Automotive News - May 12, 2008 - (Page 26)

26 • MAY 12, 2008 resources director. Sandra Porceng to vice president of human resources total rewards, responsible for compensation, retirement services, benefits strategy and workers’ Porceng compensation. She had been a human resources director. JM Family Enterprises is in Deerfield Beach, Fla. Its principal businesses are vehicle distribution and processing, financial services, finance and insurance products, retail sales and dealer technology products and services. MOBILE PRODUCTIVITY INC. — David Boyle, 44, to president and COO. He had been senior vice president of sales and marketing. Mobile Productivity, of Boyle Las Vegas, provides vehicle inspection tools, processes and software for dealership service departments. SAE INTERNATIONAL — Renee Bovair, 38, to executive director of the SAE Detroit section. She had been a program developer with the Detroit section. Bovair SAE International, of Warrendale, Pa., is a professional society for engineers in the automobile, commercial-vehicle, motorsports and aerospace industries. It has 86 sections, of which Detroit is the largest. SUBARU OF AMERICA INC. — Heather Ward, 37, to manager of corporate communications. She had been regional marketing manager for Ward Commerce Bank. Honda exec red-flags Detroit 3 aid Harry Stoffer hstoffer@crain.com ASBURY AUTOMOTIVE GROUP INC. — Craig Monaghan, 51, to senior vice president and CFO. He had been CFO of Sears Holdings Corp. He replaces J. Gordon Smith, Monaghan who has left the company. Asbury Automotive Group, of New York, is a publicly traded dealership group that operates 90 stores. JM FAMILY ENTERPRISES INC. — Amy Kropp to vice president of human resources operations, responsible for all JM Family companies. She had been a Kropp human WASHINGTON — A proposal that would give tax credits to the Detroit 3 for researching fuel-saving technology — even if they don’t have taxable income — is “covert protectionism,” a top Honda executive says. “It creates a very unlevel playing field” for import-brand automakers, said John Mendel, executive vice president of American Honda Motor Co. Contrary to common assumptions, Mendel said, the Japanese government does not subsidize Honda research. U.S. incentives for energysaving technology should be available to all automakers, “not just a few,” he told Automotive News. Industry help? The tax credit proposal is part of legislation introduced last month by U.S. Rep. Joe Knollenberg, R-Mich. The eight-term congressman, who faces a serious re-election test this year in his suburban Detroit district, says his bill would stimulate Michigan’s economy and help the auto industry meet tougher federal fuel economy standards. The bill estimates that the Detroit 3 will increase r&d spending by $7 billion a year to meet the new standards. The federal r&d tax credit is 20 percent of new spending, Knollenberg spokesman Nate Bailey says. Normally, money-losing companies can’t collect the credit. The bill’s chances appear slim. Democrats who control Congress likely would not be eager to advance the proposal, even if Knollenberg had proposed a way to pay for it. But the issue could move to the front burner next year. Both of the leading Democratic presidential contenders, Sens. Barack Obama of Illinois and Hillary Clinton of New York, have offered campaign proposals that would provide special financial aid for what they call “domestic” carmakers. Clinton’s energy plan includes $20 billion in “green vehicle bonds.” They would help companies retool to build more fuel-efficient cars and trucks and provide a tax credit for employee health and pension costs. Obama advocates “retooling tax credits and loan guarantees for domestic auto plants and parts manufacturers.” Tough challenge Both candidates favor fuel economy standards that are even higher than those enacted by Congress last year. The new law requires cars and trucks to average 35 mpg by 2020, about 40 percent higher than today. Honda’s Mendel said all automakers will be challenged to meet the higher standards. He warned against the increased risk of “covert protectionism” during a May 1 session of the International Auto Industry Summit, organized in Washington by the American International Automobile Dealers Association. Said Mendel: “We’ve got to keep our eyes open.” c Court: Auction not liable for truck defect Eric Freedman freedma5@msu.edu No bid At issue: Can a motorist’s estate collect product liability damages from the auction that sold an allegedly defective 1993 Ford Explorer? Outcome: Top Texas court rules auto auction companies are not liable for selling defective vehicles. auctions’ role in moving used cars from one dealer to another, and so they have no expectations that auctions will protect them from such goods,” the association said. ACCESS FROM ANY INTERNET CONNECTION WEB BASED TECHNOLOGY, • Do you want to capture your ﬂoor trafﬁc in an easy and intuitive manner? • Do you want to hold your sales staff accountable? • Do you want to close at a higher percentage? • Why sign long term expensive contracts, you have an alternative, Auto Raptor, the economical solution. • Do you want to deal with a company that is car driven? IF THE ANSWER IS YES Sign on to: WWW.AUTORAPTOR.com for a free 30-day trial or CALL 800-421-6533 TO SPEAK TO A REPRESENTATIVE An auction company cannot be held liable for selling a defective vehicle, the Texas Supreme Court has ruled unanimously. The decision prevents the estate of a driver who was killed in a rollover accident from seeking product liability damages from Big H Auto Auction. The Houston auction had sold the 1993 Ford Explorer that the victim was driving on consignment from a finance company. “Auctioneers are usually neither buyers nor sellers but agents for both,” the court said. “While they are obviously engaged in sales, the only thing they sell for their own account is their services. The items they auction are generally sold for others.” The ruling supports the position taken by the National Auto Auction Association, which filed a brief in the case. The association argued that the Big H auction, like most of the group’s other members, are wholesale operations that handle transactions between “a sophisticated buyer and seller.” “Consumers are rarely aware of the auction sold the vehicle. A trial court judge threw out the case against Big H, but the Texas Court of Appeals reinstated it. The Texas Supreme Court dismissed the suit against Big H, saying the company owed no legal duty to the buyer. “Federal law generally places the duty on manufacturers to report potential defects, notify the public and make necessary repairs,” said the opinion written by Justice Scott Brister. “Imposing a duty on auto auctioneers to discover and repair defects would require them to go into a side business other than their own.” Big volumes Sold ‘as is’ According to court documents, a finance company repossessed the Explorer and consigned it to Big H Auto Auction. Big H sold the Explorer “as is” to another auction in 2000 for $3,100. The second auction sold it to a dealership, which in turn sold it at retail. In 2001, the Explorer’s owner died in a single-vehicle rollover accident caused by an allegedly defective Bridgestone tire. His family sued both auctions, Ford Motor Co., the dealership and the tire manufacturer. The family asserted that Big H was negligent for failing to replace the Explorer’s tires, citing a recall that had been issued a few weeks before the The court noted that Big H auctions about 1,000 vehicles a week, “with many of them moving on and off the premises in a matter of hours.” The auction doesn’t inspect and repair vehicles except at a customer’s request and expense, the opinion said. Big H sells only to licensed commercial dealers who have access to at least the same recall information as the company, the opinion added. Vehicle and tire manufacturers have superior knowledge about their own products, the court concluded. It added: “Big H made no warranties of its own at the auction, serving merely as a conduit for warranties made by sellers.” c http://WWW.AUTORAPTOR.com http://WWW.AUTORAPTOR.com http://www.cardonegroup.com http://www.cardonegroup.com

