Automotive News - May 5, 2008 - (Page 62)

final assembly comment 62 • MAY 5, 2008 FORD MEETING >> Get live coverage on Thursday of Ford Motor Co.'s annual meeting in Wilmington, Del., at www.autonews.com. I Bargaining barbs will sting for a long time Vox(wagen) populi — plus a sales pitchverybody wants to weigh in on the crucial issues of our time, right? A new Volkswagen gimmick indulges that urge and makes a sales pitch at the same time. A VW Web site, vw.com/whatthepeoplewant, polls the public on such vital topics as: “Should restaurants make their portions smaller in light of a movement toward better health?” (No, say 52 percent.) On the issue of being able to bring pets to work, 85 percent said yes. But offering an opinion means being subjected to an ad message. The VW logo is hard to miss, as is the Beetle that talks with a German accent making comments after you vote. If your cursor moves onto the names of cars at the bottom of the page, information appears. The most active polls are displayed in Times Square in New York on an electronic sign. Passers-by can vote on cell phones. Wagoner’s pension shift: More earlier, less overall t’s a shame. Long after the ink has dried on the new contract, there will be hard feelings about this year’s bargaining between the UAW and American Axle & Manufacturing Holdings. Each side has suffered wounds that will ache for years. This is a bitter battle in labor’s ongoing struggle EDWARD LAPHAM to save jobs and IS EXECUTIVE preserve benefits. EDITOR OF That war began AUTOMOTIVE when some NEWS. suppliers, including Delphi Corp., used Chapter 11 bankruptcy protection to attack uncompetitive labor costs. For management, this is a fight for the company’s survival. I’ve yet to talk with a top supplier exec who thinks Dick Dauch did the wrong thing by taking a tough stand at the bargaining table. Most — especially those whose companies face exploding costs and the looming threat of insolvency — say there was no other way. Something had to give. Reading between the lines, that means you can expect more tough talk and maybe even more strikes as the union sits down to parley with other suppliers. One supplier honcho told me that a major source of animosity has been the UAW’s willingness to get personal and demonize individuals. That certainly was true at Delphi, where UAW President Ron Gettelfinger savaged Delphi Chairman Steve Miller. Miller called the attacks unnecessary and said they made him feel like a pinata. Now it’s Dick Dauch’s turn. Even in tough times, which these certainly are, it’s important for each side of the table to respect the other — especially during a dispute — so when the contract is signed, labor and management can shake hands and resume their partnership. The ultimate goal should be to keep the industry healthy. That’s in the best interests of both parties. But with huge issues such as the workers’ way of life and the company’s survival at stake, it’s far too easy for passion to overcome reason. The world has changed, and for some that means the labor and management give-and-take is no longer business, it’s personal. And it’s a shame. S VW’s Times Square billboard: Capturing the pulse of the people Bugging the boss: Who’s listening to Porsche CEO? T New models from the post office The U.S. Postal Service is rolling out some new models this fall, and they’re half a century old. Starting Oct. 3, the post office will issue five classic car stamps. The 42-centers feature the 1957 Chrysler 300C, Lincoln Premiere, Pontiac Safari and Studebaker Golden Hawk and the 1959 Cadillac Eldorado. he bad news for Porsche: Someone may be spying on CEO Wendelin Wiedeking. But the good news is that they seem to be getting their technology from Babies R Us, not the CIA. German news reports said Porsche contacted prosecutors after the microphone of a babymonitoring system was found under a sofa in the Ritz-Carlton in Wolfsburg, Germany, last November, a day before a meeting of the supervisory board of Volkswagen AG. Porsche holds 31 percent of the shares of Volkswagen and is seeking to increase its stake. Hotel security staff discounted the possibility that the device had been left behind by a previous occupant, saying it had been weeks since a family stayed in the room. Porsche is locked in a battle with VW and the government of Lower Saxony over Porsche’s desire to change a rule under which “significant decisions” require the approval of shareholders representing 80 percent of Volkswagen’s stock. Lower Saxony, which holds 20.1 percent of Volkswagen and thus has a right to block major decisions, does not want to see the rule changed. enior executives at General Motors could retire with full benefits earlier, thanks to changes in the retirement plan. But they’ll get less in the long run, with payments over a shorter period. Execs now will be fully vested at age 60 rather than age 62. GM says it restructured its retirement benefits program to be more competitive and to cut costs. The new plan, which was effective Jan. 1, 2007, initially boosted CEO Rick Wagoner’s pension plan value to $4.02 million from $1.46 million . But after that initial increase, future benefits will accrue at a lower rate, a GM spokeswoman says. As a result, Wagoner’s expected retirement benefits at age 60 will be 18 percent lower than they would have been under the old plan when he hit 62, GM said in a filing with the Securities and Exchange Commission. It did not provide age-62 comparisons for Wagoner, now 55. The changes, which also affect other senior executives, mean benefits will be paid as an annuity over a five years, rather than indefinitely over an executive’s life, said a GM spokeswoman. Rick Wagoner: New exit rules Ford can’t picture kids at design studio I Critics have kind words for Pontiac’s G8 W ith gasoline prices at record highs, this isn’t the best time to launch a high-performance muscle car. But Pontiac’s Australia-built G8 has won praise from auto writers for its performance, handling and interior. Here’s a sampling of the reviews: � “All in all, this is the bestperforming sedan in the segment. — David Thomas, Cars.com � “Obvious cheap-outs are absent. A soft-touch plastic skin with a hightech mesh pattern covers the upper dash and looks classy, as does the fine-weave headliner. — Aaron Robinson, Car and Driver � “What you might not expect is the car’s European sport sedanlike ride and handling balance. We don’t throw BMW analogies around lightly, but the G8’s ability to make haste on twisting tarmac while coddling its passengers in commendable comfort is genuinely Bimmer-like, faltering only in the brake pedal’s undue softness.” — Edmunds.com � “It has to be the performance bargain of the year. $31,845 for a big, powerful, quick, V-8-powered rearwheel-drive sedan that’s light on its feet and fun to drive? What’s not to like? No, the mileage isn’t great if you drive around with your foot in it all the time, and the exterior design is only marginally acceptable, but the car is definitely worth serious consideration if you want real performance for under $32,000. — Peter DeLorenzo, Autoextremist.com � Edward Lapham writes five commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. n a bow to the era of cell phones and YouTube, a nice tradition bit the dust at Ford last month. Citing security concerns, the company prohibited design studio employees from participating in the national “Take Our Daughters and Sons to Work” day on April 24. “It’s an important place for us to maintain a very high security level,” said Ford spokeswoman Charlotte Fisher. “We just wanted to make sure this year there were not any security breaches.” The no-kids edict came a couple of weeks after the company was burned by a grainy, cell-phonequality photo that surfaced on various Web sites and spilled the beans about the redesigned 2010 Taurus. http://www.autonews.com http://vw.com/whatthepeoplewant http://Cars.com http://Edmunds.com http://autonews.com http://Autoextremist.com http://autonews.com/edwardlapham

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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