Automotive News - March 10, 2008 - (Page 3)

MARCH 10, 2008 • 3 82nd year — No. 6298 GM Planworks chief leaves CHICAGO — Dennis Donlin, president of Starcom MediaVest Group’s GM Planworks, is leaving the helm of the shop charged with helping General Motors spend its $3 billion-plus media budget. In a statement, Donlin said, “It is simply the right time for me to take stock and consider my next career move.” In a statement, Starcom CEO Laura Desmond said a transition plan was being made and a successor probably would be announced this week. — Advertising Age Nissan’s Carlos Tavares says the pure electric vehicle, with its range of 100 miles a day, is ideal for commuters. Nissan: Electric car to get here in 2010 Rick Kranz and David Sedgwick rkranz@crain.com Jaguar-Land Rover deal will be signed within weeks Ford Motor Co.’s sale of Jaguar and Land Rover probably will happen in a matter of weeks rather than days. The deal to sell the British luxury brands to the Indian industrial group Tata Motors Ltd. is likely to be completed by the end of March, a source familiar with the negotiations said Friday. The source told Automotive News Europe that Jaguar and Land Rover would continue to have a strong relationship with Ford after the sale. The agreement, the source said, is not just “for Ford to sell but how they will work together in the future. Ford will be supplying things, and Jaguar and Land Rover will be receiving things.” ISTOCKPHOTO Jacoby cites dealer role in VW makeover WASHINGTON — Despite aggressive growth plans, Volkswagen Group of America Inc. won’t add dealerships “for the time being.” But VW does want more dealerships to be exclusively Volkswagen brand, CEO Stefan Jacoby said Friday. Jacoby said about 50 percent of VW’s 588 dealerships are standalone stores, and the company wants to raise that to 60 or 70 percent. VW is trying to expand U.S. VW brand sales from 230,572 last year to 800,000 in a decade. Existing dealers easily can handle the growth to 400,000 to 450,000 vehicles, Jacoby said. When the automaker approaches 800,000 VW brand sales, businesspeople will be competing for franchises, he said. — Harry Stoffer Slim fast As automakers feel heat from environmental movement, engineers find solutions that are quick, clean and cheap Dave Guilford dguilford@crain.com Grinding out green To lower emissions and improve fuel economy quickly, automakers are seeking incremental gains through tried-and-true tactics. Aerodynamics: Lowering vehicle height, adding spoilers, improving underbodies Weight reduction: Using lightweight materials, shaving weight off parts Tire choices: Using smaller tires, low rolling-resistance tires Start-stop: Using more broadly systems originally used on hybrids Powertrain efficiency: Turboboosting smaller engines, changing gear ratios, using low-friction oil dously expensive,” he says. “People keep forgetting the cost equation.” Joe Bakaj, Ford of Europe’s vice president of product development, doubts that the cost of advanced diesel emissions’ aftertreatment will fly with car buyers. The price tag would be about $1,500 for a midsized car. “I’m not sure the customers are going to pay that cost,” Bakaj says. “I think the auto companies are going to have to absorb it.” one step in producing “eco” concept versions of the company’s Kia cee’d small car was to lower it 15 millimeters or 0.6 inches. That, plus adding a spoiler, streamlining the underbody and other measures, cut the coefficient of drag signficantly. Ford lowered the green version of its Focus compact by 10 millimeters. Hyundai used measures such as underbody coverings and rear spoilers to boost aerodynamics of its i-Blue concept cars. Weight reduction. Product engineers are dieting with renewed zeal. James Muir, CEO of Mazda Motor Europe, says the redesigned Mazda2 subcompact is about 60 pounds lighter than its predecessor, thanks to “a focus on the see GREEN, Page 42 HOW TO REACH US Web site: www.autonews.com Editorial staff: 313-446-0361, e-mail autonews@crain.com or fax 313-446-0383 Advertising: 313-446-6790 or fax 313-446-8030 To locate information that has been published in Automotive News, call 313-446-1662. 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). GENEVA — As environmental pressure builds, a new track of green automotive engineering is emerging. Call it kaizen environmentalism. It’s born of automakers’ need to retool their lineups quickly and without big price increases. Forget moon-shot technology, at least for now. Executives and engineers at the auto show here say their near-term futures rely on less glamorous stuff: nibbling away at vehicle weight or lowering a vehicle’s height by 10 millimeters to improve aerodynamics. The need is particularly acute for mainstream automakers. Their customers are unlikely to pay a hefty premium for a full-hybrid system or for exotic lightweight materials. Seeking the ‘right blend’ Automakers have to weigh fancy technologies against the price of each car and truck, says General Motors Vice Chairman Bob Lutz. “For every vehicle, you have to find exactly the right blend,” Lutz says. Lutz scoffs at the notion that fuel economy standards can be met solely by using lightweight materials such as carbon fiber and aluminum. “Lightweight materials are horren- GENEVA — Nissan is moving full speed ahead with plans to introduce a pure electric car in 2010 for fleet customers in Japan and the United States. After testing its vehicle with fleet customers, Nissan will market the electric car worldwide in 2012 to retail customers. The car will be powered by lithium ion batteries developed in Nissan’s joint venture with NEC Corp. Last week, two senior Nissan executives spelled out their plans for an electric car in interviews during the Geneva auto show. “The first production vehicles will be for regional areas like California,” said Masahiko Tabe, Nissan’s manager of advanced vehicle engineering. “We will later expand the EV all over the world.” Tabe said Nissan is testing its lithium batteries in the Cube, a tall, boxy car sold in Japan. The vehicle’s distinctive styling is reminiscent of the squared-off Scion xB. Nissan will sell the next-generation Cube in the United States, but Tabe declined to indicate whether the electric vehicle will actually be called the Cube. “The technology will first appear in a small vehicle,” Tabe said. “The New York show will give you some hints.” In New York, Nissan will unveil a battery-powered concept car that hints at the vehicle’s future styling and technology. The production vehicle will have a daily range of 100 miles, with an estimated top speed of 75 mph. A complete recharge will take about eight hours. The lithium ion battery pack will have 24 cells, each with four batteries. Carlos Tavares, Nissan’s executive vice president for global product planning, said the electric vehicle will be ideal for commuters. “If you look at the number of kilometers people drive per day to commute, more than 90 percent of the people do less than 100 kilometers (62 miles) a day,” Tavares said. “There is a huge, huge potential there for EVs.” Asked whether the Cube name and boxy styling will be central to the electric vehicle’s character and identification, Tavares said, “I cannot tell you more on that topic.” c Back to basics Instead of high-cost premium technologies, automakers are turning to engineering basics. Some examples: Aerodynamics. David Labrosse, manager of product development at the Hyundai Motor Europe Technical Center, says Nissan is testing lithium ion batteries in the Cube, sold in Japan. 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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