Automotive News - July 7, 2008 - (Page 3) JULY 7, 2008 • 3 82nd year — No. 6315 Amid sale rumors, Volvo has upmarket plans Arjen Bongard abongard@craincom.de Mercedes will end McLaren collaboration Mercedes-Benz will end its partnership with sports car manufacturer McLaren Automotive Ltd. when its agreement expires next year. Together, the German automaker and the British sports car manufacturer built the SLR premium roadster. “The partnership ends in 2009, and it will not be renewed,” a Mercedes spokesman said. Media reports say a new flagship premium roadster called the SLC will replace the SLR in 2010. It will be built by Mercedes’ in-house performance unit AMG at the automaker’s Sindelfingen plant, near Stuttgart. — James Franey Amid media speculation about an upcoming change in ownership, Volvo Cars is continuing with plans to move its brand upmarket. “We want to continue to compete with Mercedes, BMW and Audi,” said Steven Armstrong, Volvo’s COO. “We’re working to improve the premium-ness of the brand and our products.” Volvo, the Swedish premium-car division of Ford Motor Co., is rumored to be for sale. Press reports say Ford, which is posting heavy global losses, has been in contact with France’s Renault SA, China’s Dongfeng Motor Corp. and perhaps an unidentified Russian company. Ford has said repeatedly that Volvo is not for sale. Volvo is losing money. In the first Volvo Cars COO Steven Armstrong: “It has been a difficult quarter for the whole industry.” quarter it had an operating loss of $151 million. The second quarter likely produced red ink as well. “Obviously, it has been a difficult quarter for the whole industry,” Armstrong said. He said in a phone interview that Volvo is reviewing its product plans, technology and powertrains as it fights to restore profitability. Last month, in an effort to reduce its cost base, the company said it was laying off 2,000 workers, mostly at its Gothenburg headquarters. Volvo blames the weak dollar and increased raw materials prices for its problems. It also acknowledges that it needs more models with fuel-efficient engines. In the next 12 to 18 months, Volvo will roll out a range of models with fuel-saving technologies such as stopstart and brake-energy regeneration, Armstrong said. In a few years, some models that are on the road today will have hybrid gasoline-electric powertrains, he added. Volvo’s product-planning review focuses on boosting returns and building more cars that are of interest to environmentally conscious consumers. The outcome of the review likely will be fewer models in coming years. Said Armstrong: “It’s better to do fewer nameplates well than to do the same number with less money and do them less well.” Meanwhile, Volvo may still decide to build cars in the United States, “but the issue is not quite as high on the agenda as it was in January,” Armstrong said. He said it might be better for Volvo “to invest in other product areas, rather than in our manufacturing footprint.” Because it doesn’t build cars in the United States, Volvo has to import relatively expensive European-built models to America, where they are sold in dollars. Volvo sold 458,323 units worldwide last year, of which 106,213 were sold in the United States. Volvo’s U.S. sales peaked at 139,067 units in 2004, but they are expected to fall to around 95,000 this year. c Takata purchases assets to aid vision business DETROIT — TK Holdings Inc., a suburban Detroit unit of Japan’s Takata Corp., has purchased the assets of the former Assistware division of Cognex Corp. for an undisclosed sum. The deal gives Takata intellectual property, including codes and algorithms for its lane-departure warnings business, says Kirk Morris, Takata vice president for business development and electronic operations. He adds: “The deal is key to our strategy to be a key supplier of automotive vision in the active vision market.” These systems use video camera technology to monitor the road while the vehicle is moving. The system then alerts the driver when the vehicle accidentally veers out of the driving lane. — Robert Sherefkin HANS GREIMEL 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: 313-446-6050 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). Fat patrol: Honda’s Kohei Hitomi shows where slivers of steel