Automotive News - October 27, 2008 - (Page 4) 4 • OCTOBER 27, 2008 VW goal: 80% N.A. content for Tenn. plant April Wortham awortham@crain.com BERLIN — Volkswagen AG wants more than 80 percent of the content of vehicles produced at its planned Tennessee factory to come from North America and plans a supplier park at the site to reach that goal. Plans also include local production of engines and transmissions, says Volkswagen Group production chief Jochem Heizmann. “Not in the short term. Not in the beginning, but in the middle term we have to localize as well engines and gearboxes in the North American region,” said Heizmann, the board of Jochem Heizmann: In the beginning, Mexico will supply some engines for VW’s new plant in Tennessee. management member in charge of worldwide production. “We will get some engines from our Mexico plant in the beginning, but in the middle term we will have to do more in the region in engines and powertrains.” Heizmann declined to define “middle term.” The Chattanooga, Tenn., factory, VW’s first in the United States since it closed its Westmoreland, Pa., plant in 1988, will produce a new mid-sized sedan designed for the United States when it opens in early 2011. Initial volumes will be 150,000 vehicles annually. VW has said it eventually plans to expand production to 250,000 annually. Frank Fischer, CEO of the Chattanooga factory, said the on-site supplier park will house just-in-time suppliers that could provide such components as cockpits, instrument panels, seats, front-end assemblies and headliners. A drawing of the supplier park shows six buildings that will be about 1,000 feet from the assembly plant. Fischer emphasized that VW has not decided which components it will outsource to suppliers and which it will keep in-house. He said it will depend on two factors: cost and quality. “The car is still in phases of development, so the car has to be ready to do the procurement process,” Fischer told reporters. “But, of course, there are already talks with suppliers and also potential companies interested in going into the supplier park. Actually, we had one today.” Fischer and Heizmann spoke at a reception here for Tennessee Gov. Phil Bredesen and officials from the state and the Chattanooga area. The delegation will be visiting five cities throughout Germany for the next week as the officials try to lure potential VW suppliers to the state. Heizmann said the Chattanooga factory will draw from existing suppliers in the Southeast, including many of those serving fellow German automakers Mercedes-Benz in Alabama and BMW in South Carolina. But he said VW is “open” to all suppliers, including those in the United States. c ■ Tricked-out Toyota Toyota’s 2009 Venza was transformed by Street Image into the SportLux Venza performance show car. The supercharged SportLux Venza will be displayed at the Specialty Equipment Market Association show Nov. 4-7 in Las Vegas. The California vehicle performance company added a six-piece fascia enhancement kit, custom grille, integrated hood scoop and rear hatch spoiler. The vehicle height was lowered, and 24-inch wheels were added. Don Runkle: By not giving small suppliers serious consideration, automakers are missing out on some good technology. Runkle: Give tiny suppliers a chance David Barkholz dbarkholz@crain.com BMW seeks joint vehicle electronics effort Exec: Teamwork will lead to more innovation Ralph Kisiel rkisiel@crain.com develop an open platform that would allow for open software since the speed in the infotainment and entertainment industry requires us to be on a much faster track. GUNTER REICHART BMW “ We were convinced we had to DETROIT — BMW AG is asking automakers to work together to make vehicle electronics more innovative. The automaker is developing an open-source platform for vehicle electronics to allow providers of information and entertainment services to develop plug-and-play applications. BMW is asking other automakers to join in its effort and abandon the practice of using proprietary software for platform development. It made its pitch during a panel discussion on auto electronics here last week. Of the five panelists at Convergence 2008, a conference on automotive electronics, only BMW’s engineer said his company would have an opensource platform in a vehicle of 200,000 or more units in five to seven years. Electrical and electronics engineers from BMW, Chrysler LLC, Ford Motor Co., General Motors and Honda R&D Co. also participated on the panel. The open-source Linux system was created by BMW, Wind River Systems Inc. and Intel Corp. for the in-vehicle infotainment market. electrical/electronics engineering core, agreed that the open-source plan needs to be pursued. “Open-source has to be a standard application of some sort, like a software development