Automotive News articles from February 2009

Automotive News archives from February 2009

Is there a Ford in Ford's future?(NEWS)(Ford Motor Co.)(Brief article)
February 2, 2009... Will a Ford ever run Ford again? Probably not, says conventional wisdom. Since Alan Mulally replaced Bill Ford as CEO in 2006, the thinking is that we've seen the last CEO named Ford for the foreseeable future. That's what they used to say...

Costs, complexity seen rising if Calif. rules OK'd.(NEWS)
February 2, 2009... Byline: Richard Truett If the EPA lets individual states set their own emissions rules, some vehicles will get more expensive, while others die. Manufacturing complexity and costs will rise. Automakers may have to build vehicles that many...

Press calls for "Hail Mary' - and 78,000 orders.(NEWS)(Chrysler L.L.C.)
February 2, 2009... Byline: Bradford Wernle Chrysler LLC asked dealers to order about 78,000 vehicles for February retail sales to show U.S. taxpayers that a $4 billion federal loan can help make the struggling automaker viable. Jim Press, Chrysler...

Infiniti gives dealers more warranty freedom.(NEWS)(Nissan North America Inc. Infiniti Div.)(Brief article)
February 2, 2009... Byline: Lindsay Chappell Under a new goodwill program this year, Infiniti dealers will be allowed much more discretion in paying for customers' factory warranty issues. Nissan North America officials told dealers at Infiniti's make...

The Chinese are coming! (years from now).(NEWS)(Brief article)
February 2, 2009... Chinese cars, a hot topic at recent NADA conventions, languished on the back burner this year. Two years ago in Las Vegas, would-be U.S. distributors of China-made cars were beating the bushes for retailers. Not wanting to miss the...

Bentley to show biofuel car.(NEWS)(Bentley Motors Inc.)(Brief article)
February 2, 2009... Byline: April Wortham Bentley has released a teaser photo of its first biofuel-powered car, scheduled to debut at the Geneva auto show in March. The company says that in addition to being the fastest Bentley ever, the model marks...

As drop-tops flop, Honda axes S2000.(NEWS)(Honda Motor Company Ltd.)(Brief article)
February 2, 2009... When things are bad for the industry at large, they're truly awful for two-seat convertibles. So it was no surprise when Honda announced last week that it will stop building the S2000 in June after a decade of production. Roadster sales...

Elena Ford: Global marketing will mean big savings.(NEWS)
February 2, 2009... Byline: Jesse Snyder Ford Motor Co. is preparing to reap some marketing savings from its global vehicle platform efforts. When the 2010 Ford Focus is launched nearly simultaneously around the world, each individual-market campaign will...

Ford runs low on sources for cash.(NEWS)(Ford Motor Co.)
February 2, 2009... Byline: Amy Wilson With credit lines drawn and most sources for cash tapped, Ford Motor Co. is down to seeking government loans, selling Volvo and cutting costs as ways to bolster reserves. Ford leaders say they can get through the...

CORRECTIONS.(NEWS)(Correction notice)
February 2, 2009... A box accompanying a story on Page 4 of the Jan. 19 issue gave the wrong time frame for a calculation of residual value. Automotive Lease Guide projected the 36-month residual value of a Smart car at 58 percent. A Late News item on Page...

Citizenship.(NEWS)(Ford Motor Co's awards to car dealers)(Brief article)
February 2, 2009... The dealers listed below received Ford Motor Co.'s 2009 Salute to Dealers award for performing good works in their communities. They were honored in New Orleans on Jan. 23 at a reception that preceded the National Automobile Dealers Association...

As U.S. deadline nears, GM lacks plan for weak brands.(NEWS)(General Motors Corp.)
February 2, 2009... Byline: Jamie LaReau Talk about pressure. Just a couple of weeks before General Motors has to submit a detailed plan proving viability, GM executives have no idea what to do with their losing brands. With President Barack Obama still...

Dealership fraud: Phony credit info; Employees falsified forms and took appliances as trade-ins.(NEWS)
February 2, 2009... Byline: Chrissie Thompson Louis Harrelson's six-store dealership group used the slogan "Everybody rides. But federal prosecutors say the dealerships took lenders for a ride, as employees falsified income and accepted household appliances...

