Automotive News - April 21, 2008 - (Page 1)

autonews.com ® APRIL 21, 2008 Entire contents © 2008 Crain Communications Inc. All rights reserved. $155/YEAR; $5/COPY GM’s new brand bosses get mini-empires Reorganization plan gives more muscle to 4 sales-channel execs Jamie LaReau jlareau@crain.com Hummer plummets, Saturn soars in sales per franchise Arlena Sawyers asawyers@crain.com Saturn’s challenge ➤ 4 DETROIT — General Motors’ reorganization of its brand leadership has created a new group of power players atop its four marketing channels. But some question whether, even now, these executives have enough clout. Last week’s moves give sweeping powers to Susan Docherty at BuickPontiac-GMC, Mark McNabb at Cadillac-Hummer-Saab, Ed Peper at Chevrolet and Jill Lajdziak at Saturn to run the channels as separate businesses. GM says the new system gives brand leaders: More control over incentives. More power over advertising and marketing budgets. More direct communication with field representatives and dealers. Responsibility for sales and sales revenue. More input on product. “They’ll be directly held responsible for the sales and sales revenue and bottom line performance of the channel,” says Peter Ternes, a GM spokesman. “It changes their biggest role as being the voice of marketing to that of being the leaders of a business.” The channel heads report to Mark LaNeve, GM’s vice president of vehicle sales, service and marketing. Meanwhile, GM is eliminating much of GM’s central sales organization. McNabb: Heads Peper: Powerful premium channel Chevrolet boss When Brent Dewar, North America vice president of field sales, service and parts, moves to become marketing chief of GM Europe, that position won’t be filled. Regional sales manager jobs will be eliminated, with regional sales staff reporting to yet-to-be-named sales managers for the channels. Those jobs likely will be in Detroit. That gives added power to channel heads, three of whom also become vice presidents of GM North Amerisee CHANNEL, Page 42 By one measure of sales performance, two General Motors brands — Saturn and Hummer — were at polar extremes last year. The measure is U.S. new-vehicle retail registrations per franchise. Saturn tied for the greatest improvement among all automakers’ brands in 2007, an Automotive News analysis concludes. But Hummer was the biggest loser. More broadly, the Detroit 3 badly trailed the Japan 3 in registrations per franchise, a reflection of the domestic automakers’ oversized retail networks. Looking at retail registrations per franchise provides a rough gauge of brand and dealership sales success. The calculation does not include Japan 3 vs. Detroit 3 U.S. new-vehicle retail registrations per franchise by automaker 2007 ’07 vs.’06 unit 2006 change Toyota Motor Sales 1,628 1,633 American Honda 1,165 1,155 Nissan N.A. 746 744 Ford Motor Co.* 236 258 General Motors* 202 212 Chrysler LLC 169 175 *Domestic brands only Source: Automotive News Data Center and R.L. Polk & Co. –5 10 2 –22 –10 –6 less-profitable fleet sales, which the Detroit 3 rely on more heavily than see FRANCHISE, Page 42 Buick’s next LaCrosse China is Buick’s biggest market, so it gets Buick’s latest world debut: the sleek, luxurious Invicta sedan concept, right, a mildly camouflaged replacement for the Buick LaCrosse. Both the Chinese and U.S. vehicles were developed on GM’s new front-wheel, global mid-sized architecture and go on sale next year. For more details, see www.autonews.com. Also at Beijing, below, Audi debuts its mid-sized Q5 crossover. Pickup game Watch for a big wave of “lifestyle” pickups — carlike trucks based on unibody platforms. | PAGE 3 | For updates on the Beijing auto show, visit autonews.com Beijing time Audi Q5 The world’s auto execs have gathered in one of the few large markets still growing: China. The Beijing auto show, and an Automotive News China Congress that preceded it, drew executives eager to ride China’s growth. To see how General Motors is adapting its product plans to emerging markets, and the possibility that Honda might export cars from China to the United States, see stories on Page 8. PACE Awards honor innovators It was a night of black ties and bright ideas: Innovative suppliers were honored at the annual Automotive News PACE Awards ceremony. | PAGES 20, 22 | Chrysler-Nissan: Loads of partnership potential Bradford Wernle and Richard Truett bwernle@crain.com news ANALYSIS Chrysler and Nissan have barely scratched the surface when it comes to sharing products and powertrains — a sign that their new tactical al- liance could grow into a major strategic partnership. With two product-sharing agreements already in the works, the automakers now say they’re busy ex- ploring more ways to cooperate. They won’t have to look far. Each offers the other quick fixes in key areas. Nissan has a lot of what Chrysler lacks: global reach, excellent smalland mid-sized car platforms and small diesel engines for cars. Chrysler could chip in hybrids, Hemis, big diesel engines from Cummins, pickups, SUVs, minivans and Jeeps. “Chrysler-Nissan-Renault is a marriage made in heaven,” says John Wolkonowicz, an analyst for Global Insight in Lexington, Mass. Speculation about Chrysler-Nissan nuptials sounds practical, Chrysler eyes service-only stores ➤ 43 even probable, if you count the many ways the two companies could help each other. “They’re getting to know one another so they can make a better judgment on how this is going to unfold,” says Dave Cole of the Center for Automotive Research in Ann Arbor, Mich. Chrysler CEO Bob Nardelli left open the possibility that Chrysler could call on Nissan or other partners to speed up the process of filling see ALLIANCE, Page 43 On the Web This week at www.autonews.com: Tuesday: Federal-Mogul releases first-quarter results. Thursday: American Axle and Manufacturing Holdings holds its annual meeting in Detroit. Thursday: AutoNation releases first-quarter results. 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Table of Contents Feed for the Digital Edition of Automotive News - April 21, 2008

