Automotive News articles from July 2003

Automotive News archives from July 2003

Auto News Digest.(Briefs)
July 7, 2003... Toyota Prius remains at $20,480 LOS ANGELES - Toyota Motor Sales U.S.A. Inc. says the price of its hybrid electric-gasoline Prius will remain at $20,480 for 2004. The price includes a $485 destination fee. Except for a $30 increase in...

New Direction.(News)(Brief Article)
July 7, 2003... Changes at the Alliance of Automobile Manufacturers * New CEO in the wings * Bigger presence in California * Smaller role for Nissan

Honda V-6 cruises on 3 cylinders.(News)(Brief Article)
July 7, 2003... Byline: Yuzo Yamaguchi Honda Motor Co. has developed a 3.0-liter V-6 engine that can deliver as much as 250 hp when accelerating, or cut back to just three cylinders when cruising. That flexible performance offers an average fuel...

PSA develops diesel filter for life of car.(News)(Brief Article)
July 7, 2003... Byline: Sylviane de Saint-Seine French automaker PSA/Peugeot-Citroen has developed a diesel particulate filter that it hopes will give it an advantage in environmentally conscious Germany and elsewhere in Europe. The device, which...

Chief Juggling Officer; John Devine must find money for GM's huge pool of retirees - and keep new vehicles coming to meet the Japanese competition.
July 7, 2003... Byline: Dave Guilford John Devine has two extremely hungry mouths to feed. Devine, General Motors' vice chairman and CFO, must keep money flowing for GM's ambitious product development plans. At the same time, Devine must divert cash -...

obituary.(Obituary)
July 7, 2003... Claude Scoggins DETROIT - Claude Scoggins, 82, who had a 35-year career with Ford Motor Co., died May 14. He retired from Ford's vehicle remarketing department in 1988.

Robert Bosch banks on diesel technology.(News)
July 7, 2003... German supplier Robert Bosch GmbH is placing a big bet on diesels. Bosch is considering mass production of a diesel particulate filter - technology that removes the soot particles from diesel exhaust - starting in 2005. That could pave the...

Nissan looks to dent big-pickup market.(News)
July 7, 2003... Byline: Mark Rechtin Toyota Motor Corp. was the first Japanese automaker to launch a full-sized pickup in the U.S. market, but many industry watchers consider its entry, the Tundra, to be a seven-eighths-scale near miss. Rather than...

Chief engineers put the emphasis on basics.(News)
July 7, 2003... Even though the Nissan Titan has a Japanese chief engineer in Yuzo Sakita, the truck was designed and engineered in America. Sakita spent two weeks out of every month rotating among Nissan's Farmington Hills, Mich., r&d center, its new assembly...

Wilmington may build Pontiac Solstice; Delaware plant would lose Saturn L series.(News)
July 7, 2003... Byline: Dave Guilford General Motors is studying whether to assemble one of Vice Chairman Robert Lutz's high-profile projects, the Pontiac Solstice roadster, in its plant in Wilmington, Del. Industry sources say the Solstice business...

Most plants idle last week.(Production)(Brief Article)
July 7, 2003... Byline: Debi Domby * An abbreviated form of the weekly production table appears below. The table lists only manufacturers' week and year-to-date totals because some North American vehicle assembly plants were on summer shutdown the week...

VW modernizes parts distribution network.(News)
July 7, 2003... Byline: Ralph Kisiel Volkswagen of America Inc. and Volkswagen Canada Inc. have spent $200 million to overhaul their North American parts and accessories distribution network. The overhaul involves adding distribution centers, moving...

Nissan cuts role in auto lobby group.
July 7, 2003... Byline: Harry Stoffer The auto industry's main lobbying group, which aspires to represent a broad range of automakers in the United States, has lost the full participation of an important Japanese member. Nissan North America Inc.'s...

Bernd Bohr.(News)(Brief Article)
July 7, 2003... Titles: Member of Robert Bosch GmbH's board of management since July 1, 1999; chairman of Bosch's automotive technology business sector since July 1, 2003 Born: Sept. 7, 1956, in Mannheim, Germany Education: Doctorate in engineering...

