Automotive News - May 12, 2008 - (Page 3)

MAY 12, 2008 • 3 82nd year — No. 6307 Testing carbon fiber’s mettle At last October’s Tokyo auto show, Toyota revealed its 1/X concept car, with a body frame made from plastic reinforced with carbon fiber. Ford: Wait on Kerkorian DETROIT — Ford Motor Co.’s board on Friday asked shareholders to take no action in response to a tender offer issued by billionaire investor Kirk Kerkorian’s Tracinda Corp. to buy up to 20 million shares of common stock for $8.50 each. Ford stock closed the day at $8.10, down 10 cents. Ford’s board said it will advise stockholders of its position by May 22. In a statement earlier Friday, Tracinda said it may propose business strategies for Ford, depending on its evaluation of the automaker’s business and other factors, and could acquire more shares after the tender offer. — Philip Nussel Packed with potential Japanese companies lead the world in the production of carbon fiber, left. Among its assets Light weight High tensile strength; resists stretching Extremely heat-resistant Doesn’t rust or corrode Sonic sues Mercedes-Benz Sonic Automotive Inc. is suing Mercedes-Benz USA to compel the automaker to allow the public dealership group to complete its purchase of a Mercedes dealership in Sonic’s hometown of Charlotte, N.C. Sonic President Scott Smith says Mercedes-Benz is “holding hostage” his company’s purchase of Beck Imports in an effort to force Sonic to spend tens of millions of dollars to upgrade four of its nine other Mercedes-Benz dealerships. Mercedes-Benz USA did not respond to a request for comment. — Donna Harris It’s strong, light — and pricey — but 3 Japan firms want more of it in cars Hans Greimel hgreimel@crain.com Fiat ponders Mexico plant TURIN, Italy — Fiat is considering Mexico as the location for a plant that would supply North and South America, sources told Automotive News Europe last week. Fiat will need production in North America after its Alfa Romeo brand returns to the United States in late 2009. And with demand in South America growing faster than Fiat’s capacity, the company needs more production for the region. In March, Fiat said it was scouting for a plant to build Alfa Romeos in the United States. Two possibilities being considered were a shuttered factory formerly owned by one of the Detroit 3 or expansion of a Case New Holland agricultural machinery or construction equipment plant. Fiat owns Case New Holland, which has 11 plants in North America. — Luca Ciferri TOKYO — Carbon fiber may be best known for its use in golf clubs and jet planes. Yet the silvery black composite is extremely strong and light, and holds great potential as a steel substitute while automakers race to squeeze every extra mile from a gallon of gasoline. Unfortunately, carbon fiber also is expensive — up to 30 times the price of steel. Now three Japanese companies, which together control 70 percent of the global carbon fiber market, want to change all that. The players are Toray Industries Inc., Teijin Ltd. and Mitsubishi Rayon Co. And by boosting output and cutting costs, they aim to pioneer mass production of the futuristic material for widespread use in cars. They also are counting on some technical breakthroughs to bring down the cost. The hurdles are still high. But the potential payoffs are too big to ignore. Carbon fiber delivers the strength of steel at one-fifth the weight. By some estimates, a car’s overall weight could be halved if carbon fiber composites are swapped for traditional steel in such parts as hoods, roofs, fenders, body panels, wheels, radiator panels or propeller shafts. “But the first step is bringing down the cost,” says Seiichiro Nohara, spokesman for the Japan Carbon Fiber Manufacturers Association. “It will help if gasoline prices keep climbing.” Imagine a cloth of tightly woven filaments, each a fraction of the width of a human hair and composed almost entirely of pure carbon atoms. That is raw carbon fiber, which is then in turn twisted into yarns, turned into fabric or molded with epoxy to form composite materials or carbon fiber-reinforced plastic parts. Making the carbon filament is expensive and time consuming. Manufacturers take long strands of pitch, rayon or polyacrylonitrile, known as PAN, and bake them in ovens at temperatures of 3,600 degrees Fahrenheit. The heat treatment transforms this raw material into a fibrous product that is up to 95 percent pure carbon, making it very light and very strong. and radiator panel. But the car also has a $70,000 price tag to match the high-tech extravagance. “This is very new technology and very expensive. I’m not sure if we can apply it to other cars,” says Nissan r&d chief Mitsuhiko Yamashita. Carbon fiber is one of the new materials Yamashita is looking at as Nissan tries to trim its average fleet weight. He believes widespread use is still five years away. Ambitious Japan Tokyo-based Toray, the world’s top carbon fiber producer with 30 percent of the market, sees big growth coming soon. The company plans to open a $24.3 million automotive center in Nagoya next month. The goal is to develop low-cost carbon fiber composites for body panels and hybrid vehicles. Teijin, which accounts for 20 percent of global output, plans to start supplying carbon-resin composites to see CARBON, Page 36 Still new Today, automotive uses account for less than 1 percent of world carbon fiber output, Nohara says. What little is used mostly finds its way into exotic performance cars. Mazda’s RX-8, Honda’s Legend sedan and Mitsubishi’s Pajero SUV already use carbon fiber driveshafts. In Europe, BMW’s M3 has a carbon fiber roof. Nissan’s latest GT-R sports car has a carbon fiber engine underguard Going green: It’s no longer an option The government is mandating higher mileage. Your customers are demanding the same — plus better performance. The Green Car Revolution is well under way. What does it mean to you? To find out, come to the Automotive News Green Car Conference and technology exhibition on Nov. 20. Key auto executives will discuss the challenges, opportunities and trade-offs of reducing the carbon footprints of their vehicles. This one-day conference in suburban Detroit will include a debate over the viability of cellulosic ethanol as a fuel for the future, a look at powertrains of the future, and an examination of Greer takes top sales post at Automotive News When: Thursday, Nov. 20 Where: Rock Financial Showplace in Novi, Mich. Cost: $795 full-day registration; $295 reception and dinner only For information: www.autonews.com/green Questions: green@autonews.com or 313-446-0485 Host sponsor: Ernst & Young DETROIT — Rick Greer has been named Automotive News’ Director of Sales and Marketing. Greer, 49, has been a top sales representative at Automotive News for 15 years, handling the Ford Motor Co. and supplier advertising accounts. In his new position, he will be responsible for the marketing and sales efforts of the publication. Before joining Automotive Greer: New sales, News, Greer held sales posimarketing chief tions at 3M and RL Greer and Associates. “We are confident that through Rick’s leadership, Automotive News will continue its history of growth,” said Peter Brown, associate publisher and editorial director of Automotive News. Greer is a graduate of Michigan State University. Larry Schlagheck, Advertising Director since 2000, has left Automotive News to pursue other opportunities. c Wanted: A few innovative dealers If you are a franchised new-car dealer and have pioneered a winning strategy, we’re gathering ideas for a special Insight section on Innovative Dealers to be published Oct. 13. Send a note to Insight Editor Karen Faust O’Rourke at korourke@crain.com or call her at 313-446-0386. a variety of innovations that could improve fuel economy. Speakers will cover issues such as vehicle weight reduction, the use of low-rolling-resistance tires and the development of new lightweight materials. The conference also will include an exhibition that showcases suppliers’ latest technology. c http://www.autonews.com/green http://www.autonews.com/green

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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