Automotive News back issues from May 2008:
Auto News digest.(Briefs)(Mascoma Corp.)(Financial report)
May 05, 2008 ... Penske earnings rise in 1st quarter DETROIT - Penske Automotive Group offset a downturn in new-vehicles sales with a boost in its used-car business, the dealership group said Tuesday, April 29. Penske reported net income of $33.9 million on revenue of $3.20 billion for the first ...
Certified buyers opt for extended service contracts.(Finance & insurance)
May 05, 2008; ... Byline: Arlena Sawyers Dealers, automakers and vendors are finding a growing market for extended service contracts: buyers of certified used cars and trucks. "Wraparound'' service contracts augment factory-backed warranties of certified vehicles. They cover what ...
Used-vehicle leasing boosts showroom traffic; Dealers: Strategy can cut customers' monthly payments and inspire loyalty.(Finance & insurance)
May 05, 2008; ... Byline: Donna Harris As many as one of every five used cars and trucks that dealer John Klein has sold in recent years has been a lease deal. That's unusual on several counts. Leasing tends to flourish at luxury dealerships in metropolitan areas along the East and ...
Faurecia: We'll break even in N.A.(News)(Yann Delabriere)(Interview)
May 05, 2008; ... Byline: Douglas A. Bolduc, Bettina Mayer, Lawrence J. Speer After years of losses, CEO says, `We are in calmer waters now' When he took over as Faurecia CEO in February 2007, Yann Delabriere inherited a company that had just reported a 2006 net loss of 447.9 million ...
Nader and the Corvair: GM edition tells whole story.(News)(General Motors Corp.)(Brief article)
May 05, 2008 ... General Motors would be just as happy if it had never heard the name Ralph Nader. Unless you were on the scene 40 years ago, you wouldn't believe the trouble that that painfully smart young attorney caused the General. In 1965, Nader wrote a book that trashed the Chevrolet ...
Dealers must choose: Reynolds, GM - or start over.(News)(General Motors Corp.)(Reynolds and Reynolds Co.)
May 05, 2008; ... Byline: Ralph Kisiel Reynolds and Reynolds Co. won't let 400 of its General Motors dealership customers go without a fight. But the incentives that the company is offering them to remain with Reynolds are not as liberal as the terms dealers now have with GM under the ...
Suppliers join carmakers' charge into Russia; Companies gear up for anticipated production surge.(News)
May 05, 2008; ... Byline: Bettina Mayer, Lawrence J. Speer Automotive suppliers are joining carmakers in a rush to set up factories in Russia. European suppliers are leading the charge, but North American suppliers are looking to Russia for growth, too. Consider Federal-Mogul Corp. ...
AutoTrader.com makes big pitch to bump up new-vehicle sales.(News)
May 05, 2008; ... Byline: Mary Connelly A new advertising campaign by AutoTrader.com emphasizes new-vehicle sales at the automotive Web site. AutoTrader is devoting a "significant portion'' of its $100 million annual marketing budget to the campaign, said CEO Chip Perry. The campaign ...
Wagoner's pension shift: More earlier, less overall.(Final assembly)(Rick Wagoner)(Brief article)
May 05, 2008 ... Senior executives at General Motors could retire with full benefits earlier, thanks to changes in the retirement plan. But they'll get less in the long run, with payments over a shorter period. Execs now will be fully vested at age 60 rather than age 62. GM says it restructured ...
Used-car price slump slams luxury makes.(BMW AG)
May 05, 2008; ... Byline: Arlena Sawyers Used-vehicle prices are slumping in the United States, just as cars and trucks coming off lease are crowding the upscale pre-owned market. That's bad news for several luxury import brands and their captive finance companies, which rely heavily ...
Prepaid plans spark service visits beyond oil changes.(Finance & insurance)
May 05, 2008; ... Byline: Jenny King When Josi Brodbeck of Lake Zurich, Ill., bought a used 2000 Ford Explorer last year from Bill Stasek Chevrolet, her parents gave her a one-year prepaid maintenance plan from the dealership for Christmas. Brodbeck appreciated the gift: "I do like it ....
Suzuki to offer standard navigation in $16,000 car.(News)(Suzuki Motor Corp.)(Brief article)
May 05, 2008; ... Byline: Kathy Jackson Suzuki says it will soon offer the least expensive vehicle on the market with a navigation system that comes as standard equipment. Navigation will be standard on the 2009 SX4 sedan and hatchback, which go on sale in late summer at an estimated ...
