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INSIDE ■ Door opens for more outsiders | PAGE 24 | Big, bigger, biggest? ■ Van Tuyl through the years | PAGE 24 | Buffett’s Van Tuyl purchase puts top retailers in cross hairs ■ New venture’s CEO has wide experience Amy Wilson Nation Inc. and said it was the coun- The Van Tuyl operation can be “scaled [email protected] | PAGE 25 | try’s biggest auto retailer, Buffett up a lot from where it is,” said Buffett, With Warren Buffett at its helm, the quipped: “Temporarily.” who predicted that he and Van Tuyl’s ■ How Van Tuyl wooed country’s fifth-biggest dealership group “This is just the beginning for Berk- leaders hear from Buffett | PAGE 25 | is about to get a lot bigger. shire Hathaway Automotive,” Buffett “hundreds of deal- ■ Buffett doubles down When Buffett signed a deal to buy Van said of the new venture, which is being erships” interest- on autos | PAGE 26 | Tuyl Group last week through his Berk- called the biggest acquisition by far in ed in selling in Warren Buffett: ■ Reactions | PAGE 26 | shire Hathaway Inc. investment com- automotive retail history. Terms the next year. “This is just ■ What Buffett paid pany, he clearly signaled that the top weren’t disclosed, but outsiders esti- the beginning.” | PAGE 38 | four dealership groups are in his sights. mated the all-cash price tag at over see BUFFETT, When a CNBC host mentioned Auto- $4 billion. Page 38

Boom time Q80 for Inspiration dealerships Soaring sales fuel $1 billion in projects Ryan Beene [email protected] Audi dealers, riding a sales bonanza, are al- so in the throes of a $1 billion building boom as they prepare to fulfill the brand’s long- term goal of selling 200,000 vehicles a year in the U.S. In Orlando, Audi sales are up 86 percent, PARIS the company says, since AutoNation Inc., the top-selling U.S. dealership group, opened its ■ Luxury makers chase smaller niches | PAGE 3 | $21 million Audi South Orlando dealership in ■ Hits and misses | PAGE 6 | April. The store grabbed ■ Porsche nixes sub-Boxster roadster | PAGE 6 | the territory previously ■ Cautious optimism amid tensions in Russia held by Holler-Classic Au- | PAGE 8 | tomotive Group, which ■ Opel boss on next Regal’s underpinnings moved its operation to a | PAGE 8 | new, larger store on the ■ Bentley tied to new stores | PAGE 34 | city’s north side last year ■ Infiniti plans new engines, without Daimler XL Sport and named it Audi North | PAGE 34 | Orlando. Keogh: “Perfect In Texas, megadealer time” for the A3 Carl Sewell more than tripled sales since acquir- ing Audi North Houston in 2010. Now he is set to begin building a second, four-story Audi TESLA’S TRUMP CARD: USED CARS store — 275,000 square feet of space, including CPO sales could prove value of factory-owned stores parking — in Sugar Land, south of Houston. The new dealership, opening next fall, will Gabe Nelson potential of Tesla’s factory-owned retail net- cost “north of $25 million” to build and gen- [email protected] work. erate estimated sales of about 200 new vehi- SAN FRANCISCO — Elon Musk, in his Tesla’s vice president of communications, cles a month by 2017, Sewell said. quest to transform Tesla Motors from a Simon Sproule, confirmed that the company “The expectation for the market is high,” he scrappy electric-vehicle startup into a ma- is developing a certified pre-owned program A trade-in influx may start in 2016 or earlier. said. “We are very optimistic about the future ture, profitable automaker, may have an ace to compete with those offered by luxury of Audi.” up his sleeve: used cars. brands such as BMW and Mercedes-Benz. Tesla is racing against a clock that started More than 100 of Audi’s roughly 280 U.S. Tesla is developing a program to sell the “With the Model S fleet now heading to- ticking in April 2013, when Musk — deter- dealerships are in some stage of a major con- Model S secondhand, Automotive News has ward the first cars hitting three years old,” he mined to reassure customers about buying learned, in a bid to lower the cost of entry for wrote in an email, “we are looking at CPO see AUDI, Page 33 the $71,070 and unlock the earnings and how best to structure.” see TESLA, Page 33

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age 1 • 49 OCTOBER 13, 2014 --0049-NAT-CCI-AN_-- 10/10/2014 5:31 PM P 36 • OCTOBER 20, 2014 20141013-NEWS But there is room for improve- ment. finalAbout half of ’s sales this ACURA year wereassembly awd vehicles, according Finance to Kelley Blue Book, citing data Cash rate Sales slid 1 percent Q3 earnings: rebate from R.L. Polk & Co. That’s ahead of Go to 1.9-3.0% autonews.com nance this week for coverage of earnings reports 20141013-NEWS--0012-NAT-CCI-AN_--Cash Fi 10/9/2014 4:41 PM Page 1 and Cadillac and in line with rate 1.9-3.7% through September Mercedes-Benz. Customer Incentives rebate SLK300, SLK350 Hollywood1 Infiniti and comes calling for car designersfrom GM, For ance 2500, 3500 d and several dealership groups. Incentives in this table are aCash summary Fin of retail programs offered. Programs may varySprinter by region and model. continued from Page e nox, In sales this year, Acura ranks rebate rat Cruze, Equi etroit’s s 2500, the global financial crisis automakershit. Since f above Infiniti but behind Cadillac Expres Expires Oct. 31. In lieu of rebates, cut-rate financing Dcompetition from an aunlikelyce tough but ress 3500, Impala, able. then, it has been casting about for a Exp 9% is avail 2015 models and Audi, putting it in the“Digital second surfacers” — designers who use BMW GROUP EV, Suburban 1500, 2.9-6. glamorous sour ires Oct. 31. Spark niche to claim as its own. ce when it comestier of premium to hiring brands.computers to create and virtually test new Exp 2015 models 3.9-6.9% r, Outlander Sport $1,000 0-6.9%$750 0.9-9.9% hot young car designers:on- Hollywood. Tahoe 12 • OCTOBER 13, 2014Lance 0-6.9% “The key is awd,” said Fukuo, who not exist six or seven years ago.” 1500 3.9-7.9% At , awd accountsvehicles for and 98 components before they exist in BMW 228, 320, 328, 328 Gran Turismo, Silverado Mirage as senior managingChrysler director at H f sales. 