Automotive News - April 21, 2008 - (Page 6)

6 • APRIL 21, 2008 Supplier to help Mahindra offer diesel hybrid Lindsay Chappell lchappell@crain.com Dealer deadlines Important dates for 400 auto dealers who must decide what dealer management system to use April 4: GM and Reynolds signed a settlement removing Reynolds from the GM Integrated Dealer Management System program. July 31: GM dealers using Reynolds-supplied GM IDMS must decide whether to remain in the program. Jan. 31, 2009: GM dealers must have completed the transition to a new IDMS vendor, a new non-IDMS vendor or a new Reynolds contract. Source: GM, Reynolds Indian truckmaker Mahindra & Mahindra Ltd. will market a diesel-electric hybrid SUV in the United States with help from German powertrain supplier FEV Inc. FEV has created a hybrid add-on system for Mahindra’s four-cylinder diesel engine. It does not require a major redevelopment of the vehicle’s powertrain. The project will take about 24 months and will make it possible for Mahindra’s U.S. distributor to begin marketing hybrid diesel SUVs here in 2010. Hybrids use an internal combustion engine and one or more electric motors to power the wheels. Mahindra has signed an exclusive U.S. distributor, Global Vehicles U.S.A. Inc., of Alpharetta, Ga., to begin selling Mahindra pickups and SUVs here in 2009. A Global spokesman said last week that the company has signed up 308 U.S. retailers. All of Mahindra’s vehicles will contain diesel engines. The hybrid version is being developed by replacing a torque converter with an electric motor and planetary gear system, said Jochem Wolschendorf, FEV vice president for vehicle and drivetrain engineering at the company’s suburban Detroit technical center. “This approach leaves the engine and transmission as they were,” Wolschendorf said. “It is a relatively cost-effective and straightforward approach that required only a minimum tear-up of the powertrain.” The engine adaptation is being done at the suburban Detroit center and another FEV technical center in Germany. Wolschendorf said the use of an electric motor boosts performance on the small-engine vehicle by giving it improved launch assist. He estimated that it will enhance fuel efficiency by about 20 percent. c Ford broadens its diesel strategy Richard Truett rtruett@crain.com Ford Motor Co. will outfit a variety of pickups, vans and SUVs with a diesel engine the company is developing. Details about the 4.4-liter, turbocharged V-8 were leaked to the Internet after being revealed at a dealer show this month in Las Vegas. Ford had confirmed that a new diesel would be installed in the F-150 pickup truck and Expedition SUV starting in 2010. But Ford and Lincoln-Mercury dealers at the show learned that the engine also will be used in the Lincoln Navigator SUV and Ford E-series vans and in the Super Duty version of the F-series pickup. Ford’s new diesel, designed inhouse, likely will be made at Ford’s Chihuahua, Mexico, engine plant. At the dealer show, held at the Bellagio Hotel, dealers saw a placard comparing the engine’s performance with that of the current 5.4-liter gasoline engine. The new diesel, which is closely related to the 3.6-liter turbodiesel used in European Land Rovers and Jaguars, delivers 9 percent more power than the 5.4-liter gasoline engine and 15 percent more torque. The new diesel has about the same 0 to 60 mph acceleration but gets 20 percent better fuel economy. Ford also plans to use a urea injection system to control emissions, as Mercedes-Benz does. Those details as well as a photo of the engine appeared on several Web sites, including www.pickuptruck.com. Ford spokesman Alan Hall said: “We shared a lot with our dealers out in Vegas, and future powertrains were part of that.” c GM pitches its management system to dealers Ralph Kisiel rkisiel@crain.com The re-engineered and restyled 2009 F-150 is one of several key launches this year for Ford. Ford plans $100M-plus F-150 launch Amy Wilson awilson@crain.com Farley completes his ad team ➤ 43 $100 million on what he called the biggest launch campaign in Ford’s history. The same kind of emphasis is being planned for the re-engineered and restyled 2009 F-150, which goes on sale this fall. “It will definitely be our biggest launch in the next many years, absolutely,” Farley said. He said it is too early to