Automotive News articles from July 2008

Automotive News archives from July 2008

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July 7, 2008... General Motors began producing the 2009 Chevrolet Corvette, shown, the week of June 23 at its Bowling Green, Ky., plant. The Cadillac XLR also is built there.

Obituaries.(Jim Guthrie Jr.)(Scott King)(Bill Seidle)(Obituary)(Brief article)
July 7, 2008... Jim Guthrie Jr. ORANGEBURG, S.C. - Jim Guthrie Jr., president of Superior Motors Inc. here, died here May 22. He was 80. Guthrie began his career with Lexington Motor Co. in Lexington, N.C. He founded Superior Motors in 1960. The...

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July 7, 2008... Georgia Tech researcher Andrei Fedorov envisions an on-board system in which the carbon in a vehicle's fuel, such as methanol, is separated from the hydrogen and stored in a tank in liquid form, leaving the hydrogen to power the car. The CO2 is...

Photo caption.(Tata Motors Ltd.)(Brief article)
July 7, 2008... Tata Motors had planned to sell the Nano with a wholesale price of $2,500. But steel prices took off - rising up to 30 percent in the past quarter alone.

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July 7, 2008... PURCHASING Larry Jutte Senior vice president, parts procurement and logistics, Honda of America Manufacturing Inc. Happy family Jutte has done a masterful job of nurturing Honda's North American supply chain. Suppliers'...

Photo caption.(Ford Motor Co.)(Microsoft Corp.)(Brief article)
July 7, 2008... INFORMATION TECHNOLOGY Martin Thall General manager, automotive business unit, Microsoft In Sync The Sync system of on-board communication and entertainment is a hit for both Ford Motor Co. and its partner, Microsoft Corp....

CORRECTIONS.(Correction notice)
July 7, 2008... * A story on Page 3 of the June 16 issue misstated the term of a Volks-wagen brand consumer incentive. VW was offering 0 percent retail financing for 60 months on the 2008 GTI hatchback and New Beetle convertible, a dealership general sales...

With Traverse, Chevy crosses over.
July 7, 2008... Byline: Rick Kranz The 2009 Chevrolet Traverse crossover is basically a restyled Saturn Outlook. Or is it a restyled GMC Acadia? Either way, it's a good thing for Chevrolet because both General Motors vehicles have received high...

American Axle cuts staff; boosts India business, CEO bonus.
July 7, 2008... Byline: Robert Sherefkin American Axle & Manufacturing Holdings Inc. wants to trim as many as 400 white-collar jobs in addition to about 2,000 blue-collar cuts, even as it expands in India. Separately, the Detroit driveline supplier's...

GM's piggy bank?
July 7, 2008... Problem: GM must raise as much as $10 billion to avoid a cash flow crisis next year. Solution: Borrow $6 billion from GM's retiree health care fund. Consequences: UAW could earn 12% on the loan, but the money is at risk if GM can't...

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July 7, 2008... FINANCE Fritz Henderson COO, General Motors Mr. Fix-It Henderson had a big role in reaching last year's landmark UAW contract. He worked on the bailout of Delphi Corp., a key GM supplier. He helped tidy up an accounting...

Photo caption.(Mazda Motor Corp.)(Brief article)
July 7, 2008... PARTS AND SERVICE Jack Stavana Director of accessory operations, Mazda North American Operations Up to (Mazda) Speed Not only are sales of MazdaSpeed parts and accessories going through the roof, but MazdaSpeed racing...

Photo caption.(General Motors Corp.)(Brief article)
July 7, 2008... PRODUCT DEVELOPMENT Bob Lutz Vice chairman, global product development, General Motors Gold rush Winner of this category for the second straight year, Lutz has presided over strong redesigns of the Chevrolet Malibu and...

Supply Line.(Spraylat Corp.)(Maeder Group)(Ohashi Chemical Industries Ltd)(Brief article)
July 7, 2008... 3 paint companies form global alliance PELHAM, N.Y. - Spraylat Corp., of Pelham, signed an agreement with Maeder Group, of Lille, France, and Ohashi Chemical Industries Ltd., of Osaka, Japan, to share manufacturing facilities and...

