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20 • SEPTEMBER 14, 2009 For some nameplates, serviceservice && partsparts ’09 hasn’t been so bad John K. Teahen Jr. salestales pushes quick service, Thirty-five of the car-truck name- plates on the U.S. market reported sales increases for the first eight parts Web site to boost revenue months of this year. That’s not all bad in a year that every- John K. Teahen Jr. Kathy Jackson Going up one agrees has been a real stinker. is senior [email protected] But let’s look at those numbers. editor LOS ANGELES — To cope with slow new-vehicle sales, Service and parts provide a greater percentage of the First of all, it’s 35 out of 228, or 15.4 of Automotive Toyota is working on ways to sell more service and parts average Toyota store’s revenue than they did 2 years ago. percent, in a bad year. Eight of those News. to boost revenue for dealers. 2009 THROUGH JULY 2007 were introduced midway or later in Toyota is developing a Web site that allow con- New-vehicle sales 28% 39% 2008, so they weren’t on the market didn’t help much sumers to accessorize their vehicles online before they Service and parts 48% 38% for the full eight months last year. It with August sales. In fact, the compa- go to a dealership, says Jane Beseda, group vice presi- follows that 2009 sales are higher. ny fell farther behind its not-so-great dent of the customer service division at Toyota Motor Source: Toyota Motor Sales U.S.A. Now we’re down to 27 winners, or 2008 performance. Sales U.S.A. 11.8 percent. And four of them post- Sales declines for August vs. last In addition, later this year the company plans to roll out ed gains of 100 or fewer. So, 23 major year were , 9.1 percent; new methods to sell more accessories at Toyota and winners, or 10.1 percent. GMC, 45.3 percent; , 51.1 per- dealerships. What is a nameplate? Try it this cent; and , 55.0 percent. A quick-service program for Toyota dealerships also will Toyota customer service VP way: Chevrolet is the ; Malibu, , one of the makes GM is begin this year. Jane Beseda: “Eighty percent of the the nameplate; LS, the series; and dumping, was up 23.3 percent. But “It has always been important to have good fixed opera- dealers’ service dollars come from four-door sedan, the model. the three other discards had a miser- tions,” Beseda says. “With the decline in new-car sales, it maintenance. Our goal is to help able month, with declines of 58.4 per- is even more important.” them make maintenance smooth, Only 4 domestics on list cent for Saturn, 64.0 percent for quick and efficient.” Only four domestics made the list. and 67.8 percent for Saab. Pilot programs go national Two were Fords: the Fusion sedan and GM as a whole was off 20.1 percent. A quick-service program was piloted in 2008 with 23 Toyota wanted, but just made low-key sales pitches on the Escape crossover. The others were the One reason for the decline, accord- dealers. The company hopes to add 60 more dealers dur- showroom floor to each customer. Nilsen says the dealer- Journey crossover and Pontiac ing to GM: Last year, the company ing the next few months. ship paid salespeople $5 to $15 just to make the presenta- G8 sedan. The Ford Flex crossover and was staging an employee-pricing- Under the program, which primarily covers oil changes tion, whether or not they sold an accessory. Dodge Challenger muscle car were for-all program. and scheduled maintenance, two technicians work si- Nilsen says that from February through April, the store up, but neither was on sale for the full multaneously. The goal: get the car in and out within an had a 15 to 20 percent penetration and made about $70 eight months of 2008. How they stand hour. gross profit on each accessory sale. “That was business we The G8’s increase was tinged with After eight months, GM Co. led Toy- “Eighty percent of the dealers’ service dollars come from never pitched before,” he says. “Before it was left up to F&I. irony: It won’t be around for the 2010 ota Motor Sales U.S.A. by about maintenance,” Beseda says. “Our goal is to help them make It got pushed to the side. model year, and neither will Pontiac. 211,000 for the top spot and probably maintenance smooth, quick and efficient.” “We think there’s potential for it, but not on the grand Nineteen of the 23 big gainers were will maintain its grip on first place for She says program improved dealers’ revenues scale that Toyota thinks. It’s very labor-intensive, and you imports — four from Land Rover and the year. Ford Motor Co. was third, fol- but declined to be specific. have to constantly promote it, but those dollars can add up. three each from Hyundai, , Jaguar lowed by American , Meanwhile, from September 2008 through February Over the three-month period, we added another $6,000 to and . The Z , Group, Hyundai-Kia Automotive and 2009, 37 Toyota dealers tested best practices to sell acces- the bottom line that wasn’t there.” Nissan Rogue crossover and the Audi Nissan North America. sories, covering sales training, marketing and other ef- Nilsen is less enthusiastic about the program allowing sedan were the others. American Honda Motor Co. is forts. consumers to accessorize online. “We also have three The biggest increase among the 23 153,588 sales ahead of Chrysler; last George Whitehouse, Toyota’s national manager for Honda stores where customers can accessorize online was scored by the Fusion, up 16,163 or year Honda was up by only 7,787. accessory and product planning, says accessory sales at and buy accessories online, but we almost get no business 15.0 percent, followed by the Subaru Hyundai-Kia, now sixth, is 2,750 ahead pilot dealerships increased 31 percent during the pro- from that,” he says. Forester crossover, up 15,711 or 39.4 of Nissan. Last year at this time, Nissan gram, while sales at other dealerships increased only 3 But John Horton, owner of San Francisco Toyota, is ea- percent. Next were the Pontiac G8 led the Koreans by 202,530 sales. percent. ger to get started. He did not participate in the pilot pro- with a gain of 9,959 and the Hyundai He says nine of Toyota’s 10 distribution regions are gram. Accent subcompact, up 9,282. You may e-mail John K. Teahen Jr. at planning to roll out the pilot program for Lexus and Toy- “We definitely feel personalization is important,” Hor- The first month out of bankruptcy [email protected] ota dealers later this year. ton says. “In the past there has not been a high emphasis “The business model was developed by Scion,” White- on this on the Toyota side. Now they’re working with us to house says. The Scion model encourages buyers to acces- make it easier to facilitate it.” sorize vehicles to their tastes. Whitehouse says Toyota recently launched a new mar- “We are leveraging this same model across our Toyota keting strategy using the Web, print, direct mail and and Lexus dealers,” Whitehouse says. e-mail to help drive traffic to dealerships and promote ac- cessories. Mixed feelings Toyota also notifies existing owners of new products or Ralf Nilsen, parts manager at Piercey Toyota in Milpitas, products they did not purchase with their vehicles and pro- Calif., participated in the accessories pilot. He says his vides dealers with co-op money to help them market the store did not set up a separate accessories department, as products. c Survey, data: Including maintenance helps sales Mark Rechtin value the program more than what it prices the cost of maintenance [email protected] costs us, or the equivalent amount of through the warranty period. Lexus, LOS ANGELES — Including main- cash or subvented lease.” Land Rover, Jaguar and Audi pay for tenance in a car’s price boosts sales, Lincoln Merrihew, senior vice pres- the first oil change and service. according to data from Volvo and a ident of the TNS Automotive consult- Volkswagen and are the only recent survey. ing firm, called such maintenance mass-market that offer a war- Volvo says its Safe and Sound pro- programs “a time-release incentive.” ranty-length maintenance program. gram for the end of the 2009 model “They are less likely to damage In 2000, Mercedes-Benz USA began year — a plan that includes mainte- residual values the way cash-back including maintenance for the dura- nance during the five-year warranty does, less likely to cheapen the brand tion of the warranty, covering oil — has improved closing rates in the image and more likely to foster a con- changes, filters and fluids. But Mer- showroom. Normally, salespeople tinued relationship between the cedes halted the program in 2005 be- close 30 percent of their deals, Volvo brand, the dealership and the con- cause of costs. Also, customers be- says. But with Safe and Sound, the rate sumer, which is key to owner loyalty,” came confused as to what the pro- is more than 35 percent. Merrihew said. gram covered. “More people are staying and buying Meanwhile, in a recent survey by Mercedes customers now have the the car rather than shopping around,” AutoPacific, 86 percent of BMW own- option of a prepaid service plan. said Tassos Panas, executive vice pres- ers ranked the importance of the Said Mercedes spokeswoman Don- ident of of North America. brand’s maintenance program as im- na Boland: “The sky didn’t fall. Sales The program has done so well that portant to their purchase decision, continued to climb until the eco- Volvo is extending it to 2010 models. the highest of any brand. nomic tsunami. Customer satisfac- Panas declined to give the per-unit Among luxury brands, only BMW, tion scores are trending in a positive cost of the program but said, “People Volvo and Saab include in purchase direction. Residuals are solid.” c 20090914-NEWS--0021-NAT-CCI-AN_-- 9/9/2009 3:51 PM Page 1

DESIGN SEPTEMBER 14, 2009 • 21 The elements

of style ’s little beamer The most dramatic change to the new Mazda3 is the Design genius? It’s often in the five-point grille, which looks like a big, bright smile. details. Here is a look at styling highlights from several vehicles that went on sale this year.

