Automotive News - November 10, 2008 - (Page 25) NOVEMBER 10, 2008 • 25 Amid gloom, Mazda chief sees revival in 2009-10 Harry Stoffer hstoffer@crain.com CHANTILLY, Va. — Amid deep gloom in the auto industry, Mazda’s Jim O’Sullivan sees better days in the not-too-distant future. He predicts that current economic troubles will toughen automakers and dealers alike. “I know the market will come back at 17 million-plus” in annual U.S. sales, said O’Sullivan, CEO of Mazda North American Operations. “We’ll be a lot stronger as a result.” Late last month, O’Sullivan took part in the opening of a Mazda dealership in this Washington suburb, where economic woes are less severe than in the rest of the country. Jim O’Sullivan: Rough patch will toughen dealers, automakers. O’Sullivan told Automotive News that U.S. new-vehicle sales should begin to rebound in the second half of 2009 and climb back to 16 million in 2010. He conceded that normal “predictability models” may not apply in what he called “the first Internet recession.” Consumer confidence has eroded under a barrage of bad, in- stantly available economic news — some of it driven by marathon political campaigns, he said. The new dealership, Brown’s Chantilly Mazda, is an example of what the automaker calls its Retail Revolution. The format calls for open showrooms, orange-and-green decor, computer kiosks for customers and a “jewel box” tower that displays a new vehicle. “We’re not a 10 percent player in the market, so we have to differentiate ourselves” in auto parks or malls, O’Sullivan said. Through October, Mazda had 2.0 percent of the U.S. new-vehicle market. A longtime Ford Motor Co. execu- tive, O’Sullivan has been Mazda’s North American CEO since 2003. Despite an industry slide, Mazda reported double-digit growth in 2007 to nearly 300,000 U.S. sales. In a brutal 2008, Mazda sales are down a relatively modest 7.5 percent for 10 months. O’Sullivan said that of Mazda’s roughly 650 U.S. franchises, 106 use the Retail Revolution format. Mazda gives financial aid to dealers who adopt the format. The amount varies by dealership and is “very surgical,” O’Sullivan said. Retail Revolution provides better customer satisfaction and higher dealer profit, O’Sullivan said. Robert Devaux, dealer principal of Brown’s Chantilly Mazda, acknowledged the difficulty of launching a business now but said, “We’re not in it for the short term.” Devaux said he has hired about 30 employees and “there will be more.” The new dealership is part of Brown’s Automotive Group, which operates more than 20 franchises in the mid-Atlantic region. O’Sullivan said the federal government should use the tools it has to help the industry and boost consumer confidence. Even now, he said, Americans are working and need transportation. But he added: “Consumption right now is not the fashionable thing to do.”c Report: Toyota plans $5,000 car Hans Greimel hgreimel@crain.com TOKYO — Toyota Motor Corp. is joining the cheap-car race with a $5,000 vehicle geared toward emerging markets such as India and Brazil, a Japanese newspaper reported. Toyota will develop the car with its small-car subsidiary, Daihatsu, and build the car by 2015 in Bangalore, India, the Asahi newspaper reported. The move puts Toyota into competition with Nissan-Renault and Tata Motors, which plan inexpensive cars for booming developing markets. A Toyota spokesman declined to comment on the report. The car might be exported to Brazil from India, Asahi said. It will be sold under a new fourth brand rolled out in addition to Toyota, Lexus and Scion, presumably to quarantine the car’s downmarket image. Toyota has one plant in Bangalore and is building another with annual capacity for 100,000 vehicles. The second factory will open in 2010.c BRAKE ENGINEERING THAT STOPS A SPEEDING BULLET Japan’s Shinkansen 300 km/h N700 Series “Bullet Trains” depend on Akebono brakes. Akebono ultra quality manufacturing standards result in unprecedented braking performance. If we can stop a speeding bullet, what’s stopping you from choosing Akebono? Honda adds transmission capacity TOKYO — Despite the global financial meltdown, Honda Motor Co. will spend ¥14 billion, or about $141.4 million, to build a factory in Japan to meet growing demand for automatic and continuously variable transmissions. The plant, at Honda’s Hamamatsu complex, will boost the complex’s transmission output to 1.1 million units a year, from 700,000 today. The factory is scheduled to open in 2010. Design innovations will increase the factory’s efficiency: All manufacturing will be done under one roof, to streamline logistics. A flexible assembly line will be able to switch between automatic transmissions and CVTs to adapt rapidly to changing demand. Despite slumping auto markets, global production at Honda increased for the fifth straight year in the April-September fiscal first half to a record 1.97 million vehicles. — Hans Greimel www.akebonobrakes.com World Leader of Advanced Brake Friction Technology http://www.akebonobrakes.com http://www.akebonobrakes.com
