Automotive News articles from February 2002

Automotive News archives from February 2002

Say it ain't so, Jim.
February 4, 2002... Jim Press has been a voice of intelligence and reason throughout his distinguished career at Toyota. So we were jolted by his choice of words in his keynote address to the NADA convention. The Toyota leader said activists concerned about such...

Highlights.
February 4, 2002... Saab make meeting highlights: * Bigger ad budget * Facelifted 9-5; 9-3 redesign * Change from push to pull

Highlights.
February 4, 2002... Ford make meeting highlights * The division will fight the Koreans with a mini sport-utility. * Executives pledge to rebuild strained relations with dealers. * Daily parts delivery will spread throughout the United States in 3...

Highlights.
February 4, 2002... Kia make meeting highlights * Sell 250,000 vehicles in 2002 * Upgrade facilities * Improve customer satisfaction

Highlights.
February 4, 2002... Isuzu make meeting highlights * Direction of Isuzu as value brand * Bigger ad budget * Future products, including possible pickup for U.S. market

Highlights.
February 4, 2002... Lincoln Mercury make meeting highlights * Ford Motor Co. is preparing a new product plan and design vocabulary for Mercury. * Most Mercurys still will be derived from Ford platforms in North America. * Fresh products are due in...

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February 4, 2002... Mazda make meeting highlights * Dropping the Millenia * Adding a roadster * Keying on customer satisfaction

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February 4, 2002... Suzuki make meeting highlights * Aerio ads will start in March. * Sales satisfaction must improve. * Primus Financial will continue its relationship with Suzuki.

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February 4, 2002... Nissan make meeting highlights * Altima production could increase by 40,000 units. * CSI ratings are too low. * Proposals to raise CAFE could hurt Nissan.

Highlights.
February 4, 2002... Subaru make meeting highlights * Make meeting open to execs * At least one Baja for each dealer * More exclusive dealerships

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February 4, 2002... Hyundai make meeting highlights * 77,000 Sonatas for the U.S. market * 25 new dealers in 2002; 8 will be minorities * Sport-utility, larger minivan possible

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February 4, 2002... Acura make meeting highlights * High sales satisfaction goals * Management training * Phone follow-up with customers

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February 4, 2002... Honda make meeting highlights * New product plans * More production capacity * Excell initiative to boost customer satisfaction

Highlights.
February 4, 2002... Dodge make meeting highlights * A sport-utility smaller than Durango is in the works. * An entry-level SXT car range has been added. * More product is coming (but no details when).

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February 4, 2002... Chrysler make meeting highlights * Dealers want the 7 year/100,000 powertrain warranty extended. * Crossfire sport sedan and Pacifica crossover vehicle are due in 2003. * Last year's ill will is gone.

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February 4, 2002... Volvo make meeting highlights * Customer satisfaction survey will be streamlined. * The factory will solicit input from dealers. * Retired rental vehicles will be used as loaners.

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February 4, 2002... Mercedes-Benz make meeting highlights * Record sales in 2002 * SL, E class, CLK redesigns * Service loaners

Highlights.
February 4, 2002... BMW make meeting highlights * New 7 series * Record 2001 sales * Dealer profits

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February 4, 2002... Porsche make meeting highlights * Cayenne arrives in fall. * More dealers make renovations. * Boxsters are leased as loaners.

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February 4, 2002... Pontiac-GMC make meeting highlights * Envoy XL production starts in second quarter. * Dealers say Vibe needs larger profit margins. * GM is looking at adding rear-drive cars.

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February 4, 2002... Chevrolet make meeting highlights * Local marketing groups may be able to spend money on promotions. * ``We'll be there" theme for cars will stay. * SSR is expected in spring 2003.

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February 4, 2002... Mitsubishi make meeting highlights * Two new sport-utilities arrive within 12 months. * Luxury four-door pickup is likely. * U.S. sales will grow to 400,000 units.

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February 4, 2002... Jaguar make meeting highlights * 1 dealer council for Jaguar and Land Rover * More frequent dealer council meetings * 3 general dealer meetings in 2002

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February 4, 2002... Cadillac make meeting highlights * Cadillac will target import buyers. * Performance will be a strong theme, with the XLR getting 300-plus hp. * Cadillac will price the XLR below the Mercedes-Benz SL500.

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February 4, 2002... Buick make meeting highlights * Dealers sought details about future products. * Mid-range sport-utility comes in 2004. * GM executives praised for listening to dealers.

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February 4, 2002... Oldsmobile make meeting highlights * 100 Olds dealers received other GM franchises. * 50 more such deals are in the works. * GM wants to wrap up 75% of buyouts by year end.

