Automotive News - March 10, 2008 - (Page 1)

autonews.com ® MARCH 10, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY Ford offers to buy back 81 stores Dealer development retailers ask to extend April 1 deadline Amy Wilson and Arlena Sawyers awilson@crain.com By the numbers Facts about Ford Motor’s minority dealers and dealer development program 309: Number of minority-owned Ford Motor dealerships in U.S.* 6.7: Percentage of Ford Motor dealerships owned by minorities* 81: Dealerships in Ford’s dealer development program at end of 2007 62: Number of minority-owned Ford Motor dealer development stores * Includes Premier Automotive Group dealerships Source: Ford Motor Co. DETROIT — Ford Motor Co. is offering a one-time buyout to the 81 members of its dealer development program, most of them minorities. But some dealers say they need more time to decide than the April 1 deadline imposed by Ford. Under the offer, Ford Motor says it will refund dealers’ full investment if they give up their Ford or LincolnMercury dealerships, even if their current stake is worth less than their original investment. Operators whose dealerships are their only source of income may get an additional $100,000, Ford says. Ford outlined the offer to dealers in late February. There are 81 dealerships in the development program, including 62 minority-owned stores. The company includes blacks, Hispanics, Asians, Native Americans and women in the program. “Ford is taking this action in an efsee FORD, Page 44 Toyota hints at a family of Priuses Right now there’s just one Prius, a five-door hatchback. But a top Toyota exec hints that Prius could evolve into a multivehicle brand. | PAGE 6 | COMING TO AMERICA In Geneva, the focus was on the U.S. — how to cope with the currency crunch and adapt Europe’s green technology in a country headed for $4 gasoline The 9-X BioHybrid concept runs on E85 and uses a mild hybrid system. It could be Saab’s entry in the small-car wars. Arkona finds new life after buyout Arkona, once a bit player in the dealership software market, is offering a cheap alternative to ADP and Reynolds. | PAGE 4 | Cheaper small cars are part of VW’s U.S. plan Diana T. Kurylko dkurylko@crain.com Photos by Roger Hart Alfa Romeo’s 8C Spider will be sold in the U.S. through Maserati dealers, starting in 2010. Hyundai’s 1word strategy: MORE! Hard-charging Hyundai has been setting ambitious U.S. sales goals . . . and missing them. But the pressure from the bosses in South Korea isn’t letting up. | PAGES 26-27 | GENEVA — A U.S. assembly plant is just the first step in Volkswagen’s grand plan to boost sales in the United States. Group CEO Martin Winterkorn says VW also is contemplating small cars and perhaps a pickup, and is planning to replace the Passat and Jetta with cheaper sedans targeted at U.S. customers. In an interview at the Geneva auto show, Winterkorn outlined a host of ideas being considered as part of an ambitious strategy to increase VW and Audi total U.S. sales to 1 million units by 2018 up from 328,068 last year. Growth in the United States is crucial to VW’s long-term ambition to match sales of Toyota Motor Corp. “I am sure if we want to grow, we have to go to the United States,” Winterkorn said. VW is reviewing economic packages from governors of several states for a U.S. factory. Sources say Volkswagen has narrowed its site search to North Carolina, South Carolina and Georgia. Winterkorn said the plant site will be chosen by early summer. VW decided not to exsee VW, Page 43 Geneva auto show coverage The tiny Toyota iQ will be sold in the United States if it performs well in crash tests. Automakers unveil cars, concepts and technology ➤ Pages 30-34 Nissan electric car to arrive in 2010 ➤ Page 3 Automakers quickly improve fuel economy ➤ Page 3 Toyota could bring tiny 4-seater to U.S.➤ Page 32 As dollar dives, automakers juggle global strategies David Sedgwick and Diana T. Kurylko dsedgwick@crain.com On the Web This week at www.autonews.com: GENEVA — The collapse of the dollar is forcing automakers to take dramatic action to limit their exposure to currency fluctuations. The impact of the dollar’s dive has been especially sharp for European automakers that export ve- hicles to the United States. Some are raising U.S. prices — even if it means fewer units sold — while others are building assembly plants in North America. And these automakers are starting to export more U.S.-built cars and trucks. The strong euro is costing Daimler, BMW, Volkswagen and Porsche a combined $1.5 billion a year, says UBS analyst Max Warburton. Every 1-cent rise in the value of the euro costs BMW and Mercedes roughly $75 million apiece per year. All this may sound like Econ 101, but it is forcing major changes in a market as dependent on imports as the United States. Some examples: NEWSPAPER General Motors canceled plans to import a Pontiac G8 sport wagon from Australia. But GM hopes to take advantage of the weak dollar by exporting the Cadillac CTS sedan to Europe. Volvo might produce vehicles at a Ford plant in North America. The Volvo C30 hatchback would be a likely candidate because it shares mechanicals with the Ford Focus and Mazda3. Mercedes-Benz won’t export its next-generation B-class small car to the United States unless the dollar strengthens. Volkswagen AG will build an assee CURRENCY, Page 43 Monday: BMW announces details about the expansion of its assembly plant in Spartanburg, S.C. Monday: The Automotive News Data Center posts in-depth reports on February U.S. vehicle sales. Wednesday: Deborah Morrissett, vice president of regulatory affairs at Chrysler, discusses new automotive technologies and future industry regulation. All week: Get updates on the UAW strike at American Axle and the impact on GM plants in North America. http://www.autonews.com http://www.autonews.com