describe elements of the marketing campaign, but he noted that the budget itself LAS VEGAS — Ford Motor Co. will spend more than $100 million to market the revamped 2009 F-150 pickup. Ford marketing chief Jim Farley told Automotive News that the model-year launch budget is “in the same ballpark” as the spending allocated when the automaker introduced the current F-150 in 2003. When that redesigned 2004 model went on sale, then company executive Steve Lyons said Ford would spend more than isn’t as important as how the money is spent. “You can blow $200 million on broadcast TV and not have anyone notice, if it’s not done just right,” Farley said. The 2009 F-150 is one of several key launches this year. Campaigns also are being completed for the new 2009 Ford Flex crossover and 2009 Lincoln MKS sedan, both of which go on sale this summer. Company officials say Ford and its dealers spend $1.5 billion annually on marketing at the national, regional and local levels. c General Motors is twisting the arms of 400 auto dealers. They bought GM’s Integrated Dealer Management System, or IDMS, contracting with GM for hardware and software. Reynolds and Reynolds Co., a GM-approved vendor, installed and serviced the GM program. But when GM and Reynolds settled litigation out of court, GM barred Reynolds from the program. Officially, GM says those dealers have “complete choice” over what to do now. They can turn to another approved vendor: ADP Dealer Services, Quorum Information Technologies Inc. or AutoSoft International Inc. Or they can drop IDMS for a system from Reynolds or another vendor. But GM wants to keep them in the IDMS fold. The other IDMS vendors want to lure the 400 from Reynolds. In a letter, GM urged the dealers to contact ADP, Quorum or AutoSoft. “These endorsed GM IDMS vendors have developed special accommodations to assist your dealership,” wrote Marty Raymond, GM’s director of global retail programs. Quorum, for instance, offers those dealers no money down and low monthly payments, says Quorum CEO Maury Marks. “We’re trying to make the transition for the dealership as painless as possible,” he says. The dealers will pay no more, and possibly less, says ADP’s pitch. “As you know, a lot of dealers hate change, and that will be a major play,” Raymond says. “But we’re certainly going to encourage them.”c Transplants top 40% of N.A. output in March What with the American Axle strike and other scheduled downtime, the Detroit 3’s share of light-vehicle production in North America dipped below 60 percent in March. The combined share of General Motors, Ford Motor Co. and Chrysler LLC plants first dropped below 90 percent in 1989. It fell below 80 percent in 1996 and below 70 percent in 2004. Will the Detroit 3 fall below 60 percent for all of 2008? Stay tuned. GM, Ford and Chrysler combined for 59.6 percent of North American output last month, down from 64.1 percent in March 2007. Totals include vehicles built in Detroit 3 plants and GM and Ford models pro- Detroit breakdown Manufacturers’ share of car and light-truck production in North America MARCH ’08 MARCH ’07 Running the numbers duced at joint-venture plants. About 77,000 GM units were lost during the month because of strikerelated work stoppages. In the first quarter, Detroit 3 output accounted for 60.2 percent of the North American total, down from 63.1 percent in the same period last year. All together, GM, Ford and Chrysler built 2,101,384 units in the quarter, Detroit 3 All others Detroit 3 All others 59.6% 40.4% 1ST QTR. ’08 64.1% 35.9% 1ST QTR. ’07 60.2% 39.8% 63.1% 36.9% Source: Automotive News Data Center Honda accounted for more than 10 percent of North American light-vehicle production in the first quarter. The company last year added a Civic line in Ontario and boosted the CR-V, shown, to full production in Ohio. reaching 10.6 percent in the first quarter. Honda stood at 9.3 percent for all of 2007, up from 8.7 percent in all of 2006. Last year Honda added a Civic line in Alliston, Ontario, and pushed the CR-V crossover to full production in East Liberty, Ohio.c down 13.5 percent. American Honda Motor Co. has climbed above 10 percent of North American production so far this year, http://www.pickuptruck.com

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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