Long-term loans: Convenience or bad deal?(Finance & insurance)
May 05, 2008; ... Byline: Rosland B. Gammon As lenders and automakers offer longer loan terms to attract buyers with negative equity in their current vehicles, many in the industry say consumers should beware. "When you're looking at putting consumers into 72-month or 84-month loans, ...
Dealers hunt upside-down buyers with leases, incentives and long-term loans.(Finance & insurance)
May 05, 2008; ... Byline: Rosland B. Gammon With more than a quarter of their customers upside down on loans, auto dealers and manufacturers are turning to leasing, lucrative incentives and longer terms to sell vehicles. "Dealers and manufacturers are hurting for business and looking ...
Ford can't picture kids at design studio.(Final assembly)(Brief article)
May 05, 2008 ... In a bow to the era of cell phones and YouTube, a nice tradition bit the dust at Ford last month. Citing security concerns, the company prohibited design studio employees from participating in the national "Take Our Daughters and Sons to Work'' day on April 24. "It's an ...
Chrysler hangs onto its profitable GEM.(News)(Global Electric Motorcars L.L.C.)(Company overview)
May 05, 2008; ... Byline: Bradford Wernle When Daimler and Chrysler divorced last summer, Chrysler kept a small but significant subsidiary. With gasoline prices soaring and no relief in sight, Chrysler's Global Electric Motorcars could come in handy as appetites grow for ...
Hyundai: Powertrains will take us halfway to mpg target.(News)
May 05, 2008; ... Byline: Rick Kranz Hyundai's plan to boost U.S. vehicle fuel economy significantly in the next decade is a 50-50 strategy. About 50 percent of the increase will come from changes to vehicle structure and equipment - efforts such as lighter vehicles and energy-saving ...
Save a board seat for the UAW.(Opinion)(United Auto Workers )
May 05, 2008; ... Byline: Edward Lapham Now that annual meeting season is just about here, shareholders, investors and corporate managers ought to consider a game-changing idea: It's time to give the UAW a board seat at publicly traded automakers and suppliers. Most of the proxy ...
Doug Spedding.(Obituary)(Obituary)(Brief article)
May 05, 2008 ... Doug Spedding, an auto dealer who over his lifetime owned 27 dealerships and two professional sports teams, died here Nov. 11 at age 72. Spedding started his career working in the parts department at Jerry McCarthy Chevrolet in Dearborn, Mich. He began selling cars ...
Vox(wagen) populi - plus a sales pitch.(Final assembly)(Brief article)
May 05, 2008 ... Everybody wants to weigh in on the crucial issues of our time, right? A new Volkswagen gimmick indulges that urge and makes a sales pitch at the same time. A VW Web site, vw.com/whatthepeoplewant, polls the public on such vital topics as: "Should restaurants make their portions ...
Kerkorian interest buoys Ford stock.(News)(Kirk Kerkorian)(Ford Motor Co.)(Brief article)
May 05, 2008; ... Byline: Amy Wilson, Jamie LaReau Kirk Kerkorian's investment kept Ford Motor Co. stock trading last week near its highest levels in almost six months. The stock reached $8.68 on Friday morning before closing at $8.27. That was one day after Kerkorian representative ...
Bugging the boss: Who's listening to Porsche CEO?(Final assembly)(Wendelin Wiedeking, chief executive officer)(Brief article)
May 05, 2008 ... The bad news for Porsche: Someone may be spying on CEO Wendelin Wiedeking. But the good news is that they seem to be getting their technology from Babies R Us, not the CIA. German news reports said Porsche contacted prosecutors after the microphone of a baby-monitoring system ...
Top auto execs to talk marketing at seminar.(News)
May 05, 2008 ... Top marketing executives at General Motors, Toyota, Ford, Chrysler, Honda and Hyundai will discuss their companies' changing media choices at this year's Automotive News Marketing Seminar, May 28 in Los Angeles. Speakers include: * Dick Colliver, executive vice ...
Mpg plan fuels states-rights battle.(News)
May 05, 2008; ... Byline: Harry Stoffer Just when it seemed like the political war over state regulation of greenhouse gases from vehicles could not intensify, it did. The Bush administration's proposed fuel economy rules for the 2011-15 model years include an assertion that the new ...
Chrysler small cars, Jeep crossovers are hot.(News)(Brief article)
May 05, 2008; ... Byline: Bradford Wernle Although Chrysler LLC's small cars are its hottest sellers, the company is not considering restoring a third shift at its Belvidere, Ill., factory, a spokesman says. The third shift stopped in early March. For the first four months of 2008, ...