Cubism The Nissan Cube pushes its design language further than the similarly styled Scion xB and Honda Element — from the repeated use of rounded squares for the side window Mini-Traverse? glass to its Chevrolet’s new Equinox has strong asymmetrical rear fenders and good-looking window styling. wraparound headlamps. The wheels are pushed out to the corners so the overhangs are nice and short.

The XJ’s back Jaguar design boss Ian Callum says the vertical taillights of the new XJ blend into the flowing Taurus roofline and leave a clear, in the hood unadorned trunk. From behind, you’d never guess A line from the A-pillar that this is a Jag. over the hood of the new Ford sedan turns and runs across the car, giving it a “brow.”

Same nameplate, different look The horizontal rear deck and squared back end of the Nissan 370Z roadster, above, give it a softer, more refined look than the coupe version, which has a sharply sloped rear end.

Portholes go topside Instead of being on the side of the front fender — a Buick cue for decades — three portholes on the redesigned Buick LaCrosse are placed on each side of the hood, running parallel to the hood’s edge.

Sedan profile The greenhouse on Cadillac’s CTS Sport Wagon incorporates sedanlike Lively Legacy styling elements. From the side, the eye is attracted to the thin chrome strip Subaru’s new Legacy sedan is more striking than its surrounding the window glass. The design cue creates the illusion of a sedan, predecessor, with bolder headlights and prominent with a large, stretched second-row passenger compartment. wheel arches to play up the all-wheel-drive capability. 20090914-NEWS--0022-NAT-CCI-AN_-- 9/9/2009 3:52 PM Page 1

22 • SEPTEMBER 14, 2009 DESIGN

Dave Marek Honda’s future Age: 52 Title: Division director

MARK RECHTIN of advanced design designs are hidden Honda design at Honda R&D Americas director Dave Family: A dwarf bunny Marek keeps Education: Art Center College in plain sight models under of Design, 1987 wraps in the First car: 1970 Mustang Boss 302 Mark Rechtin one of the world’s leading vehicle de- Pasadena Dream car: Porsche 917 [email protected] sign schools. studio’s work Design credits: 1994 Honda LOS ANGELES — Keeping prying The only indication of what goes on “cocoon.” Accord wagon, 1996 CL eyes and spy photographers away inside the street-level storefront Design admiration: Target, GE from future vehicles is paramount for space are two small window decals. and Bosch appliances, Logitech vehicle designers and product plan- “Most of the cars we do are catego- remotes, Robert Graham clothing ners. And no company plays it closer rized as next-next generation,” to the vest than Honda. Marek said. “Sometimes it’s not too So why did Honda install its North far out. We’re within the realm where Studio bio American advanced design studio we know we need to be pretty feasi- amid a heavily-trafficked stretch of re- ble. We try to extrapolate the future. Honda Advanced Design Studio tail storefronts in the bustling suburb You can’t just make up stuff.” Location: Pasadena, Calif. of Pasadena? Call it crazy like a fox. The studio also is a temporary stag- Employees: 10 The Pasadena studio, which ing area for Honda designers who Concepts created: Honda FC opened in 2007, is one of three urban may be worn out from working too Sport, Honda Remix, Acura ASC advanced design centers Honda has close to the present day. It is a place Architect: George Yu around the world. The others are in a for designers to recharge their batter- skyscraper in Tokyo’s raucous Rop- ies for a year or two. pongi nightlife district and in the “At the production-design studio, er, usually late at night, and snuck fashion mecca of Milan, Italy. advanced projects would be the first out to a waiting delivery vehicle. “It needed to be a hot zone, with a things put on hold as we were finish- So far three concept vehicles have cool factor historically, culturally and ing a production car,” Marek said. emerged from the cocoon to grace automotively,” said Dave Marek, “Japan decided we needed some- auto show halls. Honda R&D Americas’ division di- thing outside the normal, to let peo- Since Honda doesn’t sell anything rector of advanced design. “But it al- ple breathe and be more aggressive from the studio, it needed to satisfy so needed to be something unusual about the future, to do think-tank tion KCRW-FM not long before he Couture and Design Within Reach. Pasadena’s retail zoning ordinances. so we could recruit.” things that permeate design later.” died, Yu described the cocoon as “an The cutting-edge retail stores also Honda’s end run was to fulfill a pub- Honda looked at loft space in down- amorphous biological mass.” provide designers with inspiration. lic-benefit clause by creating an art town Los Angeles, but the neighbor- Inside the bubble At night, the cocoon glows with de- “The advantage of being here, is that gallery in the front display windows. hood was a bit too gritty. The corner To keep the drawings and clay mod- signers’ desk lamps, illuminating the we can walk an executive to Apple or It shows works from the nearby Ar- of Hollywood and Highland boule- els secret from the outside world, stu- shadowy figures inside and giving the B&O and say: ‘We need to do some- mory Center for the Arts and Norton vards was judged “too contrived.” dio architect George Yu created an 8- building a spooky, alien presence. thing like this,’ ” Marek said. “That Simon museums, as well as scale And the spaces available in Santa foot-tall “cocoon” of 99 undulating whole permeation is very helpful.” models of Honda’s past Tournament Monica and Long Beach didn’t suit acrylic panels that surround the work Cutting-edge inspiration The most difficult thing about the of Roses parade floats. Honda’s needs. space, leaving a 3-foot gap between For designers it’s a 10-second walk studio’s location is transporting scale “Most of the local people want us to As a bonus, the Pasadena studio is the cocoon and the historical brick to a retail district teeming with models to American Honda Motor put what we’re working on out there,” situated a protractor’s throw away building’s wall of exterior windows. trendy stores such as Apple, Armani Co.’s headquarters in Torrance, Calif. Marek said wryly. “They don’t quite from Art Center College of Design, In a 2007 interview with radio sta- Exchange, Bang & Olufsen, Juicy The designs are shrouded under cov- get it.” c Acura’s new studio gives brand a ‘keen edge’ Mark Rechtin Jon Ikeda to superimpose full-sized vehicle [email protected] renderings. It’s a hulking piece of Age: 44 LOS ANGELES — Twenty years af- glass that requires its own cooling ter Honda created its Acura luxury di- Title: Chief designer and senior room to keep the computer equip- vision in 1987, the brand finally got manager, Acura Design Studio ment it needs at a chilly operating its own design studio. Family: Married, 6-year-old son temperature. If two designs are com- By that time, Honda’s U.S. styling Education: Art Center College peting for approval, they can be over- team had designed several Acura of Design laid on the screen to see how they models, including the 1994 Integra, First car: Beat-up 1967 Porsche look from every angle, big as life. 1995 CL coupe and 2000 TL sedan. 911S (still owns it) “If you have two clay models com- But designers thought there was too Dream car: Lamborghini Miura peting to be full size, we can scan the much overlap between the Honda quarter-scale and fluff it up with Design credits: 1999 Honda and Acura work going on at Honda’s computer graphics,” says Ikeda. MV99, 2001 Civic Coupe, 2004 studio in Torrance, Calif. Acura TL, 2005 Acura RDX concept, “Within a week, we can look at it full And since Acura was sold only in the 2005 Honda Civic Si concept size with the quarter-scale model on United States, the bosses at Honda a desk in front of it. Sometimes it’s Motor Co. decided the upscale divi- hard to make a decision looking at a sion needed its own styling center on stamp there. When you go to a deal- little model because it may not trans- Honda’s sprawling Torrance campus. ership, there’s a face you can recog- late into full size.” “We needed to focus on our brand a The upcoming ZDX , shown here with design chief Jon Ikeda, will nize. But we might have pushed the The interior and exterior design de- little more,” said Jon Ikeda, Acura’s be the first production model totally conceived in Acura’s new U.S. studio. grille further than what people were partments are laid out in a typical chief designer. “We used to be in one comfortable with.” Honda bullpen formation, unlike building with Honda, and our de- arate from the Honda design house. “We wanted to show how technology From those beginnings, Acura de- many studios, where the two depart- signers were all jumbled up. The guy interrelates with people. The surfac- signers are trying to give the entire ments are segregated. A casually ap- next to me would be working on a Edgy design ing is very sheer with machining, but lineup a family look. The upcoming pointed think-tank zone allows for in- Honda; or I would be working on an Ikeda says the dedicated space the line work is very emotional — ZDX hatchback will be the first Acura formal, impromptu confabs. “There’s Acura, then a Honda. There was helped Acura develop the “keen what we pull from nature and the hu- production vehicle conceived start to no wall or division, and everything is cross-pollination. We needed more edge” design philosophy that began man side. We see a bright future with finish in the new studio. open to discussion,” Ikeda says. independence.” with the Advanced Sports Car Con- technology, rather than seeing it like “We made lots of good-looking cars Independence does not mean that But things sometimes move glacial- cept — a swoopy, angular adaptation The Terminator, where machines will prior to this, but we didn’t really ad- the Acura stylists have severed ties ly at Japanese car companies. It was of the NSX supercar shown at the De- kill the world.” here to the original concept,” Ikeda with Japan. Although Ikeda says the the U.S.-designed 2001 Acura MDX troit auto show in 2007. The opening statement from the says. “Now, when you go to a dealer- brand has “more freedom now than crossover that helped Honda brass in “Before we did the sports car, our new studio is Acura’s signature grille, ship, the vehicles will really have a ever,” he says conference calls to Japan make up their minds, earning design was a free-for-all,” says Ikeda, formally called a “power plenum” but look and an image.” headquarters are made nightly to give American Acura designers much- who joined Honda r&d in Japan as a referred to informally as “the beak.” updates and defend the studio’s work. needed respect from Japan. freelance designer before getting a “We felt like we needed to create an Think-tank zones “Acura is a mix of American think- But it wasn’t until 2007 that Honda full-time job with the company in the image that is more recognizable,” An impressive part of the $15 mil- ing and Japanese culture,” Ikeda Motor granted Acura its own studio, United States. says Ikeda. “It’s a polarizing design, lion studio is a 200-square-foot flat- says. “But they understand the brand in a 50,000-square-foot building sep- With the new philosophy, he says: but you had to put some kind of screen display that allows designers was developed here.” c ANpageAD.qxd 9/2/2009 4:06 PM Page 1

