Automotive News - May 5, 2008 - (Page 16)

16 • MAY 5, 2008 ADVERTISING STAFF HONDA DEALER’S SALES SOAR in just 60 DAYS! “CBC has helped us increase our volume, increase our gross and showroom. We continue to increase our market share while increasing our CSI. We consider CBC to be a working partner on our team. CBC has played a key role in our becoming #1.” -Dale & Mac Fox ALYSHA WEBB Circulation 313-446-0450 Advertising 313-446-6050 Classified Advertising 313-446-6065, 800-388-1800 E-mail rgreer@crain.com Web site www.autonews.com ADVERTISING AND SALES DETROIT 1155 Gratiot Ave., Detroit, MI 48207-2997 313-446-6790 Fax: 313-446-8030 Doug Labac, right, says brake drums and rotors that his company, Foster Parts, of Hanover Park, Ill., sources from China cost much less than similar U.S. parts. He was at the Beijing auto show last month with Albert Zhang, left, sales manager for supplier Winhere Auto-Part Manufacturing Co. Costs up in China, but bargains still abound Alysha Webb alyshawebb@yahoo.com Dale Fox Mac Fox Discover Why Some of North America’s Most Successful Dealerships Have Long-Term Relationships with CBC! CREATIVE BROADCAST CONCEPTS AUTOMOTIVE ADVERTISING 1-800-BEST-ADS (1-800-237-8237) • e-mail: info@cbcads.com Get your FREE DVD at CBCDealerAds.com BEIJING — Costs are rising for parts producers in China. A new labor law boosts employee costs by up to 30 percent. Raw materials are becoming more expensive. The weakening U.S. dollar buys fewer goods. Companies also must spend time and money bringing domestic suppliers up to international standards. So is China still a low-cost source of components, or is the China price a myth? “No,” it’s not a myth, says John Parker, executive vice president of Asia Pacific and Africa for Ford Motor Co. “But you have to analyze it in great detail.” Automakers and suppliers still aim to boost their purchases from China, but they are being selective about what they buy. Ford sources electronics, radios, antennas, aluminum wheels, forgings and castings in China for its worldwide operations. Transportation is key factor Logistics costs — the cost of moving the parts around — is an important factor in determining what makes sense to source from China, says Bob Rossiter, CEO of Lear Corp. Lear manufactures seating and electronics. For its seating operations, Lear buys seat tracks, motors, and seat heaters in China. But it doesn’t buy foam for seating. Foam doesn’t ship well. “You have to look at the whole business equation,” says Rossiter. “It’s not like you can just ship everything from Mexico or Asia.” China is competitive for many metal parts. For instance, the brake drums and rotors that Foster Parts Inc. sources from China are onethird the price of a similar part made in the United States, says Doug Labac, vice president of sales and marketing for Foster Parts, of Hanover Park, Ill. Winhere Auto-Part Manufacturing Co., of Qingdao, China, makes the drums and rotors for Foster. “Winhere is comparable in quality to anywhere else in the world,” says Labac. Foster supplies aftermarket parts to companies in the United States such as CarQuest Auto Parts, but it aims to supply the automakers themselves. Magneti Marelli buys tooling for plastic injection molding in China. “China is very, very competitive for tooling,” says Jim Weng, managing director of Magneti Marelli Powertrain (China). - Rick Greer Director of Sales and Marketing rgreer@crain.com 313-446-6050 Kathleen C. Lightbody, klightbody@crain.com, 313-446-6037 Russ Procassini, rprocassini@crain.com 313-446-0350 Karen Rentschler, krentschler@crain.com 313-446-6058 Jerry Salame, jsalame@crain.com 313-446-0481 Regional Sales Managers Bryan Foster, Marketing Director bfoster@crain.com, 313-446-6013 Ellen Dennehy Director of Relationship Marketing edennehy@crain.com, 313-446-6039 Cheryl Rothe, Marketing Manager crothe@crain.com, 313-446-6767 Lance Graves, Promotion Art Director lgraves@crain.com, 313-446-0469 Brandi Johnson, Marketing Coordinator bnjohnson@crain.com, 313-446-0326 Marie Hingst Classified Advertising Manager mhingst@crain.com, 313-446-6065 Dolores Lanivich, Denise Hendricks Classified Advertising Sales LOS ANGELES Justus Breese jbreese@crain.com, 323-370-2446 Pacific Region Sales Manager Lauren Ford, lford@crain.com 323-370-2447 Todd Landau, tlandau@crain.com 323-370-2466 Regional Sales Managers 6500 Wilshire Blvd., Los Angeles, CA 90048-4947 Fax: 323-655-8157 NEW YORK Scott Ghedine sghedine@crain.com, 212-210-0126 Henry Woodhouse hwoodhouse@crain.com, 212-210-0125 Regional Sales Managers 711 Third Ave., New York, NY 10017-4036 Fax: 212-210-0489 CHICAGO Jim Farnan, Regional Sales Manager jfarnan@crain.com, 312-649-5257 360 N. Michigan Ave., Chicago, IL 60601-3806 Fax: 312-649-5265 Libby Irwin, Conference Director lirwin@crain.com, 313-446-0420 Shauna Vercher-Morrow Special Events Manager svercher-morrow@crain.com, 313-446-0485 CONFERENCES WWW.AUTONEWS.COM John Fitzgerald, Director of Business Planning and Online Commerce jfitzgerald@crain.com, 313-446-1679 DEVELOPMENT J Ferron, Director of Strategic Development jferron@crain.com, 313-446-0434 CIRCULATION subs@crain.com 888-446-1422 (U.S. & Canada) 313-446-1662 (all other locations) Fax: 313-446-6777 To subscribe via the Web www.autonews.com/subscribe.htm Patrick Sheposh, Circulation Director Lauren Cialella, Circulation Manager Jennifer Natone, Circulation Coordinator Subscriptions U.S. 1 year, $155; 2 years, $266. Canada $239 (U.S.); other countries, $395. Single copy sales, $5 per issue plus shipping. Reprints Mike Shober, The YGS Group, 800-494-9051, Ext. 100 automotivenews@theygsgroup.com Microfilm ProQuest Information and Learning Co. 800-521-0600 Cheap labor And though labor costs are rising in China, labor is still cheap here, Weng says. In China, labor represents about 1 to 1.5 percent of the total cost, compared with 15 to 20 percent in Europe and 18 to 20 percent in the United States, he says. Those savings can add up if a company considers the savings at every level of sourcing. Says Weng: “China has a very big supplier base, so the whole supply chain can be cheaper.” c PRODUCTION Terry Driscoll, Production Manager tdriscoll@crain.com, 313-446-6062 Larry Williams, Production Supervisor AUTOMOTIVE NEWS EUROPE www.autonewseurope.com Jason Stein, Publisher jstein@craincom.de/+49-8153-907522 Nina Sauer, Sales and Marketing Director nsauer@craincom.de/+49-6992-884646 AUTOMOBILWOCHE www.automobilwoche.de Helmut Kluger, Publisher hkluger@craincom.de/+49-8153-907402 Thomas Heringer Sales and Marketing Director theringer@craincom.de/+49-8153-907404 http://www.autonews.com http://CBCDealerAds.com http://CBCDealerAds.com http://www.autonews.com/subscribe.htm http://www.autonewseurope.com http://www.webastoshowroom.com http://www.webastoshowroom.com http://www.automobilwoche.de

