Automotive News - May 12, 2008 - (Page 36)

36 • MAY 12, 2008 Kings of carbon fiber A look at the top 3 carbon fiber manufacturers and their plans for autos 1. Toray Industries Inc. Building $24.3 million automotive center in Nagoya to develop carbon fiber composites for use in cars. 2. Teijin Ltd. Aiming to supply carbon resin composites to auto parts makers as early as 2010 and to develop a faster molding process. 3. Mitsubishi Rayon Co. Reportedly installing prototype equipment to make carbon fiber brake components and propeller shafts. GM’s truck inventories up despite strike David Barkholz dbarkholz@crain.com Pickup and SUV inventories rose at General Motors last month despite massive production disruptions caused by the UAW strike at American Axle & Manufacturing Holdings Inc. Sales of light trucks were so slow in April that inventories, measured in days supply, increased from the previous month on the Chevrolet Silverado and GMC Sierra pickups and the Chevrolet Tahoe and GMC Yukon SUVs. Dealers now hold more than 120 days of supply of each of those vehicles. The strike cut GM’s light-truck production to just 99,611 units in April, from 203,512 in April 2007. But the walkout has had minimal effect on truck availability, said auto analyst Erich Merkle, a forecaster at IRN Inc. in Grand Rapids, Mich. “American Axle’s Mexican plant can pretty much supply all the axles that GM needs for the rest of the year,” he said. Since the strike began Feb. 26, American Axle has nearly doubled the capacity of its plant in Guanajuato, Mexico. That plant is now capable of producing about 6,000 axles a day. In a sign of how little it has been hurt by the strike, GM recently said it would cut light-truck production schedule by 138,000 units in the remainder of 2008 after the automaker comes back from a summer shutdown July 14. Inventory table ➤ 34 In unit terms, GM’s light-truck inventory dipped slightly in April to 569,293 vehicles at the end of the month, from 590,100 vehicles at the end of March. That’s well below the 635,625 vehicles at the end of April 2007. But this year’s days-supply figure rose to 108 days, from 98 days at the end of March, because the pace of sales has slowed. c CARBON Japan firms push alternative to steel continued from Page 3 PARTNERS Dell needed someone with auto experience continued from Page 8 a billion dollars.” Sandler noted that Dell previously has sought to invest in auto retailing. In 2006, sources told Automotive News that Dell had expressed interest in buying the public retailer Asbury Automotive Group and taking it private. makers of auto parts as early as 2010, through its subsidiary Toho Tenax. Automotive sales account for just 3 percent of Teijin’s carbon fiber business today, but that is seen rising to 7 percent by 2010, says Toho Tenax spokesman Kaoru Fujii. Teijin aims to first make engine undercovers for high-range sports cars and then move toward mass market models when higher volumes bring down the price. The reason carbon fiber remains pricey is twofold. First, it requires enormous amounts of energy to heat and treat fibers. Second, it takes hours to mold carbon fiber components. Teijin wants to tackle the second problem by developing a 10-minute molding process, Fujii says. But that’s still an eternity compared with one-second sheet metal stamping. erate more than $500 million in annual revenue. Sandler’s investment firm represents dealers in buying and selling dealerships. Dell and Rachor “are going to do large deals to get a critical mass established,” Sandler said. “It is longterm capital not looking for a shortterm exit. I would say in the next five years they will invest as much as half ‘Missing piece’ “We worked on a number of very big deals with” MSD Capital, Sandler said. “They were never able to pull the trigger on the deals because they are smart enough to know what they don’t know. They needed someone who had real hands-on experience” in auto retailing. Sandler said Rachor, a 27-year industry veteran, supplies the “missing piece.” Rachor said he and his partners are not bothered by the industry’s current slump. He said the new venture already has been “inundated” with inquiries from potential sellers. “This cycle might create some opportunities,” Rachor said. “In this environment, it is more difficult to operate your dealership. It could motivate some dealers to consider selling.” To attract and retain dealership talent, Rachor said his company will offer minority equity stakes to qualified general managers. He declined to provide details. Last month, Rachor quit his job as CEO of Pep Boys, an automotive aftermarket retailer. Before he joined Pep Boys in 2007, he had executive posts at Sonic Automotive for the previous decade. As president, Rachor expanded and restructured Sonic, shifting its mix of dealerships toward luxury and import brands. Rachor said he’s excited to be back in auto retailing. He said his new venture “will capture the benefit of scale without sacrificing the entrepreneurial spirit that has always been the foundation” of dealership success. c Cost control Carbon fiber makers are counting on growing global demand to push up production and bring down prices. Toray forecasts annual output of all carbon fiber to climb to 53,000 tons in 2010, from about 35,000 tons last year. And several trends are converging to spur demand. New fuel economy regulations and record gasoline prices are forcing carmakers to slash vehicle weight. Meanwhile, soaring steel prices are eroding that metal’s cost advantage. The average price of cold rolled