PERSONNEL.(Stephen Amos joins First Extended Service Corp.)(Brian Gunn joins automotive finance business)(Rajinder Singh joins General Motors Acceptance Corp.)(Brief article)
July 7, 2008... SFSGROUP- Stephen Amos, 60, to president. He had been executive vice president of sales and marketing at First Extended Service Corp., a provider of vehicle service contracts. GSFSGroup, of Houston, is parent to a group of automotive...

Opinion.(automobile executives)
July 7, 2008... Some execs win even when their companies lose While the North American auto industry is hemorrhaging cash, wiping out thousands of jobs and turning itself upside down, some things haven't changed: Executives still do well even if their...

Show me the money.
July 7, 2008... Byline: Keith Crain Not many industries can burn through money as fast as the automobile business. Sadly, the Detroit 3 are learning that lesson like never before. There have been other times when the automobile companies were...

Late News.
July 7, 2008... Mercedes will end McLaren collaboration Mercedes-Benz will end its partnership with sports car manufacturer McLaren Automotive Ltd. when its agreement expires next year. Together, the German automaker and the British sports car manufacturer...

Automakers create opportunities for Mexican molders.
July 7, 2008... Byline: Stephen Downer Mexican plastic processors suddenly find themselves with myriad business opportunities, thanks to a combination of circumstances, both planned and unforeseen. They include Ford Motor Co.'s decision - and that of...

Denso Europe expects slowdown this year; Company cites rising raw material costs, static sales.
July 7, 2008... Byline: Douglas A. Bolduc After five years of rapid growth, Denso Europe's sales will stall in 2008. "This year will be very difficult,'' Denso Europe President Shigehiro Nishimura told Automotive News Europe. That is bad news for...

Researchers test capturing CO2 before it leaves the car.
July 7, 2008... Byline: Tony Lewin With many countries planning legislation to slash carbon dioxide emissions from cars and trucks, developing low-CO2 vehicles has become a top priority for auto engineers. Net CO2 emissions can be reduced in three...

GM Europe exec: Curbing CO2 is 'around the clock' effort.
July 7, 2008... The word "powertrain'' is becoming outdated, says Mike Arcamone, vice president of General Motors Powertrain Europe. Engineers, he says, are working on advanced propulsion technology. The challenge is meeting tougher emission standards...

Supplier input varies in Nissan's tech plans; Engine, transmission development likely will be done in-house.
July 7, 2008... Byline: Lawrence J. Speer Nissan will integrate suppliers in plans to introduce 15 technologies a year beginning in 2009. "There will be some key technological areas where we will want to pilot development up to the manufacturing...

AUTO NEWS DIGEST.
July 7, 2008... Auto roof rule due by Oct. 1 WASHINGTON - The Bush administration has set Oct. 1 as its deadline for adopting a new standard for vehicle roof strength, replacing a rule written in 1971. A 2005 law mandated a new rule by July 1, 2008,...

Photo caption.(General Motors Corp.)(Brief article)
July 7, 2008... ENGINEERING Tom Stephens Executive vice president, global powertrain and global quality, General Motors Powering up Under Stephens' supervision of engine and powertrain design and production, GM is working to boost...

CAUGHT FLAT-FOOTED; It's a panic - but don't panic.
July 7, 2008... Byline: Peter Brown Face it, we're in a panic. Guys who three months ago were bragging about their Hummer are trying to trade the unsellable bad boy for a Prius or Malibu. Every auto company is trying to squeeze another mile per gallon...

An all-new 7.(BMW AG)(Brief article)
July 7, 2008... It looks like the outgoing model, but BMW says the fifth-generation 7 series is all new. The car will make its world premiere at the Paris auto show in October. The 2009 7 series takes styling cues from the CS concept that BMW unveiled in...