Making Changes.(News)(Brief Article)
July 7, 2003... Here's what VW did to overhaul its parts distribution system. Added 2 redistribution centers 1. North America Redistribution Center in Cranbury, N.J., receives bulk shipments from Kassel, Germany. 2. Puebla Redistribution Center in...

IBM's road map.(News)(Brief Article)
July 7, 2003... IBM's telematics pitch to automakers includes * Mining vehicle data to predict problems * Developing infrastructure to connect vehicle, automakers * Using improved voice-recognition software * Using lip-reading camera to reduce...

Ford, GM hybrid SUVs will differ; Escape features all-wheel drive; Vue is front drive only.(News)
July 7, 2003... Byline: Richard Truett The hybrid-powertrain versions of the Ford Escape and Saturn Vue are about the same size and likely will be priced about the same. Both are expected to deliver 40 mpg in city driving and to cut tailpipe emissions...

Legacy costs.(News)(Brief Article)
July 7, 2003... The Big 3 are struggling under the twin burdens of pensions and health care for a growing group of retirees. Transplant automakers don't have this burden. Here are the number of hourly retirees for the Big 3 and the 2 largest transplant...

Late News.
July 7, 2003... Calif. board staff backs Ford on Asbury sale The legal staff of the California New Motor Vehicle Board has backed Ford Motor Co.'s decision to block the sale of Bob Baker Ford in San Diego to Asbury Automotive Group. In a report, the...

Auto News Digest.
July 7, 2003... M-B extends endorsement deal with Sorenstam MONTVALE, N.J. - Mercedes-Benz USA LLC has extended its endorsement agreement with LPGA superstar Annika Sorenstam through 2005. The current agreement, which began in July 2001, was scheduled to...

Ghosn's successes mount at Nissan; With more products, sales and share, carmaker thrives under CEO's care.(News)
July 7, 2003... Byline: James B. Treece It was just another year at the office for Carlos Ghosn. More records. More astounding results. And another year as Automotive News' Industry Leader of the Year. Ghosn earned the honor - his third (he was...

About that $70 billion: How General Motors will manage retiree costs.
July 7, 2003... Byline: Dave Guilford General Motors has mammoth liabilities for pension and retiree health care. But the company insists they are manageable. Here are key questions about GM's huge obligations: * How big is GM's underfunded pension...

Big 3, UAW prepare to bargain; Suppliers fear they'll foot the bill for industry labor peace.
July 7, 2003... Byline: David Sedgwick When the UAW launches contract talks next week with the Big 3, the players most likely to be affected - suppliers - will not be at the bargaining table. The union has decided it can reverse decades of declining...

Letters; to the editor.(Letter to the Editor)
July 7, 2003... Mitsubishi boss sees bright future To the Editor: I'd like to clarify reports in Automotive News regarding Mitsubishi Motors in North America and the outlook for our brand. Let me begin by stating that the company's growth and...

Magazine auto ad spending soars 32% in first quarter.
July 7, 2003... Byline: Lillie Guyer U.S. automakers were very good to magazines during the first quarter of 2003. While total automotive spending on measured media was up 10.9 percent for the quarter, magazine spending soared 32.6 percent to $389.6...

Ad boss takes agencies to task; GM's Fraleigh says big ideas are scarce.(AdWatch: Outlook 2003.)
July 7, 2003... Byline: Claire Atkinson Agencies lack the big ideas that sell products, while holding companies are "flabby'' organizations that have become "more revenue models than consumer-solution models,'' says CJ Fraleigh, General Motors' executive...

Audi ponders building high-end sports car.
July 7, 2003... Byline: Wim Oude Weernink MORTEFONTAINE, France - Audi is considering producing a high-end sports car priced above the TT that would be based on the Nuvolari concept vehicle. The Nuvolari debuted at the Geneva auto show in March. ...

California dealer loses bid to stop rival Vokswagen store.
July 7, 2003... Byline: Donna Harris Volkswagen of America Inc. has won approval to open a dealership in Clovis, Calif., despite objections from a Volkswagen dealer five miles away. The California New Motor Vehicle Board has rejected dealer Michael...

U.S. sales dip 4% in June.
July 7, 2003... Byline: John K. Teahen Jr. Sales of light vehicles didn't burn any barns in June, but they didn't signal the collapse of the industry, either. Deliveries totaled 1,476,929, down 4.0 percent from June 2002. Even harder to take was a dip...