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22B • SEPTEMBER 14, 2009 DESIGN Designers got some high-powered help with T Amy Wilson ten seemed, Fields said, “like we ran [email protected] out of money by the time we had got- ASHEVILLE, N.C. — Lon Zaback ten to the interior.” and the rest of the 2010 Ford Taurus But with the 2010 Taurus, “we design team needed a high-powered wanted to make sure the sleeves champion in Ford’s executive ranks matched the cuffs,” Fields said. “Just to help push through some of the as the customer gets a wow factor car’s most striking design elements. when they see the exterior, when they After all, what the designers wanted open the doors and sit in those very to do resulted in engineering chal- comfortable seats, they are just as lenges and added cost. It turned out impressed.” that Mark Fields, Ford Motor Co.’s Zaback had the leeway to get other president of the Americas, was their special touches into the interior: guy. The console is built inside the ve- Ford executives knew good looks hicle on the trim line, rather than be- would be crucial for the automaker to ing shipped in one unit from a sup- succeed in its attempt to reinvent the Ford made pricey sheet metal changes to give the Taurus a sleek, low roofline. The center stack got a sharper rake. plier. So the console rails flow into Taurus. Their devotion to that goal resulted in two major decisions made partway through the program, said Zaback, interior design manager for the Taurus, at the car’s media intro- duction here. The designers wanted a center stack on the instrument panel raked back at an angle so sharp that CDs would have skipped on steep San Francisco-like hills. It cost some money, but engineers separated the CD player from the original electron- ics port and designed a unique inter- face, resolving the skipping risk. They also wanted a lowered rear roofline that meant pricey sheet met- al changes. But after crafting a model with the original high roofline on one side and the proposed low line on the other, executives voted for the sleek- er low look, changing course about six months into the program. Approving such expensive changes partway into vehicle development was a change of direction for Ford. Earlier this decade, “we had kind of put the designers in a box in terms of limiting their creativity,” Fields told Automotive News. But if the strug- gling automaker was going to com- plete its turnaround and start making money again, executives came to be- lieve that would have to change. “We’ve got to have desirable prod- ucts,” Fields said. “That’s what drives the business. So we really tried to change it around, [and worked on] finding ways to say yes from a man- agement standpoint, as opposed to finding ways to say no.”

Interior test The interior of the 2010 Taurus, which went on sale in August, put that philosophy to the test. Designers had proposed a center stack swept back into the instrument panel at a 42-degree angle. Fields said he was “bowled over” by the look. But the engineers came back proposing the more typical 30-degree slope be- cause of the CD-player problem, Zaback said. Fields and Ford product chief Der- rick Kuzack visited the studio to study the difference. “When they saw what the 30-de- gree angle was going to do to the de- sign, they opened up the pocketbook to make [the more aggressive slope] happen,” Zaback said. “Fields was there for us. Fields fell in love with this interior.” The end result: A 38-degree slope, a little extra cost — and the distinctive look Ford’s designers and executives were seeking.

No more inferior interiors In the past, Ford probably would have done a more staid interior. It of- 20090914-NEWS--0010,0011-RG1-CCI-AN_-- 9/8/2009 2:16 PM Page 2

DESIGN SEPTEMBER 14, 2009 • 22C Taurus’ fresh look the instrument panel, eliminating adorns the bottom of the cuphold- the unsightly seams that usually are ers. apparent. The costs of that approach were defrayed because the Lincoln Search for redemption MKS, a sibling assembled in the Ford wouldn’t disclose how much same factory, is constructed the the Taurus’ cost rose beyond the same way. original budget. Fields and Zaback Interior door panels are covered both said tradeoffs were made else- with a polyurethane skin molded to where to save money in areas that give the appearance of hand-stitched wouldn’t be noticeable to the cus- leather. tomer. But those cuts didn’t over- What Zaback describes as a Zen come the budget spike entirely. wave pattern repeats throughout the “ to do the roof and the interior: on the door speakers, at the center stack weren’t in the program, bottom of the console bin and on the and no tradeoff was going to make it climate-control intake near the happen,” Zaback said. steering wheel. A water-drop pattern But making those investments for

Interior design manager Lon Zaback added special touches to the Taurus’ interior, including door panel covers that look like hand-stitched leather.

better looks, the designers believed, would give the Taurus a chance for redemption. The nameplate has a tortured his- tory. The Taurus debuted to wide- spread fanfare in 1985 and eventually became the best-selling car in the United States before falling out of fa- vor and becoming a rental fleet fall- back. By the middle of this decade, Ford executives thought there was no salvaging the name and dropped the old Taurus in late 2006. But Alan Mulally arrived as CEO around that time and wondered what had happened to the Taurus. He had studied the original Taurus project in his previous job at Boeing and said, loud and clear, that Ford had made a mistake. So in 2007, Ford revived the Taurus name for the former Five Hundred, a slightly larger sedan. But the conserv- ative design didn’t live up to the her- itage of the Taurus. “The outgoing vehicle is a compe- tent product,” Zaback said. But “it doesn’t make your heart beat any faster.” Designers were determined to change that with the restyled 2010 model. “The customers told us, ‘Yeah, I need a family car, but I’m not dead,’ ” Zaback said.