The Chinese are here! (in miniature).(NEWS)(Brilliance China Automotive Holdings Ltd. at Detroit auto show)(Brief article)
February 2, 2009... The first Chinese car went on sale last month in the United States. It was about a foot long. Although the real deal is some years away from the United States, one Chinese automaker Brilliance China Automotive was selling cars at the...

Changing business.(NEWS)
February 2, 2009... Dealers and analysts say many lenders are Getting out of auto finance or cutting their dealer networks Requiring larger down payments Asking buyers for more proof of residence and income Seeing more falsified credit...

Highlights.(NEWS)
February 2, 2009... The Chattanooga, Tenn., plant is on schedule. VW will act quickly to change incentives. New product is coming in new segments and in variants of existing vehicles.

Suppliers seek $10 billion in U.S. loans.(NEWS)(Brief article)
February 2, 2009... Byline: David Barkholz Parts suppliers this week plan to request federal Treasury Department loans of up to $10 billion to try to avert hundreds of bankruptcies and possible liquidations, a supplier association chief said. The...

BMW expands certified used-vehicle program.(NEWS)(BMW of North America L.L.C.)(Brief article)
February 2, 2009... Byline: Dave Guilford BMW of North America faces a tough situation in 2009: an expected 140,000 leased vehicles returning in a year when credit looks tight. BMW's solution is to expand its successful certified used-vehicle program....

The Harrelson hustle.(NEWS)(Brief article)
February 2, 2009... By falsifying loan applications, Louis Harrelson's employees got financing for customers who couldn't qualify elsewhere. To get loan approval, the employees Told lenders that customers without down payments had received in-house rebates...

Cutting CO2 and petroleum use is Obama's job.(NEWS)(Environmental Protection Agency)
February 2, 2009... Letting states enforce their own fuel economy standards is still a terrible idea. The EPA must deny a waiver to California and the other states that want to set their own rules for limiting carbon dioxide emissions. Instead, the Obama...

Volvo plans to improve new-vehicle margins.(NEWS)
February 2, 2009... Byline: Donna Harris Volvo Cars of North America Inc. told dealers that it plans to improve their new-vehicle profit margins, starting this spring with the XC60 compact crossover. Volvo also is trying to boost dealership shop profits...

Chrysler suit: Hecker owes half a billion.(NEWS)
February 2, 2009... Byline: Kathy Jackson So why did Chrysler Financial Services pull the plug on embattled Minnesota megadealer Denny Hecker last fall, forcing Hecker to close six of his 16 dealerships and sell three others? Now it can be told. In a...

Dealer can't add Kia, sues Saturn.(NEWS)
February 2, 2009... Byline: Jamie LaReau Saturn dealer Stuart Lasser is suing General Motors and Saturn Corp., accusing them of violating state franchise laws by not allowing him to subdivide his Saturn store to add a Kia franchise. In the lawsuit, filed...

Nardelli pledges to keep fed money within Chrysler.(NEWS)(Bob Nardelli)(Brief article)
February 2, 2009... Byline: Harry Stoffer Chrysler LLC CEO Bob Nardelli says the $3 billion in second-stage federal loan money the company seeks would be used in North American operations even if a proposed Chrysler-Fiat alliance goes forward. "None of...

Hyundai focuses ad budget on high-profile events.(NEWS)
February 2, 2009... Byline: Kathy Jackson Hyundai aims to pull out of its sales slump with a first-quarter marketing assault that makes use of several glitzy TV extravaganzas. Those five Hyundai Super Bowl spots on Sunday up from two in last year's big...

Hyundai's glitz blitz.(NEWS)
February 2, 2009... How Hyundai is raising its profile 5 Super Bowl TV spots Sponsor of pre-game show Spots on the hit TV series "24 Major Academy Awards sponsor

Factories slash more production.(NEWS)
February 2, 2009... Byline: Chrissie Thompson and Lindsay Chappell Mitsubishi Motors North America will extend the planned seven-week shutdown at its Illinois plant by five weeks, the company announced last week. General Motors and Honda Motor Co. also...