2.9-7.9% tlander design honcho Ralphpercent Gilles o told the physical a niche world — are the fast Those digital surfacers also are used by 328d, 335, 335 Gran Turismo, 428, e, Camaro, Sonic, SS Ou 2014 models an audience in Detroit last month that both companies long term, da oversees the Acura division and “Subaru has carvedsegment out Daily Auto News: You can get thefilmmakers news you to digitally create sequences Since 1925, Automotive News has been the primary source 428 Gran Coupe, 435, 435 Gran Coup Volt 9% er Sportback, 500 0-6.9% mov of automaker desi est growing but initially, as a young Regular Weekly Features ie ra 2500HD, 00 2.9-6. Lancer, Lanc port $1, advanced drivetrainmakers vehicles and such carmakers as use the same that would otherwise be impossible to film, 528, 535, 535 Gran Turismo, GMC Sier $2,0 Outlander S 000 0-8.9% with this and has cultivatedsaid. one of need everygn day. teams, Go to Gille autonews.com/dailynews Outlander, $1, hydrogen pofuelwerful cell cars. so “As a premi- - s designer, they get 535d, 550, 550 Gran Turismo, Sierra 3500HD $500-$1,000 1.9-4.9% 0-3.9% somethingftware to differ- digita the most loyal bases“Those in theanalyst areindus- the Je to sign up for our daily e-mail newsletter.such as those in big-b dia opinionMirage 0-7.9% brand,products. we need lly design their udget sc tempted away by that.” 640, 640 Gran Coupe, 650,, 760, Aca um virtual builders,” he sa 0, 750 i-MiEV petition.” try,” said Edmunds.com“Th film series such as ience-fiction 650 Gran Coupe, 74 rid 5, Savana 2500, the com “The awdere isdirection a whole pool of people that doesid. Transformers 3, ActiveHyb , Lancer Evolution ent from Wars. and ActiveHybrid Savana 3500 remy Acevedo. nothing but digital surfacing. That job did Star 2.9-6.9% ISSAN NORTH AMERICA Of course, other premium brands Gilles: Young ActiveHybrid 7, B6 Gran Coupe, Terrain, Yukon, N Fukuo aims to take Acura in also “It’s exciting. It’s glamoro 3.9-6.9% Expires Oct. 31. s designers get , M3, M4, M5, M6, Yukon XL 1500 2015 model also offer awd. It was installed on 58 shows considerable promise.” don’t know w us,” Gilles said. 3.1-6.1% $750-$1,250 per- hat the career path is in those “I “tempted away” M6 Gran Coupe, M235, X1, X3, Sierra 1500 percent of all sold in the U.S. 2014 models Altima s Goodbye, BigOf all3! the Does traded in from anyone care? Rural dealers2014 model by glamour. X4, X5, Z4 2014 models -3.9% through September and on 90 January to September 2014, 34 per- LaCrosse $1,000-$2,500 0-3.9% 00 0, 328, 328 Gran Turismo, $1,500-$2,000 0 Nissan Maxima $4,000-$4,500$2,000-$3,5 cent of all vehicles from Audi. were swapped to buy another 228, 32 e $1,000 0-3.9% Once again, we would cent origin of parts and around the world, it is confusing at best BMW Enclav Titan $500-$3,500 328d, 335, 335 Gran Turismo, 428, 435, 000 0-3.9% appearThe to success be down of to Audi two and Subaru, ownership, you’ll get a — so confusing that we might be better Turismo, 535, Regal need-$1, someMurano Acura, according to Edmunds. At 0 Gran 528, 550, 55 re, Verano $500 $5,000 0-5.9% 00 with the latter’s well-marketed awd Enco 9% Altima, domestic car companies. awd-heavy Audi,headache it was before 49 percent. you can served if we gave up trying to figure out XTS Hybrid $1,000-$1,5 535 Gran Turismo, 535d, 640, Cadillac $4,000 0-5. Pathfinder $500-$1,500 Fiatsystem and rabid fan base, isn’t lost At Subaru, 53come percent. to any conclusions. domestic vs. import. 640 Gran Coupe, 650, 650 Gran Coupe, a, yet LaSorda’s fund CTS $2,500-$3,500 0-5.9%9% Quest Automobileson Acura madeexecutives. it officialr toSubaru Acur isn’t a The Acura BusinessSure, we Planning know which Of- car Chrysler has become a big, important for news happening among automotive retailers, suppliers and 740, 750, 760, ActiveHybridbrid 3, 7, heavy-duty$2,000 0-5. help In every issue, 52 times a year: ATS Armada, ct competito k- , 0-5.9% NV1500, overdire the weekend that the , led by companiesHonda North are German,rikAmerica Ber but part of an international company based ActiveHybrid 5, ActiveHytiveHybrid 750 SRX NV Cargo fice Hybrid 740, Ac 9% 00 HD, finds new investor Active Vast rural areas of North0.9-5. America Cargoare being NV25 transformed00 by newlyFukuo formed coined company the term is “Acurist” for ecutive Vicedon’t President look too closelyE at in the Netherlands or London or M5, M6, M6 Gran Coupe, CTS-V NV Ex Alpina B7, argo NV3500 HD $1,5 , X5, X6, X6 M, Z4 3.1-6.1%0.9-5.1% ELR hydraulic fracturing, the controversialNV C energy extraction not American.the loyal customer So we can, he as aims to culti- man, aims Rolls-Royceto hash out and details other of a somewhere, but not Detroit. It is M235, X1, X3 ilverado 2500HD, .0% Cabriolet $1,250 GM’s goal with the redesigned Impala S $500-$4,500 0-2 Murano Cross $500-$1,000 vate, a nod to the “Subarist” Cooper* BILES process00HD better known as fracking. we did before to new brandpurchased direction by brands the debut or try of to controlled by the family that has always — an old friend R AUTOMO Silverado 35 00 0.9-6.9% Sentra $750 monikerwas to drop adopted its rental-lot by Subaru status. afi- Now, CHRYSLE The00 $500-$3,5process is transforming rural auto dealerships as well. DaimlerChrysler, say the NSX, whichdissect is the expected corporate as early owned Fiat, which took over Chrysler FIAT Silverado 15 Versa it comesdo s.down to a name game. ieter Zetsche’s Nov. 3. In lieu of rebates, cut-rate financing assenger NV3500 HD, ciona January’s Detroit auto show. Chrysler Expires SuburbanThe 1500, dealers need some help, andNV automakers P r,serious about goodbye to an American as structure of Volkswagen. when nobody else wanted it. It probably days are long over, bu ilable. $2,000-$2,500 0-3.9% 00, Pathfinde $500 “Looking at Subaru, I felt that we Dhe’s pretty goo is ava 2015 models Tahoe NV 2 Chrysler as part of the Big 3. The NSX haloSure, car we knowwill symbolize that saved Chrysler from going out of d at maintaining ties with old t $0-$2,500 selling pickups ought to jump in with botha Note feet to assist. colleagues from Auburn Hills, Mich. The Daimler Express 1500, Vers SinceImpalahave the tocompany have a isthestrong, no clearking direc- , and Nissan business. Chrysler 200 $1,000 0-5.9% The oil and natural gas wells.9-6.9% being drilled into underground the new identity. But how to square cha Express 2500, $2,000 2 SUBARU tion as a brand,” Fukuo told Auto- irman is investing i Town & Country .9% v. 3. longer American, I guess. “W wehat’s important is that imageare with Japanese, the rest except of the they line- So now Fiat Chrysler has moved its n the v Expreshaless 3500 deposits$500-$2, promise000 0-3to pump tens,Expires perhapsNo hundreds, of ng and run by Tom enture capital fund Dodge Journey $500-$2,250$500-$1,000 0-5.9% 0-5.9% % 2015 models 1.9-7.9%can ofputmotive it inrental the News same boat cars? up is a challenge.have a huge presence corporate structure from the United LaSorda, who replaced Zetsche as Traverse $500-$2,000 3.9-5.9 technology, styli Chrysler’s CEO in 2006 when Zetsche returned to Dart millions of dollars into -6.9small-town% economies. Rural 2.9-7.9% to have the Camaro $500-$2,000 2.9 BRZ, Legacy, Outback as Honda, Toyota, Nissan and others: around“As the long world, as youincluding have anin the ILX U.S. that States. But it still engineers, designs and Germany to head Chrysler’s then-parent. Grand Caravan $500-$1,000 $2,000 landowners can get one-time payments of $4,000 per acre or performance to evolve all together. 000 0-3.9% Cruze, Malibu $500-$1,500 1.9-5.9% Forester 2014 models companiesNo, withnot local manufacturing,that And,doesn’t of course, even General pretend Motors to be and exhila- manufactures cars in the U.S. And it Fiat 500 $1,500-$2, more for the right to drill beneath their land, plus residual pay- Otherwise, I don’t think we can in- Lutz on the Aztek: Back in the day, the two men worked closely Sonic $500-$1,500 2.9-6.9%% engineering and even design to varying Fordrating, still have you’re their goingcorporate to have roots prob-in engineers, designs and builds cars in manufacturers. Distinct from other publications in the field, 500C, 500e $500-$1,000 0.9-6.9%9% $1,000 0-7.9 RZ, Impreza, Legacy, together as Chrysler’s No. 1 and No. 2. LaSorda later • Final Assembly B Patriot $0-$750 0-5. Equinoxments of 15 to 19 percent for any% hydrocarbons removed. 