Followed home The 2010 model doesn’t have a high sales hurdle to overcome to beat its predecessor. The outgoing Taurus At Nucor, we’re committed to on-time delivery for every order of Special Bar Quality steel. sold just 52,667 units in 2008. Sales No matter how much, no matter when or where, we have the capacity numbers will be the final determinant, but early reviews have been positive. to meet the most demanding deadlines. Engineering all your SBQ precisely to specifications. Fields got a special endorsement on a recent Saturday as he drove a After all, when making steel for high-end automobiles, performance matters. red Taurus SHO to his home in sub- urban Detroit. As he drove north on a www.nucor.com/sbq major thoroughfare, a police car dri- ving south swung around and fol- lowed Fields until he pulled into his driveway. ® As he unloaded gear from the car, It’s Our Nature. Fields nervously watched two seri- ous-looking police officers approach — only to hear them ask whether he was driving the new Taurus. Said Fields: “I breathed a sigh of re- lief and gave them a demo.” c 20090914-NEWS--0012-RG1-CCI-AN_-- 9/8/2009 2:11 PM Page 1

22D • SEPTEMBER 14, 2009 DESIGN Bryan Nesbitt: A new career frontier for a designer DETROIT — Bryan Nesbitt’s ap- let’s chief designer in 2001 and later at how they visually articulate the advertising messages. pointment as head of Cadillac is spent six years as GM’s European brand or the promise of the brand. That’s accurate. We’re a team. unprecedented in the U.S. auto in- design director before returning to For me, I have always enjoyed My job is really looking at all the ba- dustry. Never the United States in 2007 to run that part of the business. So I am sic marketing to the customer, all before has a North American design. very interested in all those other the interfaces that exist and driving designer risen He took over as Cadillac’s gener- interfaces, the components on the consistency and an improvement to the top job al manager on Aug. 1. Nesbitt car, merchandising, the Internet in the whole experience. We have at a major ve- spoke with Staff Reporter Richard and how you experience the Web to appeal to luxury customers, and Q&A hicle brand. Truett about his new position. site. For me it is natural to look at that’s not a commodity process or But Nesbitt every single interface the cus- strategy. It takes something else. views it as a logical ascension. What can a designer bring to mar- tomer is exposed to and look at “As a designer, you are always keting? managing it very holistically. Will you be getting closer to cus- looking at how they manage the It’s hard for the designer to avoid tomers by going to such places as brand,” he said. marketing. You are always wearing With Ed Peper responsible for golf tournaments and the Pebble Nesbitt, 40, rocketed to stardom a a marketing hat. As a designer, you Cadillac sales, presumably you’ll Beach classic car show? decade ago at Chrysler with his sig- are always looking at how they be managing the creative aspects What’s happening now is we are nature design, the PT Cruiser. He manage the brand. Most of our de- of Cadillac, meeting with poten- readdressing all the places that we joined General Motors as Chevro- signers are looking very holistically tial customers, helping craft the talk to people. Does a large golf

Wherever in the world you compete, Michigan can give you the Upper Hand. 622 IN A SERIES OF THOUSANDS

Bryan Nesbitt sees his ascension to Cadillac general manager as natural. As a designer, he says, “you are When Toyota put the pedal to the metal, always wearing a marketing hat.”

sponsorship still make sense? And so Michigan paved the way. there is a large audit going on. It’s who are we talking to, why are we talking to them and how do we want Toyota and the Michigan Economic to explain what we are bringing. SM Development Corporation have a lot in From my perspective, we’ve spent common. Toyota puts cars on the road. And years developing cars, and there are the MEDC puts businesses on the road to excellent engineering solutions. And I think we have to spend the same success. Together, they are major forces on amount of time looking at how we ex- the high-tech R&D scene. Thanks to support plain that to people, how we explain from the MEDC, Toyota has finished a $187 what we are doing and that we might offer something they are interested in. million expansion of its key North American R&D Technical Center in Ann Arbor. It also Will you still have a voice in Cadil- is investing $100 million to create a new lac’s design? Research Institute on its Ann Arbor campus, Marketing and design will interface always in product development. Mar- which will develop cutting-edge technologies keting will say, “We believe these are for sustainable mobility. These initiatives the needs for this particular group of are strengthening both Toyota’s and customers. This is really their expec- tations.” The design and marketing Michigan’s presence as frontrunners in teams have to be very, very close. automotive engineering and innovation. Do you ever see yourself behind the If you’re looking to build momentum for boards designing again, or is that part of your career over? your business, Michigan is the place. Not I don’t know. It’s one chapter at a only is it ranked #2 among all states for time. Ultimately in my position in de- patents awarded to public universities, it sign you are in an art director role. And now I am in an art director role also offers tax incentives, centrally located for all those other interfaces. For me, technology clusters and other resources it is a lot of fun. designed to help your business excel. Visit MichiganAdvantage.org to learn more. How do you like the way the PT Cruiser looks on the road today, 10 Because wherever in the world you compete, years after it went on sale? Michigan can give you the Upper Hand. I didn’t like the update that they did where they [altered] the headlights. But I find it interesting that Chrysler decided to keep it in production. I be- lieve it is the most profitable small car in Chrysler’s history. So, from a rev- enue standpoint, it seems like it has Bruce Brownlee had a good run. Senior Executive Administrator I’ve always liked the way it looks. I Toyota Technical Center think it looks better when it is low- ered 2 inches with 18-inch wheels. I loved doing the [Chevrolet] HHR. Everyone tells me they are the same MichiganAdvantage.org vehicle. But when I talk to people, they don’t get the two vehicles con- fused. People get Camrys and Ac- cords confused all the time. c 20090914-NEWS--0013-RG1-CCI-AN_-- 9/8/2009 2:18 PM Page 1

DESIGN SEPTEMBER 14, 2009 • 22E The Callum years: How the look of Jaguar has changed in the past decade Diana T. Kurylko [email protected] As a youngster in the Scottish coun- tryside, Ian Callum fell in love with Jaguar cars. First there was the Mark II that de- I set out on a buted in 1959 and soon after the cur- vaceous E-Type. And he was smitten mission to re-establish by the first Jaguar XJ he saw driven by “ his father’s friends in the late ’60s. the brand the way “I picked up my design theory from those cars,” says Callum, now in his 10th year as design director at Jaguar I thought it should be Cars. The 55-year-old stylist has come perceived. full circle in his decade at Jaguar, which now is owned by India’s Tata IAN CALLUM Motors. He has supervised the re- Jaguar Cars” styling of the spiritual successors of all three vehicles — and, although he is a fan of those long-ago cars, Cal- lum has taken it upon himself to shift the grand British brand from its styling heritage. His latest design may be his most im- portant: the 2010 XJ sedan. It was un- veiled this summer in London and is scheduled for U.S. sale early next year. The previous XJ was criticized for having grown stodgy. It was the car Callum says he was most eager to re- design as “a deservingly more mod- ern car.”

Ford training For Callum, the road to Jaguar be- gan at Ford of Europe in 1978 after at- tending the Glasgow School of Art and studying automobile design at the Royal College of Art in London. He spent 12 years at Ford’s design stu- dios in Great Britain, Japan, the Unit- ed States, Australia and Germany be- fore being appointed design manager Innovation Takes for the Ford-owned Ghia design stu- The redesigned XF, which features dio in Turin, Italy. a strong rectangular grille, created the Driver’s Seat Callum worked on the interiors and a new, modern face for Jaguar. with 3D PLM exteriors of the Ford Fiesta, Mondeo, the RS200 midengine sports car and sedan look sportier. The metamor- the high-performance RS and Cos- phosis starts with upright taillights worth versions of the Escort. and a dramatic line that, Callum says, Cars aren’t 2D … so why In 1990, Callum left Ford to become gives the car “a sense of speed, form design like they were? chief designer for the English consul- and more character,” and it ends with tancy TWR, where he created the the proud Jaguar leaper on the rear. Dassault Systèmes is a shapes of the Aston Martin DB7, Van- He calls the interior “simple archi- quish and DB9. The Aston designs tecture” with a low instrument panel visionary partner, providing were a foretaste of his approach to re- and a line that runs from the door making the look of Jaguar. The dramatic Jaguar XJ: “A sense of speed, form and more character.” across the instrument panel. Wood is automotive suppliers and In September 1999, he landed his used extensively but as a “comple- manufacturers with the dream job in Coventry, England. back to its proper place” in the world But his most dramatic re-do is the ment to the architecture,” Callum “I set out on a mission to re-estab- of luxury cars. XJ replacement. The big sedan has says. Prominent inside the Jaguar is powerful tools they need to lish the brand the way I thought it Callum says the XF created a new represented the archetypal Jaguar an 8-inch screen for audio, video and should be perceived,” Callum says. face for Jaguar, which had had “an shape for nearly 40 years, Callum climate controls. transform their business and His first car for Jaguar was the sec- eclectic mix of front-end design” dur- says, and “it was time for change.” Was the design inspired by owners drive innovation. ond-generation XK coupe and con- ing the past 15 years or so. Working with his team of young de- or British tradition? No, Callum says. vertible in 2006. “I wanted to establish the face with signers, Callum developed several “We design what we feel is right for “That car for me was the first stage a brand identity,” he says, explaining new profiles and shapes early on, the brand,” he says. “If it’s modern of my career at Jaguar,” Callum says. the XF’s strong rectangular grille. having decided on making the big and works well, it should appeal.”c Visit our website at “It was more of an evolution. When The look drew younger customers we get to the next generation, we will to Jaguar. Before the debut of the XF, 3ds.com/automotive to see do something quite dramatic.” the brand’s average buyer was 60 how we can help accelerate The redesign of the XF mid-sized years old. Now the average age is sedan that went on sale in 2008 was 52, Callum says. your product development the first “big bold step,” Callum says. process. Unconventional styling Jaguar made a radical change in the shape of the new car, which replaced the S-Type. “It has quite a high tail in that it respects physics and aerodynam- ics, and it has a wedge profile,” Cal- lum says. “On top of that it has a sport coupe profile — it is not a con- ventional three-box car.” The second-generation XK was “more of an The goal, he says, was to make the evolution,” designer Ian Callum says. Next XF “absolutely modern, to take Jaguar time, “We will do something quite dramatic.” 20090914-NEWS--0014-RG1-CCI-AN_-- 9/8/2009 3:33 PM Page 1