Industry battles state-by-state mpg; Even new national rule on fuel economy could be tough.(NEWS)
February 2, 2009... Byline: Harry Stoffer Automakers and their allies are gearing up for an intensive lobbying campaign to convince Washington that national standards for greenhouse gas emissions are better than state-by-state rules. But if national...

It was a remarkable convention.(NEWS)(National Automobile Dealers Association)(Conference notes)
February 2, 2009... Byline: Keith Crain Just over a week ago, dealers showed up at the NADA convention in New Orleans for what many of us thought would be a disaster. We were wrong. Sure, everyone knew exactly what was going on. General Motors and...

Don't count on cheaper gasoline.(NEWS)
February 2, 2009... Byline: Arjen Bongard The worst thing the auto industry can do is count on cheaper gasoline following the recent slide in oil prices. Yes, it has been nice to see prices at the pump come down after benchmark crude oil fell from $150 a...

Acura pushes ahead with plan to join elite brands.(NEWS)(American Honda Motor Company Inc. Acura)
February 2, 2009... Byline: Bradford Wernle Despite difficult economic conditions, Acura will stick with its plan to become a Tier 1 luxury brand, executives told dealers at the make meeting. "Acura is still dedicated to moving the plan forward, said...

Highlights.(NEWS)
February 2, 2009... February retail allocation target is 78,000 vehicles. Dealers face lower margins, no fuel fill-up money and a freeze on warranty labor rates. Small cars based on Fiat platforms will be sold in Chrysler dealerships if the alliance is...

Highlights.(NEWS)
February 2, 2009... Ford pledges to keep stand-alone Lincoln Mercury business strong, but some dealers are concerned. A diesel fuel surcharge will end. Dealer bonuses will rise.

Suppliers may be the heroes in EPA drama.(NEWS)(Environmental Protection Agency)
February 2, 2009... Automakers are going to need help when the EPA grants waivers to California and other states allowing them to set their own carbon dioxide emissions standards, which will be de facto state fuel economy standards. Let's face it, the fix is...

Highlights.(NEWS)
February 2, 2009... Sell 120,000 certified pre-owned vehicles Increase parts, extended-warranty business 7-series launch will get biggest marketing push

Highlights.(NEWS)
February 2, 2009... u Strategy to become Tier 1 luxury brand is still in place. u Another crossover is in the pipeline this year. u Dealers ask for better communication on advertising strategy.

McEleney: State smog rules will cost jobs.(NEWS)(National Automobile Dealers Association's John McEleney)(Brief article)
February 2, 2009... Byline: Alysha Webb John McEleney, incoming chairman of NADA, urged Congress to hold hearings to assess how many jobs would be lost if vehicle emissions were regulated state by state. "We hope that the president and the EPA...

Ricardo opens Detroit center.(NEWS)(Brief article)
February 2, 2009... Byline: Richard Truett Ricardo Inc. has opened a $2 million battery technology center that will help automakers develop hybrid and electric powertrains. Ricardo's Battery Systems Development Center in suburban Detroit operates three...

Detroit 3 share of N.A. production falls closer to 50%.(NEWS)
February 2, 2009... For the first time, the Detroit 3 share of light-vehicle production in North America dipped below 60 percent last year. True, it was just one more milestone passed in a year full of them. But these down-goes-Detroit signposts seem to click...

Press wows Chrysler dealers.(NEWS)(Jim Press)
February 2, 2009... Byline: Bradford Wernle It was part Lee Iacocca, part Vince Lombardi. The rousing speech by Chrysler LLC co-President Jim Press drew two standing ovations and seemed to turn skeptical dealers into true believers. So enthusiastic was...

Cash-for-clunkers hits roadblocks; Details snag bill designed to restart sales, cut pollution.(NEWS)
February 2, 2009... Byline: Harry Stofferand Amy Wilson Automakers and dealers are pushing federal legislation that would pay motorists to trade in old gas-guzzling cars and trucks for more fuel-efficient new vehicles. But the measure is running into...

Auto News Digest.(NEWS)(Chrysler L.L.C. wants price cuts from suppliers)(Ford Motor Co's advertising agency's merger)(Ford Motor Credit Co. to cut jobs)
February 2, 2009... UAW lets Ford end its Jobs Bank DETROIT The UAW signaled its willingness to give Ford Motor Co. the same concessions as General Motors and Chrysler LLC when it agreed to let Ford end its Jobs Bank. Ford announced the end of the Jobs...