0-7.9% crease the number of loyal cus- .9-6.9% t 000 2.9-6.9 Outback, Tribeca, degrees,Impala, reporting sooner GM or later says to an Detroit.lems,” said Kurt Sanger, an auto an- Italy and various other places. okee Vol $500-$1, 1.9-7.9% h a Cher ee $500 0 Dealerships in those areas1.9-5.9% must prepareXV Crosstrek for new Hybrid challenges offshore tomers,parent. so-called Acurists.” Evenalyst among with those Deutsche obvious examples,Securitieslaunc Fiat Chrysler is not American. It’s not had a stint as Fisker’s CEO, then $1,500 Impala Compass, Grand Cherok 9% 2.9-6.9% inceSubaru, the stylish, poised redesigned for its sixth 500 0.9-6. SS they certainly will face, such as high-payingForester petroleum-extrac-SALES Does anyone care anymore? nationalJapan. identityBlame “They gets are blurry going fast. to GMItalian. culture launched his i Ram Cargo $1,000-$1, OR nvestment group, Spark EV TOYOTA MOT SChevrolestraightt Imp year of record U.S. sales, ury halo car the brand might not IncWell, in May 2013. The firm 2500, 3500 tion acompanies 2500HD, hiring away trained technicians. Equally, There are so many alainternational sedan rolled out Bentleyluxt’s and always Rolls-Royce assumedc are that obviously gotIt’s part of that new breed of global 2014 models GMC Sierr Expires Nov. 3. In lieu of rebates, cut-rate financingin the springsaw sales of 2013, soar 20 percent to 375,485 $2,000-$5,250 0-3.9% % dealerships must be able to order and obtain far more regular automobile companies Generalwith strong Motors Britishbe brands,his ready job andfor.”as Lamborghini is, of corporation that is everything and also has begun making investments wn & Country 00 0-2. 0 Sierra 3500HD $500-$4,500$500-$3,500 0-2.9% 0-6.9% is available. exe I Chrysler To $1,000-$5,0 0 0-3.9 % 2015 models cutivesvehicles have been this tellingyear through anyone Septem- automotive strategy board decreed that Sierraand 1500 heavy-duty pickups-$2,50 to cope with their customers’ de- investments in any number of countries course,czar Italian. in 2001 Or are — comingthey if their out of’ productretirementnothing. out of its second fund, which 300C $1,000-$4,250 0-2.0% 1500 $1,500 who0% will listenber. Acura’s that its salesdays asslid a rental-1 percent to henceforth, 40 percent of all new GM Yukon, Yukon XL Lexus CT 200h, that it is difficult to figure out which parentsat areage based 69 — elsewhere?because of the spectacular So we have the Big 2 in Detroit these LaSorda 300 mands and, Sav ananot 2500, be limited to traditionalLexus ordering patterns. 0.9-1.9%lot staple are over. POSTAL NOTICE said raised Savana 1500 $2,000 2.9-6.9% IS 250, IS 350 119,750 through September, after products woul million. almost $10 Dodge Charger $2,500-$4,00000-$2,000 0-3.9% .9% one’s a native of what country. Thisfailure is a global of the89th industry. year, No.With Aztek. 6642 all the days. Who cares? d be ‘innovative.’ That $1,5 -5.9% SavanConsideringa 3500 the staggering00 0-3 number of heavy-duty pickups So this headline 6 inpercent in 2013, trailing the SSN 0005-1551) is st -$4,000 0 $750-$1,5 RX 350, RX 450h rising percent gain. VE NEWS (I ot Ave., Detroit, arted a trend toward setting internal “Dieter said, ‘What’s this about Dart $1,000 Venza $500-$1,500 If you start to analyzeThe the New content York and suppliersIn AUTOMOTIandhis assembly 1plants155 Grati scattered d It’s a whole new world. 000 0-3.9% Acsoldadia in fracking areas,$750-$1,000 neither 2.9-6.9% factoriesToyota nor dealers can afford $1,000 Times Rowadeek &ly Trackat tage is pai goals that meant nothing to the Avenger $1,000-$3, last weekoverall couldn’t market’s have 8 gone published diccalolumn,s pos Lutz a sec 250 Terrain Tundra confirms as much: “I was gettingng offices. an Zetsche: Let ond fund? I want to invest.’ Journey $1,000-$2, to miss this opportunity. If automakers want to take full ad- over well0% at GM“Making hea Acura 100 percent all- MI 48207-2997. Perio onal maili customer. Everything that looked AMERICAN HONDA MOTOR CO. Corolla, Prius, Tacoma $500 dquarters: “Y award, and [then-GMat additi es to me i And I said, ‘Man, oh, man, we’d Challenger $1,000-$2,000 0-3.9% Can Rent Whatever You Want, as ouLong at Detroit, MI and ess chang rea n on this. vantage, they should precede energy explorationPrius Plug-in companies ls wheel drive could be a good idea,” ER: Send addr sonably radical got green-lit.” love t Durango Expires Nov. 3. 2015 models 0.9-4.9% 2014 mode as It’s an Impala.” s .chairman]POSTMAST Rick o have you,’” LaSorda said. into areas where shale plays are happening to make sure their said Tatsuo Yoshida, an auto ana- Wagoner We invite letters from our readers. IncWell launched its first fund Automotive News remains a fully subscriber-paid publication, Grand Caravan $500-$2,000 0-3.9% 4.9% t, Odyssey, Pilot 1.9-4.9% CT 200h, ES 300h, lays Securitie introducedAUTOMOTIVE me NEWS,and took Audience a Development, Ⅲ “The guy in charge of of les • Keith Crain Column Fi s and 0 0- nda Lexus Columnist Josh Barro argued that, e Please limit your letter to 250 words s than $3 million to invest in very-early-stage Fiat 500, 500C $1,500-$4,000 0-1.9%$2,50 ruralHo dealerships are also up to speed.0.9-1.9% 0, 1.9% lyst with Barc e from a sal 1155 Gratiot Ave., Detroit, MI 48207-2912. product development was Accord (incl. Hybrid) ES 350, GS 350, IS 25 despite the redesign, very the simplImpala couple of funny digs. When I and tell us whether we may print it. We technology companies. At the time, IncWell made 500L $500-$2,000 0.9-6.9%% , LS 460 “It is Canadian Post International Publications Mail triot ,500 0-5.9 Acura ILX IS 350 gave my speech, I said, ‘It’s 36760444. Don Hackworth, an old- Jeep Pa $500-$1 2014 models continues to be the rental-lot king, with Product (Canadian 2850Distribution), GST#1 Sales reserve the right to edit it. headlines more for the caliber of its investors than Toyota Camry marketing point of view to sell the 001 Bath Road, sch Compass $0-$1,500 0-5.9% 0.9-3.9% curiousAg thatreement the #4 man who 496 Include your nameool and guy title, from your the tradition the s 0 Annda Accord mpg (incl. Hybrid), report card(incl. Hybrid) $1,500-$2,0000-$2,0 0-6.9%5400 percent of 2014cars Im with such technology.” n address: 2-7 ize of its fund. They included Cherokee 0 Ho $1,00 -6.9% p eady offers awd on alloversaw ve- Canadian the Aztek retur company’s name,of shouts, your city browbe and state. CR-V Venza $500-$2,0rental00 0 cars. curaalas alr becoming ating, and former Ch Roger Penske, Grand Cherokee $500-$1,0 The pace of U.S. light-vehicle fuel0.9- 1.9%economy gains slowed last A Mississauga, ON would L4T 1L2 Printed in the U.S.A. Tell us what yourby-God-I-want-it-done. connection to the He rysler executive Steven Landr Civic (incl. Hybrid), Odyssey 0.9-4.9% Tundra $500-$2,000 comment on my failures.’ It Simon Boag, another former Chrysler exec who is Ram 2500, 3500 $1,000-$3,000$500-$2,500 0-5.9% 1.9-7.9% That figur hicles except the entrye veryILX sedan.name- auto industry is. y and 0 year, theILX EPA (incl. said Hybrid) in an annual report. But evenPrius though the 0.5 e suggests that Chevy has brought the house down. said, ‘Look. We’ve all made 1500 $2,50 Acura failed miserably at its the stated base goal model for thefor time E-mail letters to: [email protected] IncWell’s managing director. mpg improvement in the 2013 model yearAvalon, was less Sienna than $1,000-$1,500 half But u Cargo HYUNDAI- AUTOMOTIVE $500-$1,500 including the crossovers,When is I apologizedPlant over lat Or send themp to: ourLetters, minds that the LaSorda said IncWell’s first fund invested in 12

