Automotive News - November 10, 2008 - (Page 42) 42 • NOVEMBER 10, 2008 final assembly comment GREEN CARS >> Go to www.autonews.com to get live coverage of the 2008 Automotive News Green Car Conference/Exhibition on Thursday, Nov. 13. Going, going . . . Icahn is latest disillusioned high roller to flee auto industry Two-seat retreat A rough October for roadsters An ex-GM exec’s view: It’s going to get nasty Y ou’d think that the looming meltdown of the Detroit 3 would galvanize automakers, suppliers and dealers into an alliance. Instead, it’s likely to evolve into a high-stakes came of cutthroat pinochle, in which every player looks out only for itself. That scenario popped up during a conversation with a former upper-echelon General Motors EDWARD LAPHAM executive who IS EXECUTIVE has moved on to EDITOR OF bigger and better AUTOMOTIVE things. Well, OK, NEWS. at least better things. The exec has done enough since leaving GM that he has a broader view of the world. For example, he said he didn’t see how a GM-Chrysler merger would do much for any player except Cerberus. (Of course neither does anyone else I’ve asked … and I’ve asked a lot of smart people.) But he disputed the notion that GM’s problem is too many brands — or that pruning an overgrown dealership network needed to be expensive for the automaker. His view is that dealerships, like suppliers, are independent businesses that must survive on their own. So, he said, all GM needs to do is tell dealers from this brand or that brand: “Here are the two models we’re going to build for you to sell. I’m sorry if you can’t stay in business with just those models, but that’s not GM’s problem. So don’t talk to me, talk to that dealer over there and work something out. We’re not putting in any money. You’re on your own.’’ What he had described amounted to starvation — wanton, willful, premeditated starvation. But it’s what GM needs to do to survive, he said, and it won’t violate the franchise agreement or state laws. It was a coldhearted analysis. But I had to admit I could see the logic. That’s what happens when you play cards for keeps. W ill the last zillionaire to abandon the auto industry please turn off the lights? The latest set of taillamps speeding off into the distance belongs to corporate raider Carl Icahn, who last week dumped more than two-thirds of his big stake in Lear. His departure comes 18 months after he made an offer that we suppose he’s awfully glad Lear shareholders rebuffed. In 2007 Icahn offered them $37.25 a share — a $2.9 billion bid — with an eye toward taking Lear private. Last week he sold 8.5 million shares at $1.90 each, leaving him with $3.83 million shares, or 4.95 percent. Icahn says he sold to realize capital losses before year end. A co-driver on the get-outof-Detroit freeway is Las Vegas gambler Kirk Kerkorian, who has tried his luck with all three Detroit companies. He cashed out of Detroit last month — perhaps for good. Kerkorian, who bought a 6.4 percent stake in Ford last spring, sold off much of his holdings as the company’s shares dropped below $2 for the first time since 1982. And Cerberus CEO Stephen Feinberg is poised on the exit ramp, itching to cut a deal that will cut him loose from Chrysler. Gosh, there must have been a time, shrouded in the mists of recent history, when the auto business looked easy to these guys, a money bin waiting to be harvested. It isn’t. THOMAS LOHNES/AFP/NEWSCOM Toyota moves in striking distance of GM’s U.S. sales crown I The lesson of Susanne Klatten: Beware of fake Swiss fast-food workers bearing grudges. t has seemed inevitable for a while that Toyota would dethrone General Motors as the U.S. sales leader. But certainly not before the end of the decade. But look what’s happening in 2008. The Toyota group, including Lexus and Scion, has been hammered like just about everyone else this year. U.S. sales were down 11.5 percent through October. But the decline has been far worse at General Motors, where sales are down 20.4 percent. The upshot: Toyota has cut far more deeply into GM’s lead this year than it did last year and has a shot at catching the General in 2009. Through the first 10 months of 2007, GM (including Saab) outsold Toyota Motor Sales by 1,042,264 units. But that gap narrowed to 635,983 in the same period of 2008. And in car sales, Toyota could overtake its rival this year. Toyota