were shaved off between welding points to save weight on the redesigned Fit subcompact. Japan’s new diet plan: Slim down, ounce by ounce Hans Greimel hgreimel@crain.com Get the lard out Weight reduction is a top priority for Japanese automakers. Nissan wants vehicles 15% lighter on average by 2015. Toyota is said to be aiming for a 10% cut in mid-sized car weight by the mid-2010s. Honda is cutting weight but has not issued a percentage goal. Mazda eyes trimming 220 pounds from new vehicles starting in 2011. my and cut carbon emissions. It’s difficult, because slashing weight is expensive. Light materials, such as aluminum and magnesium, cost more than steel. Yet several Japanese companies, including Toyota and Mazda, believe they can cut weight without increasing costs. Pump prices of $4 a gallon mean an end to the days of ever bigger and bulkier model updates, engineers say. The new premium is on shedding weight by: Using new lightweight materials. Employing new engineering and design methods. Reducing the overall size of vehicles. Nissan Motor Co. is leading the way. It aims to make its fleet 15 percent lighter on average than its 2005 level by 2015. Toyota Motor Corp. meanwhile has a committee dedicated to weight reduction and is said to be eyeing a 10 percent cut in the weight of mid-sized vehicles. Mazda Motor Corp. wants to cut 220 pounds CORRECTIONS A story on Page 3 of the June 16 issue misstated the term of a Volkswagen brand consumer incentive. VW was offering 0 percent retail financing for 60 months on the 2008 GTI hatchback and New Beetle convertible, a dealership general sales manager said. A story on Page 38 of the June 23 issue gave the wrong source for information. A statement about where the Ford C-Max might be assembled in the United States should have been attributed to industry sources. TOKYO — Kohei Hitomi, chief engineer of Honda’s redesigned Fit, runs his hand along the car’s rear door before suddenly ripping loose the rubber window trim with both hands. “Look here,” Hitomi says, pointing to the scalloped seam where two sheet metal panels are spot-welded. “This is just one way we are trying to reduce weight.” Closer inspection reveals tiny divots of steel shaved off between the welding dimples. Each is only centimeters long. But add them up, and it means savings for the Fit’s final curb weight. Call it the Japan weight loss plan. Japanese automakers are determined to trim the fat, an ounce at a time. Honda, Nissan, Toyota and Mazda are making lighter cars a top priority as they scramble to boost fuel econo- from each new model. “Unless you really reduce weight, you will never be able to reduce auto emissions. We therefore intend to bend over backward to achieve this,” Toyota r&d chief Masatami Takimoto says. Slim fast Takimoto says his engineers have orders to slim the next-generation Corolla 30 percent when it arrives around 2015, though he concedes that getting there without increasing costs will “extremely difficult.” The next incarnation of the Prius hybrid vehicle, expected next year, will have a motor one-sixth as heavy as the first generation’s and a battery only half as heavy, he says. Toyota wants to trim its mid-sized vehicles see JAPAN, Page 18 http://www.autonews.com
Table of Contents Feed for the Digital Edition of Automotive News - July 7, 2008 Automotive News - July 7, 2008 Turnaround trouble: Mitsubishi back on the skids It's a panic — but don't panic CAUGHT FLAT-FOOTED Japan's new diet plan: Slim down, ounce by ounce Amid sale rumors, Volvo has upmarket plans Reynolds sues dealer over computer upgrade Chrysler and dealers to improve Internet marketing strategies Seat strategy: Lear aims to make more profits by producing more parts Nissan: Despite a truck glut, Titan gets no more incentives American Axle cuts staff; boosts India business, CEO bonus Bosch sees N.A. red ink this year Bill Mitchell's designs blew away the past Hyundai Santa Fe to get a 4-cylinder GM Europe exec: Curbing CO2 is 'around the clock' effort Supplier input varies in Nissan's tech plans Great Wall becomes Chrysler's 2nd Chinese partner Steel prices nudge up Nano's costs Analyst: GM could tap UAW benefits fund Automakers create opportunities for Mexican molders Chrysler pitches gas savings on hybrid SUVs Researchers test capturing