22F • SEPTEMBER 14, 2009 DESIGN Mazda’s new U.S. design boss brings VW’s youthful, stylish aesthetic Mark Rechtin “would just leave us alone and we could post at electric-vehicle maker Tesla Motors. [email protected] do our own thing.” Jenkins’ past design credits include the Au- LOS ANGELES — Derek Jenkins, the new With Mazda, however, the Irvine, Calif., di A2, a geometric pod that drew a love-hate design director at Mazda North American studio has great influence over production (mostly hate) reaction from European cus- Operations, will find the job has a lot in models, which means more interaction tomers. “Ecology was thrust upon Europe, common with his previous styling job at with r&d and product planning executives so there was nothing cool about it,” Jenkins Volkswagen. The two brands are among in Hiroshima, Japan. “At VW, we were iso- said. “The A2 was a laborious aerodynamic the youngest in terms of customer demo- lated from the other disciplines,” Jenkins effort by [VW Chairman Ferdinand] Piech. graphics. Both are positioned as smart, said. “I have more influence here. It’s a Plus, there was the price point, which was stylish and savvy. They rely heavily on nice breath of fresh air. It’s really fun.” too high.” front-wheel-drive platforms. Former Mazda U.S. design chief Tom But Jenkins’ work at Volkswagen’s stu- The Audi A2 guy Matano described Jenkins as “the right dio in Santa Monica, Calif., was limited to Jenkins, 39, recently filled a position va- guy to carry on the Mazda tradition.” concept vehicles. As a result, he said, VW cated last summer by Franz von Jenkins noted that he is still adjusting to headquarters in Wolfsburg, Germany, Holzhausen, who left to take the top design Mazda’s “fluid, sculpting” design aesthetic,

U.S. design chief Derek Jenkins appreciates having influence over Mazda’s production models: “It’s a nice breath of fresh air.”

which is much different from VW’s more “intentionally geometric” ethos. “The most successful product de- signs have been simple, where there is a simple emphasis on proportion, strong graphic reads and purity,” Jenk- ins said. “But you need unique items like body line or how you treat the five- point grille. We are in constant discus- sions about ‘What is flow?’ and ‘What is Mazda’s surface language?’ ”

Japanese character One area Jenkins wants to upgrade is Mazda’s interior design. And while the original Mazda3 received praise, Jenkins still sees room for improve- ment. He said VW, , and the French carmakers are all “quite com- petent” in interior finishes, and Maz- da needs to up its game. “This is not just the tactile quality,” he said, “but the materials, the level of sophistication, the overall crafts- manship, device integration, displays and gauge clusters. These types of details are a battleground right now.” Jenkins said Mazda’s desire to in- still Japanese character in its designs will continue. That’s a different tactic from Honda and Toyota, which at- tempt to create American designs for the United States. “Really successful companies and brands reflect some aspect of their origin,” Jenkins said. “There is a cer- tain exotic, romantic nature in Japan- ese culture that we can express in our cars with line and flow. But there is also another side, which is precision and technology, so we need to show that as well.” c Derek Jenkins The things that make our candidates unique also make them uniquely qualified. That’s why at Age: 39 Aerotek, we take the time to really know the people we place. To find the person behind the resume. We Title: Director of Design, Mazda North American Operations already know they can do the job, but are they the right match for the position? We need to know. Because Career Placement Specialists Family: Married, 2 sons at Aerotek, we only send one perfect candidate to fill one perfect opportunity. People. Fit. Perfectly.® SM Education: Art Center College of Design, Pasadena, Calif. Nationwide & International Offices. 866.376.8350 www.aerotek.com/automotive First car: 1974 VW Thing Design Release Engineers Quality Engineers Production Supervisors Manufacturing Technicians Dream car: Lamborghini Countach LP400 Aerotek is an equal opportunity employer. An Allegis Group Company. © 2009 Design credits: Audi A2, A8; VW Scirocco, VW Microbus concept 20090914-NEWS--0015-RG1-CCI-AN_-- 9/8/2009 3:31 PM Page 1

DESIGN SEPTEMBER 14, 2009 • 22G Redesigning the wheel Tires and wheels set the stance and proportion of the vehicle. They’re a big deal for designers — really Kathy Jackson Ebel: “When you son without feet. It holds everything visually, they’re very, very important. Min said, “sporty, athletic and solid.” [email protected] design a car, you together.” It’s the part of the car that sets the LOS ANGELES — Ben Ebel had a look at three stance — how it sits on the road, the The future dream job. aspects — The Audi look proportion of the vehicle. It’s like Frank Saucedo, director of General He worked at Mercedes’ advanced proportion, form Some designers credit the position- shoes on a person.” Motors Co.’s California design studio, design center in Irvine, Calif., for three and graphics. ing of wheels on Audi vehicles with He said the placement of the loves to draw big wheels and tires. years and helped create the Mercedes- Tires influence the brand’s comeback. wheels happens at the beginning of “For me, it’s the first thing I sketch,” Benz F 700 research car, a big four- all three.” Jae Min, chief designer at Audi’s the design process. he said. “Once I get that diameter, it door sedan that was shown at the 2007 Santa Monica, Calif., design center, “All Audis have the wheels placed sets up the whole proportion of the Frankfurt show and previewed Mer- 20-inch wheels. said the brand’s vision is to be athlet- as far outside as possible,” Min said. vehicle. A larger diameter helps a ve- cedes’ future design direction. “We try to place them at the corners ic. Not only is he a fan of wheels and “Our cars have the wheel surface hicle to look leaner.” But not only did Ebel leave sunny to put focus on stance, to make it look tires; he said there’s a dedicated team close to the wheel opening to en- “I cannot stress enough the dynamic California and Mercedes in the sum- like it’s ready to spring,” Cartabiano at Audi that specializes in each vehi- hance that stable look.” of wheels and tires to the overall pro- mer of 2008; he left to go to South said. “I teach at the art center, and I tell cle’s wheel program. He cites the S5, which sits on 19-inch portion of a vehicle,” Saucedo said. “If Carolina to design tires for Michelin the students that trying to draw a car “There’s a reason we call a car a set wheels, as a favorite example. “It really it’s right, it’s right. If it’s wrong, it can North America Inc. without wheels is like looking at a per- of wheels,” Min said. “Technically or fits in with our vehicle philosophy,” be disturbing.”c Huh? “People don’t realize how much work is put into tires,” said the 38- year-old graduate of the Art Center College of Design in Pasadena, Calif. “When you design a car, you look at three aspects — proportion, form and graphics. Tires influence all three. “Tires and wheels help dictate what message you’re trying to get across with the car,” Ebel said. “They can completely change the image of a car.”