Study: Dealership service shops extend their hours.
July 7, 2008... Byline: Donna Harris As new-vehicle sales drop, franchised auto dealerships are keeping their service departments open longer in an effort to boost service and parts revenue. In 2007, the average new-vehicle dealership operated its...

Great Wall becomes Chrysler's 2nd Chinese partner.(Great Wall Motor Co.)(Brief article)
July 7, 2008... Byline: Bradford Wernle and Lan Lan Chrysler LLC has signed a cooperation pact with a second Chinese carmaker: Great Wall Motor Co. The memorandum of understanding, signed by the companies in June, initially will explore shared...

Hyundai Santa Fe to get a 4-cylinder.(Brief article)
July 7, 2008... Byline: Kathy Jackson As fuel prices soar, Hyundai plans to add a four-cylinder engine to its Santa Fe lineup when the crossover is redesigned in 2010. The Santa Fe now is available only with 2.7-liter and 3.3-liter V-6s. The...

CAUGHT FLAT-FOOTED; As car buyers flee bigger engines, dealers scream for 4-bangers.
July 7, 2008... Byline: Mary Connelly June's horrible U.S. sales numbers would have been better if automakers had enough four-cylinder engines to meet demand. Rising gasoline prices have pushed new-vehicle buyers back to four-bangers to a degree not...

Mitsubishi dumps 9 ad associations.(Mitsubishi Motors North America Inc.)(Brief article)
July 7, 2008... Byline: Kathy Jackson Mitsubishi has eliminated nine of the brand's 24 dealer advertising associations and will use the savings to spend more on national ads. The remaining 15 regional associations represent half the company's U.S....

Turnaround trouble: Mitsubishi back on the skids.(Mitsubishi Motors America Inc.)
July 7, 2008... Byline: Kathy Jackson Mitsubishi's once-promising U.S. comeback has ground to a halt. For most of the decade, Mitsubishi has been in a deep funk in the United States. Then sales last year rose 8.8 percent to 128,993 - the first annual...

Amid the storm, stars shine.(Brief article)
July 7, 2008... Over the past year, auto executives have endured the industry's version of the biblical plagues. Starting on Page 20, Automotive News unveils its annual list of automotive All-Stars - those resourceful executives who weren't deterred by...

June caps a dismal first half.(Financial report)
July 7, 2008... Byline: John K. Teahen Jr. Time to assess the damage. For starters, the first half was the worst the U.S. auto industry has seen since the January-June period of 1993. This year, sales totaled 7,414,295, down 10.1 percent from a year...

Photo caption.(Fiat S.p.A.)(Brief article)
July 7, 2008... TOP CEO -- EUROPE Sergio Marchionne CEO, Fiat Renaissance man Marchionne has presided over the turnaround of an automaker once left for dead. The popular, stylish Fiat 500 small car represents the company at its best....

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July 7, 2008... TOP CEO -- ASIA Ratan Tata Chairman, Tata Motors High end, low end Tata is putting India's burgeoning auto industry on the world map in a big way. Even as his company has bought the Jaguar and Land Rover luxury brands from...

Reynolds sues dealer over computer upgrade.
July 7, 2008... Byline: Ralph Kisiel An arbitration panel awarded a Connecticut Ford dealership nearly $300,000 in damages and costs after concluding that a unit of Reynolds and Reynolds Co. breached its contract with the retailer by requiring it to buy a...

China work is key for Pininfarina.(Brief article)
July 7, 2008... Byline: Kevin Huang and Lan Lan China has become a key market for Pininfarina S.p.A. Of all the contracts the Italian design and engineering company signed in 2007, 30 percent came from Chinese clients, the company says. "China,...

Get the lard out.(Nissan Motor Company Ltd.)(Mazda Motor Corp.)(Toyota Motor Corp.)(Brief article)
July 7, 2008... Weight reduction is a top priority for Japanese automakers. * Nissan wants vehicles 15% lighter on average by 2015. * Toyota is said to be aiming for a 10% cut in mid-sized car weight by the mid-2010s. * Honda is cutting weight but...