CAW, Ford reach extensive early labor deal.(News)(Canadian Auto Workers)
May 05, 2008; ... Byline: David Barkholz Ford Motor Co. is five months ahead of schedule on a new master labor contract with the Canadian Auto Workers that would preserve Ford's St. Thomas, Ontario, assembly plant until at least 2011. Ford and the union agreed to the basic economic ...
A dreary April in Detroit; Import sales rise, but the Detroit 3 plunge 16.8%.(Sales)
May 05, 2008; ... Byline: John K. Teahen Jr. Same old, same old. That was the story of car and light-truck sales in April, which means it was another terrible month for the auto industry. Sales totaled 1,248,549, down 6.8 percent from last year. It was the sixth consecutive ...
Dana seeks new business with Japanese companies.(News)(Dana Holding Corp.)(Brief article)
May 05, 2008; ... Byline: Hans Greimel Armed with a new CEO from Toyota, driveline supplier Dana Holding Corp. aims to expand its business with Japanese carmakers, particularly in emerging markets. Dana, which emerged from Chapter 11 reorganization in February, needs the new revenue ...
Dealers.(People)(Brief article)
May 05, 2008 ... Milestones * Tony Rizza of Rizza Chevrolet in Bridgeview, Ill., received a 25-year award for Chevrolet from General Motors. * Frank Speney Sr. of Speney Chevrolet in West Newton, Pa., celebrated 50 years with Chevrolet and GMAC Financial Services. Other ...
Mexico sales fall 17% in March.(Sales)(Brief article)
May 05, 2008; ... Byline: Stephen Downer Sales of new cars and light trucks in Mexico fell to 80,120 in March, down 16.9 percent from March 2007. Through the first quarter, retail sales totaled 263,942, down 5.8 percent from the year-earlier period, according to the Mexican Automotive ...
Hyundai reworks Sonata sooner rather than later.(News)(Hyundai Motor America)
May 05, 2008; ... Byline: Kathy Jackson Hyundai aims to take a bigger share of the mid-sized car market with a freshened 2009 Sonata that delivers more power and better fuel economy from improved four- and six-cylinder engines. In addition, the interior of the Sonata has been given a ...
New models from the post office.(Final assembly)(Brief article)
May 05, 2008 ... The U.S. Postal Service is rolling out some new models this fall, and they're half a century old. Starting Oct. 3, the post office will issue five ...
Ford Motor must stay focused on recovery.(Opinion)(Brief article)
May 05, 2008 ... Even though the turnaround at Ford Motor Co. has a long way to go, it's encouraging that investor Kirk Kerkorian and his Tracinda Corp. see value in the automaker. But as the financial drama unfolds, it is crucial that Ford Motor stay focused on executing its game plan. A distraction could ...
Industry in distress; Companies struggle in a changing industry - one with a huge revenue drop.
May 05, 2008; ... Byline: Richard Truett After an awful April, nearly every industry forecaster now agrees: U.S. sales will plummet by about 1 million units in 2008 - the first time sales have tumbled that much in one year since 1991. But it's not just the million units that matters ....
Dodge dealers battle to bust Ram logjam.
May 05, 2008; ... Byline: Bradford Wernle Click on the Web sites of several auto dealers in central California and you'll find Dodge Ram pickups offered at $13,000 below sticker. With four months to go before a redesigned 2009 Ram arrives in showrooms, inventories and incentives are ...
Infiniti asks: Do you smell something?(News)(Nissan Motor Corporation U.S.A. Infiniti Div.)(Brief article)
May 05, 2008 ... Byline: Lindsay Chappell Is there anything worse than spending $50,000 on a vehicle with that sweet, leathery new-car fragrance, only to have your 8-year-old lose a smelly bag of french fries under a seat for a month? Engineers at Nissan Motor Co.'s luxury Infiniti ...
Nissan's Dominique gets to the big dance.(News)(dialogue with Larry Dominique of Nissan North America Inc.)(Interview)
May 05, 2008; ... Byline: Lindsay Chappell Like many native Detroiters, Larry Dominique has the auto business in his blood. His father and grandfather worked in the industry. Dominique joined General Motors as an electrical engineer and later worked for Chrysler Corp. before joining Nissan Motor ...
Dealer rebounds from contract mess; Texas retailer Ramsay Gillman honors failed vendor's service agreements.(Finance & insurance)
May 05, 2008; ... Byline: Donna Harris When Automotive Professionals Inc. filed for bankruptcy in April 2007, the vendor stopped paying claims on the 250,000 vehicle service contracts it had sold. Customers of Texas dealer Ramsay Gillman owned more than 15,000 of them. Gillman's ...