More parley, less party.(NEWS)
February 2, 2009... It was no Mardi Gras parade. Auto dealers at the NADA convention were coming off one tough sales year and entering another. Attendance was down. Parties were fewer. The dealers who came to New Orleans were seeking ideas, focusing on how to...

Scion will add 4th vehicle.(NEWS)(Toyota Motor Sales U.S.A. Inc. Scion Div.)(Brief article)
February 2, 2009... Byline: Rick Kranz Scion plans to expand its model line from three vehicles to four. Also, Scion Vice President Jack Hollis said: "Within the next two years, we will have a replacement tC coupe. The tC coupe will be nearly 7 years...

Auto News Digest.(NEWS)(OEConnection.com's partnership with Snap-on Business Solutions Inc.)(Automotive Youth Education Systems' partnership with National Institute for Automotive Service Excellence)(Brief article)
February 2, 2009... MORE help with parts RICHFIELD, Ohio OEConnection LLC and Snap-on Business Solutions Inc. are collaborating to help auto dealerships sell replacement parts to independent repair shops. The companies have created RepairLink with MORE...

On the Web.(NEWS)
February 2, 2009... This week at autonews.com: Monday: With billions of tax dollars at stake, lawmakers see the auto industry's best products at the Washington, D.C., auto show. Tuesday: Automakers release January U.S. sales reports and GMAC Financial...

Personnel.(NEWS)(Southeast Toyota Distributors Inc.)(Brief article)
February 2, 2009... SOUTHEAST TOYOTA DISTRIBUTORS LLC Steve May, 54, to vice president of fleet operations. He had been a director of fleet sales and administration. Southeast Toyota Distributors, of Deerfield Beach, Fla., distributes Toyota and Scion...

Highlights.(NEWS)
February 2, 2009... u Redesigned, freshened products arrive in 2009. u Dealers want more marketing emphasis on loyalty incentives. u Dealer profitability is waning.

Colliver: Core values are crucial.(NEWS)(American Honda Motor Company Inc's Dick Colliver)(American International Automobile Dealers Association)(Brief article)(Conference notes)
February 2, 2009... Byline: Alysha Webb Core values and flexibility to manage change are what dealerships need to sell cars in a market as small as 10 million or as large as 15 million annual sales, Dick Colliver, executive vice president of American Honda...

Service menus go electronic; Shops boost profits by tailoring repairs and maintenance for particular vehicles.(NEWS)
February 2, 2009... Byline: Donna Harris Menu-selling software, which has helped auto dealerships increase finance and insurance profits, now is boosting service and parts business as well. For years, dealerships have offered customers printed lists of...

Japan's sl-o-o-o-o-o-w race to show off Prius.(NEWS)(Toyota Motor Corp.)
February 2, 2009... Byline: Hans Greimel With steely stares and clenched hands, the drivers peer from their crash helmets as the race marshal slowly raises the green flag. Then the flag drops. And they're off! But with deafening silence and snaillike...

Audi: Profits climb at exclusive stores.(NEWS)(Audi of America Inc.)
February 2, 2009... Byline: Ralph Kisiel While some automakers are relaxing demands for exclusive stores because of the ailing economy, Audi of America told dealers that it is forging ahead. The reason: Despite the industrywide sales slump in 2008,...

VW: Full-speed ahead with Tennessee plant.(NEWS)(Volkswagen of America Inc.)(Brief article)
February 2, 2009... Byline: Ralph Kisiel Amid rumors and doubts, Volkswagen Group of America CEO Stefan Jacoby assured dealers at the make meeting that they will have a mid-sized sedan built in Tennessee in 18 months. Rumors that Volkswagen has delayed or...

Inaugural ads deliver for Audi.(NEWS)
February 2, 2009... Byline: April Wortham Audi says it reached 111 million people with its "Progress is Beautiful marketing campaign, more than double the total it had anticipaated from a one-day blitz. But it picked the right day: The campaign ran on Web...

