Automotive News - March 10, 2008 - (Page 34)

34 • MARCH 10, 2008 G E N E VA A U T O S H O W Who says Americans don’t want hatchbacks? David Sedgwick GENEVA — As far as Ford Motor Co. is concerned, Europe has become a laboratory for the U.S. market. This occurred to me last week in the basement of the Hotel Woodrow Wilson, where Ford unveiled production versions of the redesigned three- and five-door Fiesta. Now these vehicles are intended for the European market, and just about every expert will tell you that Americans don’t want hatchbacks. Sure enough, Ford plans to sell a four-door Fiesta sedan in the United States. But company executives say they are testing consumer reaction to the three-door version, too. And that’s when I began to ponder a trend that I’ll call the poverty effect. Lutz: Green takes greenbacks GENEVA — Automakers clearly are focused on two things these days: the environment and fuel economy. During a media roundtable at the Geneva auto show, Bob Lutz, General Motors vice chairman of global product development, weighed various “green” solutions. Lutz said he expects to see “great advances” in battery technology now that many automakers are focusing on lithium ion batteries as a propulsion device. He also said GM knows it can deliver a 300-mile range using fuel cells. The problem with this and many other solutions, even diesels, he said, is cost. “We’re nowhere near where we need to be on the cost curve,” Lutz said. “We’d incur a big loss.” He added that carmakers’ costs to develop technologies to meet the federal corporate average fuel economy mandate of 35 mpg by 2020 could run $7,000 to $8,000 a vehicle. “I just don’t know what’s going to happen when we start passing along all this cost to American consumers,” Lutz said. “It’s hard to swallow.” c comment David Sedgwick is editor of Automotive News. Imagine that gasoline costs more than $4 a gallon, and your paycheck has not kept up with inflation. What kind of vehicle would you buy? There are lots of nice crossovers, but maybe you’d like something smaller and cheaper — like a hatchback. Two senior Ford executives predict that young American consumers won’t share baby boomers’ aversion to hatchbacks. “The millennials don’t give a damn” about their parents’ preferences, says Ford design chief J Mays. “They just want the best possible design.” Internet-savvy consumers are increasingly aware of vehicles sold in overseas markets, says Mays, and they ROGER HART Ford’s Fiesta may be an example of a growing European influence in the U.S. are starting to vote with their wallets. Ford marketing chief Jim Farley agrees. The hatchbacks of the 1970s and 1980s were notable for their low prices and spartan interiors. That started to change in the 1990s when Volkswagen upgraded the Golf’s interior, Farley says. “When we saw the Golf, everything changed,” said Farley, who was with Toyota at the time. The Golf’s rich interior evoked bigger, more expensive cars; Toyota and other competitors were forced to follow VW’s lead. Officially, Ford hasn’t decided whether to sell a three-door Fiesta in the States. But if it does, you can be sure that Ford will evaluate the U.S. sales potential of just about every vehicle in its European lineup. Company CEO Alan Mulally has said that he wants a global product lineup, and it looks like he’ll get it. You may e-mail David Sedgwick at dsedgwick@crain.com 11”x17” MAILERS NO GIMMICKS! NO DISCLAIMERS! A PIECE IN HOMES 888-788-0142 NEWSCOM ■ Ford Kuga Vehicle type: Crossover Seats: 5 Base engine: 2.0-liter common-rail diesel On sale: In Europe this summer Base price: About 27,000 euros (roughly $41,000) What’s cool: The Kuga continues the design theme of the iosis-X concept. All-wheel drive is available. Speculation is that the Kuga will be the basis for the next-generation Ford Escape in the United States. 9-3 will dominate Saab marketing Jamie LaReau jlareau@crain.com GENEVA — Saab will push new versions of the 9-3 in marketing this year. The marketing, which will continue the “Born from Jets” theme, is aimed at fueling sales until the brand gets fresh product at the end of 2009. Saab plans to use more Internet advertising and more local TV and print advertising for the campaign, Steve Shannon, Saab’s general manager, said in an interview here. He said that until Saab can get new products, “We’ll tell the basic virtues of the current product lineup.” The 9-3 Turbo X is due in May. In late summer, Saab will launch the 9-3 Aero V-6, followed by a four-cylinder model in the fall. All three will be equipped with all-wheel drive. Awd costs about $2,000 on the 9-3, which now starts at $28,825 including shipping. Awd “will be big news for us, but we really won’t start to get it in big volume until the fourth quarter,” Shannon said. Also in the campaign, Saab will put more advertising about the 9-7X on the Internet and run more newspaper ads on retail deals for the SUV. Saab is scheduled to get a crossover, the 9-4, and a redesigned 9-5 sedan at the end of 2009. c http://www.leonwatch.com http://www.forceevents.com http://www.creditacceptance.com http://www.creditacceptance.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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