Top execs shuffle jobs at Nissan North America; Bill Kirrane retires, Mark McNabb gets Nissan, Mark Igo takes Infiniti.
July 7, 2003... Byline: Mark Rechtin Following a 32-year career with Nissan North America, Nissan Division General Manager Bill Kirrane announced his retirement last week. He will be succeeded by Infiniti Division General Manager Mark McNabb,...

John Devine.(Brief Article)
July 7, 2003... Title: GM Vice chairman and CFO Age: 59 Previous work: He joined GM on Jan. 1, 2001, after a brief stint as CEO of an e-business investment firm. Devine left Ford Motor Co. in 1999 after 32 years. When he retired, he was CFO. ...

Maybach debuts with 67 U.S. dealers.
July 7, 2003... Byline: Diana T. Kurylko Mercedes-Benz has launched the Maybach ultraluxury car in the United States with oh-so-understated ads in eight national and regional newspapers. The ads, which appeared June 26 and 30, were tied to the arrival...

Ford to sign global ad pact with WPP Group.
July 7, 2003... Byline: Jean Halliday Ford Motor Co. will sign a global contract with advertising giant WPP Group for 2004, replacing local agreements with three WPP agency networks that handle major Ford brands worldwide. WPP may get more Ford...

VolksWagen brings wry humor to crucial SUV ad effort.(Sport utility vehicles.)
July 7, 2003... Byline: Jean Halliday Volkswagen of America Inc. was the comeback star of the 1990s. Now, again losing ground to rivals, it's trying to regain momentum with the introduction of its first SUV, the Touareg. The ad launch, which began...

Who's in, Who's out.(Brief Article)
July 7, 2003... Alliance members Full members: BMW, Ford, DaimlerChrysler, GM, VW Associates: Mazda, Mitsubishi, Nissan, Porsche Dropouts: Fiat R&D, Isuzu, Volvo Holdouts: Honda, Hyundai

Ford wins deal with China banks to offer car loans.
July 7, 2003... Byline: Alysha Webb Ford Motor Co. said the Bank of China and the China Construction Bank agreed last week to provide wholesale and retail auto financing to its China operation, Changan Ford Automobile Corp. The agreement gives Ford...

Turning 50 in style.(The Chevrolet Corvette turned 50.)(Brief Article)
July 7, 2003... The Chevrolet Corvette turned 50 this summer, and Nashville, Tenn., hosted a party to celebrate. Corvette fanciers lined the streets on Friday, June 27, to watch a parade featuring Corvettes from all model years since the car's 1953 debut. Also...

Honda founder's son held in tax evasion case; Prosecutors allege his firm reported bogus expenses.
July 7, 2003... Byline: Yuzo Yamaguchi The son of the founder of Honda Motor Co. Ltd. and an aide have been arrested here on suspicion of evading corporate taxes at Mugen Co., a maker of race car engines and auto parts with close ties to the automaker....

Cadillac serves a bowl of alphabet soup.
July 7, 2003... Byline: John K. Teahen Jr. It's probably bad form to criticize Cadillac these days. Sales are up; the division has straightened out its product lineup; and it predicts even better days to come. But have you been able to decipher...

IBM: Value in telematics is for carmakers.
July 7, 2003... Byline: Dale Jewett The payoff from telematics will come from the vehicle, not the occupants inside. That strategy is at the core of IBM's pitch to automakers to use its hardware and software in future vehicles. The New York-based...

Out of control.(Health care costs.)(Brief Article)
July 7, 2003... Health care costs are soaring for Ford Motor Co., General Motors and the Chrysler group. Ford's annual health care expenditures, shown here, are representative. CAPTION(S): Line Graph: expendituries

Automakers' service score doesn't move.(Brief Article)
July 7, 2003... Byline: Marty Bernstein There's good news and bad news for automakers, based on an annual Harris Poll survey that ranks industries by how well they serve customers. In this year's survey, 64 percent of consumers thought car...

Too close for comfort?(Brief Article)
July 7, 2003... Issue: Will a new Volkswagen dealership in Clovis, Calif., hurt the business of a VW dealership 5 miles away in Fresno? Where it stands: State motor vehicle board says no. Fresno dealership has not decided whether to appeal.