Coming soon.(Nissan Motor Company Ltd.)(Brief article)
July 7, 2008... Nissan has presented 5 technologies this year that it plans to launch in future models. 1. New V-8 Variable Valve Event and Lift (VVEL) engine that increases acceleration potential while reducing emissions 2. New clean diesel developed...

Upside of renewables.(methanol and ethanol)(Brief article)
July 7, 2008... Benefits of methanol and ethanol * They can be synthesized from CO2. * They are liquids at normal temperatures and pressures. * They contain less energy than gasoline but more than stored hydrogen.

Lear purchases majority stake in New Trend's China fabric unit.(Brief article)
July 7, 2008... Byline: Lan Lan Lear Corp. has acquired a 75 percent share of the automotive fabric operations of its trim supplier, New Trend Group Co., in Ruian city, Zhejiang province. Through the acquisition, Lear secures a low-cost fabric supply...

Japan's new diet plan: Slim down, ounce by ounce.(Honda Motor Company Ltd.)
July 7, 2008... Byline: Hans Greimel Kohei Hitomi, chief engineer of Honda's redesigned Fit, runs his hand along the car's rear door before suddenly ripping loose the rubber window trim with both hands. "Look here,'' Hitomi says, pointing to the...

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July 7, 2008... American Axle's Richard E. Dauch received an $8.5 million bonus for winning a concessionary contract from the UAW.

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July 7, 2008... Nissan has parked a number of unsold Titans in a vacant field next to a driving range near its factory in Canton, Miss.

Hydrogen's downside.(Brief article)
July 7, 2008... It is so light that it has to be compressed or chilled to -253 C for storage or transport. * 1 liter of gasoline contains 2,900 times more energy than a liter of hydrogen gas. * Pressurization absorbs 10% of the energy stored;...

Photo caption.(Mazda Motor of America Inc.)(Brief article)
July 7, 2008... TOP U.S. EXECUTIVE -- ASIAN AUTOMAKER Jim O'Sullivan CEO, Mazda North American Operations Looking up O'Sullivan has steadily guided Mazda in the United States since he took the company's reins in 2003. His leadership, coupled...

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July 7, 2008... TOP U.S. EXECUTIVE -- EUROPEAN AUTOMAKER Johan de Nysschen Executive vice president, Audi of America Inc. Brand builder De Nysschen has elevated the Audi brand in the United States through careful selection of product, limits...

New Web tool promotes GM service.(General Motors Corp.)
July 7, 2008... Byline: Alysha Webb A new Web tool allows General Motors dealerships to go online to get recommended maintenance schedules for individual GM cars and trucks instead of relying on generic service menus. "Our idea is to provide the right...

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July 7, 2008... MANUFACTURING Tom Shoupe Senior vice president for support services, Honda of America Manufacturing Inc. Flexible flier Under Shoupe's leadership, Honda has built needed flexibility into its North American assembly plants,...

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July 7, 2008... LABOR RELATIONS Ron Gettelfinger President, UAW Give and take Gettelfinger's oversight last year of innovative contract talks with the Detroit 3 avoided a Motor City meltdown that could have irrevocably damaged the companies...

Analyst: GM could tap UAW benefits fund.(General Motors Corp.)(United Automobile Workers)
July 7, 2008... Byline: David Barkholz The UAW's retiree health care fund is starting to look like a tempting piggy bank for General Motors, which could suffer a cash-flow crisis unless it finds a source of funds. Last week, JPMorgan analyst Himanshu...

Amid sale rumors, Volvo has upmarket plans.(Volvo Car B.V.)
July 7, 2008... Byline: Arjen Bongard Amid media speculation about an upcoming change in ownership, Volvo Cars is continuing with plans to move its brand upmarket. "We want to continue to compete with Mercedes, BMW and Audi,'' said Steven Armstrong,...

W tells builders: Plan for Southeast plant.(Volkswagen AG)(Brief article)
July 7, 2008... Volkswagen says Michigan is in the running for a U.S. assembly plant, and the German press says a site announcement could come soon. But a VW document obtained by Automotive News suggests the company has favored a Southeastern location all...