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Hyundai Equus, % Theydi expires informed Jan. 2. Barrorwd — BRZ and sporty us — ca car/truckDidAnybody you know who that has youbad canopinions write about it, Fusion Energi anta Fe Sport, 2.9-3.9 VW GROUP OF AMERICA31; Au conversations,Ford he Motoroffered Co. me a job.” generateSanta additional Fe, S improvements. thats only one-third of theAcura redesigned is introducing next-genera- trucka letter to the editor on our Web x Energi, C-Max Hybrid, 0.9-6.9% Volkswagen expires 2015Oct. model Chicago k I want them off the a testament to the value it delivers to the reader. The award- C-Ma ric, 0-7.9% Sonata Hybrid 1.9-7.4% Of course, ridiculing theo.) 15-year-old Truc truck team.’ As if the the final say ... • Incentive Tables (M us Elect % ity Escape, Foc Automakers are introducing innovations2.9-6.9 — including Ford’s 2014 Impalas went totion rental awd technologies in two Kansas C an site?public Here’s how. d 0-8.9% Sonata S6, S7, S8 Aztek is piling on — long, (M o.) V is gonna give a s—- about team Fusion Hybri aluminum-bodyantra GTF-150 pickup and Audi’s planAudi to electrify7, compa sedans. The first came in the new Kansas City spirit.” “I could never have hoped and F-450 Elantra, El A3, A4, A5, A6, A nies. The disconnect: The long �truck Go to autonews.com. F-250, F-350, ROVER Q7, S3, whistle hasin blown.Kentucky What’s Truck there (Louisville)a fterleft theto truck most modelsJAGUAR — LAND that don’t show up in EPA data yet.d, Q3, Q5, previous-generation1.9-9.4% carTLX is stillsedan in that debuted inhis August, year Ⅲ “One guy I informally interviewed never had dreamed of being Flex, Transit Connect, allroa rives later sayt about the infamousLouisville Assembly ugly duckling � Near the top of our home page, 0.9-8.9%and othersExpires are Oct. 31.ahead of fuelmodels economy standards9% S4, and S5, TT,banking TTS production, branded asand the theImpala next ar about how the Aztek happened was one “ Transit-150, Transit-250, 2014 1.9-3. CC, Eos, Passat, 1.9-7.7% and com truckput your cursor on the tab that it-350 Volkswagen Limited a hybrid version of the flagship RLX.mercialGeneral Motors car Trans dition, credits% to useF-Ty inpe, the XJ future. nd sold exclusivelya to failure? Well, Lutz used of thesays top “Opinion.” guys on here 10 years Expe 1.9-9.9 Jaguar Tiguan the Aztek to give insightsArlington, Texasinto Old GM truck the project. And this Expedition EL, 2014GM models doesn’t distinguish theA twore-engineered fleets.in its Super Handling ing Green, Ky. guy, he looks at me and he says, ‘I’m 0-8.9%And theMAZDA EPA says its projections for 2014 average fuel econo- culture. Bowl Click on the section below that afterwards with F-150, Focus, Focus ST sales reports. rsoll, Ontario (CAMI) � MKC, MKX Expires Oct. 31. In lieu of rebates, cut-rate financing Audi A4, A5, A6, A7, All-Wheel-Drive system, or SH- Inge proud of it.’ Proud of the Aztek? ‘Yup. Lincoln my are artificially low and final numbers likely will be higher.Q7, S4, S5, 1.9-9.4% Ⅲ The Aztek “got everybodynsing (Mich.) excited. Delta Township At truck says “Send us a Letter.” That will MKZ (incl. Hybrid), 0.9-8.9% ilable. allroad, Q5, There’s one way GM couldAWD, prevent is offered as an option on the La That was the best pro him.” MKS, MKT, is ava 2015 models 8.5% 5, TT, TTS ery, Ala. car r But the report also shows how challenging0- it will S7,be S8,for S theQ ze TLX. the time, GM was criticizedMontgom for never bring up a letter form.gr Navigato S6, such confusion in the future:midsi Use a Hyundai atcar GM./truc Wek made all our aminternal we ever goals, did 2014 models industry to reach federal fuel economy0-9.2% targets for theagen 2025Beetle $1,500-$2,000 0-9.8% doing anything new, never taking a Fiat Chrysler Automobiles x Hybrid, CX-5, Volksw different name for the old Impala.Meanwhile, The the RLX will get Acu- t, Ga. we� made Follow the the timing, directions. and I’m really Energi, C-Ma , Eos, Golf, GTI, brid SH-AWD, which Kia West Poin truck Chairman John Elkann, Ford C-Max model year.CX-9 Each additional mpg technology becomesCC pro- ), chance. So Wagoner and the “ Super Duty, 2014 models -8.5% HybridChevy Rentado? al, Ill. E-350 L, $3,500 0 (incl. ra’s Sport Hy Norm proud of the part I played in it.’ He had reflecting on the day he E-150, E-250, , Expedition E gressively more expensive, making vehicle0-8. affordability2% key. Mitsubishi car ge, Expedition CX-9 Jetta SportWagen, teams two electric motors to deliver nooga tears in his e Ed Flex, Focus Electric, 0-8.4% 0-9.8% Chatta th. yes. It was almost tragic.” persuaded Sergio Fiesta, And the recent3 swing to more and fewer electricPassat, T vehi-iguan, Volkswagen turday or bo Explorer, Mazda id) more control and horsepower. That ld be daily, Sa winning weekly print edition is backed by a global team of • Cars & Concepts 0-5.9% reg (incl. Hybr ertime cou Marchionn Fusion Energi, Fusion Hybrid, Mazda2, Mazda5 Toua orts car Note: Ov e to tak rus cles0-6.4% shows consumers care more about what they need than system also will be NSX a cornerstone sp e Mustang, Tau N.Y. move is not an the the job what0-6.9% othersMERCEDES-BENZ think they should want. technology i LETTERS TO THE EDITOR as Fiat CEO Escape, Fusion 0-7.9% Expires Oct. 31. 2015 models next year. bet- Resumes F-250, F-350, F-450 Reaching the 2025 standards will be hard. Automakers are els onlyvote againstdue Detroit tems offer Plant closings nect 0-8.9% nz C63 AMG, C250, *Applies to select mod o said awd sys Transit Con off to a goodMe startrcedes but-Be must see it through to the end. Fuku China’s policiesn/a are pushing out pickups 0.9-8.9% 50 BlueTEC, Focus C350, GLK2 To the Editor: city is insignificant comparedChrysler Group with the must go global. Those romantic names The payoff can be a cleaner future for people and a sustain- ter handling, stability and accelera- Conner Avenue (Detroit) Focus ST GLK350, ML350, ML400, I read the observations regarding more thanout a1,600 V-8. jobs secured by the have little relevance to a millennial MKS, MKT, MKX, SL65 AMG, tion. The latter will help Acura deliv-uring the National Day holiday this Oct. 20 Lincoln able future9% forSL63 the AMG, auto industry. Cadillac in Keith Crain’s Oct. 6 column decision this month toFord produce Motor Co. our premium shopper in China, for (incl. Hybrid), Navigator, 0-5. er responsive driving with Dmont Oct. 20 MKZ SL65 AMG Black SL600, Series, with interest (“Cadillac is making big flagship CT6 in Detroit.h inDearborn, China, Mich.