Automotive News - July 7, 2008 - (Page 6) 6 • JULY 7, 2008 American Axle cuts staff; boosts India business, CEO bonus Robert Sherefkin rsherefkin@crain.com DETROIT — American Axle & Manufacturing Holdings Inc. wants to trim as many as 400 white-collar jobs in addition to about 2,000 blue-collar cuts, even as it expands in India. Separately, the Detroit driveline supplier’s board more than doubled CEO Richard E. Dauch’s cash bonus for 2007. The company wants 300 to 400 white-collar workers to take early retirement by August, people familiar with the plan say. If too few sign up, layoffs could follow. “We are exploring those options,” says spokeswoman Renee Rogers. On June 27, American Axle’s board approved an $8.5 million cash bonus for Dauch, more than double the $3.9 million he got a year earlier. Dauch American Axle’s Richard E. Dauch received an $8.5 million bonus for winning a concessionary contract from the UAW. received $9.2 million in other compensation. The company said Dauch was rewarded for obtaining a concessionary contract from the UAW. A three-month strike by 3,600 American Axle workers ended when the UAW agreed to halve wages and benefits. The company expects to cut 2,000 UAW workers through buyouts, buy-downs and early retirement packages. American Axle is accelerating in India. The company confirmed that it is building a second axle plant there, in Pune. The plant is expected to supply Mahindra International Ltd., owned by Mahindra & Mahindra Ltd. and International Truck and Engine Corp., says Rogers. Last October, American Axle and India’s Sona Koyo Steering Systems Ltd. set up AAM Sona Axle Private Ltd. to make light-vehicle axles for Tata Motors Ltd. c Nissan: Despite a truck glut, Titan gets no more incentives Lindsay Chappell lchappell@crain.com North American chief Peter Marks: “We have big growth plans.” Bosch sees N.A. red ink this year April Wortham awortham@crain.com NASHVILLE — Nissan North America will resist putting still more incentives onto its Titan pickup trucks, even though there is a huge unsold supply of them. Nissan is already offering a cash rebate of $5,000 on 2008 models or 0 percent financing for 60 months. Al Castignetti, Nissan Division general manager, vows that’s enough: “We’re not going to play that crazy game. We’re holding the line.” Instead, Nissan will launch a truck-oriented TV and print marketing campaign this month to lure more shoppers into showrooms. At the same time, the automaker has slowed factory production in Canton, Miss. Castignetti thinks the combination of lower output and increased marketing will thin the inventory. But the Titan is a tough sell with gasoline north of $4 a gallon. As of June 26, Nissan said it had 25,926 unsold Titans in inventory, which amounts to more than a year’s supply at June’s average selling rate. Last month, Nissan sold 1,260 Titans, down 71.4 percent from June 2007. The automaker has parked an unspecified number of them in a vacant field next to an employee driving range near the Canton factory. Low sales led Nissan to decide this year to halt production of the Titan in 2010 in Canton. For the 2011 model year, Nisan will rely on Chrysler LLC to produce a new Titan in Mexico on the Dodge Ram platform. Castignetti says the July marketing effort will focus on Nissan’s primary truck markets: Texas, Florida, California, the Southeast and the Southwest. “My dealers aren’t telling me not to send them any more trucks,” Castignetti says. “They’re saying: ‘Just send us more floor traffic.’ So that’s what we’re going to focus on.” c Bill Mitchell’s designs blew away the past If Harley Earl was the founding father of General Motors styling, Bill Mitchell was the favorite son. Earl hired Mitchell on Dec. 6, 1935. Mitchell’s first car, the 1938 Cadillac Sixty Special, debuted at the New York auto show less than two years later, on Oct. 27, 1937. And it blew away the crowd. No wonder. The car had no running boards! It had the rear deck of a coupe on the end of a sedan. Chrometrimmed win- GM’s Mitchell: dow frames. It Favorite son had a large glass area and a roof that looked like a separate piece of architecture from the lower body. Mitchell’s Caddy