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July 7, 2008... GOVERNMENT AFFAIRS Mike Stanton CEO, Association of International Automobile Manufacturers CAFE society Stanton was a big player in last year's fuel economy debate on Capitol Hill. He was one of the first industry executives...

Photo caption.(Tim Manganello)(Brief article)
July 7, 2008... SUPPLIER Tim Manganello CEO, BorgWarner Inc. Right mix Manganello has tirelessly promoted turbocharging and dual-clutch transmissions. BorgWarner's products are especially important as the industry works to meet new...

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July 7, 2008... PUBLIC RELATIONS Jay Amestoy Vice president, public and government affairs Mazda North American Operations Master of disaster More than 4,700 new Mazda cars were on a ship that almost capsized near Alaska last summer....

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July 7, 2008... DEALER Roger Penske CEO, Penske Automotive Group Smart start In a down market, Penske's public dealership group is No. 2 in the United States and gaining fast on AutoNation. Penske also is expanding overseas operations and is...

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July 7, 2008... ADVERTISING Kim Kosak General director, advertising and sales promotion, Chevrolet It's everywhere Kosak oversaw the successful marketing launch of the redesigned 2008 Chevrolet Malibu, which included a big online presence....

The mpg fracas: Pick your favorite fairy tale.(Brief article)
July 7, 2008... "Chicken Little.'' "The Boy Who Cried Wolf.'' "The Emperor's New Clothes.'' Take your pick of morality tales: Each might apply to last week's painful juxtaposition of grim vehicle sales reports and fresh claims from automakers that they...

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July 7, 2008... SALES Dick Colliver Executive vice president, American Honda Motor Co. Inc. Last laugh Critics have derided the absence of big trucks, V-8 engines and rear-wheel-drive models in Honda's U.S. lineup. But Colliver has steadily...

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July 7, 2008... MARKETING Jim Farley Group vice president, marketing and communications, Ford Motor Co. Turnaround time An All-Star for the fourth straight year, Farley joined Ford last year after a dazzling run at Toyota Motor Sales U.S.A....

Steel prices nudge up Nano's costs; Suppliers asked to share 50% spike.(Brief article)
July 7, 2008... Byline: Mehul Srivastava Tata Motors Ltd. is finding it difficult to contain costs on the inexpensive Nano small car, mostly because steel prices have risen about 50 percent in the past year. In January, Tata created a splash when it...

Escalating dispute.(unit of Reynolds and Reynolds Co.)(Brief article)
July 7, 2008... Dealer Computer Services, a unit of Reynolds and Reynolds, is rejecting an arbitration panel's ruling in its dispute with a dealership. Here is a timeline. * August 2006: Dealer Computer Services tells dealership that it must upgrade to a...

Seat strategy: Lear aims to make more profits by producing more parts.
July 7, 2008... Byline: David Barkholz As vehicle sales plummet for its two largest customers, Lear Corp. is looking to boost revenue by manufacturing more of the components that go into its seats. In the past, the company has produced few seat...

Bosch sees N.A. red ink this year.(Robert Bosch GmbH)(Brief article)
July 7, 2008... Byline: April Wortham Despite the growing demand for fuel-saving vehicles, Robert Bosch GmbH expects to lose money in North America this year. Peter Marks, CEO of Robert Bosch LLC, says the German supplier's North American unit broke...

Web strategies.(Chrysler LLC )(Brief article)
July 7, 2008... Chrysler LLC plans to announce major Internet initiatives in August. The company aims to * Improve interaction between Chrysler and dealer Web sites * Speed response time to Internet-generated sales leads * Tailor messages to...

And now, from Wall Street, a short tale of terror.(automobile industry)(Brief article)
July 7, 2008... Here's another grim sign of the times for automakers, suppliers and public dealership groups: an uptick in short-selling of auto-related stocks. Selling a stock short is a prediction of a grim future - a bet that the share price will go...