Auto News Briefly.
July 7, 2003... And now, 'As the Wheel Turns' - Automotive retailer CarMax a soap star? Well, sort of. A daily soap opera called "Rebeca,'' which debuted in June on Spanish-language TV network Univision, is set in CarMax's Miami used-car store. The main...

Cross Lander - then and now.(Brief Article)
July 7, 2003... Then (1999)... Product: Aro Source: Romania importer: East European Imports, Miami President: John Perez ... And now Product: Cross Lander Source: Brazil importer: Lacaro Auto Distributors, Miami ...

Saturn Corp. lacks parts for ignition recall on L series.
July 7, 2003... Byline: Harry Stoffer Saturn Corp. is recalling about 240,000 cars from the 2000-03 model years but is informing customers that parts to repair them may not be available until September. The recall affects L-series cars equipped with...

Delphi Corp. unit goes bargain hunting; Supplier scours low-cost regions.
July 7, 2003... Byline: Julie Armstrong Delphi Corp. has established a secondary purchasing network in low-cost regions of the world as part of its drive to cut costs. North America is not included in the new four-office network. In the past three...

Chrysler moves to flat-folding seat in minivans.
July 7, 2003... Byline: Richard Truett When it comes to minivan rear seats, the Chrysler group has decided it's better to fold 'em than to hold 'em. Chrysler is planning to outfit its Chrysler and Dodge minivans with flat-folding third-row seats...

Buying from China: A moral puzzle.(Column)
July 7, 2003... Byline: John K. Teahen Jr. I have a question, and I have no idea what the answer might be. The purpose of this column is to explore that question and present a little speculation. Maybe an Automotive News reader can supply an answer. ...

General Motor's hybrids.(Brief Article)
July 7, 2003... Saturn Vue Gasoline engine teamed with twin electric motors and an automatic transmission. Provides electric-motor-only propulsion at low speeds. * Fuel economy gain: 50% * Due: 2005 Chevrolet Equinox/ Chevrolet Malibu (above)...

Opinion.(Column)
July 7, 2003... Borrowing Chevy TrailBlazer for Saab carries risk Saab Cars USA Inc. boxed itself in for many years with a limited product line - pricey cars in a truck-happy market. So the company's disclosure that it would borrow an SUV from parent...

We forget where the money is made.(Used car sales.)(Column)
July 7, 2003... Byline: KEITH CRAIN The industry's sales reports every month tell us that the automobile business revolves around the sale of new cars and trucks. We constantly hear about incentives and rebates that automakers are using to keep those...

Once again, Romanian Aro aims for elusive U.S. target; Distributors say 80-plus dealers want to sell SUV.
July 7, 2003... Byline: Lindsay Chappell Two Miami businessmen are attempting again to import the Romanian military vehicle known as the Aro, this time under the Cross Lander name. Importers have tried repeatedly since the 1980s to bring the...

AIADA [American International Automobile Dealers Association] founder David Gezon dies at 78.(Biography)
July 7, 2003... Byline: Harry Stoffer The six pallbearers who carried David Gezon's casket last week were all current or retired employees of his dealership. Combined, they had worked more than 200 years for Gezon, a pioneering import-brand car...

What is an All-Star?(News)(Brief Article)
July 7, 2003... The Automotive News All-Stars are the auto industry's version of Major League Baseball's All-Star team. Automotive News reporters and editors have selected the top executives in the industry since the first All-Stars were named in 1981. Choices...

Halftime hopes for 16 million; Here's a peek at some of the year's ups and downs.(Sales)
July 14, 2003... Byline: John K. Teahen Jr. SENIOR EDITOR The sales results of the first half of 2003 can be interpreted two ways, depending on which end of the automotive teeter-totter you're riding. If you're a Wall Streeter, the 2.5 percent sales...

Cunningham: A racing legend on land and sea.(Obituary)(Obituary)
July 14, 2003... Byline: Amy Schoder Briggs Swift Cunningham II, a sports car builder and racing legend on land and sea, died July 2. He was 96. A fierce competitor who designed and manufactured his own race cars, Cunningham played a part in the...