weighed 4,170 pounds and sold for $2,090. The Sixty Special name stayed in the Cadillac lineup through the 1974 model year and was revived for 1987-93. Mitchell succeeded Earl as GM design vice president in 1959 and held the reins until he retired in 1978. Among his styling gems were the 1963 Chevrolet Corvette Sting Ray and Buick Riviera, the 1966 Oldsmobile Toronado and the Colonnade coupes of 1973. A fellow designer said of Mitchell, “He’s probably the most charismatic, overwhelmingly entertaining, bullheadedly perverse, dynamic, courageous, perceptively strategic … design director who ever hit the automobile business.” For the rest of the story, read Automotive News’ GM 100th anniversary edition, How General Motors Changed the World, on Sept. 15. For information about the special edition, go to www.autonews.com/gm100. Despite the growing demand for fuel-saving vehicles, Robert Bosch GmbH expects to lose money in North America this year. Peter Marks, CEO of Robert Bosch LLC, says the German supplier’s North American unit broke even in 2007. But citing such “head winds” as higher raw material costs, “the revenue drop at the OEMs and also to some extent the exchange rate, it will be difficult to maintain” breakeven, Marks told Automotive News last week. The euro’s gain on the U.S. dollar has hit Bosch hard. In 2007, the supplier of gasoline and diesel systems, brake and chassis systems and electrical drives increased North American automotive sales 6.5 percent in dollar terms. But when calculated as euros, sales dropped 1.6 percent. Bosch is “not writing off 2008,” Marks said. The supplier predicts North American production volumes to be slightly below 14 million units this year. Marks expects a slight improvement in production volumes in 2009. “Looking into the future, we definitely see that we will be profitable here in North America. We have big growth plans for this region, for the Americas as a whole,” Marks said. Bosch plans to push North and South American revenues from 19 percent of Bosch’s worldwide revenues currently to 25 percent by 2015. “We are very bullish on this region and will take any opportunity for growth,” he said. “And we mean profitable growth.” c BILL JACKSON Nissan has parked a number of unsold Titans in a vacant field next to a driving range near its factory in Canton, Miss. Hyundai Santa Fe to get a 4-cylinder Kathy Jackson kjackson@crain.com SANTA BARBARA, Calif. — As fuel prices soar, Hyundai plans to add a four-cylinder engine to its Santa Fe lineup when the crossover is redesigned in 2010. The Santa Fe now is available only with 2.7-liter and 3.3liter V-6s. The redesigned Santa Fe also will get a six-speed automatic transmission, John Krafcik, vice president of product planning for Hyundai Motor America, said at a press event here. The 2.4-liter four-cylinder is Hyundai’s second-generation Theta engine, which debuted this spring on the 2009 Sonata sedan. On the Sonata, the four-cylinder automatic gets 22 mpg in the city and 32 in highway driving, up from 21/30 on the previous four-cylinder Sonata. On the Santa Fe, the 2.7-liter V-6 automatic delivers 18/24; the 3.3-liter is rated at 17/24. Krafcik also said the small Tucson crossover will be equipped only with four-cylinder engines when redesigned in 2010 or 2011. The 2.7- liter V-6 will be dropped from the Tucson lineup. A turbocharged fourcylinder could be added. For the 2009 model year, Hyundai has tweaked the 1.6-liter four-cylinder that powers the subcompact Accent, Krafcik said. The result will be a 2 mpg improvement in fuel economy. The Accent’s four-speed automatic currently delivers 24 mpg in the city and 33 on the highway. “We are focusing on fuel-efficient cars,” Krafcik said. “We have a much greater capacity now for 1.6- to 2.0liter engines.” Hyundai now imports all of its fourcylinder engines from Korea, but a new engine plant in Alabama will start cranking out the new 2.4-liter four-banger for the United States this month. c The next Santa Fe gets a six-speed automatic gearbox. A 2008 model is shown. http://www.autonews.com/gm100
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)
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