Automotive News - November 17, 2008 - (Page 3) NOVEMBER 17, 2008 • 3 83rd year — No. 6334 Will EVs have us humming into a greener future? James B. Treece jtreece@crain.com GM’s Opel seeks German government guarantees HAMBURG, Germany — General Motors’ Adam Opel unit on Friday asked the German federal and state governments for guarantees to help it weather tough times for the automotive industry, an Opel spokesman said. Opel Managing Director Hans Demant said aid would be spent on product development and assembly facilities in German plants and would not be used outside Europe. A finance ministry spokesman in Berlin said talks were scheduled for this week. The Handelsblatt newspaper quoted government sources as saying the state of Hesse, home to Opel’s German headquarters, was considering providing 500 million euros (about $625 million) in guarantees. — Reuters DETROIT — We’re going on the grid sooner than you thought. Electric and plug-in hybrid cars will arrive in dealerships in just two years or so, several speakers at the Automotive News Green Car Conference and Exhibition said on Thursday, Nov. 13. The electric grid is ready, but customers who accept buying cars and gasoline separately will need to adjust to buying cars and batteries separately. Conference speakers also said more-efficient gasoline-powered autos are well along in the pipeline. Expect lighter vehicles driven by small, turbocharged engines. Talk about plug-in hybrids has centered on the Chevrolet Volt, Saturn Vue plug-in and Toyota Prius plug-in hybrid, all due in 2009 or 2010. But more electric-powered cars are coming. In 2010, Nissan Motor Co.’s first electric vehicle will be launched in select markets. In 2012, it rolls out globally. Batteries not included Nissan’s electric will have “pricing similar to a conventional car” before adding in the cost of the battery, said Carlos Tavares, Nissan’s executive vice president for product planning and design. For more coverage, see autonews.com/greencars autonews.com The battery lease will be separate — similar to fees charged today for in-vehicle services such as OnStar. “Buy the car; sign the battery lease,” he said. The total cost of ownership over the vehicle’s life, Tavares said, will be lower than that of a gasoline car. By 2010, Chrysler LLC will start selling a car with an electric motor, said Lou Rhodes, Chrysler’s vice president of advanced engineering. It will be an electric Dodge sports car or a hybrid based on either a Chrysler minivan or a Jeep Wrangler. The hybrid will be driven by an electric motor, with the electricity produced by a gasoline engine combined with a generator. Chrysler began developing hybrids in response to increasing green awareness among consumers, expectations of tougher regulations and see GREEN, Page 35 JOE WILSSENS Chrysler’s Lou Rhodes: Consumer awareness, stricter rules and advancing technology persuaded the company to develop hybrids. Dodge dealer: We’re saved by service Back end helps keep N.J. store in black during slump Bradford Wernle bwernle@crain.com U.S. Prius faces delay TOKYO — Nothing’s sacred at Toyota in this financial environment. Not even the Prius. Plans to make the hybrid at the company’s new plant in Mississippi are being reviewed by a task force. U.S. sales of the redesigned Prius had been scheduled to begin in mid2009, with imports from Japan. U.S. production of the Prius, originally scheduled to begin in 2010, could be pushed back to 2011 or later, Japan’s Nikkei newspaper reported Friday. Toyota Motor Corp. confirmed the committee is reviewing all future products. — Hans Greimel 4 pull out of Detroit show DETROIT — Rolls-Royce, Land Rover, Ferrari and Suzuki told Detroit auto show officials they will not have displays at the show in January. Show officials could not be reached for comment Friday, but Sam Locricchio, a vice president at John Bailey & Associates Inc., confirmed the automakers would not participate. John Bailey & Associates is a public relations firm that handles the show. — Ryan Beene CORRECTIONS A story on Page 22L in some editions of the Nov. 10 issue gave the wrong cumulative sales for Global Electric Motorcars. The company has sold almost 40,000 electric vehicles. A story on Page 39 of the Nov. 10 issue misstated Mary Nichols’ role in California’s adoption of rules governing vehicle emissions of greenhouse gas. Nichols advocates the rules, which were adopted before she became chairman of the California Air Resources Board. A table on Page 41 of the Nov. 10 issue included an incorrect yearto-date estimate for Mercury Mountaineer production. An estimated 10,072 were built through Nov. 8, 2008. When Dick Greenfield was a young car dealer selling about 3,000 new and used vehicles a year, he received some wise advice from an older dealer named Bob Burd. “He said, ‘You’re a hotshot kid selling a lot of cars now, but one of these days you’ll find it will rain on your parade. You’d better get your back end going. If you don’t, you’re going to be in trouble’,” says Greenfield, 73, recalling a conversation that took place in the mid-1970s. “I