[0] Highlights.(Brief Article)
February 4, 2002... Audi make meeting highlights * Introducing brand identity ``Never follow" * Planning to train 100 more mechanics/technicians this year * Decreasing order-to-delivery time from 84 days to 60 this year

Honda, Toyota focus on satisfaction.(begin programs focusing on customer service)(Brief Article)
February 4, 2002... For Honda and Toyota, keeping dealers happy has not been an issue. Both companies rank high in dealer satisfaction: Toyota is No. 3 and Honda is No. 7 in the J.D. Powers and Associates dealer satisfaction index. The problem has been...

Mazda keys on products, customer service.(plans for revamping brand image)(Brief Article)
February 4, 2002... As it tries to strengthen its brand image, Mazda Division is keying on three areas: the right products, enough of the right products and customer satisfaction scores. Mazda dealers coming out of the make meeting at the NADA convention said...

Volvo trims fat from buyer survey.(Volvo Cars North America Inc. Dealer of Excellence survey to have 10 questions instead of 33)(Brief Article)
February 4, 2002... Volvo Cars North America Inc. has simplified its customer satisfaction program, according to dealers who attended the convention make meeting. ``Dealer of Excellence," formerly a 33-question survey that required verbal answers from...

GM re-evaluates flat-rate reimbursement system.(how GM pays dealers for warranty work may change)(Brief Article)
February 4, 2002... General Motors may overhaul the system it uses to pay dealers for warranty work. In a test on selected new vehicles (see box ), GM will measure the time it takes dealer technicians to complete a job. That information will be used to create...

World debuts.(production and concept)(Illustration)
February 4, 2002... Production * 2003 Buick LeSabre * 2003 Dodge Ram 2500/3500 * 2003 Kia sport-utility * 2002 Mazda Miata SE * 2003 Mercury Grand Marquis * 2002 Mercury Cougar special edition * 2003 Mitsubishi Eclipse * 2003...

Chrysler bets on edgy ad campaign.(goal is to be visible, even if they have to pull offensive ads)(Brief Article)
February 4, 2002... The Chrysler group is gambling that risky ads will improve sales and brand reconition. Under pressure from critics, the group has pulled some of the ads. And executives say they don't even have data that prove the controversial TV spots...

Dealer lobbies are at peace with factories; Incentives tied to dealership standards could cause trouble.(lawsuits at low point; uncertain future)(Brief Article)
February 4, 2002... State dealer lobbies around the country are kissing and making up with factories after two years of intense legislative battles. The Kansas Automobile Dealers Association, which routinely spars with factories to defend small rural dealers,...

Appeals court tosses verdict in Toyota airbag suit.(product liablity claim by injured motorist not proven)(Brief Article)
February 4, 2002... LANSING, Mich. - A state appeals court has overturned a $225,778 jury verdict in a suit alleging that the driver's airbag in a leased 1994 Toyota Camry was defective. By a 3-0 vote, the Michigan Court of Appeals said there was no evidence...

Chrysler eyes fast food, music to entice young buyers.(George Murphy, senior vice president of global brand marketing at Chrysler)(Brief Article)(Interview)
February 4, 2002... George Murphy got a wake-up call after becoming entrenched in the Chrysler group's brands. The group's senior vice president of global brand marketing realized that some of the plans he had implemented after jumping from Ford Motor Co....

Auto News digest.(Ford Motor Co.)(Hyundai Motor America)(Newgen Results Corp.)(Brief Article)
February 4, 2002... Ford Motor offers training plan DETROIT - Ford Motor Co. has started a training program for entry-level mechanics in maintenance and light repair. The Maintenance and Light Repair program offers three to six months of training in...

AutoNation expects tough first quarter.(according to Mike Maroone, COO)(Brief Article)
February 4, 2002... Mike Maroone is COO of AutoNation Inc. in Fort Lauderdale, Fla., the nation's biggest dealership group. He spoke with Staff Reporter Jim Henry at the NADA convention about business conditions. What is your earnings forecast for the fourth...

Toyota's new brand aims at U.S. youth market; Press: Vehicles will be `outlandish' to some.(details to be released in 6 months)(Brief Article)
February 4, 2002... The vehicles coming from Toyota's new brand-in-the-making will be unique, says Jim Press, COO of Toyota Motor Sales U.S.A. Inc. ``And to some they'll be outlandish.'' He stopped himself after he used the word ``bizarre.'' Press was...

Camp Jeep adds events.(July 25-27 in the Ozark Mountains near Branson, Mo; fall and winter camp locales TBA)(Brief Article)
February 4, 2002... Camp Jeep just won't be for summertime fans any longer. The division is adding a fall event this year and likely a winter event next year. The annual summer weekend event, which started eight years ago, consists of family-oriented outdoor...