SRX brings Cadillac into sport wagon arena.(News)
July 14, 2003... Byline: Edmund Chew The 2004 Cadillac SRX shares much with the Cadillac CTS, which also is built on the rear-drive Sigma platform. But about 40 percent of the SRX's parts are new because the vehicle brings Cadillac into the sport wagon...

Lutz was the last of Ford Whiz Kids.(News)
July 14, 2003... Byline: Richard Johnson By now the centenary of Ford Motor Co. has been thoroughly celebrated. But here are some thoughts about two personal confrontations from which sprang the Ford of today. The first involved Harry Bennett, henchman...

Chinese automakers challenge foreigners; Locals bank on price advantage, patriotism.(News)
July 14, 2003... Byline: Alysha Webb Six months ago, small-business owner Sheng Baixiong considered buying a Geely Haoqing subcompact here. He liked the price of the Chinese-developed 1.3-liter car, which is equivalent to $5,555, but wasn't impressed with...

FAW's Red Flag loses status in growing Chinese market.(News)
July 14, 2003... Byline: Alysha Webb In the early 1970s, looking to showcase China's auto-making capability, Communist Party Chairman Mao Zedong ordered a 33-foot-long Red Flag limousine from First Auto Works, the country's first automaker. But by all...

Late News.
July 14, 2003... National gets new court date A Cayman Islands court will decide whether to liquidate the assets of National Warranty Insurance Co., the troubled service contract insurer, on Aug. 1. The proceedings originally had been scheduled for Friday,...

LS 400 leads Lexus to No. 1; U.S. companies top the Europeans in annual durability study.(News)
July 14, 2003... Byline: Chaz Osburn, Mark Rechtin The Lexus LS 400 had the fewest problems of all the vehicles in a key industry study on long-term vehicle quality. J.D. Power and Associates' 2003 Vehicle Dependability Study found that the 2000 LS 400...

GM loses bid to dismiss dealer's lawsuit over Oldsmobile's demise.(Legal File)(Brief Article)
July 14, 2003... Byline: Donna Harris A federal judge has told a Wheeling, W.Va., Oldsmobile dealer that he can make a case that General Motors breached its dealer agreement by discontinuing the Oldsmobile brand. The U.S. District Court for the...

Fuel cell delivery vehicle debuts.(News)(Brief Article)
July 14, 2003... FedEx Corp. marked a first here on Wednesday, July 9, by delivering packages in a fuel cell vehicle built by General Motors. The HydroGen3 is the first fuel cell-powered vehicle approved for commercial use in the country. As part of...

Bosch expects strong growth in stability control programs.(News)
July 14, 2003... Byline: Edmund Chew Robert Bosch GmbH sees big growth in chassis systems in the next few years, but the delay in introducing 42-volt systems also delays the debut of brake and steering by wire. The electronic chassis business has grown...

Ford gives Taurus a longer life; Plan for new Ga. plant is postponed.(News)
July 14, 2003... Byline: Amy Wilson Ford Motor Co. has put a new greenfield assembly plant in Georgia on hold. That means Ford will squeeze several more years out of its Atlanta manufacturing plant and the Ford Taurus. A company source who declined to...

Auto News briefly.(Briefs)
July 14, 2003... Hey, you can't say he's long in the tooth Jim Press, COO of Toyota Motor Sales U.S.A. Inc., took his son on his Harley Road King to teach the lad a few things about motorcycling. Slowing down as he approached a stop sign, Press says he felt...

Siebel eyes growth in untapped market; CRM software provider estimates automotive potential at $1.4 billion.(Information Technology)
July 14, 2003... Customer-relationship management software provides the technological backbone for many of the auto industry's customer loyalty and retention programs. The idea behind customer relationship management is to give different company divisions - for...

Corrections.(Correction)(Correction Notice)
July 14, 2003... * A story on Page 3 of the June 30 issue misstated how Nissan Motor Acceptance Corp. will disperse $1 million in grants. The money is being donated to the Consumer Federation of America's America Saves program, which then will donate a portion...

'04 Corvette's carbon-fiber hood cuts weight.(News)
July 14, 2003... Byline: Rhoda Miel The Chevrolet Corvette, a pioneer in the use of fiberglass for automobiles, will add the use of lightweight carbon fiber to its technology manifest for the 2004 model year. The Corvette Z06 Commemorative Edition will...

