Automotive News - May 12, 2008 - (Page 6)

6 • MAY 12, 2008 Nissan plans wide range of electric vehicles Lindsay Chappell lchappell@crain.com CASCAIS, Portugal — While many in the industry ponder whether electric cars are viable, Nissan Motor Co. CEO Carlos Ghosn is preparing to plunge into the market. Ghosn sees potential for 10 million global electric-car sales per year in cities such as New York, Washington, London, Paris and Mumbai, India. And he wants Nissan and its partner, Renault, to be a major player. “It’s a territory we want to own,” Ghosn told reporters at a press event here. “We are bullish on zero-emission vehicles because of the social Ghosn: “Bullish” on electrics Saikawa: Fleet users first in line trend. The young generation is demanding this. The social trend will make electric vehicles more favorable, along with incentives and tax cuts.” Ghosn also clarified that the elec- tric segment will mean introducing multiple vehicles, not merely a single car. “The electric vehicle is not just one car but a lineup,” he said. “Small car, passenger sedan, LCV (light commercial vehicle). “It’s a zero-emission lineup, which will be adapted to the needs of each market. “We can make an electric sports car. We are testing many variations.” Hiroto Saikawa, chairman of Nissan’s American management board, said the company first will distribute electric cars to U.S. fleet users starting in 2010 and then begin commer- cial marketing in 2012. Saikawa said Nissan’s U.S. fleet customers likely will be utility companies and others who drive vehicles in urban areas. Urban customers will be the focus of Ghosn’s commercial push. Ghosn, who is CEO of both Nissan and Renault SA, calculated that 69 million passenger vehicles were sold globally in 2007, of which 10 million were purchased for “urban driving” — commuting over small distances, from home to office and within neighborhoods. “That’s the first target of electric vehicles,” he said. “So potentially, the core target could be for 10 million units for urban use. “It could go further with the development of technology.” Nissan and Renault have engineers working on a new generation of lithium ion battery technology. Ghosn said some markets will accept batteries that recharge over six hours, while others will require only a 30-minute recharge. “The battery and the electric charge have to be cheaper than gasoline,” Ghosn said of his new product strategy. “If we do this, we’ve won. With (oil) at $120 a barrel, it gets easier.” c Changing models yearly created object of desire Henry Ford had his way of doing things: Turn out a million of the same model each year in any color the buyer wanted, as long as it was black. Alfred Sloan, General Motors’ resident genius, had a different idea in the 1920s: Cater to the buyer’s desire for something new. Make each year’s car so innovative that the consumer couldn’t get along without it, even though his current car had many good years left. In other words, the annual model change. The 1923 Chevrolet is an early example of the new approach. It had a restyled body covering 9-yearold technology. Another Sloan idea was the step-up plan. A motorist started with an entry-level Chevrolet. As his financial condition improved, he moved up to an Oakland (Pontiac), an Oldsmobile, a Buick — and maybe, when he made it big, a Cadillac. (Henry Ford was out of luck there. He had only one brand until he added Lincoln in 1922. And not many customers could step up from a Ford to a Lincoln.) The annual model change was a basic industry strategy until the proliferation of nameplates in the 1960s made it impossible to change every line every year. For the rest of the story, read Automotive News’ GM 100th anniversary edition, How General Motors Changed the World, on Sept. 15. For information about the special edition, go to www.autonews.com/gm100. As U.S. waits, Chrysler sends cars made in China to Mexico Namrita Chow namritachow@autonewschina.com DALE JEWETT The Kia Soul concept car, shown, has a new grille. The production version comes to the U.S. in 2009. Kia to bring small car to U.S. Gary Anglebrandt autonews@crain.com SEOUL — Kia Motors Corp. plans to export its new Soul small car to the United States and China in March, says a Kia source. The five-seater will be produced for the Chinese market at a Kia plant in China in December 2009. The source declined to be identified because he is not authorized to talk about the matter. Suh Sung-moon, an analyst at Korea Investment & Securities, also said the Soul is coming to the United States in early 2009. The car, code-named AM, is the next step, after the Borrego SUV, in Kia’s strategy to reshape the brand’s exterior design. The Soul concept was shown first in Detroit in January 2006. It was displayed in Geneva in March with a new “tiger nose” grille by Peter Schreyer, Kia’s head of design. Schreyer has said he wants to give Kias a more distinct look. In his corner is Tom Kearns, who came from Cadillac and did the main design work on the Soul. The Soul was developed with buyers of the Toyota Scion and Honda Fit in mind. The car is expected to get a 2.0-liter, four-cylinder engine with frontwheel drive. c BEIJING — By year end, Chrysler LLC will start shipping a China-made car to Mexico, says the car’s manufacturer, Chery Automobile Co. Still under discussion are Chery-built cars for U.S. dealers of the automaker. The car for Mexico, sold in China as the Chery A1, will be badged with a Chrysler brand, says Zhang Lin , general manager of Chery International. In July, Chery and Chrysler agreed to work together to develop cars for global markets. Chrysler “sent engineers to Chery in Chi- The Chery A1 na to work on the A1,” Zhang said last month at the Beijing auto show. The A1 cars to be exported to Mexico are virtually the same as those sold in China, said Zhang. The car was styled by Bertone of Italy. A supplier source in China said the current A1 will not be sold in the United States. Chrysler co-President Tom LaSorda said his company and Chery are discussing cars that Chery could assemble for the United States and Europe. “We need small cars,” LaSorda said last week. “Chery’s cars are still not ready for that exposure into these markets.” He said China-built cars probably won’t be ready to meet U.S. safety and emissions standards for “three years or more.” c Bradford Wernle contributed to this report Honda: Sales are flat, but market share soars If you can keep your sales steady when all about you are losing theirs, then you’ll be a man, my son, and rack up lots of market share. With apologies to Rudyard Kipling, that’s the way it has played out for Honda so far this year. Of the nine top-selling auto groups, only American Honda managed a sales increase in the first four months of 2008 — albeit a modest 1.5 percent. Honda has benefited from fuel-efficient cars such as the Fit (up a whopping 68.7 percent to 21,579 units this year) and an insightful lack of reliance on trucks and SUVs. The result: American Honda is the newest carmaker to pass the 10 percent market share threshold. The Honda and Acura brands clocked in at 10.1 percent share from January through April, up from 9.2 percent over the same stretch last Honda hits double digits Market share ups and downs, in percentage points, through April, compared with the same period last year MARKET SHARE GAIN/LOSS 2008 SHARE Running the numbers year. They finished 2007 with 9.6 percent. No. 5 American Honda also is cutting deeply into Chrysler LLC’s No. 4 ranking, what with Chrysler suffering the largest share decline of the top carmakers this year. In the first four months of 2007, Chrysler held a lead of almost 250,000 units over American Honda. That advantage had been trimmed to about 114,000 units during the same period this year. If the trend continues, Honda will overtake Chrysler in 2009. c American Honda Toyota Motor Sales Nissan North America Hyundai-Kia VW Group of America Daimler AG BMW Group Ford Motor General Motors Chrysler +0.9 pt. +0.8 pt. +0.5 pt. +0.2 pt. +0.2 pt. +0.2 pt. +0.1 pt. –0.4 pt. –1.2 pt. –1.5 pt. 10.1% 16.4% 7.2% 4.8% 2.1% 1.7% 2.1% 16.2% 21.9% 12.5% Source: Companies, Automotive News Data Center http://www.autonews.com/gm100

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

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.