Automotive News - November 17, 2008 - (Page 38) 38 • NOVEMBER 17, 2008 final assembly Hyundai won’t jump for Jeep H yundai is pushing hard to be a bigger U.S. player, but cherry-picking at Chrysler isn’t part of the plan. “Our hands are full” with expansion around the world, says Hyundai spokesman Jake Jang. “We have no interest in acquiring any company. That includes Chrysler.” Two weeks ago, reports were circulating that Hyundai was interested in buying Chrysler’s Jeep brand. Although Cerberus, which owns Chrysler, is hot to sell, shoppers have backed off. Last month, Nissan CEO Carlos Ghosn said companies aren’t “going to be risking cash for a strategic move while they have absolutely no clue how long this (global financial crisis) is going to last.” THE AUTOMOTIVE BAILOUT >> Get live coverage from Washington of congressional hearings on the automotive industry bailout at www.autonews.com. Crisis talk “ “ I don’t think it’d be a very smart move. I think our job is to make sure we have the best management team to run GM. It’s not clear to me what purpose would be served.” “ — General Motors CEO Rick Wagoner, asked whether he was prepared to resign in return for government aid Per capita, 11 million year looks even worse I f light-vehicle sales sink to the 11 million to 12 million range next year, as most executives and analysts expect, it would be a level not seen since the early 1980s. And the situation looks even worse when sales are measured on a per-capita basis. Sales of 11.7 million units — General Motors’ 2009 forecast — would mean one new-vehicle sale for every 26 Americans. In 1982, when volume was 10,354,069, the ratio was 1 per 22. The 2007 ratio was 1 per 18. When the U.S. market peaked at 17,402,486 in 2000, it was a record low 1 per 16. The last time per-capita auto sales were as low as is predicted for next year was 1961: 6,513,836 in a population of 183 million, or 1 per 28 U.S. residents. And that was the heyday of the baby boom, so a fairly high percentage of the 183 million Americans living in 1961 were under the driving age. In return for any direct government aid, the board and the management (of GM) should go. Shareholders should lose their paltry remaining equity. And a government-appointed receiver — someone hard-nosed and nonpolitical — should have broad power to revamp GM with a viable business plan and return it to a private operation as soon as possible. That will mean tearing up existing contracts with unions, dealers and suppliers, closing some operations and selling others and downsizing the company.” — Paul Ingrassia, The Wall Street Journal Last September I was in a hotel room watching CNBC early one morning. They were interviewing Bob Nardelli, the CEO of Chrysler, and he was explaining why the auto industry, at that time, needed $25 billion in loan guarantees. It wasn’t a bailout, he said. It was a way to enable the car companies to retool for innovation. I could not help but shout back at the TV screen: “We have to subsidize Detroit so that it will innovate? What business were you people in other than innovation?” “ The auto industry is not doing well. In fact, the Big 3 right now are Matchbox, Tonka and Hot Wheels.” CHARLES HAYNES — Jay Leno — Thomas Friedman, New York Times columnist “ A Detroit bailout would set a precedent for every single politically connected corporation in America. . . . If Detroit gets money, then everyone would have a case. After all, are the employees of Circuit City or the newspaper industry inferior to the employees of Chrysler?” “ ISTOCKPHOTO Emergency assistance to the automobile industry would be conditioned on executive compensation restrictions, a prohibition on golden parachutes, rigorous independent oversight and other taxpayer protections.” REUTERS — David Brooks, New York Times columnist NEWSCOM “ “ The financial situation facing the Big 3 is not a national problem but their problem.” — Sen. Richard Shelby, R-Ala. These auto manufacturers and CEOs are in dire straits, and here come Pelosi and Obama pressuring Bush. ‘All right, we want stakes. We want ownership! And you better get in gear. You better get in gear making cars we say you ought to make.’ How many of you want to buy a Nancy Pelosi-designed car? How many of you would hire Harry Reid to design a car you wanted to build?” — Rush Limbaugh, talk show host “ A synonym for mp-geek? You can look it up — House Speaker Nancy Pelosi, D-Calif. Detroit has had a lot of time to understand what it takes to compete. They wouldn’t stand up to the labor union bosses, and now they’re facing the consequences. What’s next, the airlines? What about Starbucks or all of the other struggling small businesses out there?” “ It will be a bridge loan to nowhere unless there are (government cash) incentives to spur demand.” — Ex-Chrysler President Hal Sperlich T he mpg-obsessed have made it big in the world of lexicography. Publishers of the New Oxford American Dictionary last week chose “hypermiling” as their 2008 word of the year. Never heard of it? A hypermiler makes sure tires are always inflated properly, takes the roof rack off his car to cut air drag, turns off the engine while waiting at railroad crossings and takes pains to park in a way that doesn’t require the wasteful use of the reverse gear to leave the space. It’s all about mpg. (Critics say pathological hypermilers dangerously overinflate tires, roll through stop signs and follow vehicles too closely to cut wind resistance.) The word apparently was coined in 2004 by Wayne Gerdes, who runs a Web site, www.cleanmpg.com, that urges drivers to adopt high-mpg techniques. Hypermiling beat some tough competitors: moofer, ecohacking, carrotmob, staycation and frugalista. For a translation, see www.autonews.com/hypermiling. — Rep. Jeb Hensarling, R-Texas JOHN F. MARTIN http://www.autonews.com http://www.cleanmpg.com http://www.autonews.com/hypermiling
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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