kit that you then offer to partners,” Schell said. BMW’s Reichart said software companies outside the automotive industry can provide the automaker with applications that then can be branded by BMW. “It’s one idea,” he said. “We have not yet set up a fixed concept. We are open to suggestions. It will take some time to develop.” ” Sync, too Jim Buczkowski said Ford, through its partnership with Microsoft Corp. that produced the Sync system, already has 280,000 vehicles on the road with an open system. Buczkowski, Ford’s director of global electrical and electronics systems engineering, said he is not as familiar with what BMW is doing. “But if the principle is to create an environment out there where a lot of developers, a lot of folks have the capability to develop applications, I think we are talking the same thing, whether it’s Linux or Windows-based,” he said. But other automotive electronics experts have said Sync is not a fully open system. Honda also uses a Windows system, said Toyohei Nakajima, senior chief engineer at Honda R&D. But to allow outside developers to provide plugand-play software, automakers must make certain that a proper firewall is in place to prevent access to other systems in the vehicle. “We also need to make sure who will be responsible for such an open system architecture,” Nakajima said. “Maybe we need to learn more about that from BMW.”c Open for speed “We were convinced we had to develop an open platform that would allow for open software since the speed in the infotainment and entertainment industry requires us to be on a much faster track,” said Gunter Reichart, BMW vice president of driver assistance, body electronics and electrical networks. “We invite other OEMs to join with us, to ex- change with us. We are open to exchange with others.” An open-source platform fosters innovation by allowing software suppliers and Linux users to share ideas, fix problems and contribute code. The result is a platform that offers plug-and-play compatibility for infotainment products from any supplier. GM is considering whether to go the open-source route. “This is a decision we will make in the next six to 12 months,” said Chris Thibodeau, GM’s director of global technology engineering for electrical/electronics products. “It’s a great opportunity for us. I think this can really advance a lot of software development and bring a lot of innovation to the vehicle. So, personally, I’m on board. “As a company, there are many things to study here, how we will invest and support this strategy.” Chrysler’s Andreas Schell, vice president of DETROIT — Automakers and large suppliers may be chasing off new technology by dealing too roughly with small upstart parts makers, Don Runkle says. In tough market conditions, it is easy to write off a supplier because it is not big enough or may need special payment terms to start jobs, he said. Runkle should know. He has reviewed lots of small companies for private investors, such as Roger Penske and Tennenbaum Capital Partners. Today, the former Delphi Corp. vice chairman is nonexecutive chairman of EaglePicher Corp. and Autocam Corp. The failure to give upstarts serious consideration means that good technology is being missed, Runkle said. “We have to relook at how we’re doing business together,” he said as part of a supplier panel at this year’s SAE Convergence conference on automotive electronics. Terms and conditions can give even large companies fits. Take Ford Motor Co. and Microsoft Corp. They had a hard time working through intellectual-property and warranty issues before going forward with the Sync in-vehicle communication system on Ford vehicles, said Ray Gage, Microsoft business development manager. They also butted heads on branding and Ford’s obtaining exclusive rights to the technology for one year, Gage told the Convergence audience. “It was two big companies used to doing business their own way,” he said. Ultimately, the deal worked. But the deal was so tense at one point that a Ford executive began collecting employee signatures asking higher-ups to be flexible on terms to get an agreement, Gage said. He joked that he almost went to the same lengths at Microsoft.c
