Automotive News - May 12, 2008 - (Page 40)

40 • MAY 12, 2008 final assembly comment SUPPLIER RECOVERY >> Dana Holding Corp. on Thursday releases its first quarterly report since emerging from Chapter 11. Go to www.autonews.com. Daimler seems to be betting on peace in Iraq Y ou have to wonder about Daimler’s decision to open an office in Baghdad by year end. Haven’t the top Daimler execs in Stuttgart been watching CNN? Don’t they realize that Iraqi militia leaders — especially those backed by Iran, such as Moktada al-Sadr — make the ruthless killer Anton Chigurh from No Country for Old Men seem like a choirboy? Even if you believe there eventually will be EDWARD LAPHAM a booming market in Iraq, IS EXECUTIVE why go now? EDITOR OF AUTOMOTIVE There can be NEWS. only one answer: The Daimler brass have access to different intelligence from the Arab street than we do. Don’t forget that Daimler has a regional office in Dubai. For years, many Middle Eastern leaders enjoyed a taste for Mercedes-Benz automobiles. The automaker sold more than 16,000 passenger vehicles in the region last year. Sales of Mercedes-Benz trucks in the Middle East were up 44.3 percent to 6,000 vehicles. And the Kuwaiti government is the company’s biggest shareholder, with about 7.2 percent of Daimler stock. That’s a bigger chunk of Daimler than the piece of Ford controlled by Kirk Kerkorian … so far. Although once upon a time, Kerkorian was a big shareholder in DaimlerChrysler, too. Now that the decision has been made, it shouldn’t surprise anyone that the company’s first emphasis will be on selling trucks. Iraq’s various commercial enterprises will need trucks — lots of trucks — on the road to peace and normalcy. And Daimler is the world’s largest manufacturer of medium- and heavy-duty trucks. The Daimler team must believe the outlook for peace there is promising. I hope they’re right. Edward Lapham writes five commentaries each week for autonews.com. Read them at autonews.com/edwardlapham. Trustee must untangle the Chamco debacleretired New Jersey judge, armed with subpoena power and access to company records, has been enlisted to sort out the train wreck that is Chamco Auto. Last week, after three months of firings, lawsuits and accusations by feuding execs had immobilized the wannabe importer of Chinese light trucks, New Jersey Superior Court Judge Catherine Langlois ordered retired jurist Gerald Escala to determine who owns how much of Chamco, manage the company’s affairs, scrutinize the books and supervise the election of a new board of directors. The company, which wants to import vehicles made by Hebei Zhongxing Automobile Co., has been paralyzed for two months, since feuding factions claimed control. The two main combatants are E. Michael Daspin, who helped launch Chamco two years ago; and CEO Mario Ferla, a former Fiat executive hired by Chamco last year. On March 3, Ferla and seven other execs sued Daspin and others, alleging fraud, then decamped with 43 Chamco employees to another building. But the Daspin forces say they control a majority of shares and voted the same day to fire the Ferla team. This month an exasperated Langlois said she was “undoing the entire day” of the March 3 mud bath, and now Escala must try to hose off and untangle the mess. Meanwhile, 37 would-be dealers who paid franchise fees of up to $300,000 watch and wait. Chamco’s feuding factions are led by E. Michael Daspin, left, and Mario Ferla. From cookie sales to auto dough? I f Girl Scouts can sell Thin Mints and Do-Si-Dos now, why not cars, parts and service contracts tomorrow? The National Automobile Dealers Association wants members to contact local Girl Scout troops in an effort to interest young girls in dealership careers. NADA notes that Girl Scouts of the USA has done groundwork with a booklet called Fast-Track to Automotive Careers: A Girl’s Guide, funded by the U.S. Department of Labor. NADA suggests that dealers follow up with career videos from the association and invitations to troops for dealership visits. Finding and keeping employees are big challenges for dealers. Automotive Retailing Today, a coalition of automakers and dealer groups, reported last year that dealerships had more than 100,000 job openings and would create tens of thousands more jobs over the next decade. Scientists say Chrysler’s gas plan is just