Automotive News - November 10, 2008 - (Page 3) NOVEMBER 10, 2008 • 3 83rd year — No. 6333 VW will unveil roadster at Detroit auto show MUNICH — Volkswagen has switched the unveiling of its midengine roadster from Los Angeles to Detroit. VW had planned to debut a concept for the two-seater at the Los Angeles auto show Nov. 19. Instead, the concept will premier at the Detroit show in January. A VW spokesman told Automotive News Europe that the company expects to attract more interest through the Detroit debut. The concept will preview a roadster that VW aims to launch in 2011 as an image booster. The car will be based on an advanced version of the platform that underpins the Audi R8. — Bettina Mayer Dealer Shuman says he doesn’t know what to think, thanks to the rumors. And Chrysler isn’t making things any clearer. Chrysler dealers cheer halt to merger talk Bradford Wernle bwernle@crain.com For sale: Saleen Auto DETROIT — Specialty car builder Saleen Automotive, which built the mighty GT for Ford Motor Co. and created dozens of high-performance classic Mustangs, is for sale. In a statement Friday, Saleen said it has hired an investment bank to explore selling the suburban Detroit company by early next year. But a sale could be tough. Tight credit markets and the slump in auto sales have hurt specialty companies such as Saleen and ASC Inc. Further complicating matters is that one of Saleen’s biggest sources of revenue, the Dodge Viper sports car, has been put up for sale by its owner, Chrysler LLC. Company founder Steve Saleen quit in May 2007. — Richard Truett Can Toyota reheat the frozen Tundra? Pickup’s output restarts as F-150, Ram launch Mark Rechtin and Patricia Scott mrechtin@crain.com Thinning out After a 3-month production halt, Toyota dealers have fewer Tundra pickups on their lots. END OF JULY END OF OCTOBER CHANGE Dealer inventories Source: Toyota 45,801 29,784 –35.0% S&P cuts ratings on GMAC further into junk level DETROIT — Standard & Poor’s on Friday cut its ratings on GMAC LLC and its residential mortgage unit deeper into junk territory, citing “intense financial stress” at the automotive lender. GMAC said on Wednesday it lost $2.5 billion in the third quarter, hurt by slumps in the housing and auto markets. Nearly $2 billion of that loss came from its Residential Capital LLC mortgage unit, which may fail, the company said. “Residential Capital LLC represents a significant economic burden for GMAC,” S&P said in a statement. “We do not anticipate the financial pressure at Residential Capital LLC dissipating in the intermediate term. Therefore, a strategic solution appears the only option within this time frame.” GMAC’s core auto finance business also is suffering from high provisions for loan losses and the weak economy, the rating agency added. S&P cut GMAC’s rating two notches to CCC, eight steps below investment grade and cut ResCap two notches to CCC-minus, nine steps below investment grade. — Reuters LOS ANGELES — Toyota will restart Tundra production today, even though dealers aren’t exactly clamoring to stock up on the fullsized pickup. With sales slumping, Toyota on Aug. 8 stopped building Tundras in San Antonio for three months. Now the Tundra is back — just as Ford rolls out the redesigned F-150 pickup and Dodge launches the redesigned Ram pickup. Toyota is offering 0 percent financing on most of its lineup, including the Tundra. But Toyota’s “Saved by Zero” campaign has been in place since Oct. 2, and Toyota has fared little better than the rest of the industry. When production stopped, the goal was to halve the number of trucks in inventory, said Bob Carter, Toyota Division general manager. “ Customers are getting a $40,000 truck for $30,000 with one incentive or the other. that still is “a little uncomfortable.” He doesn’t see any pent-up demand. “If I don’t see another Tundra until January, I’ll be happy,” he said. Competitors in ‘panic mode’ Despite gasoline sinking below $2 a gallon in Sioux City, Iowa, Toyota dealer Rick Collins expects just to hang on until 2009. Collins said neighboring Ford and Dodge dealers were in “panic mode” closing out their 2008-model trucks, but that didn’t affect his business as much