Redesigning GM design.(Brief Article)
February 4, 2002... General Motors overhauled its vehicle design and development structure last week. The goal: cutting the time it takes to move vehicles from concept to production. Key changes * Design and advanced vehicle departments now have seats on...

Bausch & Lomb's $7 million man.(Ron Zarrella)(Brief Article)
February 4, 2002... Bausch & Lomb Inc.'s statement of year end earnings says that the company paid a steep price to pry Ron Zarrrella away from General Motors, where he had been president of GM North America. Zarrella had been president of Bausch & Lomb before...

GMC: 7-seat Envoy will ease shortage of Yukon.(Brief Article)
February 4, 2002... GMC dealers will receive the seven-seat Envoy XL in the second quarter when a refitted assembly plant in Oklahoma City starts production of the sport-utility. The division also told GMC dealers at the make meeting that the Envoy XL will...

GM weighs more ad concessions.(local marketing groups)(Brief Article)
February 4, 2002... General Motors soon may make further concessions to dealers who are re-forming local marketing groups, called LMGs. ``They're looking at making the LMGs a little bit more user-friendly, to where you may be able to use some of the money for...

Top Subaru marketer has full plate.(Brief Article)
February 4, 2002... The new Darling of Subaru of America Inc. has a lot on his agenda his first year. Mark Darling joined Subaru in June as vice president of marketing when Bill Cyphers was moved to vice president of sales. Darling previously worked at...

Make meetings.(Brief Article)
February 4, 2002... Acura: Page 48 Audi: Page 55 BMW: Page 51 Buick: Page 54 Chevrolet: Page 52 Cadillac: Page 54 Chrysler: Page 49 Daewoo: Page 4 Dodge: Page 49 Honda: Page 48 Hyundai: Page 47 Isuzu: Page 42 ...

supply line.(contracts awarded)(Brief Article)
February 4, 2002... Dow to provide GM brake fluid DETROIT - Dow Automotive will supply brake fluid to all of General Motors' North American manufacturing facilities. Dow already supplies the fluid for several of GM's validation and testing centers and r&d...

Straight shooting.(car repair prices)(Brief Article)
February 4, 2002... Some procedures GM will include in measuring straight-time labor * Actual repair or part-replacement time * Repair diagnosis time, including road tests * Time to obtain parts from parts department * Time to obtain and use...

Ron who? GM zaps Zarrella's legacy.(Ron Zarrella, former president of General Motors North America)(Brief Article)
February 4, 2002... Less than three months after Ron Zarrella departed as president of General Motors North America, big portions of his legacy are being junked. The biggest change came Thursday, Jan. 31, when Vice Chairman Robert Lutz unveiled his...

Issues remain, but dealers like Ford's message.(Brief Article)
February 4, 2002... Ford Division and its dealers have begun to inch toward a more amicable relationship. Yet sizable hurdles remain. The division's Blue Oval Certification still rankles some dealers. Many are dissatisfied with the quality of Ford vehicles...

GM's 0 percent plan, Lutz's energy have GM crew smiling.(Brief Article)
February 4, 2002... NEW ORLEANS - This city's nickname, The Big Easy, would just as well characterize General Motors' meetings with its dealers last week. GM dealers expressed little of the anger that permeated dealer relations in recent years. In fact, they...

Myers: NADA will still keep eye on factories.(Brief Article)
February 4, 2002... Though factories are making efforts to mend fences with dealers, industry relations remain at the top of the agenda for Carter Myers, the 2002 NADA chairman. Myers told convention attendees he intends to focus on three goals: 1....

A higher bar.(potential fleet regulations)(Brief Article)
February 4, 2002... Sen. John Kerry's proposal would * Raise entire-fleet CAFE to 37 mpg by 2014, a 50% increase * Raise light-truck definition to 10,000 lbs., to include the Ford Excursion and other large sport-utilities * Require NHTSA to adopt...

Industry must come clean and cooperate on CAFE.(fuel standards in the automobile industry)(Brief Article)(Statistical Data Included)
February 4, 2002... It was a throwback to a darker era. On a Senate witness stand two weeks ago, Greg Dana of the Alliance of Automobile Manufacturers went mute when asked whether a 1-mpg increase in corporate average fuel economy standards during the next decade...

Dealers say VW names are a shame.(Brief Article)
February 4, 2002... U.S. Volkswagen dealers can't wait for the brand's first sport-utility and luxury sedan. But they agreed at the convention that the names must go. The sport-utility is named the Touareg. The luxury sedan is the Phaeton. Both are scheduled...