† a pickup onn e)ainstance, whereThe the incident reality highlighted is that the kind of SL400, SL550, “We’re aiming for a sporty,highway perfor- in the central Hunan province Navigator L ng LK250, SLK350 1.9-3.0%3.9-5.9% Michigan Assembly (Way ut-rate financi SLK55 AMG, S mistakes”). The relocation decision is entirely alphanumericpolicy nomenclature treatment that is a has stymied pickup GENERAL MOTORS 00, 3500 mance vehicle,” he said. “Amade heavy it to the front pageotors of newspapers The pr lieu of rebates, c Sprinter 25 Without wishing to consume unrelated to the personalGeneral living M k, Mich.‡deeply Nov. 10 entrenchedsales in China. industrywide When Bei actice has stifled pickup sales in Expires Oct. 31. In 2014 models engine is no good.” and websites. roit-Hamtramc China. ble. Det implemented its Road Trafficjing Law in Fewer t is availa models enz C63 AMG, C250, valuable column space elaboratingike Accavitti, the thepreferences luxury brand’s of any Cadillac executive. practice.odifications han 255,00 2015 THE WEEKLYMercedes B NEWSPAPERG, OF THE INDUSTRY M It was no ordinaryLansing p (Mich.) Grand River‡Plan Oct.t m 20 China in the first seven months0 were of sold this in Established in 1925, published every Monday by Crain Communications Inc. rationale behind the various changes No corporation would tolerategeoicverku such While I have2003, the it granted utmost respectcity governments for the C300, C350, CLS63 AM general manager, said in Julycamouflaged that the as†C ah sedan.an Top, smooth but oneta up Center year, accounting for less than 2 percent Enclave $500-$1,000 1.9-4.9% y is something Acura e News Da Buick e, Regal, E63 AMG,Keith E250 E. Crain, BlueTEC, Editor-in-Chief taking place at Cadillac, I am, however,og indulgence by its leadership. utomotiv Crain’s view,liberty on thisto decide occasion whether we may to permit 3.9-7.9% Hybrid, E550, Is there a pickup-sedan segment now?awd Nope. technol It’s just a traffic during holidays,Source: A traffic regulators in of total vehicle sales, according to more than 65 editors and reporters. Encore, LaCross E350, EKC400 Crain, Group Publisher pickups to drive in their cities. A loophole no pickup drivercompelled trying to toget respond out of highway to somen tollsofwrap the in China.our Thebrand disadvantages around,” to business have to agree to disagree. Vera S-V, GLK250 BlueTEC, GLK350, “ca China allow sedan drivers to u picacn.com ATS, CTS, CT Jason Stein,L320 Publisher BlueTEC, and Editor issues he has raised. efficiency that Crain rightfully Regardlessin the of wherelaw its executives are , a Chinese website that Cadillac 63 AMG, M division of allowed traffic regulators in V, Escalade, 1.9-6.9% ML eTEC, a adding: “It’s a space thattoll we free.own.” The police eventually sediscovered highways covers do Escalade ES 50, ML35HOW0 TOBlu REACH US The relocation of about 100 points out have been anticipated most mestic pickups. ML3 the pickup and fined its driver. located, CadillacChinese is and citiesalways to will simply be classify And pickups are losing mark SRX, XTS ML450Web Hybrid, site: ML550, autonews.com executives to New York — representing and will be overcome by making from Detroit.pickups as commercial vehicles and bar Silverado 2500 HD, G, SL65 AMG, SL550, Through July, pickup sales droppedet share. 4 Chevrolet % SL63 AM Editorial staff a net loss of no more than 50 jobs, as changes to current corporate It is ourthem hometown, from entering and as theirwe cities. Silverado 3500HD $2,000$500-$1,0 2.9-6.9%00 1.9-4.9 SL600,[email protected] SLK55 AMG, SLK250, percent as Chi Phone: 313-446-0463 Fax: 313-446-0383 many multibrand roles will likely be processes. Cadillac leadership will venture forth to challenge the world na’s overall light-vehicle Traverse $500-$1,000 2.9-6.9% sales increased 8 Malibu back-filled at General Motors decide on all matters Cadillac, at every with our unique set of American percen Advertising t. [email protected] headquarters — is not a vote against touch point, and will be accountable values, we would like to think our Phone: 313-446-6050 Fax: 313-446-8030 Detroit. only to GM top management and hometown is rooting for us. Editorial data/research It is about structurally entrenching a stakeholders. After all, our success is also a victory To locate information that has been published challenge to the status quo by The obvious emotional appeal of for Detroit. in Automotive News, call 313-446-0406. reinforcing the psychological and historical subbrand names such as Customer Service physical separation in business Eldorado, Fleetwood, etc. should be JOHAN DE NYSSCHEN New subscriptions | Renewals | Address changes | Delivery problems [email protected] philosophy between the mainstream balanced against the fact that those President 877-812-1584 (U.S. or Canada) brands and GM’s luxury brand. In any names resonate more with baby Global Cadillac 313-446-0450 (all other locations) event, the handful of jobs lost to the boomers and are U.S.-centric. Cadillac Fax: 313-446-6777 Detroit

JANUARY

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AUGUST AD 3 Ad close: July 22 STUDY 10 Ad close: July 29 17 Ad close: Aug 5 24 Ad close: Aug 12 31 Ad close: Aug 19 Future Product Pipeline: U.S. Sales Report – July Production Line page Connected Car page Future Product Pipeline: Europe (BMW, Jaguar, Land Rover, Marketing page Future Product Pipeline: Ford Future Product Pipeline: Chrysler Mercedes-Benz, Mini, Smart, Volvo) Future Product Pipeline: Japan Legal file Special Section: (Mazda, Mitsubishi, Subaru) Korea (Hyundai, Kia) The State of Suppliers Guide to Industry Executives Exclusively sponsored supplement

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Page One – 3 col. x 1” 8,280 8,032 7,783 7,535 7,286 7,121 6,955 6,790 6,624