Mazda dealers like product, want customer loyalty programs.(NEWS)
February 2, 2009... Byline: Kathy Jackson Mazda dealers are pleased with their brand's start this year. Russ Darrow, a dealer in Wisconsin, didn't even feel the need to attend the Mazda make meeting, instead going to the meeting of one of his troubled...

GM plans to cut 400 stores a year until 2012.(NEWS)
February 2, 2009... Byline: Jamie LaReau and Donna Harris General Motors plans to eliminate about 400 dealerships a year until 2012, leaders told dealers at the make meeting. GM also wants to get back into leasing but told dealers it does not have the money to...

Industry must speak up, Ford CEO says.(NEWS)(Ford Motor Co's Alan Mulally)(National Automobile Dealers Association)(Brief article)(Conference notes)
February 2, 2009... Byline: Amy Wilson It's crucial that the auto industry speaks with a strong voice to the government to help turn around the fortunes of American manufacturers and retailers, Ford Motor Co. CEO Alan Mulally told dealers in his keynote...

Farley: Half of Ford's stores in the red in "08; Losses haven't been this bad in more than decade.(NEWS)(Financial report)
February 2, 2009... Byline: Amy Wilson About half of Ford Motor Co.'s domestic-brand dealerships lost money in 2008, says Ford marketing chief Jim Farley. He said dealership profits fell sharply from 2007 but wouldn't disclose the rate of decline. ...

GM store-cutting plan: Weed out the weak.(NEWS)(General Motors Corp.)
February 2, 2009... In the plan General Motors submitted to Congress Dec. 2, the company said it wanted to have about 4,700 dealers by 2012, down from its current 6,375. Last year GM closed 401 dealerships, executives said. The 4,700 is based on GM's...

GM offers OnStar to other automakers.(NEWS)(Brief article)
February 2, 2009... Byline: Jamie LaReau General Motors is talking with several automakers about putting GM's OnStar telematics service in their vehicles, says OnStar's top executive. "We did make a decision late last year that we are now talking to...

Factories relax.(NEWS)
February 2, 2009... A sampling of relaxed requirements Nissan: Fewer audits of warranty claims Ford: No diesel fuel surcharge on parts deliveries Chrysler: Size requirements of stores cut by 20%

Chrysler revamps customer satisfaction quiz.(NEWS)
February 2, 2009... Byline: Bradford Wernle Chrysler LLC's traditional survey tools missed vital information about why customers liked or disliked their buying and ownership experiences. So the company is dropping the Sales Satisfaction Index and...

Mahindra plans road show for pickups.(NEWS)(Brief article)
February 2, 2009... Byline: Lindsay Chappell The U.S. distributor for India's Mahindra light trucks says it will introduce U.S. consumers to its vehicles in September, before a fourth-quarter market launch. Independent distributor Global Vehicles U.S.A....

Study: Ford, Honda will gain share.(NEWS)(Brief article)
February 2, 2009... Byline: Lindsay Chappell As autos rebound in 2010, the Ford and Honda brands could add market share, while Chevrolet and Nissan stand to lose, says J.D. Power and Associates. The Ford brand will top Chevrolet and Nissan will fall...

New player in e-paperwork.(NEWS)(Reynolds and Reynolds Co's joint venture with ADP Dealer Services Inc.)(Brief article)
February 2, 2009... Byline: Ralph Kisiel Reynolds and Reynolds Co. and ADP Dealer Services have formed a joint venture that allows dealerships and financial institutions to exchange credit applications and other documents electronically. The venture, Open...

ADP: New system is a voluntary upgrade.(NEWS)(ADP Dealer Services Inc.)(Brief article)
February 2, 2009... Byline: Ralph Kisiel ADP Dealer Services is field testing its next-generation dealership management system, called ADP Drive, which will replace its w.e.b.Suite system. This summer ADP will offer the system to dealership customers and...

Would-be dealership buyers: "We're not in a big hurry'.(NEWS)
February 2, 2009... Byline: Lindsay Chappell As auto sales collapse, many dealers want to sell their stores. But some large potential buyers have closed their wallets. "We're really not seeing anything we want to buy right now, says Mike Jackson, CEO of...

