Automotive News - May 12, 2008 - (Page 4)

4 • MAY 12, 2008 Toyota exec: Maybe it’s time to raise a Prius hybrid family Mark Rechtin mrechtin@crain.com LOS ANGELES — A family of hybrid vehicles carrying the Prius badge could be the best way for Toyota to leverage its alternative-fuel technology, Toyota’s top U.S. executive said. Toyota has tried to promote its Hybrid Synergy Drive technology as a kind of brand — for example, making it the subject of advertising campaigns. All Toyota and Lexus hybrids carry the badge prominently. But turning Hybrid Synergy Drive into a brand hasn’t worked so well, says Jim Lentz, president of Toyota Motor Sales U.S.A. Inc. Now the company is weighing a different idea: lending the Prius name to all future vehicles that are offered only as hybrids. “Try as we might to ingrain Hybrid Synergy Drive with consumers, what really stuck was Prius,” Lentz said in an interview. “So rather than spend millions more driving Hybrid Synergy Drive on Highlander or Camry, I think the consumer is telling us they like the idea of Prius.” Marketing similar vehicles under the same brand name also brings efficien- Toyota’s Jim Lentz: “Try as we might to ingrain Hybrid Synergy Drive with consumers, what really stuck was Prius.” cies, Lentz said. He said Scion ads have been most effective when about the brand, rather than individual vehicles. The same could work with a Priusbadged family of products that could be added to the current five-door hatchback, Lentz said. For example, the addition of a two-door coupe, a wagon or a commuter car. A recent Nielsen Buzzmetrics study concluded that the Prius name generates the biggest share of online discussion of alternative-fuel vehicles, with almost 35 percent of total “buzz.” No other alternative-fuel vehicle received more than 4 percent. Not all Toyota hybrid-powered cars would carry a Prius badge. Hybrid versions of vehicles that are also sold as gasoline-powered vehicles would be called “Hybrid,” not “Prius.” Thus, the Camry Hybrid would not become the Camry Prius, Lentz said. When will a family of Priuses arrive? Sources say a new Prius five-door is expected by 2010, but Lentz would not discuss timing of Prius derivatives. “There is nothing in the pipeline,” Lentz said. “It all depends on our resources and when we can make it happen. The longer gas is at four dollars, the greater likelihood (these vehicles) will bubble to the top.” Lentz said Toyota is not considering making Prius a stand-alone sales network, like Scion. c Chevrolet Traverse: Will safe approach to styling lead to higher sales? Ford Flex: “Polarizing” on the outside, upscale look and feel on the inside. RICK KRANZ PHOTOS Chevy Traverse, Ford Flex face off this year Can crossovers grab share from Honda, Toyota? Rick Kranz rkranz@crain.com news ANALYSIS DETROIT — Their minivans bombed, so Ford and Chevrolet are pinning hopes on their newest people movers, two strikingly different crossovers. The 2009 Ford Flex and 2009 Chevrolet Traverse will join one of the few remaining strong segments, mid-sized crossovers. Last year that segment generated 852,121 sales, up 30.7 percent from 2006. The Flex and the Traverse will de- but within about three months of one another and are aimed at the same buyers: people who relish value and price. Ford and Chevrolet cite the redesigned 2009 Honda Pilot and redesigned 2008 Toyota Highlander as primary competitors. Based on interviews, walk-arounds and rides in the crossovers, here’s how the Flex and Traverse stack up against each other: Styling: Ford uses the term “polarizing” to describe the Flex’s exterior styling. “Boxy” and “breadbox” are better words, say critics. The Flex does have a perception problem. In photos, the vehicle seems too long. Blame it on the twotone paint option; the long, white roof exaggerates the Flex’s length. In reality, the Flex is 2.7 inches shorter than the Traverse. Inside, though, even critics praise the Flex’s upscale look and feel. The Traverse styling, meanwhile, is familiar, a safe approach likely to translate into bigger sales. The Traverse shares sheet metal with two architecture-mates, the Buick Enclave and GMC Acadia. Family tree: The Traverse is the fourth crossover based on General Motors’ front-drive Lambda architecture. That may give Chevrolet an see RIVALS, Page 38 Head to head The Chevrolet Traverse will reach dealerships in September. The Ford Flex goes on sale in June. Both are aimed at buyers who relish value and price. 