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WEDNESDAY Entire contents © 2014 Crain Communications, Inc. Use of editorial content without permission is strictly prohibited. All righ ts reserved. AUGUST 6, 2014 20140805-SHOW--0001-NAT-CCI-AN_-- 8/4/2014 6:10 PM Page 1 TODAY’S Supplier profits irk Marchionne Junior Page – 4 col. x 10” 7,760 Pickups surge, thanks to oil boom FORECAST Chrysler CEO vows to explore ways to share TODAY’S Ford exec: Housing SUNNY HIGH 80 ❙ ‘in their well-being’ FORECAST market is ‘big missing TRAVERSE CITY LOW 59 autonews.comLarry P. Vellequette factor in this recovery’ [email protected]® SUNNY Lindsay Chappell hrysler Group CEO Sergio Mar- LOW 56 [email protected] DA I LY TC BUZZ chionne fired a shot at his supply HIGH 78 ❙ ull-sized pickup sales are rebounding Will profits base yesterday, saying that suppliers’ to big volumes — even without the com- TUESDAY Cdouble-digit profit margins were jack- ing up his blood pressure. plete return of new-home construction. grab come Marchionne vowed that the automaker would BUZZ “The big missing factor in this recovery so AUGUST 5, 2014 Entire contents © 2014 Crain Communications, Inc. Use of editorial content without permission is strictly prohibited. All rights reserved. Junior Spread – 8 col. x 10” TC F up empty? speak with suppliers “to find a way that we can 15,520 far has been the housing market,” said Emily at least participate in their well-being, and per- Recognize Kolinski Morris, chief economist for Ford Mo- Chrysler Group CEO haps allow them to rub off some of their new- tor Co., king of the full-sized pickup market. Sergio Marchionne found wealth onto us.” this: Voice Morris told an audience yesterday at the sem- yesterday seemed like a He spoke on a conference call with analysts Chrysler Group CEO Sergio inars that Ford expects full-sized pickup sales to Bonuses of vehicle weight loss Marchionne wants suppliers GREG HORVATH grizzly bear standing amid and journalists to discuss Chrysler’s second- TODAY’S BLOOMBERG tech stinks reach 1.96 million in 2014, up from 1.91 in 2013. a stream of happily quarter earnings. Marchionne did not identify “to rub off some of their Check your pride at the The segment topped 2.1 million in 2007, and FORECAST Side benefits ease swimming salmon. which suppliers’ profits were boosting his newfound wealth onto us.” then collapsed to 1.1 million in 2009, according see the potential for some additional upside, particularly the acrimony that dogged the relationship be- door this afternoon when catches up with the rest of the economy.” In comments to analysts, blood pressure. to the Automotive News Data Center. the pain of costlier the enigmatic Chrysler tween suppliers and their Detroit-based cus- J.D. Power plans to lay into Ford’s Emily Kolinski Morris: “Further out, we Chrysler said its “modified operating profit” wants them to bring their best technology to the auto industry for one of Morris and other industry forecasters predict MOSTLY SUNNY in the second quarter was 4.8 percent of rev- tomers before the 2009 recession, which the in full-sized pickup sales as the housing recovery eventuallyUnited States.lightweight As of this summer, there materials were boss said them, and it will take supplier profitability to the most poorly executed a stronger performance for the segment. ❙ enues. Chrysler CEO acknowledged. HIGH 77 LOW 1,545,55 according to U.S. energy data. he was develop the technology Chrysler needs to reach technologies it peddles to That outlook is good news for a number of au- “I think we need to be very careful not to re- rely on big pickups to haul lumber, plywood Morris said, “This is somethingLindsay fairly Chappell new for envious of This month, buoyant second-quarter earn- the 54.5 mpg fuel standards that are coming. consumers — voice tomakers — including Ford rival General Mo- ings were reported by major Chrysler suppliers, peat the kind of aggressive behavior that hap- sheets and other housing materials. And the us to track.” [email protected] the profit “We won’t get there by taking money from recognition. tors — as Ford prepares to launch the re- such as Delphi Automotive, BorgWarner Inc., pened here the last couple of decades where Half Page – 5 col. x 7” 2008 homebuilding crash knocked the life out Another reasonightweight for optimism vehicle about materials segment are delivering margins of each other,” De Koker said. 6,790 designed 2015 F-150 pickup with an alu- people went around trying to inflict — or at In brief, vehicle voice of the truck segment. TRW Automotive Holdings Corp. and American One top executive of a Tier 1 Chrysler supplier recognition minum-intensive body. TC BUZZgrowth is the agesignificant of the full-sized side pickupbenefits fleet, to automakers his least extract — phenomenal concessions from New-home sales are on track to reach about Axle & Manufacturing Holdings Inc. said that it takes money and engineers to devel- is the pits. It Nissan has begun promoting a redesigned said Itay Michaeli,striving industry to improve director fuelfor Citieconomy. In- suppliers, the supplier base,” Marchionne said. 400,000 this year, a slight decline from last year. and vowed “I am envious of some of the margins that I see op new technology, and suppliers can pick and was lousy full-sized Titan pickup that will not reach the GM tries newvestment Research andToyota, Analysis. for example, has found that By Larry P. He warned that Chrysler must be cautious in By comparison, new-home sales reached 1.28 L to seek a coming out of our suppliers — absolutely mes- choose which automakers receive their best when it Michaeli saidits pursuitthat the of current lighter averagebodies agethrough high- approaching suppliers on the sensitive issue. “I market until 2015. million in 2005. Vellequette, merized by some of the double-digit perfor- emerged in tools to lurefor scrappingstrength and replacing steel has olderresulted vehicles in production is lines share of think we need to be incredibly careful that we work. “As we look a little bit further out, we see the But the U.S. oil boom is breathing new life in- Staff mance,” Marchionne said. “And unfortunately, the early between 13that and are 15 less years. expensive And the to full-sizedbuild, says Takefumi their “Suppliers can afford to say no. That’s what potential for some additional upside, particular- Reporter when I see this, my blood pressure goes up.” don’t push them over the edge.” 1990s. And to the segment, Morris said. youngEnergy industry talent ac- segment’s Shiga,average general age reached manager 13 yearsof Toyota in Motor newfound we’ve done; we’ve learned to say no,” the execu- ly in full-sized pickup sales as the housing recov- The comments come as Chrysler and its cor- But Marchionne’s comments drew sharp re- after 15 tivity and oil drilling have becomeAmerica’s a new biggest source 2013. c Corp.’s No. 1 Body Division in Japan. wealth. tive said, speaking anonymously because he had ery eventually catches up with the rest of the Have no doubt: Profitable porate parent, Fiat, are merging into a new cor- sponses at the seminars here. years of of truck sales. carmaker is in the same boat The side benefits will take some of the sting out not heard Marchionne’s comments directly. By Lindsay economy,” Morris said of the overall U.S. market In 2010, just 187 oil rigs were operating in the suppliers are the salmon in porate entity and are being closely scrutinized “Sergio needs to run his company as well as inclusion in as all the others: General of adopting costlier lightweight materials, such as his suppliers are running theirs,” said Neil De On consultant John Henke’s latest survey on Chappell, Pickups and new-home construction have al- this scenario, and by analysts and shareholders.GREG HORVATH PHOTOS vehicles ●●●Motors needs new workers OEM-supplier relations, Chrysler