Obituaries.(NEWS)(Dellenbach Chevrolet Inc's Dick Dellenbach)(Ford Motor Co's Robert Hampson)(Forrest Scott)(Obituary)(Brief article)
February 2, 2009... Dick Dellenbach WINDSOR, Colo. Auto dealer Dick Dellenbach died here Oct. 31 at age 90. He operated Dellenbach Chevrolet from 1952 to 1960 in Fort Lupton, Colo., and was a partner in Poudre Valley Motors from 1965 to 1970 in Fort Collins,...

Schools, companies team to train techs.(NEWS)
February 2, 2009... Byline: Alysha Webb Like many auto dealers, the head of the largest U.S. dealership group says he worries about finding enough service technicians who know how to work on advanced powertrains. "You're going to need a Ph.D. in the...

XLR is out; will CTS take up Cadillac's halo?(NEWS)(General Motors Corp. Cadillac Motor Car Div.)(Brief article)
February 2, 2009... Cadillac is discontinuing its halo car and hopes the CTS coupe coming next year will assume that role. GM said last week that the XLR roadster, introduced in 2003 to show off Cadillac's new design direction and inject energy into a brand...

On the menu.(NEWS)
February 2, 2009... Dealers and software suppliers say electronic service menus Boost sales of repair and maintenance services Ensure consistent presentation of all services Improve communication with service customers

Rental companies seek federal help.(NEWS)(Brief article)
February 2, 2009... Byline: Arlena Sawyers Rental car companies are joining the procession of industry segments that want emergency federal aid. A bill that passed the House last month authorizes low-interest government loans to rental companies to buy...

GM's options.(NEWS)(General Motors Corp.)(Brief article)
February 2, 2009... Saturn: GM looked for a partner but found no interest. Options range from blending it with Buick-Pontiac-GMC to closing it. Saab: GM shopped it and found no interest. Now GM plans to make Saab autonomous, use Swedish government funds to...

Toyota: Prius plug-in gets 65 mpg.(NEWS)(Toyota Motor Sales U.S.A. Inc.)(Brief article)
February 2, 2009... Byline: Rick Kranz Toyota Priuses with plug-in hybrid technology are averaging 65 mpg in combined gasoline and electric-mode testing. "That is real-world driving, said Bill Reinert, Toyota Motor Sales U.S.A.'s national alternative-fuel...

Highlights.(NEWS)
February 2, 2009... u Leasing is unlikely to return soon. u GM will cut about 400 stores a year through 2012. u Feb. 17 plan for Congress will list other dealer sacrifices.

Highlights.(NEWS)
February 2, 2009... u Dealers call for a volume vehicle. u Brand seeks to boost subprime lending. u Wanted: More grass-roots marketing

Highlights.(NEWS)
February 2, 2009... Infiniti backs off warranty audits. Ample certified pre-owned supply for 2009 40-day inventory targeted

Highlights.(NEWS)
February 2, 2009... u No help with floorplanning u No promise that incentives will be extended u Soul arrival anticipated

Highlights.(NEWS)
February 2, 2009... u Chase is official finance entity u Floorplanning on a case-by-case basis u Details of finance program set by November

Highlights.(NEWS)
February 2, 2009... u Updated Legacy sedan is coming this year. u Subaru wants to maintain volume, increase market share. u Weakening Tribeca is unlikely to get big incentive push.

Highlights.(NEWS)
February 2, 2009... Sales rebound ahead? Regional marketing programs will continue More joint national-regional marketing

In hard times, carmakers ease demands on dealers.(NEWS)
February 2, 2009... Byline: Lindsay Chappell As hard times settle in, many vehicle manufacturers are backing off costly demands that they usually place on dealers. Chrysler, for example, is again trimming the required size of stores. BMW is relaxing...

Dealers' last resort: Whack the work force; Over 50,000 dealership jobs disappeared in 2008, as plunging store profits triggered "painful decisions'.(NEWS)
February 2, 2009... Byline: Alysha Webb U.S. car dealers are slashing their work forces, laying off service writers, secretaries, sales personnel, you name it, in a gritty effort to cope with crashing profits. The collapse of vehicle sales that began in...

Highlights.(NEWS)
February 2, 2009... u Porsche won't offer incentives. u Lineup expands with Panamera sedan. u Clean diesel may come to U.S.