GM breaks through on the Super Bowl.(Super Bowl commercials)(Brief Article)
February 4, 2002... The Super Bowl has become more of a showcase for TV commercials than it is for professional football. Commercial time in Super Bowl broadcasts is not bathroom-break time as it is for most primetime sitcoms. Instead, commercial time has...

Mercury's marketing is Klug's top priority. (Jan Klug)
February 4, 2002... Ford Motor Co. CEO Bill Ford wants a clear direction for Mercury and has ordered his brand guru, Jan Klug, to coordinate the task. Klug, vice president of global marketing, spoke with Staff Reporter Julie Cantwell and Special Correspondent...

Chrysler won't stop building vehicles in Austria.(Brief Article)(Statistical Data Included)
February 4, 2002... Chrysler will not abandon its production base in Austria despite a planned sale of its Eurostar plant to Magna-Steyr. ``It's a matter of credibility for us, both in respect to our work force and our partner Magna,'' Chrysler CEO Dieter...

Pilot products.
February 4, 2002... Vehicles involved in GM's warranty project * Cadillac CTS * Cadillac XLR * Chevrolet SSR * Hummer H2 * Pontiac Vibe

Ford to sell Brazil-made sport-ute.(Ford to launch Fusion in North America)(Brief Article)(Statistical Data Included)
February 4, 2002... DETROIT - Ford Division will add a small sport-utility assembled in Brazil to its North American lineup in mid-2004, say company sources familiar with the plan. The Fusion, built on the Ford Fiesta platform, will be marketed under the Ford...

Supplier sketch.(Tower Automotive Inc.)(Brief Article)(Statistical Data Included)
February 4, 2002... Tower Automotive Inc. Headquarters: Grand Rapids, Mich. 2001 sales: $2.47 billion 2000 sales: $2.53 billion Products: Stamped truck frames, body panels, engine cradles, floor pans, control arms Customers: Ford,...

Singing the Blue.(Ford's Blue Oval certification)(Brief Article)
February 4, 2002... Here's why Ford Division says Blue Oval certification is here to stay. * 93% of Ford Division dealers are enrolled. * Blue Oval checks account for one-third of all dealership profits. * Ford is willing to make changes if national...

Slow sales, storms shut plants.
February 4, 2002... * A snowstorm idled two plants last week. Ford Motor Co. closed its Kansas City, Mo., plant (Ford Escape and F series, Lincoln Blackwood and Mazda Tribute) on Wednesday and Thursday, Jan. 30-31. General Motors closed its Fairfax assembly plant...

Dealers say Ford seems to be marching in the right direction; Commitment to core areas is raising hopes.(Brief Article)
February 4, 2002... Ford Division is moving to appease dealers by promising new products and pledging to mend strained relations. In October, Ford Division's National Dealer Council blasted the company in a 14-page memo detailing the ruptured factory-dealer...

Auto News digest.(various briefs)(Brief Article)(Statistical Data Included)
February 4, 2002... Visteon slashes 150 jobs DETROIT - Visteon Corp. cut 150 jobs, most of them in engineering, on Tuesday, Jan. 29, in an effort to trim 10 percent from r&d costs in 2002. A 10 percent cut translates to more than $100 million in annual...

Saturn picks agency.(Brief Article)
February 4, 2002... Saturn Corp. has chosen Goodby, Silverstein & Partners to replace Publicis Hal Riney & Partners for creative work. Saturn made the decision after an agency review in November for the launch of the Ion, a replacement for the S series.

More Altimas would be more than welcome.(Brief Article)(Statistical Data Included)
February 4, 2002... Nissan may increase production at its Tennessee factory to meet high demand for the Altima, dealers were told at their make meeting. Nissan North America is examining ways to boost Altima annual production capacity to 190,000 units for its...

Dealers: Saab ads must build traffic.(increases ad spending and boosts commercials)(Brief Article)
February 4, 2002... Saab Cars USA Inc. has greatly increased its ad spending, including an unprecedented amount of TV commercials, for a facelifted 9-5 model and an upcoming 9-3 redesign. Saab's ad campaign for the 9-5 debuted in mid-January. One of the...

Acura dealers say Excell is swell.(Brief Article)
February 4, 2002... All Acura dealers have signed up for a program designed to increase customer satisfaction. The Excell program - which stands for ``Exceeding Customer Expectations Levels for Life'' - includes management training and customer phone surveys....

GM beefs up its quest to reach minorities.(General Motors Corp.)(Brief Article)(Statistical Data Included)
February 4, 2002... NEW ORLEANS - General Motors will try to improve its lagging share of minority customers this year, using its minority dealers as a key part of the effort. Gary Cowger, president of GM North America, told members of the GM Minority Dealers...