a dodge hrysler grabbed headlines last week by offering customers a three-year, $2.99-per-gallon price guarantee on gasoline. But a group of green-minded scientists called it a lame gimmick that typifies the nation’s short-sighted thinking on energy. Said David Friedman, research director of the Clean Vehicles Program for the Union of Concerned Scientists: “Chrysler is trying to pull a fast one on potential car buyers. It’s using this cynical deal to distract consumers from the fact that its cars get poor gas mileage. “Rather than sticking customers Chrysler’s $2.99-a-gallon gasoline cards: Just a way to sell guzzlers? with gas guzzlers, Chrysler should focus on delivering more miles per gallon. That would not only save their customers money at the pump, it would help cut America’s oil addiction and reduce global warming pollution at the same time. Instead of gambling with Chrysler on the price of gas over the next three years, car buyers should go with the certainty of a fuel-efficient vehicle.” The latest comprehensive EPA figures — from 2007, when Chrysler was part of DaimlerChrysler — show DaimlerChrysler vehicles with fleet fuel economy of 22.7 mpg, the worst of any of the eight major automakers operating in the United States. In Europe, small SUVs soar; GM’s snore E THE FINAL SAY When soccer booms, VW will be ready I KEVIN DIETSCH/UPI/NEWSCOM AHMAD AL-RUBAYE/AFP/NEWSCOM The car I learned to drive on was my grandfather’s Ford Granada. It may be the worst car that Detroit ever built. This thing was a tin can. It was during the ’70s when oil had just gone up, so they were trying to compete with the Japanese. They wanted to keep the cars big, so they made them out of tin foil. It would rattle and shake. You basically couldn’t go over 80 without the thing getting out of control. — Sen. Barack Obama, D-Ill., on Indianapolis radio station WFBQ-FM “ Baghdad is a tough place for vehicles these days. But Daimler sees a better future. ” f Americans ever start to follow pro soccer in the way that’s been forecast for, oh, 30 years, Volkswagen stands to benefit. The jerseys worn by players for D.C. United, the Major League Soccer team in the nation’s capital, now sport the VW logo. The display is part of a five-year, $14 million sponsorship deal announced last week by Volkswagen Group of America. VW is moving its U.S. headquarters to suburban Washington, and “we wanted to find opportunities to support the local community,” said VW CEO Stefan Jacoby. Other U.S. sports leagues mostly avoid ads on uniforms, but MLS is following the soccer custom in Europe and elsewhere. The Los Angeles Galaxy jersey features a Herbalife logo, and Chicago Fire uniforms tout Best Buy. But D.C. United was in last place in the MSL Eastern Division last week, and wags are weighing in on the VW deal. One commenter remarked on a Washington sports blog: “With the way United is sputtering and crapping out, Yugo would have been a more likely sponsor.” D.C. United’s Marcelo Gallardo wears his sponsor’s logo on his chest. urope’s compact-SUV boom has been a washout for General Motors; the Opel Antara and Chevrolet Captiva are selling far slower than their rivals. Take Germany, for example. In 2007, the Antara’s first full year on the market, registrations totaled 7,051, compared with 16,179 for the segment-leading Toyota RAV4. Even automakers with fewer dealers and much lower overall market shares attracted more customers. Suzuki sold 7,249 Grand Vitaras in Germany last year, and Honda sold 9,789 CR-Vs. In all of Europe, GM sold 29,235 Captivas and 23,879 Antaras in 2007, according to JATO Dynamics. By comparison, Honda sold 68,562 CR-Vs, and RAV4 sales totaled 90,329. “The Antara lags behind our expectations,” said Jonathan Browning, GM Europe’s vice president for global sales, service and marketing. No improvement is in sight, at least in Germany. In the first quarter, Antara registrations totaled just 1,609, compared with 6,502 for the Volkswagen Tiguan. Major model updates are not planned any time soon. “The vehicle just came on the market at the end of 2006,” an Opel source said. “A face-lift typically comes after 2½ years.” http://www.autonews.com http://www.autonews.com http://www.autonews.com/edwardlapham

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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