Table of Contents Feed for the Digital Edition of Automotive News - March 10, 2008

Cheaper small cars are part of VW's U.S. plan Ford offers to buy back 81 stores As dollar dives, automakers juggle global strategies Jaguar-Land Rover deal will be signed within weeks GM Planworks chief leaves Jacoby cites dealer role in VW makeover Slim fast Nissan: Electric car to get here in 2010 Family honor Suddenly, Arkona's a key software player Chrysler may build vehicles in Russia Congress may ban mandated arbitration Volvo signs dealers willing to exit Breeding a hybrid? Prius could be a brand Honda adds benefits for same-sex partners Top China execs to speak at conference Manual for Challenger waits until '09 Ex-Sonic president: Gulf States raided Sonic GM, American Axle: Ties that bind Boardroom coup ousts Chamco executives False data imperil all auto financing Dealers would suffer if Calif. gets its way GM, Ford should bring Euro cars here Fresh ideas are fine, but Chrysler must be wary We need that 10% of useful inventions Safety options: Let consumers decide Tire monitors are full of problems Germany's labor setup just doesn't work Alabama adding auto jobs more slowly Engineer Banks strives to sip fuel, burn rubber Toyota Financial takes risks to aid dealers Honda captive beefs up dealer training in leasing NADA releases 2 subprime guides ADP develops e-sales brochure Credit unions' share of auto loans declines Upgraded auction ID carries a fee Dealers At hard-charging Hyundai, the plan is simple: More — now Genesis sedan's assignment: Boost image of all Hyundais Allied will supply sensing systems to Magna Haldex opens Mexico plant Behr gets Nano pact How Tupelo talked Toyota into building a plant there Infiniti FX showcases new Nissan technology Ford may consider hatchback for U.S. Audi to launch A4 sedan, wagon together BMW M3 convertible Saab hybrid concept has solar roof panels Toyota could bring tiny 4-seater to U.S. Hummer to push H3 pickup's usefulness New look for the SL Tiny Nano makes big waves GM's Opel unveils small hatchback that could become part of Saturn line Who says Americans don't want hatchbacks? 9-3 will dominate Saab marketing Lutz: Green takes greenbacks Leap year added to Feb. misery 9 U.S. Toyota executives will retire Ford gives employees $1,000 bonus Denso picks new N.A. CEO GM extends buyout offers CAW OKs TRW pact Lampert ups AutoNation stake Sagging Chrysler boosts spiffs Feb. output is up slightly Buick offers the Cadillac of caddies GM's board: The royal robe fits Fritz Be it metal or men, Geneva all about style Raising the roof (price) Italian cops bust Fiero-aris Consumer Reports' verdict on Chrysler products: Eeeee-uuw!

Automotive News - March 10, 2008

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