finished Staff ways moved in lock step. Job site contractors aluminum, high-strength steel and carbon fiber. Marchionne is the grizzly Koker, recently retired chairman of the Original across the BMW’s Franz Storkenmaier, left, and Toyota’s Takefumi Shiga: CuttingMarchionne’s vehicle weight remarks has were pluses. reminiscent of slightly ahead of General Motors and behind Reporter and lots of them. But young Toyota is also finding that using carbon fiber bear in a hungry and foul Equipment Suppliers Association. “He wants to price all other major automakers in North America people have the impression parts lets it mix materials on the same welding mood. be the customer of choice for suppliers. He Half Page Spread – 10 col. x 7” 13,580 that factory work is dull, lines, instead of operating separate welding lines, BMW, which has embraced carbon fiber for cluding its frame, bumper, rear seat buckets, on supplier sentiments toward the automak- spectrum, it remains as Suppliers have been here dingy and monotonous. Shiga told an audience yesterday at the seminars. significant parts of its new i3 electric car, has propeller shaft and multiple chassis and en- ers. c lousy as ever. before, of course. And they Somehow, this has Some 70,000 The improvement to lighter materials also picked up a benefit in collisionhave learned repair, strategies says gine compartment parts. Entrepreneurs get a jumpmanufacturing on jobs of all enables Toyota to use advanced laser-screw Franz Storkenmaier, BMW’s head of light- StorkenmaierToyota said the breakthrough aims of i3 at better supplier relations escaped the notice of over the years to protect types are going unfilled in welding to bond them. Shiga said that laser- weight construction and vehicle weight. construction opens the door to other BMW ve- industry quality mavens. their profits from the Richard Truett Michigan screw welds can be applied at the rate of a Damaged portions of the carbon fiber body hicles designed and built the same way. But no more. powerful clutches of their [email protected]

installing hydrogening some profits,” hestations said. alone. That half-second per spot, compared with two to can be cut away for repair, and new sections of “It’s a different construction,” Storkenmaier “We plan to dig a lot FirstElement will buy the dispensers from a primary customers. Toyota’s plan to move supplier development David Sedgwick partly three seconds for a traditional weld. Laser- carbon fiber can be bonded back in their place. says of working with carbon fiber. “It’s a quan- deeper into this problem,” Suppliers now realize, for and purchasing staffs to its technical center [email protected] supplier, then install them on the premisesexplains of screw welding makes pinpoint welds. The i3 uses numerous carbon fiber parts, in- tum leap in material design.” c to Plano, Texas. warns Kristin Kolodge, J.D. example, that automakers near Ann Arbor, Mich., will improve supplier Nagata said Toyota plans to ow that Toyota and other automakers traditional gasoline stations. The companywhy GMwill is add 250 supplier purchasing jobs from its Er-

Power and Associates own and maintain those dispensers and can’t live without the relations, a top executive said. are preparing to introduce fuel cell testing new ●●● langer, Ky., office to its technical center. Many executive director of driver keep them supplied with hydrogen. GREG HORVATH sustenance that suppliers Simon Nagata, CEO of Toyota Engineering vehicles in California, entre- tools and of the jobs will be filled by Toyota employees interaction and human Stephens-Romero is trying to set up provide, a constant stream and Manufacturing, North America, said the preneurs are starting to build innovative who relocate from Kentucky. machine interface. his network as the initial wave of fuel of new technology and automaker: N By Lindsay factory Justin Ward of Toyota says the company’smiles. fuel “ “We don’t know yet how many people could It’s not pretty. a network of hydrogen fuel stations. range of 400-plus productivity enhancements. 3 col. x 10” cell vehicles come to market. Hyundai OSHA inspects supplier plantsⅢ Must in do a better South job earning suppliers’ trust come,” he said. “If we lose some people, we will 5,820 Chappell, ideas, such cell vehicle will have a In your clearest voice and FirstElement Fuel Inc., a company in has introduced a fuel cell version of the Suppliers also recognize so that they will share with Toyota their latest Staff as Google need to hire new people.” with your simplest and Newport Beach, Calif., has obtained a Tucson, and Honda will roll out the that the power balance in innovations. Reporter Glass. GM is two hydrogenFederal tanks, agentsrather than four. going The vehi- to 2,900 factories over concerns on injuries, safety issues Better supplier relations, Nagata said, are key most precise words, tell state grant to install 19 hydrogen fuel FCX Clarity next year. their relationships with Ⅲ Issues too many design changes late in the trying out cle can withstand coldLindsay weather Chappell without dam- $200,000 per infraction. to helping Toyota develop vehicles that are your car that you’d like for dispensers in various locations in Cali- Daimler is developing a fuel cell vehi- automakers has turned in procurement process. the Internet-connected age, he said. But [email protected] declined to forecast “There’s no reason why any Trade associations in the three states are safer and more fuel efficient. it to turn on the air fornia. The installations are part of the cle, and Toyota will introduce a pro- their favor. They have the Ⅲ Needs to demonstrate a more open-minded at- Stephens- eyeglasses at its Orion sales, noting thelarmed uncertainties by what itthat calls accompany a higher than scrambling to prepare their auto-part manufac- “Innovation requires good business rela- conditioner. There is a state’s effort to create a network of 68 duction version of its FCV fuel cell vehi- of these companiesability to say shouldn’t “no” — and titude toward new ideas presented by suppliers. Romero: Profits a fledgling technology. tions based on trust,” he said. “We must use good chance that a hydrogen stations for fuel cell-powered cle in the summerAssembly of 2015. plant, just to see normal incidence of injuries and safe- have a thoroughmake safetyit count. turers for the wave of inspections. Davis in ’19 or ’20? “When we combine resources in Michigan, I fair business practices. If an OEM is open- vehicles that will go on sale next year. Justin Ward,where Toyota’s it might general lead manag- the A California statety lapses, official the appeared Occupational confident Safety Woodruff, a 30-year manufacturing consultant computer voice will program alreadyMarchionne’s in place.” comments hope we can do this,” Nagata said yesterday at minded and has the trust of suppliers, it will President Shane Stephens-Romero company, Cathy Clegg, that fuel cell vehiclesand Healthwill establish Administration a niche. Al- has come as he and Chrysler’s from Alabama, has been working