2009 CHEVROLET TRAVERSE 2009 FORD FLEX Wheelbase Length Width Height Weight (fwd) Weight (awd) Base engine Horsepower Torque, in lbs.-ft. Transmission Base price* *Includes shipping 118.9 inches 205.0 inches 78.4 inches 72.8 inches 4,720 lbs. 4,925 lbs. 3.6-liter V-6 281 @ 6,400 rpm 253 @ 5,500 rpm 6-speed automatic Not announced 117.9 inches 202.3 inches 79.9 inches 67.6 inches N.A. 4,640 lbs. 3.5-liter V-6 262 @ 6,250 rpm 248 @ 4,500 rpm 6-speed automatic $28,995 LaSorda reaffirms axle plant plan Bradford Wernle and David Barkholz bwernle@crain.com Chrysler: Jeep seats from India make sense Bradford Wernle bwernle@crain.com DETROIT — Chrysler LLC’s Marysville, Mich., axle plant, under construction and scheduled for completion in 2010, is not for sale, but the company is looking for potential partners. Said Tom LaSorda, Chrysler copresident: “The bottom line is we have made a commitment to the UAW and our employees that we’re going to build a Marysville plant, and we’re going to do that. “We have enough flexibility so that if we pick up a partner, they could go bid on other work and make it in that plant.” Chrysler plans to spend $700 million on the Marysville axle plant. It will replace the carmaker’s aging Detroit axle plant, and will make axles for trucks and SUVs. It is expected to have a capacity of 1.2 million axles per year. Chrysler views axles as a core technology. The plant will build a lower-friction axle developed by Daimler AG that will increase fuel economy. Chrysler is engineering the Mercedes axle technology into its vehicles. The plant will employ about 700 people, many of whom are expected to transfer from the Detroit plant. Under the recent UAW-Chrysler contract, workers hired at the Marysville plant will be paid half as much as veteran UAW workers at the Detroit axle plant. Workers at the Detroit plant earn $28 an hour, and benefits boost the hourly package to $73. c DETROIT — Chrysler LLC will fly in the face of conventional wisdom and import rear seats for the Jeep Wrangler from a seat supplier in India, according to Tom LaSorda, co-president. The India seat project is part of Chrysler’s effort to source more parts from China, India and other low-cost countries. The automaker also is building up engineering capacity in those countries. Because seats are bulky, complex and difficult to ship cheaply, they often are built close to vehicle assembly plants. But Chrysler will get rear seats from Indian supplier Krishna Maruti Ltd. and have them shipped to the Toledo Supplier Park in Ohio, where the Wrangler is built. Chrysler has not said how soon the India-built seats Chrysler’s Tom LaSorda: Sourcing rear seats for the Jeep Wrangler from India is “much less costly than to do it locally.” might be installed in Wranglers. Current Wrangler seat supplier Johnson Controls Inc. will continue to build front seats for the vehicle, LaSorda said. LaSorda admitted he was surprised that seats could be shipped cost-effectively from so far away. “It makes enough sense that it’s much less costly than to do it locally,” he said last week in an interview at Chrysler’s suburban Detroit headquarters. “In this particular case, it’s the rear seats, which dramatically reduces complexity.” The rear seats have no electrical parts or heat elements, LaSorda said. Krishna Maruti is a joint venture of Suzuki Motor Corp. in Japan and two Indian companies: Maruti Udyog Ltd. and Ashok Kapur & Associates. Krishna Maruti claims to be South Asia’s largest seating systems maker. Chrysler has opened an engineering center in Shanghai that employs 100 people. Chrysler plans to grow that number to 250 by year end. In April, Chrysler also opened an engineering center in Chennai, India. LaSorda said Chrysler is studying Russia closely as it sets up a network of global engineering centers. Chrysler spokesman David Elshoff said the company plans to add 1,000 jobs in these centers this year. c

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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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