Honda tells dealers: Products on the way.(American Honda Motor Co. Inc.)(Brief Article)(Statistical Data Included)
February 4, 2002... Honda Division's plans with its dealers are straightforward: Keep feeding them product and boost customer satisfaction scores. Honda sales in the United States were at a high of 1,037,170 last year. Dick Colliver, American Honda Motor Co....

BMW wants to sharpen its image.(interview of Jim McDowell, vice president of marketing, BMW of North America)(Brief Article)(Interview)
February 4, 2002... Jim McDowell is vice president of marketing for BMW of North America LLC, a position he has held since August 1993. He is responsible solely for BMW-brand cars and light trucks. Neither the Mini nor the Rolls-Royce brand, which BMW takes over...

Autobytel to expand marketing services.(Autobytel Inc.)(Brief Article)(Statistical Data Included)
February 4, 2002... Autobytel Inc. hopes to use its position as a leading online referral service to reinvent itself into a broader marketing services company, said CEO Jeffrey Schwartz. Autobytel lost $900,000 in the fourth quarter of last year, although it...

Schembri: New products redefine Mercedes brand.(interview of Dave Schembri, vice president of marketing, Mercedes-Benz USA)(Brief Article)(Interview)
February 4, 2002... Dave Schembri, vice president of marketing for Mercedes-Benz USA LLC, has both the easiest and the hardest marketing job in the auto industry. Easiest, because having responsibility for the Mercedes-Benz brand is like being born on third...

Kia says it's ready to grow.(Kia Motors America Inc.)(Brief Article)(Statistical Data Included)
February 4, 2002... Kia Motors America Inc. told dealers it expects to sell 250,000 new vehicles in 2002 and encouraged dealers to upgrade their facilities, said Terry Petersen, president of Reno Kia in Reno, Nev., and chairman of the Kia national dealer council....

Fiat delays 2 vital launches.(Brief Article)
February 4, 2002... TURIN, Italy - In a sign that Fiat Auto may be eating its seed corn to cut costs, the automaker has delayed by at least a year a new entry into Europe's fast-growing compact minivan segment. An even smaller minivan based on the Punto...

Correction.(Brief Article)(Correction Notice)
February 4, 2002... An article on Page 79 of the Jan. 28 issue misidentified insurance executive Mark Krejci's title and the location of CNA National Warranty Corp. Krejci is president of Continental-National Services Corp. in Tampa, Fla. Continental-National is...

Suzuki: Customer satisfaction must improve.(American Suzuki Motor Corp.)(Brief Article)(Statistical Data Included)
February 4, 2002... American Suzuki Motor Corp. told dealers at the make meeting that the brand must do a much better job of handling customers. Gary Anderson, a Suzuki vice president, said Suzuki customer satisfaction scores are among the lowest in the...

Kerry: Raise CAFE by 50%; Bush plan would rewrite the rules.(Senator John Kerry)(President George W. Bush)(Brief Article)
February 4, 2002... WASHINGTON - Automakers would be forced to boost fuel economy by more than 50 percent over 12 years under a plan brewing in the Senate. But late last week the Bush administration revealed another plan that would overhaul fuel-economy...

Airbag argument.(Brief Article)
February 4, 2002... The dispute: Lessee claims 1994 Camry had defective airbag. Where it stands: Appeals court overturns $225,778 jury award.

Ford settles Texas battle for Web turf.(not allowed to sell off-lease vehicles to consumers on the Internet)(Brief Article)
February 4, 2002... If it looks like a dealer, talks like a dealer and sets retail prices like a dealer, it's a dealer. That's the last word from the Texas Motor Vehicle Board in a case challenging Ford Motor Co.'s ability to sell off-lease vehicles to...

Daewoo tells dealers: Be patient.(Brief Article)
February 4, 2002... NEW ORLEANS - Daewoo Motor America had to ask dealers for a little more patience at the National Automobile Dealers Association convention here last week. Daewoo is in limbo pending a decision by General Motors to take over assets of the...

It's all in the message.(marketing overview)(Brief Article)
February 4, 2002... While product may be king in the auto industry, marketing surely must be queen. That's because behind every good product, there must be an equally good marketing message. And the effort is becoming more complicated with the growing number...

Bengal death clouds Buick's vehicle plan.(Brief Article)
February 4, 2002... With hopes dashed for the Bengal, Buick dealers walked into their make meeting unsure about future product. They walked out with some clues but still feeling uncertain. ``They heard maybe not what they wanted to hear, but they heard the...