with plants respond that it is searching er of power systems control, said yesterday that A the seminars. benefit by getting the best new ideas from sup- GM’s new vice president bertolaunched Ayala, the an deputy inspection executive of auto officer parts of the plants Davis Woodruff, manufacturing consultant across the region to help them identify prob- for nearby pizzerias. says FirstElement hopes to expand its the company’s fuel cell vehicle will have a range top management are under The move to York Township, outside Ann for North American Californiaacross AirAlabama, Resources Georgia Board, saidand he Mississippi,expects lems before the inspectors arrive. plier partners.” And nobody does it well network to 40 dispensers in the next few years. of 400-plus miles. c intense pressure to raise Arbor, is part of Toyota’s reorganization that manufacturing, said during the agencystate’s officialsinitial network said. of fuel stations will recorded 6.3 OSHA incidents per 100 employ- “They are coming,” Woodruff warns. “But Nagata said the fast pace of technology — not Mercedes, not The company hopes to be profitable in five Ward said Toyota has made steady progress the company’s lagging includes the upcoming shift of its North the seminars here yesterday. supportThe a federalfleet of 6,600safety vehicles agency inplans 2017. to send field ees during the same period, according to Bu- there’s no reason why any of these companies changes is bringing some new suppliers to Toy- Toyota, not nobody. years or so, said Stephens-Romero, following improving the FCV. The fuel cell stack fits under profit margins. American headquarters from Torrance, Calif., Another experiment has agents to inspect some 2,900 factories — literal- “reau of Labor Statistics data. Mississippi does shouldn’t have a thorough safety program al- Toyota’s Simon Nagata: “Innovation requiresGREG HORVATH ota. But he said some are not working with Toy- 1 col. x 14” “We’re seeing that his presentation yesterday at the seminars. the front seat, and the vehicle now requires just But unfortunately for this 2,716 ota because they perceive the company to be “I think it’s going to be a labor of love for a few GM trying 3-D laser ly every auto parts plant in those three states — not report injury data.hungry bear, he’s probably ready in place. It makes no sense why any man- good business relations based on trust.” customers are being ●●● too difficult to deal with, requiring too much years, but in 2019 or 2020, we hope to start see- scanners to analyze and over the coming year. Different states arefishing under in the different wrong stream. OSHA ufacturer isn’t doing everything possible to pro- alienated by these time to evaluate and accept new ideas. improve factory layouts. The But as suppliers gather here in northern Michi- management, and there is no indication in- tect its employees.” ●●● systems,” Kolodge said. INSIDE THIS ISSUE c “Customers are telling us company is also throwing gan for an annual industry outlook conference, spectors are comingYou to Michigan.may e-mail Ross says OSHA has observed that attitudes that it is causing them to together■ employeesGM’s Steve from Kiefer, right,they may be surprised to discover that safety trou- Benjamin Ross, assistantLarry P. regionalVellequette administra- towardGoodbye, formal, satisfactionclosely monitored surveys safety pro- regret buying the vehicle INSIDE THIS ISSUE■ Auto sales would be higherdifferentsays plants the and company different is planningbles in the South are not out of line with Detroit. tor for OSHA Enforcementat [email protected]. Programs in the grams■ Nissan differ from ditches supply slow-moving chain to supply chain.Active safety is hot responsibilities, without Labor data indicate that Michigan’s parts indus- agency’s Atlanta office, says the agency has Some automakers do not require suppliers to they just bought.” ■ Traditional supplier relations if young families felt more more diesels. Next up: Diesel customer satisfaction surveys for car ■ Delphi sees hugh potential in Start over with voice recognition rules or assignments, just | PAGE try22 is | faring worse than its Southern counterparts. seen increased levels of incidents from inade- meetshoppers. safety standards, he says. won’t work in the age of the economically secure, says Itay mid-sized pickups. | PAGE 3 | technology that prevents accidents. ■ Industry must go back to the basics You may e-mail to see what new ideas they In 2012, the most recent year for which feder- quate machine safety guards and protection “If the auto manufacturers would make hav- connected car, says Nvidia’s Michaeli. | PAGE 4 | might come up with. al labor statistics are available, Alabama auto from electrical shock. The site inspections in ing a formal safety program a prerequisite to doAnd it’s happening now. | PAGE 4 | with voice recognition, says J.D. Power’s Lindsay Chappell | PAGE 3 | at [email protected]. Rob Csongor. It’s a disruptive process, parts manufacturing had 4.8 OSHA injury and the South will look closely at those areas, he business with them, this would all be so easy,” Kristin Kolodge, right. acknowledges Clegg, who illness incidents per 100 employees, and Geor- says. he says. “If the customer required all their parts | PAGE 22 | started her new position in gia had 3.7 per 100. Michigan auto parts plants OSHA safety fines can be about $5,000 to suppliers to do it, they would.” c 2 col. x 5” 1,940 July. But GM will be competing for talent in the ●●● years to come as industry sales volumes grow, and it will be a challenge. INSIDE THIS ISSUE “It’s our ability to attract Jag is back 3 series for cargo people back to ■ Jaguar Land Rover is ■ A BMW 3-series cargo manufacturing,” she says. “I can assure you that our team hitting its stride with stylish hauler? Sounds far- is up for that challenge.” vehicles, such as the Jaguar fetched, but Clemson F-Type , right, and students created the You may e-mail lightweight aluminum concept, right, with direct Lindsay Chappell bodies. Now, it has its own coaching from BMW at [email protected]. 1 col. x 1” 194 engines. | PAGE 3 | executives. | PAGE 22 | GREG HORVATH Ask your regional sales manager about our fractional frequency rate program. Aug 4, 5, 6 Close date: July 8 Automotive News Show Dailies are distributed at the annual CAR Management COLOR RATES Per Page Per Spread Briefing Seminars in Traverse City. Four-color rates for inclusion in all three show dailies are as follows: AAAA Standard Colors $1,065 $1,585 (ads less than 35”) 800 1,190 Full Page $8,490 Matched Color 2,465 3,650 Junior Page (ads less than 35”) 1,850 2,740 4,850 Four-Color Process 2,900 4,775 Half Page 4,245 (ads less than 35”) 2,175 3,580 Five Color 5,150 8,650 All advertisements also appear in digital editions of the Show Dailies at no (four-color process additional charge. The digital editions are emailed to a supplier/OEM plus matched color) audience of more than 100,000 on each of the three days. (ads less than 35”) 3,865 6,490

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