GM probes alleged case of car theft; Local maker Chery says its QQ is not Chevrolet Spark.(News)(Brief Article)
July 14, 2003... Byline: Alysha Webb General Motors China Group is investigating allegations here that SAIC-Chery Automobile Co.'s QQ minicar bears a too-close resemblance to the Chevrolet Spark, due to go into production at Shanghai General Motors this...

Dana Corp.(Suppliers)(Brief Article)
July 14, 2003... Headquarters: Toledo, Ohio CEO: Joseph Magliochetti 2002 sales: $9.50 billion 2002 loss: $1.2 million Employees: 63,100 2002 global original equipment sales: $7.31 billion * 73% North America * 17% Europe *...

New Toyota Camry Solara signals shift in N.A. strategy.(News)
July 14, 2003... Byline: Lindsay Chappell Under the hood, the new Toyota Camry Solara is still a Japanese creation. But Toyota Motor Corp.'s U.S. forces are hailing the coupe as a symbol of its drive for a more self-sufficient North American company. ...

Personnel.(People)(Brief Article)
July 14, 2003... EBERSPAECHER NORTH AMERICA INC. - Don Pickren, 44, to vice president of operations. He was plant manager for ZF Group in Tuscaloosa, Ala. Tin Dang, 36, to senior manufacturing engineer. He was production engineering manager at Witzenmann...

Yost gambles on Dana; ArvinMeritor CEO: Merger is our only choice.
July 14, 2003... Byline: Robert Sherefkin Larry Yost, ArvinMeritor Inc.'s CEO, has a history of taking a chance if he believes the conditions are right. He played key roles in the Rockwell International spinoff that created what became Meritor...

Mazda seeks smoother launch of subcompact; Mazda3 marketing will be influenced by Mazda6 lessons.(News)(Brief Article)
July 14, 2003... Byline: James B. Treece When Mazda Motor Corp. introduces the Mazda3 subcompact in the United States, it will heed the lessons learned from last December's introduction of the Mazda6, the automaker's marketing and sales boss said here last...

Toyota to add hybrids in U.S. 3 light trucks are expected to join the Prius for 2005.
July 14, 2003... Byline: Mark Rechtin Toyota Motor Corp., already the industry leader in hybrid-electric vehicles with three in production, is poised to add three more to its U.S. lineup for the '05 model year. It also is studying the feasibility of a V-8...

DCX delays Sprinter plant decision; Georgia factory would have built 100,000 vans.(News)
July 14, 2003... Byline: Mary Connelly DaimlerChrysler has squelched Dodge's ambition to greatly expand sales of commercial vans in the United States. Last week, DaimlerChrysler AG in Germany said it is postponing a decision on whether to build an...

Faurecia gains clout with Chrysler deal.(Suppliers)
July 14, 2003... Byline: Rhoda Miel French interior supplier Faurecia's new business with the Chrysler group signals a greater challenge in North America for competitors Johnson Controls Inc., Lear Corp. and Intier Automotive Inc. The Chrysler deal,...

Auto News Digest.(Briefs)
July 14, 2003... Vendors adopt RouteOne DETROIT - ADP Dealer Services and Universal Computer Systems Inc. have agreed to integrate RouteOne's Web-based credit application management system with their respective dealership management systems. RouteOne,...

New Federal-Mogul CEO plans to stay the course; Supplier will focus on growth as Chapter 11, legal woes abate.(Suppliers)(Chip McClure )
July 14, 2003... Byline: Lindsay Chappell Just before his first day on the job as CEO of Federal-Mogul Corp. last week, Chip McClure reflected on two years of litigation and bankruptcy proceedings at the auto parts supplier. "It isn't something I'd...

Big 3 fight for passage of Medicare bill.(News)
July 14, 2003... Byline: Harry Stoffer Some Big 3 lobbyists are working overtime to save business-friendly provisions in Medicare legislation. At stake are hundreds of millions of dollars worth of health care costs. Included in the legislation are...

Interior designer.(Suppliers)
July 14, 2003... Faurecia's biggest customers in 2002, based on share of sales PSA/Peugeot-Citroen SA: 26% VW Group: 23% Renault-Nissan: 16% Ford Motor Co.: 10% General Motors: 7% DaimlerChrysler: 6% BMW AG: 5% Toyota Motor...