They like ’em big There is one thing on which auto designers agree: They like to draw big wheels and tires. For many, it’s the first step in the creation of a car. For Kia and Toyota, big wheels and tires were key elements for recent addi- tions to their product lineups: the Kia Soul and the . Tom Kearns, chief stylist at Kia Mo- tors America, designed the Soul. “Right from Day One, we’re negoti- ating with the engineers on tire size,” Kearns said. “Wheels and tires are so critical to the exterior. Not only the size but the location and placement of the wheels and tires. ... “It’s like a men’s suit and tie. The suit is the car; the tie is the wheels. The tie can make the suit look really bad or good. The same for the tires on a car.” The small Soul, which ranges in price from roughly $14,000 to $19,000, comes with optional 18-inch wheels, www.contitech-online.com/yn rare for a vehicle in that price range. “We were able to encourage man- agement to sign off on large-sized wheels and tires,” Kearns said. “In contrast to the boxy shape, the wheels are pushed out to the corners, and the larger size supports the larger mass of vehicle as well. It makes it look stable Experience the ride. and sure-footed. Kearns said he was fortunate. For a car the size of the Soul to get 18-inch wheels is pretty much unheard of. When the day’s schedule calls for three meetings on the road that add up to 242 miles— “It makes the car look sportier, comfort and reliability are things you are counting on. This is where the innovation and confidence more capable, more grown up,” he said. “The first thing every car enthu- of ContiTech technology makes your vehicle comfortable and environmentally-compatible. siast out there wants is wheels and With drive belts that reduce noise, engine mounts that control vibration, air conditioning lines that tires to upgrade the look. The wheels and tires can make or break a design. ensure reliable connections and interiors that let you ride in comfort—ContiTech gives you The Venza, which went on sale last a smooth and comfortable ride, every time. Experience ContiTech. We’re built for the future. December, was Toyota’s first stab at the fast-growing crossover segment. Designer Ian Cartabiano knew the ContiTech. Get more with elastic technology. Venza had to make a statement since so many other crossovers were al- ready on the street. The result: stan- dard 20-inch wheels on the V-6 mod- el and standard 19-inchers on the four-cylinder model. “We fought very hard for those 20- SAE Commercial Vehicle Engineering Congress and Exhibition inch wheels to help tell the story of this Rosemont, Illinois USA new product,” Cartabiano said. “We October 6 - 7, 2009, Stand 622 chose the large size to make a state- ment, to broadcast a new type of vehi- cle. We knew we had to stand out.” Venza is the only Toyota car with 20090914-NEWS--0016-RG1-CCI-AN_-- 9/9/2009 10:25 AM Page 1

22H • SEPTEMBER 14, 2009 DESIGN

These days, former BMW design chief Chris Bangle Where in the world is getting his new industrial design company off the ground in Italy. He is Chris Bangle? says he’ll get back into auto design Diana T. Kurylko BMW. So the bearded, boyish one in four or five years [email protected] says he’s busy lining up industrial with “a fresh Former BMW design chief Chris Bangle is clients. perspective.” building a home and a design studio 40 miles Bangle, an American who spent his south of Turin, Italy, in the Piedmont wine career in Europe, left BMW last country. March after 17 years with the compa- He owns two vineyards, but Bangle says he’ll ny and 28 years in the auto business. let local farmers take care of the grape growing Through his company, Bangle says and wine making. Bangle, 52, is back doing what he will return to cars in four or five he loves best — designing stuff. years with “a fresh perspective.” His new company, Chris Bangle Associates, He says his new business is still in has to stay out of the automotive business until startup mode but that he has lined up at least March of next year per his contract with some clients. He won’t say who they are. “A wide range of products and ser- vices have talked to me, and I have talked to them,” Bangle said. He’ll also do some consulting. “After all, I have been a design manager for over 20 years,” he said. “You try to bring more out of creative people than they ever thought possi- ble. But you also try to show compa- nies that you have worked with where creativity can really bring them something and perhaps some strategies that they can go about im- proving it.” Bangle was hired by General Motors straight out of the Art Center College of Design in Pasadena, Calif., and sent to the carmaker’s German subsidiary, . Bangle worked at Opel from 1981 to 1985 and then moved to Fiat. He shifted to BMW in 1992 to be- come head of design. At times he was controversial. His 2001 7 series drew loads of criticism, then lots of imita- tors. Bangle hasn’t completely removed himself from things automotive. He’s working on a presentation for the Ic- Steve St. Angelo, President of Toyota Motor Manufacturing Kentucky sid World Design Congress in Singa- Executive Vice President of Toyota Engineering and Manufacturing North America pore in November focusing on the Managing Officer of Toyota Motor Corporation challenges of personal, emotional mobility in 2050. He says he’ll deliver a blunt mes- sage. “Cars are becoming uninspir- ing,” Bangle says. By 2050, he says, “It is hard to imag- ine the love affair that we have en- Kentucky’s joyed with sculpted metal in the sense that we know it today still being a major driving factor for young peo- dedication helps keep Toyota ple.” c moving forward. Chris Bangle In the late 1980s, when Toyota located its As a Detroit native with more than 30 Age: 52 assembly plant in Georgetown, Kentucky, years of automaking under my belt, I’ve Born: Ravenna, Ohio the company saw much more than a seen the inside of a lot of different assembly Education: University of charming community in Middle America Kentucky has plants. I can honestly say this team can’t Wisconsin; Art Center College be beat. Their efforts have made the Toyota of Design, Pasadena, Calif. blessed with low energy costs. Toyota also proven time and saw the skill, dedication, and hard work of Camry the best-selling car in America year Design career Kentucky’s people. time again that after year, as well as the 2007 Motor Trend 1981-85: Adam Opel Our vision has been proven right. This Car of the Year. 1985-92: Fiat Centro Stile, it will do what plant has won more J.D. Power quality awards Kentucky government is just as dedicated. promoted to director in 1992 than any other auto assembly plant in the it takes to keep Whether it’s through tax credits, educational 1992-2009: Director, BMW world, and we’re always raising the bar. With initiatives or simply a can-do spirit, Design Group Toyota strong. this team’s passion for quality, Georgetown is Kentucky has proven time and time again Memorable Opel design: Interior now the mother plant for Toyota operations that it will do what it takes to keep Toyota of Opel Junior concept in three other locales. It’s also the only North strong. Thanks, Kentucky, for providing the Memorable Fiat design: Fiat Coupe American Toyota plant making hybrids. fuel we need to keep on growing. Memorable BMW design: 2002 7 series, with controversial but influential trunk lid Why he left BMW: “You have to know when to leave the party. Cabinet for Economic Development The product palette was perfect.” What he’s doing today: Running his own industrial design Come to Kentucky and write your own success story. Call 1-800-626-2930 or visit ThinkKentucky.com. company, Chris Bangle Associates, in Italy 20090914-NEWS--0023-NAT-CCI-AN_-- 9/9/2009 3:50 PM Page 1