as the overall economy did. Typically, Sioux City sells 15 Tundras a month. In October, the store sold nine. “Customer traffic is off,” Collins said. “The election, bailout and negative news has slowed us down. But the 0 percent financing campaign has done two things: It told people that Toyota was conducting business as usual, and that there was money to lend.” Toyota dealers remain hopeful. “I have no doubt that there is a pentup demand,” said John Matthews, managing partner of Pat Lobb Toyota of McKinney, Texas. “People are sitting on their hands out of fear, but it doesn’t mean they don’t want or need to buy a vehicle.” c Jesse Snyder contributed to this report KATE FROST Toyota of Orlando ” ‘Not Toyota-like’ At the end of July, Toyota had about 60,000 Tundras in inventory, of which 45,801 units were in dealer stock. At the end of October, dealer stock had fallen to 29,784, according to Toyota. But Tundra sales have fallen sharply. Initially, the company had hoped to sell about 20,000 a month. When the economy began to slow late last year, the forecast was revised to about 15,000. In recent months Toyota has fallen well short of hitting its goal. Combined September and October sales were 14,121 units, off 62.3 percent from last year. On top of 0 percent financing, Southeast Toyota Distributors LLC is offering $5,000 to $9,000 in rebates on the Tundra, said Kate Frost, sales manager at Toyota of Orlando in Florida. “This is not Toyota-like; it’s huge,” Frost said. “Customers are getting a $40,000 truck for $30,000 with one incentive or the other.” Jeff Daniels, general manager of Toyota of Muncie in Indiana, said he sells about a dozen Tundras a month and still has 28 in stock, an amount With sales plummeting 35 percent in October, Chrysler LLC dealers haven’t had much to celebrate lately. But they were glad to hear on Friday that General Motors had called off merger talks with Chrysler. Their jubilation was tempered by the realization that Chrysler probably will need to be part of a federal industry bailout to survive. And GM CEO Rick Wagoner left open the possibility of restarting the talks, saying, “We’ve set aside such (acquisition) actions as a near-term priority.” Still, Chrysler dealers were encouraged. “Being with GM would have been like being an adopted stepchild,” says Chuck Fortinberry, owner of Clarkston Chrysler-Jeep in Clarkston, Mich. “We’re better off if we can get through this on our own than if we get sucked into a big conglomerate.” Stephen Kaiser, president of Fairfield Chrysler-Jeep-Dodge in Muncy, Pa., says he was alarmed when reports of GM-Chrysler merger talks surfaced a couple of weeks ago. “I was really scared,” Kaiser says. “My fears were that they would probably eliminate the entire Chrysler line, keep Jeep and eliminate most of the Dodges. “I have a fairly new facility with $4 million wrapped up in it. I probably wouldn’t be able to survive just carrying Jeeps and a few Dodges.” Kaiser also says he worried that Chrysler brands would get short shrift in product development “and we’d be selling Jeep-calades.” Doug Alley, co-owner of Alley Chrysler-Dodge in Kingsport, Tenn., greeted the end of the merger talks enthusiastically. Alley takes it as a good omen that Chrysler CEO Bob Nardelli was at the table in Washington on Thursday when industry leaders talked with House Speaker Nancy Pelosi and other congressional leaders. “If we can get the banking industry and the car business through this deal, maybe things will turn up in the spring and we can heave a sigh of relief,” Alley says. “In 1980, we wondered if we were going to be here. But we don’t have a Lee Iacocca running things today.” Bob Shuman, owner of Shuman Chrysler-Jeep in Walled Lake, Mich., says so many rumors have been reported that he no longer knows what to think. He’s not getting any clarity from people at Chrysler, especially after the automaker offered buyouts to white-collar workers last week, Shuman says. “Everybody I’m talking to at the factory is focusing on what’s going to happen to them,” he says. “They’ve got their buyout packages.” c
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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