Diesel dynamo; Former Ford powertrain expert leads Mahindra's charge toward clean-burning diesels and hybrid engines for U.S.(News)(Arun Jaura)
May 05, 2008; ... Byline: Lindsay Chappell A former Ford Motor Co. engineer is playing a key role in an Indian automaker's bid to sell pickups and SUVs in the United States next year. Arun Jaura, 42, a powertrain specialist, is in charge of getting clean-burning four-cylinder diesel ...
Is it real, or is it just temporary?(Brief article)(Column)
May 05, 2008; ... Byline: KEITH CRAIN By Memorial Day, we will probably be paying about $4 for a gallon of regular gasoline. Don't even think about how much we'll be paying for premium. Sales of pickups and SUVs are already suffering. How much of that is because of the slowdown of the ...
TOUGHING IT OUT.(Finance & insurance)(Brief article)
May 05, 2008 ... Upside-down customers. Rising loan defaults and repossessions. A dying subprime market. Today's receding economy has auto dealers hunkering down and finding ways ...
Ford domestic dealer count dips below 4,000.(News)(Brief article)
May 05, 2008; ... Byline: Amy Wilson Ford Motor Co.'s U.S. dealership count has dropped beneath 4,000 stores for the first time in decades. During the first four months of 2008, several dozen of Ford's domestic brand stores closed to put the automaker below that mark, said Mark ...
Sure, Nissan GT-R is impractical - but what a rush.(News)(Nissan Motor Company Ltd.)
May 05, 2008; ... Byline: Lindsay Chappell For almost a decade, Nissan has been playing catch-up to provide American consumers with practical vehicles: big pickups, big family sedans, small cars and compact crossovers. Now put those products on one side of the page and draw a line down ...
Seems like old times: More cash on the hood.(News)(Brief article)
May 05, 2008 ... Cash rebates rose in April, near the levels of 2005 - when automakers said they were getting serious about "value pricing'' and cutting incentives. Rebates had been declining for three years. But in 2008, customer cash incentives are up from 2007, according to Power Information ...
Honda to some dealers: Upgrade or else; Retailers must improve, expand stores by 2010.(News)
May 05, 2008; ... Byline: Kathy Jackson Some Honda dealers are fuming over letters they have received from the automaker telling them to upgrade their stores or risk losing their franchises. The letters, sent in late March, tell dealers they have until May 31 to lay out their plans to ...
Dealers take Tundra to the people; Frozen Tundras, a `Tater Freighter' - whatever it takes to move big pickup.(News)
May 05, 2008; ... Byline: Mark Rechtin Drive through Raleigh, N.C., and you're likely to spot a Toyota Tundra on the streets with no doors. It's a true head-turner, the kind of offbeat promotion that lots of Toyota dealers must do to get traction in the collapsing market for full-sized trucks. ...
Critics have kind words for Pontiac's G8.(Final assembly)(Brief article)
May 05, 2008 ... W ith gasoline prices at record highs, this isn't the best time to launch a high-performance muscle car. But Pontiac's Australia-built G8 has won praise from auto writers for its performance, handling and interior. Here's a sampling of the reviews: * "All in all, this is the ...
Correction.(Correction notice)
May 05, 2008 ... * An interview on Page 10 of the April 28 issue gave the wrong ...
Late news.(American Axle and Manufacturing Holdings Inc.)(Ford Motor Co.)
May 05, 2008; ... Ford plans more UAW buyouts at 2 plants DETROIT - Ford Motor Co. will offer more buyouts to hourly workers at assembly plants in Chicago and Louisville, Ky. Mark Fields, Ford president of the Americas, confirmed in an interview Friday with Automotive News that those two plants ...
Cadillac's CTS wagon.(News)(Brief article)
May 05, 2008 ... Cadillac is planning a CTS wagon, pictured here during testing, as part of a range of CTS models to take on the BMW 3 series and Mercedes-Benz C class. Cadillac unveiled the stylish CTS coupe concept in January; production is expected next year. The lineup will be completed ...
Bargaining barbs will sting for a long time.(Final assembly)(American Axle and Manufacturing Holdings Inc.)(United Automobile Workers)
May 05, 2008; ... Byline: Edward Lapham It's a shame. Long after the ink has dried on the new contract, there will be hard feelings about this year's bargaining between the UAW and American Axle & Manufacturing Holdings. Each side has suffered wounds that will ache for ...
Repossessed vehicles offer dealers a profit opening.(Finance & insurance)
May 05, 2008; ... Byline: Ryan Beene Vehicle repossessions are rising, and the trend could present new profit opportunities for dealers. Mike Farley, owner of Keystone Chevrolet in Sand Springs, Okla., sells about 300 used cars a month. He says his biggest profit margins come from ...