SEPTEMBER 14, 2009 • 23 marketingmarketing Can agency vet make buzz like Nissan? Siltanen gets one play with the big boys. thought we could help.” behind the launch. That hasn’t exact- “Our motto here is, ‘Make it hap- Rob Siltanen The Hyundai work was enough to ly pleased dealers struggling with a swing at home run pen,’ ” said Siltanen, 45. “When you Age: 45 attract the attention of Suzuki mar- 54.9 percent year-to-date sales skid. have a company the size of Suzuki, Title: CEO, chief creative officer, keting boss Gene Brown, who gave But Siltanen is confident the Kizashi with new Kizashi you have to figure out ways to out- Siltanen & Partners Advertising Siltanen some project work. The at- will be the turnaround car, just like Mark Rechtin smart, rather than outspend. Beating Family: Married, 3 children traction was that good work could Altima and Xterra were for Nissan. [email protected] competitors with less ... that’s what I persuade Suzuki’s Japanese bosses to As for the launch budget, Siltanen Education: University of Oregon, LOS ANGELES — Rob Siltanen built love to do. We can make a difference.” B.S. in journalism release agency Dentsu America from said, “These days, $30 million is noth- his reputation as a creative megastar Siltanen’s big moment will come its contract. ing.” But he said the Kizashi could Dream car: A Porsche 911, “but I during the 1990s while forging mem- this fall when his agency launches Siltanen won the account, and its have a huge impact on the brand. have a family” orable Nissan advertising for the then Suzuki’s Kizashi mid-sized sedan. “Live Large, Drive Small” campaign “This isn’t like half the cars I’ve had white-hot agency Chiat/Day. Suzuki is putting pretty much its en- Dream dinner companions: for the SX4 and Grand Vitara — to launch before,” he said. “This is like Siltanen’s string of hits working for tire 2009 advertising budget behind it. Shaquille O’Neal, Tina Fey, my Dad launched amid soaring gasoline the Xterra. I don’t believe in the halo surfer-savant and creative director Some perspective: It’s less than what Last iPod load: Black Eyed Peas’ prices in 2008 — boosted Suzuki’s effect of a great sports car like the Lee Clow included launch campaigns Toyota spends in a month on ads. “I Gotta Feeling” recognition and Web traffic consid- Acura NSX. It doesn’t have enough for the 1993 Altima sedan and 1999 erably. rub. Xterra SUV, as well as the riotous Nis- El Segundo 90245 spent on real estate meant more to Two years ago, Suzuki’s U.S. ad “But when a sedan nails it, that goes san Z “G.I. Joe” spot. He also was a Advertising agencies typically are spend on talent. budget was $150 million. The reces- across to the SUVs and small cars. force behind Apple’s “Think Differ- enclaves in hip locales or glass-win- The inside of the agency is Spartan, sion has shrunk that considerably, When you get the mid-sized car right, ent” campaign. dowed towers in exclusive neighbor- with exposed brick walls and poured which worries Siltanen. you can get everything else.” But agency politics being what they hoods. Siltanen’s shop is neither. concrete floors. Accumulation from “What they were spending was From there, Siltanen wants to ex- are, Siltanen left Chiat/Day in 1999 to It’s near the Los Angeles airport, current and past advertising cam- enough so that we could have made a pand the Suzuki name for vehicles — hang out his own shingle. And de- and backs up to railroad tracks. paigns is scattered throughout. An dent and grown with it,” he said. “I including motorcycles, ATVs, scoot- spite the much-praised work for Nis- Across the street is an ancient, creaky employee’s rare open-cockpit Fiat liked that they were small and aggres- ers and boat engines — the way the san, it took Siltanen & Partners Ad- oil pumpjack. race car is parked inside, next to an sive and receptive to the work. Now is Nike brand propelled its reach be- vertising nearly a decade to land its But Siltanen is a practical man. He Everlast punching bag. the time to make a difference. yond running shoes. first car account, American Suzuki. knew a Beverly Hills 90210 address And while initially unable to land a Hyundai and Subaru have done it. I’d The working tag line: “Adventure- Now he’s out to prove that both he would chew up too much of his start- big-ticket car account, Siltanen won like to put our foot on the gas.” ready equipment.” and Suzuki are underdogs who can up operation’s working capital. Less significant work from EA Sports, Pan- In two months, Suzuki launches the “I see great potential for these guys da Express, Quiznos, Gateway and Kizashi. It is pitched as a mid-sized and want to get more people to be- Public Storage. sedan but actually fits between the lieve,” Siltanen said. “All we need to and Camry in size. do is shine a light and it can be suc- Fighting the giants Suzuki has held back much of its ad- cessful. This could really change the Siltanen’s first real shot at a major vertising budget to put its full weight world for Suzuki.” c automotive client came in 2007 when he persuaded Hyundai Motor Ameri- ca boss Steve Wilhite to let his agency do some work on spec. “The product was terrific, but the brand was terrible,” said Siltanen. “Their advertising said, ‘We’re not Inspire... crap anymore.’ They were looking backward, not forward, and tainted a whole new generation of buyers who didn’t know Hyundai had ever made bad cars.” limitless performance Siltanen’s unsolicited pitch showing Hyundai as a smart buy, not a cheap buy, was enough to compel the au- tomaker to conduct an agency review. But Siltanen’s attempt to become agency of record fell short against much larger firms. Still, Hyundai aired Siltanen’s creative work during the agency transition in the spring of 2007. And, indeed, sales increased for the first time in 18 months. “Getting a car account was a much harder task than I ever thought,” Silta- nen said. “I guess I was pretty naive. But we could not break in. We wrote endless letters. And there were count- less phone calls not returned, particu- Rob Siltanen: “Our motto here is, ‘Make it happen.’ ” larly from Detroit. There were brands I

In the ’90s, surf was up; so was the adrenaline Springbok Services – Customized automotive LOS ANGELES — Those were self-indulgent. But it also was the place the market. When that happens, mar- prepaid programs designed to open doors: heady days that Rob Siltanen spent at every creative genius wanted to work. keting has to save the day. Chiat/Day Advertising in the 1990s. Chiat/Day had a big impact on the “Nissan was in serious trouble,” said Focus your dealership consultants on their sales targets 'ULYHWUDIÀFLQWRVWRUHVZLWKDWWUDFWLYHLQFHQWLYHV The LA shop had a heap of auto industry. The work Siltanen and Siltanen. “People were saying Nissan Engage online shoppers clients during that golden decade, in- the agency did for Nissan North could disappear. Turning that compa- 6WLPXODWHVHUYLFHOR\DOW\ZLWKH[LVWLQJFXVWRPHUV cluding Apple, American Express, America was outlandish, sometimes ny around took a lot of figuring.” Move the right products at the right time

Microsoft and Reebok. A wacky cast bizarre, but always memorable. The advertising clearly helped. The Inspire... of characters ran the show — includ- Maybe the most distinctive TV campaign for the 1999 Xterra helped www.springautoincentives.com ing creative director Lee Clow, who campaign had G.I. Joe rescuing Bar- the vehicle become the first SUV to often arrived at meetings dripping bie from doll-home hell in a red lure rock-stomping, surf-riding Gen 1.248.881.4380 and sandy from a morning surf. It 300ZX. X kids. The campaign used to launch

was the first agency to invoke the Not that Nissan was setting the world the 1993 Altima parodied Lexus’ Springbok Services, Inc. is a registered agent of KeyBank National Association and MetaBank™. “virtual workplace,” where no one on fire in those days. It never really re- quality attributes. The ads basically MasterCard prepaid cards are issued by KeyBank National Association or MetaBank™ pursuant to a license by MasterCard International Incorporated. MasterCard and the MasterCard Brand had an assigned desk. covered from the -to-Nissan said, Why pay $50,000 for that when Mark are registered trademarks of MasterCard International Incorporated. Visa prepaid cards are The Economist once described the name change in 1981. The products you can have this for $15,000? issued by MetaBank™ pursuant to a license from Visa U.S.A. Inc. shop as equal parts cutting edge and were conservative and poorly placed in — Mark Rechtin 20090914-NEWS--0024-NAT-CCI-AN_-- 9/9/2009 3:50 PM Page 1