nearly did so in 2007, when GM finished with a slender lead of just over 80,000 units (1,594,344 vs. 1,513,983). Through October of this year, GM trailed Toyota in car sales by 5,419 units. Sex, Nazis, chicken and BMW: A scandal that puts fiction writers to shame I t sounds like a Tom Robbins novel rejected by the publisher because it was too over-the-top: A Jewish seller of fast-food chicken, smoldering with rage over his grandfather’s forced labor during World War II in the factories of a Nazi collaborator, assumes the false identity of a Swiss diplomat, embroils the fabulously wealthy descendant of the factory owner in a sex scandal and attempts to extort millions. And there’s even a car angle: The victim of the alleged blackmail plot is Susanne Klatten, a member of the Quandt family — the leading shareholders in BMW. According to press reports, German police are investigating allegations that a 41-year-old man wooed Klatten, a 46-year-old married mother of three, in a hotel bar; began an affair; and had an accomplice secretly videotape their hotel trysts in late 2007. The man then attempted to extort more than $50 million. The Quandt family had close ties to the Nazi party and built its fortune supplying batteries, chemicals and other items to the German war effort. The first wife of Klatten’s grandfather went on to marry Nazi propaganda chief Joseph Goebbels. The family recently pledged to investigate news reports that forced labor had been used in their factories as part of the Nazi war effort, according to Reuters. Klatten’s wealth is estimated by Forbes magazine at almost $10 billion. She owns just over half of the chemical company Altana, as well as a 12.5 percent holding in BMW. Audi TT –39.1% BMW Z4 –47.5% Honda S2000 –67.5% Mazda Miata –58.6% Nissan 350Z –67.5% Pontiac Solstice –69.0% Saturn Sky –63.6% Recession rips up roadster market get the W hen timesaautotough, has toys take beating. The plunge in sales been especially tough on one small but high-profile segment of the industry: entry-level sports cars. Sales of jaunty playthings such as the Mazda Miata, Pontiac Solstice, Saturn Sky, BMW Z4, Nissan 350Z, Audi TT and Honda S2000 have nearly collapsed. Sales of those seven models totaled just 2,356 in October, down 58.6 percent from 5,685 units in October 2007. For the first 10 months of 2008, the picture is a bit less bleak: 49,846 sales, down 28.6 percent from the same period of 2007. Toyota takes heat for ‘the herpes of the advertising world’ Closing the gap GM’s unit sales lead over Toyota Motor Sales after 10 months GM LEAD AFTER 10 MONTHS Edward Lapham writes commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. 2008 2007 2006 2005 2004 2003 2002 2001 2000 635,983 1,042,264 1,319,775 1,905,637 2,209,083 2,346,955 2,565,882 2,684,625 2,901,606 lot of online kibitzers have a message for Toyota about its ubiquitous “Saved by Zero” TV spots: Enough, already! Usually the worst thing that happens to a TV car spot is that people ignore it. But the Internet is abuzz with people complaining that they’ve seen way too much of Toyota’s latest marketing effort. Especially vocal are viewers of Sunday and Monday night football games, who complain that the ads touting 0 percent financing on a dozen models seem to run during every commercial break, sometimes more than once. Toyota’s “Saved by Zero” TV spot: Football fans have had enough. This scathing rebuke appeared late last week on the popular facebook.com site: “Anyone who has been watching football or pretty much anything the past few weeks has obviously been exposed to what can only be considered the herpes of the advertising world. … If you feel the need to cut your ears off with a plastic knife and then use it to stab that (expletive deleted) red zero that keeps moving on the commercial, join this group to express your pain.” The Associated Press reported last week that more than 1,200 people have joined the Facebook discussion group called “Stop Playing Toyota’s ‘Saved by Zero’ Commercial.” A Toyota spokesman said the ad was scheduled to end Sunday, Nov. 10 — but could continue locally if individual dealers want to run it. http://www.autonews.com http://www.facebook.com http://www.autonews.com http://www.autonews.com/edwardlapham
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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