remember those words very well now.” In 2008 it has been raining plenty on the parade of Dick Greenfield Dodge in Lawrenceville, N.J., and thousands of other dealers. In the midst of a credit crisis and fluctuating gasoline prices, sales at Dick Greenfield Dodge have fallen to about 30 new cars and 25 used per month. That’s why Greenfield is glad he took Burd’s advice. Over the years, he built his dealership’s back end — the service department — into a 24-hour operation that’s keeping him afloat while he waits for new-car sales to rebound. Unlike most dealerships, Greenfield has job openings — for service technicians. It remains profitable, though Greenfield declines to divulge numbers. Greenfield, who has had his dealership since 1972, calls the current industry crisis the worst he has seen. “We’re still selling automobiles, but we’re not where we used to be,” he says. “Basically we’re a parts and service operation right now.” ROSS STOUT Service and Parts Director Mark McTamney has launched a service marketing department, advertises in quick-oilchange shops and negotiates on repair bills. Says McTamney: “Some things customers just can’t afford right now.” were bought at other dealerships, he says. His Dodge commercial-truck business helps keep the shop going, especially at night. Greenfield also runs a wholesale parts operation. It has nine vans on the road delivering to nearly 1,000 customers, including other Chrysler dealerships, body shops and independent repair shops. Greenfield also owns two commercial-truck dealerships. see SERVICE, Page 35 Dick Greenfield Dodge Where: Lawrenceville, N.J. Opened: 1972 Absorption rate: About 110 percent, recently as high as 125 percent Service bays: 18 Service technicians: 42 Businesses: Sells Dodge light trucks, cars and commercial trucks; wholesale parts distributor delivering parts to 1,000 businesses, including dealerships, repair and body shops. Bucking the trend: Despite hard times, the dealership is looking to hire more service technicians. No appointments Greenfield has 18 service bays and employs 42 service technicians. His shop is open 24 hours Monday through Friday and from 7 a.m. to 4 p.m. Saturday. Customers who hear a funny noise coming from under the hood can drive right in. Says Greenfield: “We do not take appointments. Just bring the car in, and we’ll get it done.” A quarter of the cars he services http://www.autonews.com http://www.autonews.com/greencars http://www.nxtbook.com/nxtbooks/crain/an8682257903NBDRT/index.php?startid=23 http://www.nxtbook.com/nxtbooks/crain/an8682257903NBDRT/index.php?startid=39 http://http://www.nxtbook.com/nxtbooks/crain/an8682257903NBDRT/index.php?startid=41
Table of Contents Feed for the Digital Edition of Automotive News - November 17, 2008 Automotive News - November 17, 2008 Automotive News - November 17, 2008 - (Page Intro) Automotive News - November 17, 2008 - (Page BB1) Automotive News - November 17, 2008 - (Page BB2) Automotive News - November 17, 2008 - (Page 1) Automotive News - November 17, 2008 - (Page 2) Automotive News - November 17, 2008 - (Page 3) Automotive News - November 17, 2008 - (Page 4) Automotive News - November 17, 2008 - (Page 5) Automotive News - November 17, 2008 - (Page 6) Automotive News - November 17, 2008 - (Page 7) Automotive News - November 17, 2008 - (Page 8) Automotive News - November 17, 2008 - (Page 9) Automotive News - November 17, 2008 - (Page 10) Automotive News - November 17, 2008 - (Page 11) Automotive News - November 17, 2008 - (Page 12) Automotive News - November 17, 2008 - (Page 13) Automotive News - November 17, 2008 - (Page 14) Automotive News - November 17, 2008 - (Page 14a) Automotive News - November 17, 2008 - (Page 14b) Automotive News - November 17, 2008 - (Page 15) Automotive News - November 17, 2008 - (Page 16) Automotive News - November 17, 2008 - (Page 17) Automotive News - November 17, 2008 - (Page 18) Automotive News - November 17, 2008 - (Page 19) Automotive News - November 17, 2008 - (Page 20) Automotive News - November 17, 2008 - (Page 21) Automotive News - November 17, 2008 - (Page 22) Automotive News - November 17, 2008 - (Page 23) Automotive News - November 17, 2008 - (Page 24) Automotive News - November 17, 2008 - (Page 25) Automotive News - November 17, 2008 - (Page 26) Automotive News - November 17, 2008 - (Page 26a) Automotive News - November 17, 2008 - (Page 26b) Automotive News - November 17, 2008 - (Page 27) Automotive News - November 17, 2008 - (Page 28) Automotive News - November 17, 2008 - (Page 29) Automotive News - November 17, 2008 - (Page 30) Automotive News - November 17, 2008 - (Page 31) Automotive News - November 17, 2008 - (Page 32) Automotive News - November 17, 2008 - (Page 33) Automotive News - November 17, 2008 - (Page 34) Automotive News - November 17, 2008 - (Page 35) Automotive News - November 17, 2008 - (Page 36) Automotive News - November 17, 2008 - (Page 37) Automotive News - November 17, 2008 - (Page 38) Automotive News - November 17, 2008 - (Page 39) Automotive News - November 17, 2008 - (Page 40)
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