Table of Contents Feed for the Digital Edition of Automotive News - May 5, 2008

Automotive News - May 5, 2008 Dodge dealers battle to bust Ram logjam Used-car price slump slams luxury makes INDUSTRY IN DISTRESS Tesla opens first dealership in L.A. Los Angeles Top auto execs to talk marketing at seminar Nader and the Corvair: GM edition tells whole story Dealers take Tundra to the people UAW official expects American Axle buyouts Ford plans more UAW buyouts at 2 plants Honda to some dealers: Upgrade or else Hyundai: Powertrains will take us halfway to mpg target Diesel dynamo Daimler cuts Chrysler value, again Ford domestic dealer count dips below 4,000 Seems like old times: More cash on the hood Toyota sister car poses a challenge for Subaru Suzuki to offer standard navigation in $16,000 car Mpg plan fuels states-rights battle Kerkorian interest buoys Ford stock Henderson: GM will keep tight rein on inventory Is it real, or is it just temporary? Ford Motor must stay focused on recovery 'Have you lost your mind?' Dealers are victims of Axle strike Federal oversight? Good heavens, no Geoff Polites: A salute Save a board seat for the UAW A car for everyone or cut, cut, cut, cut? Think of Buick as part of B-P-G Costs up in China, but bargains still abound Mexico sales fall 17% in March Obituary Hyundai reworks Sonata sooner rather than later Nissan's Dominique gets to the big dance Dana seeks new business with Japanese companies ZF will supply Nissan Certified Tool closes a plant German engineering company plans Ala. factory Dealers A Lexus colossus Used-vehicle leasing boosts showroom traffic Certified buyers opt for extended service contracts Repossessed vehicles offer dealers a profit opening Prepaid plans spark service visits beyond oil changes Key to managing floorplan costs: Be realistic Long-term loans: Convenience or bad deal? Dealers hunt upside-down buyers with leases, incentives and long-term loans Where have all the investors gone? Dealer rebounds from contract mess Dealers must choose: Reynolds, GM — or start over AutoTrader.com makes big pitch to bump up new-vehicle sales CAW, Ford reach extensive early labor deal Infiniti asks: Do you smell something? Sure, Nissan GT-R is impractical — but what a rush Faurecia: We'll break even in N.A. Suppliers join carmakers' charge into Russia Chrysler small cars, Jeep crossovers are hot A dreary April in Detroit Penske earnings rise in 1st quarter Lithia posts $1.9 million loss GM makes 2nd ethanol deal Group 1's earnings slip Magna profits down; sales rise AIADA picks dealer of the year Vox(wagen) populi — plus a sales pitch Wagoner's pension shift: More earlier, less overall COMMENT: Bargaining barbs will sting for a long time Bugging the boss: Who's listening to Porsche CEO? New models from the post office Critics have kind words for Pontiac's G8 Ford can't picture kids at design studio

Automotive News - May 5, 2008

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