ralph Kisiel Ghosn: It's wrong time for a new partner GM geniuses turned their auto dreams into realities Dealers fresh out of Mini Coopers Chrysler, Ford, Honda top NAACP report card GM alters bonus for dealers who outperform their region Automakers angle for Chrysler's idle engine plant Chrysler revokes franchises in Pa. Sonic-Mercedes case could allow big dealers to add stores Buick's new LaCrosse It's still true: Product is king Still a bad idea NHTSA's Nason is leaving some big jobs undone Don't advertise them until they're on sale Safety matters much more than mpg Chrysler's no 'fuel economy laggard' $4 gas won't turn the U.S. into Europe For Europeans, America still spells opportunity Challenges travel with OnStar to China Personnel Mexico sales rise 1.2% in June Picture this Europe's worst sales result? Toyota Kia spends big to launch Borrego Kia launches Borrego just as SUVs lose favor Detroit 3: Goodbye, bailouts Dealers Eaton: Supercharger sales will grow Fla. appeals panel overturns class status in Kia brake suit Audi certified push pays off Used-car rule goes to the shop for tuneup Big-truck prices take a tumble in June Automaker tax break piggybacks on mortgage bill Honda rides high in 2nd-quarter rankings Ford Credit takes a hit as truck values fall 100 years of the Tin Lizzie Lamborghini profit soars AutoNation net income falls GM names CFO for N.A. TI Automotive unit will move Mercedes to cut Ala. production Fleming was a consummate newspaperman Toyota plans to raise Prius output A dart for Smart Tesla gets good reviews at Bentley 422 hp — and, uh, easy at the pump Ford's 2nd qtr: The reddest ink ever Bill Gates joins the car-dealer club Detroit 3 should put Mini under the microscope What's a Gov. to drive? Automotive News - July 28, 2008 Automotive News - July 28, 2008 - Hummer: Bonuses, buyouts (Page 1) Automotive News - July 28, 2008 - Hummer: Bonuses, buyouts (Page 2) Automotive News - July 28, 2008 - American Axle blames strike for big quarterly loss (Page 3) Automotive News - July 28, 2008 - GM or Reynolds? Dealers must decide now Ralph Kisiel (Page 4) Automotive News - July 28, 2008 - GM or Reynolds? Dealers must decide now Ralph Kisiel (Page 5) Automotive News - July 28, 2008 - GM alters bonus for dealers who outperform their region (Page 6) Automotive News - July 28, 2008 - GM alters bonus for dealers who outperform their region (Page 7) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 8) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 9) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 10) Automotive News - July 28, 2008 - Buick's new LaCrosse (Page 11) Automotive News - July 28, 2008 - Chrysler's no 'fuel economy laggard' (Page 12) Automotive News - July 28, 2008 - Chrysler's no 'fuel economy laggard' (Page 13) Automotive News - July 28, 2008 - For Europeans, America still spells opportunity (Page 14) Automotive News - July 28, 2008 - For Europeans, America still spells opportunity (Page 15) Automotive News - July 28, 2008 - Personnel (Page 16) Automotive News - July 28, 2008 - Personnel (Page 17) Automotive News - July 28, 2008 - Picture this (Page 18) Automotive News - July 28, 2008 - Picture this (Page 19) Automotive News - July 28, 2008 - Europe's worst sales result? Toyota (Page 20) Automotive News - July 28, 2008 - Europe's worst sales result? Toyota (Page 21) Automotive News - July 28, 2008 - Detroit 3: Goodbye, bailouts (Page 22) Automotive News - July 28, 2008 - Dealers (Page 23) Automotive News - July 28, 2008 - Fla. appeals panel overturns class status in Kia brake suit (Page 24) Automotive News - July 28, 2008 - Fla. appeals panel overturns class status in Kia brake suit (Page 25) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 26) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 27) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 28) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 29) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 30) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 31) Automotive News - July 28, 2008 - Big-truck prices take a tumble in June (Page 32) Automotive News - July 28, 2008 - Honda rides high in 2nd-quarter rankings (Page 33) Automotive News - July 28, 2008 - 100 years of the Tin Lizzie (Page 34) Automotive News - July 28, 2008 - Mercedes to cut Ala. production (Page 35) Automotive News - July 28, 2008 - Toyota plans to raise Prius output (Page 36) Automotive News - July 28, 2008 - Toyota plans to raise Prius output (Page 37) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 38) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 39) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 40) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 41) Automotive News - July 28, 2008 - What's a Gov. to drive? (Page 42)
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