Table of Contents Feed for the Digital Edition of Automotive News - November 10, 2008 Life at 11 million: Slash, rethink The options: Bailout or disaster Can Toyota reheat the frozen Tundra? Chrysler dealers cheer halt to merger talk VW will unveil roadster at Detroit auto show BMW boosts dealers' year-end ad money Mercedes' $220 million flagship Mercedes hit hard in Northeast, once a sales stronghold Mercedes will kill CLK, add larger coupe, convertible Mitsubishi reclaims its finance business Toyota's Esmond to speak at congress Loss is more: Europe snatches bigger share of U.S. market Cash burn rates threaten GM, Ford GMAC: We're nobody's captive As losses mount, suppliers risk cash-flow crunch Tata: Yes to Jaguar XF derivative, no to SUV U.S. aid is needed now, but not to help Cerberus They are too big to fail Why should we help GM and Chrysler? First and foremost, you must be flexible U.S. trade policy gives it all away To the Editor: A rough ride is nothing new for autos Dealer's politics were pertinent Chrysler's 1st electric: Probably a cargo van Auto meltdown forces Mercedes to scrap prediction of sales record Boosting mpg will bump up stickers, too Adding up the tab for fuel economy Camaro Black: Eye-catching, affordable and available Honda sees green in Civic HFP's street performance Honda offers peek at future Fit Ford F-150 Raptor flies off-road Souped-up, tricked-out â and headed for the showroom Report: Toyota plans $5,000 car Amid gloom, Mazda chief sees revival in 2009-10 Report: Past-due subprime loans jump Toyota aims to win loyalty with credit card Study: Car buyers turn green for different reasons Thanks, buddy Hyundai helps Dealers Metaldyne offers pennies to bondholders Obituaries Personnel As expected, Oct. sales sank Another Chinese automaker plans Mexico factory Honda backs off U.S. clean diesels Industry pal, foe vie for key post in Congress Industry expects more activism from D.C. N.A. output falls 19.9% Toyota moves in striking distance of GM's U.S. sales crown Going, going . . . An ex-GM exec's view: It's going to get nasty Sex, Nazis, chicken and BMW: A scandal that puts fiction writers to shame Recession rips up roadster market Toyota takes heat for 'the herpes of the advertising world' Want to boost mpg? Turn up the heat on AC Cutting energy loss: A nibble here, a nibble there ... Carbon slashes weight, but it's still too pricey Carmakers shift to gears in search of mpg gains Natural gas draws interest as alternative fuel Friction? Ay, there's the rub Electric for a week Automotive News - November 10, 2008 Automotive News - November 10, 2008 - (Page Intro) Automotive News - November 10, 2008 - (Page Bellyband1) Automotive News - November 10, 2008 - (Page Bellyband2) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 1) Automotive News - November 10, 2008 - The options: Bailout or disaster (Page 2) Automotive News - November 10, 2008 - VW will unveil roadster at Detroit auto show (Page 3) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 4) Automotive News - November 10, 2008 - Mercedes hit hard in Northeast, once a sales stronghold (Page 5) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 6) Automotive News - November 10, 2008 - Loss is more: Europe snatches bigger share of U.S. market (Page 7) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 8) Automotive News - November 10, 2008 - As losses mount, suppliers risk cash-flow crunch (Page 9) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 10) Automotive News - November 10, 2008 - Tata: Yes to Jaguar XF derivative, no to SUV (Page 11) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 12) Automotive News - November 10, 2008 - First and foremost, you must be flexible (Page 13) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 14) Automotive News - November 10, 2008 - Dealer's politics were pertinent (Page 15) Automotive News - November 10, 2008 - Auto meltdown forces Mercedes to scrap prediction of sales record (Page 16) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 17) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 18) Automotive News - November 10, 2008 - Boosting mpg will bump up stickers, too (Page 19) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 20) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 21) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22a) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22b) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22c) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22d) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22e) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22f) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22g) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22h) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22i) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22j) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22k) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 22l) Automotive News - November 10, 2008 - Adding up the tab for fuel economy (Page 23) Automotive News - November 10, 2008 - Souped-up, tricked-out â and headed for the showroom (Page 24) Automotive News - November 10, 2008 - Amid gloom, Mazda chief sees revival in 2009-10 (Page 25) Automotive News - November 10, 2008 - Toyota aims to win loyalty with credit card (Page 26) Automotive News - November 10, 2008 - Hyundai helps (Page 27) Automotive News - November 10, 2008 - Dealers (Page 28) Automotive News - November 10, 2008 - Personnel (Page 29) Automotive News - November 10, 2008 - Personnel (Page 30) Automotive News - November 10, 2008 - Personnel (Page 31) Automotive News - November 10, 2008 - Personnel (Page 32) Automotive News - November 10, 2008 - Personnel (Page 33) Automotive News - November 10, 2008 - Personnel (Page 34) Automotive News - November 10, 2008 - Personnel (Page 35) Automotive News - November 10, 2008 - Personnel (Page 36) Automotive News - November 10, 2008 - As expected, Oct. sales sank (Page 37) Automotive News - November 10, 2008 - Honda backs off U.S. clean diesels (Page 38) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 39) Automotive News - November 10, 2008 - Industry expects more activism from D.C. (Page 40) Automotive News - November 10, 2008 - N.A. output falls 19.9% (Page 41) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 42) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 43) Automotive News - November 10, 2008 - Toyota takes heat for 'the herpes of the advertising world' (Page 44)
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