sheet steel in Japan shot up 27.8 percent between November and March to ¥101,000 ($959) a ton. Hot rolled sheet steel has climbed 22.9 percent to $1,050 per ton. And the trend is expected to continue. Japanese steel makers already are seeking price increases of up to 40 percent this year in negotiations with automakers and other big customers, local media report. Such outside factors will be key in clearing the road for carbon fiber. But Japanese carmakers are clearly banking on carbon fiber producers to make the needed breakthroughs. Even Toyota, known for its pennypinching, has plans on the drawing board. At last October’s Tokyo auto show, the company unveiled its 1/X concept car, which boasts a body frame made from carbon fiber reinforced plastic. Not only does it offer the same interior space as the popular Prius hybrid car, it weighs only onethird as much. c AUTO SHOWS May 15-18 — Budapest International Motor Show, Budapest Fair Center, Budapest, Hungary, 36 1 263 6884, www.automobil.hungexpo.hu May 23-June 1 — Madrid International Auto Show, Feria de Madrid, Madrid, (34) 91-722-30-00, www.salondemadrid.com July 1-7 — Syrian International Motor Show, New Damascus International Fairground, Damascus, Syria, 963-11-322-0732, www.syrmotorshow.com July 12-20 — Indonesia International Motor Show, Jakarta Convention Center, Jakarta, Indonesia, 62 21 315 7178, www.indonesianmotorshow.com July 23-Aug. 3 — British International Motor Show, Canary Wharf, London, 020 76540600, www.britishmotorshow.co.uk Aug. 28-Sept. 1 — Moscow International Motor Show, Crocus Centre, Moscow, 7 495 935 7350, www.motorshows-ite.com Oct. 2-5 — Orange County Auto Show, Anaheim Convention Center, Anaheim, Calif., 323-782-2216, www.motortrendautoshows.com Oct. 2-5 — San Antonio Auto & Truck Show, Henry B. Gonzalez Convention Center, San Antonio, 210-732-9647, www.saautodealers.com Oct. 4-19 — Paris International Motor Show (press days: Oct. 2 and 3), ParisExpo – Porte de Versailles, Paris, 33-1-56-88-2240, www.mondial-automobile.com Oct. 10-12 — Northwood University International Auto Show, Northwood University, Midland, Mich., 989-837-4823, www.northwood.edu/mi/studentlife/ autoshow Oct. 16-19 — Long Island Auto Auto racing legend Carroll Shelby, seated, poses with a fan at last year’s SEMA show in Las Vegas. This year’s show is scheduled for Nov. 4-7. Show, Nassau Veterans Memorial Coliseum, Uniondale, N.Y., 717-671-4300, www.autoexpo.com Oct. 31-Nov. 2 — Central California Auto Show, Fresno Convention and Entertainment Center, Fresno, Calif., 323-782-2216, www.motortrendautoshows.com Nov. 6-9 — Tampa Bay International Auto Show, Tampa Convention Center, Tampa, Fla., 323-782-2216, www.motortrendautoshows.com Nov. 7-16 — South Florida International Auto Show, Miami Beach Convention Center, Miami Beach, Fla., 305-947-5950, www.sfliautoshow.com Nov. 20-23 — Charlotte International Auto Show, Charlotte Convention Center, Charlotte, N.C., 704-364-1078, www.charlotteautoshow.com Marketing Seminar, Westin Bonaventure Hotel and Suites, Los Angeles, 313-446-0420, www.autonews.com/anevents May 31-June 3 — SME Annual Meeting: A Passion for Manufacturing, Society of Manufacturing Engineers, Marriott Renaissance, Detroit, 313-271-1500, www.sme.org June 3-4 — Automotive CRM Summit, Ritz-Carlton, Marina del Ray, Calif., 415-553-4142, www.tlsummits.com June 11-12 — Diesel Emissions Conference, Sheraton Brussels Hotel and Towers, Brussels, Belgium, +44 20 7503 1265, www.integer-research.com June 19-20 — Clean Air & Energy Independence Conference, National Alternative Fuels Training Consortium, Crowne Plaza Resort, Asheville, N.C., 304-293-7882, www.naftc.wvu.edu June 20-22 — Fixed Ops Training and Education Conference, Marriott Irvine, Irvine, Calif., 714-206-8485, www.fixedopsconference.com. June 24-28 — NIADA Convention and Expo, National Independent Automobile Dealers Association, Gaylord Texan Resort & Convention Center, Grapevine, Texas, 817-640-3838, www.niada.com June 25 — Auto Russia (conference), Astoria Hotel, St. Petersbrg, Russia, +44 (0) 20 7368 9465, www.wbr.co.uk/autorussia July 22-24 — Plug-in 2008 Conference & Exposition: A Short Drive to Tomorrow, San Jose McEnery Convention Center, San Jose, Calif., 408-395-0059, www.plugin2008.com July 25 — SEMA Internet Symposium, Specialty Equipment Market Association, Hyatt Regency Irvine, Irvine, Calif., 909-396-0289, www.sema.org Aug. 11-15 — Manageme http://www.wbr.co.uk/autorussia http://www.plugin2008.com http://www.automobil.hungexpo.hu http://www.salondemadrid.com http://www.sema.org http://www.syrmotorshow.com http://www.cargroup.org http://www.autoexpo.com http://www.autonews.com/anevents http://www.indonesianmotorshow.com http://www.offshoregroup.com http://www.motortrendautoshows.com http://www.britishmotorshow.co.uk http://www.sme.org http://www.sae.org http://www.motortrendautoshows.com http://www.motorshows-ite.com http://www.tlsummits.com http://www.semashow.com http://www.motortrendautoshows.com http://www.sfliautoshow.com http://www.integer-research.com http://www.autonews.com/anevents http://autonews.com http://www.saautodealers.com http://www.charlotteautoshow.com http://www.naftc.wvu.edu http://www.mondial-automobile.com http://www.autonews.com/ http://www.fixedopsconference.com http://www.executive-conference.com http://www.northwood.edu/mi/studentlife/autoshow http://www.autonews.com/anevents http://www.northwood.edu/mi/studentlife/autoshow http://www.niada.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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