Dealers.(awards)(Brief article)
July 7, 2008... Milestones * Mike Thompson of Montrose Ford in Akron, Ohio, received a 25-year award for Ford from Ford Motor Co. Other * Robert Glaser, president of the North Carolina Automobile Dealers Association, was named association...

Fiat CEO Marchionne is Industry Leader of Year.(Sergio Marchionne)(Brief article)
July 7, 2008... Byline: Jesse Snyder When Sergio Marchionne became CEO of Fiat group in June 2004, its automaking division was losing about $3.7 million a day. Fiat Auto's market share in western Europe was plummeting. Financial analysts speculated about...

Chrysler and dealers to improve Internet marketing strategies.
July 7, 2008... Byline: Bradford Wernle Chrysler LLC is changing the way it talks with customers via the Internet. In August, the company will announce major initiatives for the Internet that will be carried out this year. "That's where all...

Great news? Analysts shun the Kool-Aid at Chrysler.(Brief article)
July 7, 2008... Chrysler execs keep saying they're ahead of their financial metrics, even though sales dropped 36 percent in June. But some analysts have a more skeptical view of the privately owned automaker, which doesn't release its financials. Morgan...

Dodging a bullet: Half-off deal busts dealer's Ram jam.(Brief article)
July 7, 2008... By June 20, Albuquerque, N.M., Dodge dealer Ken Zangara had had enough. Fuel prices were soaring, sales were tanking, and Chrysler's $2.99 gasoline-price guarantee wasn't getting the job done. So he offered Ram pickups at half off sticker:...

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July 7, 2008... The 2009 Mitsubishi Galant got some new sheet metal and restyled headlights and taillights. But dealers say it looks too much like its predecessors.

Nissan: Despite a truck glut, Titan gets no more incentives.(Brief article)
July 7, 2008... Byline: Lindsay Chappell Nissan North America will resist putting still more incentives onto its Titan pickup trucks, even though there is a huge unsold supply of them. Nissan is already offering a cash rebate of $5,000 on 2008 models...

Small-car transaction prices rise in June.
July 7, 2008... Byline: Jamie LaReau Transaction prices for entry-level subcompacts rose in June even as rising gasoline prices drove overall industry prices down, according to Power Information Network data. In June, the average transaction price of...

Bill Mitchell's designs blew away the past.
July 7, 2008... If Harley Earl was the founding father of General Motors styling, Bill Mitchell was the favorite son. Earl hired Mitchell on Dec. 6, 1935. Mitchell's first car, the 1938 Cadillac Sixty Special, debuted at the New York auto show less than...

Photo cption.
July 7, 2008... DESIGN Walter de' Silva Head of group design, Volkswagen Bigger canvas A repeat winner in the category, de' Silva is bringing to mass-market VW brands the sophisticated look he gave such Audi models as the R8 and A5 when he...

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July 7, 2008... REMARKETING Jim Hallett CEO, ADESA Sharp comeback Hallett rejoined the No. 2 auto auction company last summer after leaving a year earlier. (He says the company's previous owners fired him.) Since then, he has opened five...

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July 7, 2008... ENVIRONMENTAL David Friedman Research director, clean vehicles, Union of Concerned Scientists Science fare Friedman was on the front lines of the lobbying battle that preceded last year's increase in corporate average fuel...

Turbo taboo may end for BMW M's.(Brief article)
July 7, 2008... The turbo has always been taboo for BMW's high-performance M models. But that may change. Although BMW has preferred high-revolution, naturally aspirated engines, the next M5, due in 2011, is expected to get a twin-turbo V-8 instead of a...

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July 7, 2008... Fat patrol: Honda's Kohei Hitomi shows where slivers of steel were shaved off between welding points to save weight on the redesigned Fit subcompact.

To run the train, should you be an engineer?(Viewpoint essay)(Brief article)
July 7, 2008... Byline: Edward Lapham Not long ago, a friend asked whether I knew how many of the industry's top execs have engineering or manufacturing experience. My reaction was: What the heck difference does that make? The friend - a product...