Table of Contents Feed for the Digital Edition of Automotive News - May 12, 2008

Automotive News - May 12, 2008 Factories Punish Rogue Exporters U.S. Firms Sink on Supplier List Clarke: Buyers Don't Know Saturn Brand Greer Takes Top Sales Post At Automotive News Sonic Sues Mercedes-Benz Fiat Ponders Mexico Plant Ford: Wait on Kerkorian Going Green: It's No Longer An Option LaSorda Reaffirms Axle Plant Plan Chrysler: Jeep Seats From India Make Sense Toyota Exec: Maybe It's Time to Raise a Prius Hybrid Gamily Chevy Traverse, Ford Flex Face Off This Year As U.S. Waits, Chrysler Sends Cars Made in China to Mexico Nissan Plans Wide Range of Electric Vehicles Honda: Sales are Flat, But Market Share Soars Kia to Bring Small Car to U.S. Changing Models Yearly Created Object of Desire Fla. Law: Automakers Can't Force Dealer Upgrades Partnership Seeks "Premier" Stores GM Payback for Axle Bailout: Lower Prices, Innovation UAW Vote May Be Nearing a Honda's Alabama Plant Suddenly, Small Was Big in April GM's Big Problem: Too Many Brands Irvin Was Smart, Friendly, Helpful Dealers Are Tuned in to Absorption Figures Dealers Should Sell Alternative Fuels Museum Funding is Bold Watch Your Car-Truck Inventory In Tough Times Dealers Must Coddle Customers Ford's Challenge: Long-term Reliability Nissan N.A. Unit Gets New Head of Communications Maserati North America Taps Luxury-Segment Veteran Eulberg as CEO Former GM PR Chief Joins BMW Nissan: N.A. Off the Hot Seat VW Uses Free Service to Improve Sales, Image Shops Cited For Labor Violations Survey: Consumers Like Indie Shops Report Cites Trends in Repair Costs Aftermarket Center Opens at Mich. College Dealers Mich. Stores Merge Under Project Genesis VW is Europe's Top Seller Honda Exec Red-Flags Detroit 3 Aid Court: Auction Not Liable for Truck Defect Retail Personnel Canada Sales Post 3.8 Percent Gain in April Chrysler Asks Dealers to Donate to Museum Obituaries Complaint Will Delay UAW Revote at JCI Plant Supplier Deals are Smaller, Fewer GM's Truck Inventories Up Despite Strike Profits Up at Superior Industries Autobytel Post $2 MIllion Loss eBay Motors Courts Automakers Ford Touts 6-Speed Transmissions Toyota Raises Some Prices No Pickup for Hyundai, Kia April Output Drops 7.8 Percent Trustee Must Untangle the Chamco Debacle Scientists Say Chysler's Gas Plan is Just a Dodge From Cookie Sales to Auto Dough? In Europe, Small SUVs Soar; GM's Snore Daimler Seems to Be Betting On Peace in Iraq When Soccer Booms, VW Will Be Ready Molder AMP is a Case Study in Auto-Suppliers' Travail Spinoff Dismatles ArvinMeritor Ambitions GKN Driveline to Grow in China Kia Supplier Builds Ga. Plant BorgWarner Adds Turbo Capacity Supplier Personnel Supplier IAC Consolidates Operations and Know-How Mann + Hummel Sees Growth

Automotive News - May 12, 2008

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