Daimler cuts Chrysler value, again.(News)(Cerberus Capital Management L.P.)(Chrysler L.L.C.)(Daimler AG)(Brief article)
May 05, 2008; ... Byline: Bradford Wernle Daimler AG still owns 19.9 percent of Chrysler LLC, but the German carmaker has slashed the book value of its stake by nearly two-thirds to reflect ongoing losses at its former U.S. unit. Last August, when Daimler sold 80.1 percent of Chrysler ...
Toyota sister car poses a challenge for Subaru.(News)(Toyota Motor Corp.)(Brief article)
May 05, 2008; ... Byline: Hans Greimel A sporty car due in 2011 will challenge Subaru's carefully crafted image as an independent, somewhat contrarian developer of all-wheel-drive vehicles. The car is being co-developed by Subaru and Toyota in Japan. Toyota will market its own ...
On the Web.(Calendar)
May 05, 2008 ... This week at www.autonews.com: Monday: The Automotive News Data Center posts in-depth statistics on U.S. vehicle sales in April. ...
Supply line.(Briefs)
May 05, 2008 ... German engineering company plans Ala. factory HUNTSVILLE, Ala. - German precision engineering company Selzer Fertigungstechnik & Co. plans to build a $22 million plant in Auburn, Ala., to make components for German transmission supplier and Chrysler LLC partner Getrag AG. ...
Costs up in China, but bargains still abound.(News)
May 05, 2008; ... Byline: Alysha Webb Costs are rising for parts producers in China. A new labor law boosts employee costs by up to 30 percent. Raw materials are becoming more expensive. The weakening U.S. dollar buys fewer goods. Companies also must spend time and money bringing ...
Where have all the investors gone? Big bucks to back subprime loans are going begging.(Finance & insurance)
May 05, 2008; ... Byline: Jim Henry Dealers are working harder than ever to get subprime customers financed. Not only do economic hardships make it more difficult for consumers to qualify for financing, but subprime auto lenders find it harder to borrow money to make new loans. ...
Key to managing floorplan costs: Be realistic.(Finance & insurance)
May 05, 2008 ... Byline: Jim Henry Managing inventory and floorplan expenses in a downturn is a core dealership skill, since now more than ever no one wants to get caught with unsold cars racking up interest charges. "Anybody in the new-car business is going to tell you they're going ...
Henderson: GM will keep tight rein on inventory.(News)
May 05, 2008 ... Byline: Jamie LaReau General Motors intends to run a tight ship in North America, its largest market. The automaker is "absolutely committed'' to aligning its production with demand and controlling costs, says COO Fritz Henderson. Slow vehicle sales in the United ...
No gas tax holiday.(Opinion)(Brief article)
May 05, 2008 ... Talk about a mixed message: Newly proposed rules by the Bush administration call for an aggressive effort to increase the fuel economy of cars and light trucks. But in the political silly season, presidential candidates John McCain and Hillary Clinton have proposed a gasoline ...
Picture this.(News)(Brief article)
May 05, 2008 ... You and your industry colleagues have just hung out at a party, raised a truckload of cash for charity or fired your best rounds of golf. Share your snapshots with us. When the celebration is over, e-mail your high-resolution photos, IDs and a brief description of the event to ...
Calendar.(Calendar)
May 05, 2008 ... AUTO SHOWS May 15-18 - Budapest International Motor Show, Budapest Fair Center, Budapest, Hungary, 36 1 263 6884, www.automobil.hungexpo.hu May 23-June 1 - Madrid International Auto Show, Feria de Madrid, Madrid, (34) 91-722-30-00, www.salondemadrid.com ...
Auto News digest.(Briefs)(automobile workers laws)(Automotive Aftermarket Industry Association conducts surveys)(Survey)
May 12, 2008 ... Aftermarket center opens at Mich. college MIDLAND, Mich. - A new education center on Northwood University's Michigan campus focuses on aftermarket management. The Sloan Family Building for Aftermarket Studies honors O. Temple Sloan Jr., who founded General Parts International ...
In Europe, small SUVs soar; GM's snore.(Final assembly)(General Motors Corp.)(Honda Motor Company Ltd.)(Toyota Motor Corp.)(Financial report)(Brief article)
May 12, 2008 ... Europe's compact-SUV boom has been a washout for General Motors; the Opel Antara and Chevrolet Captiva are selling far slower than their rivals. Take Germany, for example. In 2007, the Antara's first full year on the market, registrations totaled 7,051, compared with 16,179 for ...