Automotive News - April 21, 2008 Reorganization plan gives more muscle to 4 sales-channel execs Hummer plummets, Saturn soars in sales per franchise Chrysler-Nissan: Loads of partnership potential LIFESTYLE PICKUPS Strike averted Friday at GM transmission plant Hyundai to phase out Tiburon Veteran lobbyist looks back on decades-long mpg battle Autonews.com offers news customization GM offers free digital marketing package to dealers Lithia extends vehicle repair warranty to 3 years/50,000 miles With new products, is there life in Saturn? Ford plans $100M-plus F-150 launch Ford broadens its diesel strategy GM pitches its management system to dealers Supplier to help Mahindra offer diesel hybrid Transplants top 40% of N.A. output in March Geely chief: 'We are still an ant' Honda could import cars from China GM redirects efforts to serve emerging markets Beijing showstoppers New Challenger is appetizer for full line in 2009 Last week, I got a glimpse of the future Service contracts: Federal oversight is needed Delphi mess drags on Can't we stop importing oil? Ryan revolutionized this business An editorial glass ceiling? Driving on hydrogen — pros and cons BMW should build even more here Not what New York ordered Magna exec: More suppliers will fail Canada sales off 0.4% in March Bosch pushes crash avoidance Chrysler plans hybrid Dodge Ram Honda engineer is honored by SAE for safety efforts Panel: Diesels may hit 20% of U.S. market by 2020 Automotive News PACE Awards: Night of black ties, trophies, praise PACE Awards honor innovation Truck sales drop 31% in March Honda's new Pilot is bigger, more upscale In China, GM looks to fresh vehicles in 2009 U.S. economic woes hurt shareholder values Judge refuses to toss GMC franchise-award case Dealers Farley: Ford's marketing team is ready to roll Landry: Chrysler's consolidation will spawn service-only stores Profits up at Johnson Controls Hyundai to fix airbag problem GM to build $200 million Brazil plant Convis is CEO of Dana Holding Denso names Katoh CEO Stephen Feinberg speaks! Hogan eyes CEO spot in startup Chrysler reviving its global dreams? How I saved Delphi: A work in progress Tesla Motors' lawsuit: Designer Fisker ripped us off Concert in the key of C-3PO

Automotive News - April 21, 2008

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