Table of Contents Feed for the Digital Edition of Automotive News - October 27, 2008 Chrysler dealers under GM? States would rule Survey: Worried dealers flee GMAC Va. dealers turn to local credit unions Anxiety over Chrysler: Deal or no deal? Ford, GM execs join panels looking at eco-friendly options Big pickups, SUVs gain share Chrysler will cut 4,300 salaried jobs by year end BMW seeks joint vehicle electronics effort Runkle: Give tiny suppliers a chance VW goal: 80% N.A. content for Tenn. plant April Wortham China's BYD plans U.S. hybrids Lucky Icahn lost Lear Mahindra's U.S. launch to get $60 million ad drive Toyota may renew no-interest loans Hesterberg, Thomson will address congress Desperate industry begs feds for help Hyundai dealers want ads to pitch favorable loans Toyota, GM top global r&d spending After Detroit 3 take back design, supplier sitting pretty Germany's Preh supplies F-150 ventilation part Buehler is Volt supplier Freescale: New infotainment chip Are they too big to fail? A goal for GM: Buy back full control of GMAC Tax credit would move domestic cars GMAC loan bonus is a bad idea Take a good look: Toyota is losing its halo What flexibility is and what it isn't Toshiba joins battery battle Personnel Hyundai slows Ala. output of Sonata, Santa Fe Picture this LaNeve: GM marketing budget faces '09 hit Hyundai counts on luxury, hybrid hopes Keogh: Audi belongs with top luxury brands Dealers Court overturns class-action status in Blue Oval suit 2 major lemon-law lawyers lose right to practice in Md. Auctions offer more online for just-in-time dealers Used-truck prices higher in September Lack of used Minis limits certified program Wood trim maker expects to avoid worst of woes VW: U.S. may get Scirocco after all Ford's new F-150 is built for jobs, not jaunts Think of it as GPS for tools Feds look at China-made valves on Ford tires Shareholder value tumbles in 3rd quarter Shareholder value tumbles in 3rd quarter Ford truck marketing exec: Hybrid pickup 'publicity stunt' Survey: Ford Motor reliability improves Chrysler heir: Get back to basics Farley has bright idea to boost auction action Kerkorian speeds away from autos Names familiar? NADA leadership is a family affair Mitsubishi bucks trend on profits New trade debate in the works? Beware the 'vital' deal Automotive News - October 27, 2008 Automotive News - October 27, 2008 - (Page Intro) Automotive News - October 27, 2008 - (Page Bellyband1) Automotive News - October 27, 2008 - (Page Bellyband2) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 1) Automotive News - October 27, 2008 - Va. dealers turn to local credit unions (Page 2) Automotive News - October 27, 2008 - Chrysler will cut 4,300 salaried jobs by year end (Page 3) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 4) Automotive News - October 27, 2008 - VW goal: 80% N.A. content for Tenn. plant April Wortham (Page 5) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 6) Automotive News - October 27, 2008 - Hesterberg, Thomson will address congress (Page 7) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 8) Automotive News - October 27, 2008 - Toyota, GM top global r&d spending (Page 9) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 10) Automotive News - October 27, 2008 - Freescale: New infotainment chip (Page 11) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 12) Automotive News - October 27, 2008 - GMAC loan bonus is a bad idea (Page 13) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 14) Automotive News - October 27, 2008 - What flexibility is and what it isn't (Page 15) Automotive News - October 27, 2008 - Hyundai slows Ala. output of Sonata, Santa Fe (Page 16) Automotive News - October 27, 2008 - Picture this (Page 17) Automotive News - October 27, 2008 - Picture this (Page 18) Automotive News - October 27, 2008 - Picture this (Page 19) Automotive News - October 27, 2008 - LaNeve: GM marketing budget faces '09 hit (Page 20) Automotive News - October 27, 2008 - Hyundai counts on luxury, hybrid hopes (Page 21) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 22) Automotive News - October 27, 2008 - Keogh: Audi belongs with top luxury brands (Page 23) Automotive News - October 27, 2008 - Dealers (Page 24) Automotive News - October 27, 2008 - 2 major lemon-law lawyers lose right to practice in Md. (Page 25) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 26) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 27) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 28) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 29) Automotive News - October 27, 2008 - Lack of used Minis limits certified program (Page 30) Automotive News - October 27, 2008 - VW: U.S. may get Scirocco after all (Page 31) Automotive News - October 27, 2008 - Feds look at China-made valves on Ford tires (Page 32) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 33) Automotive News - October 27, 2008 - Ford truck marketing exec: Hybrid pickup 'publicity stunt' (Page 34) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 35) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 36) Automotive News - October 27, 2008 - Survey: Ford Motor reliability improves (Page 37) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 38) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 39) Automotive News - October 27, 2008 - Beware the 'vital' deal (Page 40)
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