CO2 before it leaves the car Some execs win even when their companies lose Tata's personal touch Show me the money Obituaries Study: Dealership service shops extend their hours New Web tool promotes GM service Fiat CEO Marchionne is Industry Leader of Year Jim O'Sullivan Johan de Nysschen Sergio Marchionne Ratan Tata Dick Colliver Fritz Henderson Martin Thall Jim Farley Jack Stavana Roger Penske Walter de' Silva Mike Stanton Tim Manganello David Friedman Jim Hallett Larry Jutte Kim Kosak Ron Gettelfinger Tom Stephens Bob Lutz Tom Shoupe Jay Amestoy June caps a dismal first half Personnel Auto roof rule due by Oct. 1 Mitsubishi dumps 9 ad associations Small-car transaction prices rise in June Turbo taboo may end for BMW M's The mpg fracas: Pick your favorite fairy tale Great news? Analysts shun the Kool-Aid at Chrysler And now, from Wall Street, a short tale of terror VW tells builders: Plan for Southeast plant Dodging a bullet: Half-off deal busts dealer's Ram jam To run the train, should you be an engineer? Automotive News - July 7, 2008 Automotive News - July 7, 2008 - CAUGHT FLAT-FOOTED (Page 1) Automotive News - July 7, 2008 - CAUGHT FLAT-FOOTED (Page 2) Automotive News - July 7, 2008 - Amid sale rumors, Volvo has upmarket plans (Page 3) Automotive News - July 7, 2008 - Seat strategy: Lear aims to make more profits by producing more parts (Page 4) Automotive News - July 7, 2008 - Seat strategy: Lear aims to make more profits by producing more parts (Page 5) Automotive News - July 7, 2008 - Hyundai Santa Fe to get a 4-cylinder (Page 6) Automotive News - July 7, 2008 - Hyundai Santa Fe to get a 4-cylinder (Page 7) Automotive News - July 7, 2008 - Analyst: GM could tap UAW benefits fund (Page 8) Automotive News - July 7, 2008 - Analyst: GM could tap UAW benefits fund (Page 9) Automotive News - July 7, 2008 - Chrysler pitches gas savings on hybrid SUVs (Page 10) Automotive News - July 7, 2008 - Chrysler pitches gas savings on hybrid SUVs (Page 11) Automotive News - July 7, 2008 - Show me the money (Page 12) Automotive News - July 7, 2008 - Show me the money (Page 13) Automotive News - July 7, 2008 - Show me the money (Page 14) Automotive News - July 7, 2008 - Show me the money (Page 15) Automotive News - July 7, 2008 - Obituaries (Page 16) Automotive News - July 7, 2008 - Obituaries (Page 17) Automotive News - July 7, 2008 - Obituaries (Page 18) Automotive News - July 7, 2008 - Obituaries (Page 18A) Automotive News - July 7, 2008 - Obituaries (Page 18B) Automotive News - July 7, 2008 - Obituaries (Page 18C) Automotive News - July 7, 2008 - Obituaries (Page 18D) Automotive News - July 7, 2008 - Obituaries (Page 18E) Automotive News - July 7, 2008 - Obituaries (Page 18F) Automotive News - July 7, 2008 - Obituaries (Page 18G) Automotive News - July 7, 2008 - Obituaries (Page 18H) Automotive News - July 7, 2008 - Obituaries (Page 18I) Automotive News - July 7, 2008 - Obituaries (Page 18J) Automotive News - July 7, 2008 - Obituaries (Page 18K) Automotive News - July 7, 2008 - Obituaries (Page 18L) Automotive News - July 7, 2008 - New Web tool promotes GM service (Page 19) Automotive News - July 7, 2008 - Dick Colliver (Page 20) Automotive News - July 7, 2008 - Walter de' Silva (Page 21) Automotive News - July 7, 2008 - Larry Jutte (Page 22) Automotive News - July 7, 2008 - Jay Amestoy (Page 23) Automotive News - July 7, 2008 - Jay Amestoy (Page 24) Automotive News - July 7, 2008 - Jay Amestoy (Page 25) Automotive News - July 7, 2008 - Jay Amestoy (Page 26) Automotive News - July 7, 2008 - Jay Amestoy (Page 27) Automotive News - July 7, 2008 - Jay Amestoy (Page 28) Automotive News - July 7, 2008 - June caps a dismal first half (Page 29) Automotive News - July 7, 2008 - Personnel (Page 30) Automotive News - July 7, 2008 - Mitsubishi dumps 9 ad associations (Page 31) Automotive News - July 7, 2008 - Small-car transaction prices rise in June (Page 32) Automotive News - July 7, 2008 - Small-car transaction prices rise in June (Page 33) Automotive News - July 7, 2008 - To run the train, should you be an engineer? (Page 34) Automotive News - July 7, 2008 - To run the train, should you be an engineer? (Page 35) Automotive News - July 7, 2008 - To run the train, should you be an engineer? (Page 36)
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