24 • SEPTEMBER 14, 2009

Inventory – U.S. car and light-truck, on September 1 Vehicles are domestic unless noted. U.S. sales Days Days Days Days Days Days per franchise, August supply supply supply supply supply supply Car Truck Total Total Inventory Sept. 1 Aug. 1 Inventory Sept. 1 Aug. 1 Inventory Sept. 1 Aug. 1 Aug. Aug. Aug. July units 2009 2009 units 2009 2009 units 2009 2009 Make 2009 2009 2009 2009 CR-V (D) ...... 12,000 13 36 GMAC FINANCIAL SERVICES — BMW div. car (D/I) .... 20,700 34 44 LaCrosse...... 2,700 25 61 Toyota/Scion 116 48 164 127 BMW div. trk. (D/I) .... 2,800 22 33 Lucerne...... 8,200 130 115 CR-V (I)...... 5,000 20 45 Tim Russi, Honda 98 50 148 103 46, to Total BMW division (D/I) 23,500 32 42 Total Buick car ...... 10,900 64 91 Total CR-V...... 17,000 15 38 Lexus 56 46 102 82 executive vice Mini Cooper car (I)...... 4,100 21 26 Enclave ...... 5,600 35 48 Element...... 1,000 11 51 Nissan 68 23 91 61 president in BMW† ...... 27,600 29 38 Total Buick trk...... 5,600 35 48 Odyssey ...... 9,000 26 42 Hyundai 59 18 77 58 charge of North 300 ...... 5,200 32 77 Total Buick ...... 16,500 50 68 Pilot...... 8,000 27 53 Kia 44 19 63 46 Crossfire (I)...... 100 194 101 CTS ...... 7,100 72 82 Ridgeline...... 4,000 68 110 Mini 62 – 62 59 American PT Cruiser...... 900 6 28 DTS...... 4,300 135 111 Honda Div. trk. (D) .... 34,000 20 45 BMW 47 10 57 49 automotive Sebring ...... 1,000 10 26 STS ...... 1,800 142 139 Honda Div. trk. (I) .... 5,000 20 45 Mercedes-Benz 32 18 50 47 operations. He Chrysler Div. car (D) .. 7,100 17 40 XLR...... 400 194 164 Total Honda Div. trk... 39,000 20 45 Subaru 46 1 47 36 Chrysler Div. car (I) .. 100 194 101 had been CFO of Total Cadillac car...... 13,700 93 96 Total Honda Div...... 142,000 24 49 Ford 16 29 45 41 Total Chrysler Div. car 7,200 18 40 Escalade ...... 3,700 94 96 Am. Honda car (D) .... 94,000 29 50 Chevrolet 23 20 43 32 GMAC Global Aspen ...... 300 24 43 Escalade ESV ...... 1,100 55 58 Am. Honda car (I) .... 17,000 19 57 31 12 43 39 Russi Auto Finance Pacifica ...... – 16 29 Escalade EXT...... 600 97 101 Am. Honda car ...... 111,000 27 52 Mazda 29 12 41 29 and Insurance. Town & Country ...... 7,500 26 30 SRX...... 2,600 48 100 Am. Honda trk. (D) .... 37,000 20 44 VW 35 4 39 33 Total Chrysler Div. trk. 7,800 26 30 Total Cadillac trk. .... 8,100 67 89 Am. Honda trk. (I) .... 5,000 20 45 Acura 23 13 36 32 Russi will oversee the development Total Chrysler Division 15,000 21 36 Total Cadillac ...... 21,700 82 93 Am. Honda trk...... 42,000 20 45 Audi 23 7 30 24 of GMAC’s financing programs and Avenger...... 500 3 15 Aveo (I)...... 12,000 24 128 AMERICAN HONDA ...... 153,000 25 49 Dodge 6 14 20 18 Caliber...... 1,900 12 17 services for auto dealers and retail Camaro ...... 7,200 21 23 Hyundai div. car (D/I) 49,400 28 40 Saturn 9 11 20 14 Challenger...... 3,400 77 54 Cobalt ...... 12,700 19 70 Volvo 13 4 17 19 customers. Hyundai div. trk. (D/I) 17,700 32 57 Charger ...... 5,500 22 82 Corvette...... 5,300 184 150 9 6 15 10 Total Hyundai div. (D/I)†.. 67,100 29 43 Viper ...... 200 208 208 HHR ...... 6,400 15 45 Land Rover – 13 13 10 Kia car (I) ...... 32,200 30 42 J.D. BYRIDER — J. Michael Pearce Total Dodge car ...... 11,500 19 29 Impala...... 24,600 31 54 Suzuki 8 5 13 8 to vice president of franchise Caravan...... 5,900 14 19 Malibu...... 34,700 52 55 Kia trk. (I) ...... 15,100 32 44 Pontiac 11 0 11 8 Total Kia (I)* ...... 47,300 31 43 development. He had been senior Dakota...... 1,400 34 63 Chevrolet car (D) ...... 90,800 31 53 GMC – 10 10 10 Durango ...... 300 41 55 Chevrolet car (I) ...... 12,000 24 128 Hyundai-Kia car (D/I) .. 81,700 29 40 – 8 8 8 vice president of development for Journey...... 4,600 25 25 Total Chevrolet car .... 102,800 30 59 Hyundai-Kia trk. (D/I) .. 32,800 32 50 Porsche 5 3 8 8 bd’s Mongolian Grill. Nitro ...... 1,500 27 51 Avalanche ...... 4,900 89 82 HYUNDAI-KIA...... 114,500 30 43 Chrysler 4 3 7 6 Pearce is responsible for licensing Ram ...... 31,600 47 64 Colorado ...... 2,100 12 39 Jaguar car (I)†* ...... 5,100 152 189 Cadillac 3 2 5 5 Sprinter...... 2,200 49 125 Land Rover truck (I)†* 8,000 91 123 franchisees, site selection and Equinox...... 5,200 10 25 Hummer – 5 5 5 Total Dodge trk...... 47,500 34 49 Express/G van...... 15,000 69 97 JAGUAR LAND ROVER N.A.†‡*13,100 108 143 Jaguar 5 – 5 4 construction consulting for Total Dodge ...... 59,000 29 42 Silverado...... 74,600 60 72 Mazda3 (I)...... 13,700 24 47 Lincoln 3 2 5 6 franchisees. Commander ...... 1,700 33 115 Suburban ...... 6,100 39 57 Mazda6 ...... 6,100 47 64 3 2 5 5 J.D. Byrider, of suburban Compass...... 200 4 15 Tahoe ...... 11,800 51 83 MX-5 Miata (I) ...... 2,200 78 100 Buick 2 2 4 2 Grand Cherokee ...... 7,800 26 85 Indianapolis, is a used-vehicle TrailBlazer ...... 900 63 56 RX-8 (I)...... 1,100 179 162 Aston Martin 3 – 3 3 Liberty...... 4,400 34 52 Traverse ...... 18,200 41 68 Mazda car (D) ...... 6,100 47 64 Ferrari 3 – 3 3 retailer with 125 franchisee- and Patriot ...... 300 3 7 Uplander ...... 200 76 62 Mazda car (I) ...... 16,900 28 52 Maserati 2 – 2 2 company-owned dealerships in 30 Wrangler ...... 11,900 55 57 Total Chevrolet trk..... 139,000 46 63 Total Mazda car ...... 23,000 32 54 Saab 2 – 2 2 states. Total Jeep trk...... 26,200 31 39 Total Chevrolet (D)...... 229,800 39 59 B series...... – 13 55 Rolls-Royce 1 – 1 1 Chrysler Group car (D) 18,600 18 33 Total Chevrolet (I) ...... 12,000 24 128 CX-7 (I)...... 2,700 26 40 Chrysler Group car (I) 100 194 101 Source: Automotive News Data Center Total Chevrolet ...... 241,800 37 61 CX-9 (I)...... 2,100 28 34 JM FAMILY ENTERPRISES INC. — Chrysler Group car ...... 18,700 18 33 Acadia ...... 7,300 34 42 Mazda5 (I)...... 500 6 17 Chrysler Group trk...... 81,600 32 43 Eric Gebhard to Canyon ...... 700 11 50 Tribute...... 500 13 43 CHRYSLER GROUP ...... 100,200 28 40 Envoy ...... 600 51 54 Stock by maker treasurer. He Mercedes-Benz car (I) 21,600 51 48 Mazda trk. (D)...... 600 13 44 had been Savana/G van ...... 3,900 122 141 Mazda trk. (I) ...... 5,300 21 29 Days supply on Sept. 1, 2009 Mercedes-Benz trk. (D/I) 10,100 43 69 Sierra ...... 32,000 71 79 assistant vice DAIMLER AG† ...... 31,700 48 54 Total Mazda trk...... 5,800 20 31 Smallest Terrain...... 800 45 – MAZDA† ...... 28,800 28 47 president of Crown Victoria ...... 2,600 49 26 Yukon ...... 6,600 133 114 1. Toyota† 12 Focus ...... 13,000 13 25 Eclipse...... 1,700 110 136 product and Yukon XL ...... 3,700 111 62 Eclipse Spyder ...... 500 80 84 2. Subaru† 16 Fusion ...... 15,900 20 34 Total GMC trk...... 55,500 64 72 business Mustang ...... 19,500 81 78 Galant ...... 1,400 34 65 3. Nissan† 22 H2 ...... 300 74 87 Taurus...... 3,800 29 46 Lancer (I) ...... 5,100 52 57 4. Honda 25 development H3 ...... 1,600 64 88 Total Ford div. car .... 54,800 25 36 Mitsubishi car (D) .... 3,600 57 88 5. Chrysler 28 and assistant Total Hummer trk...... 2,000 66 87 E-series/Club Wagon.. 1,000 36 25 Mitsubishi car (I) ...... 5,100 52 57 G3 Wave (I)...... 1,300 13 90 Gebhard vice president of E-series van ...... 11,800 66 49 Total Mitsubishi car .... 8,700 54 70 Largest G5 ...... 2,200 23 45 portfolio finance Edge ...... 11,700 28 61 G6 ...... 7,500 15 48 Endeavor...... 300 14 17 1. Jaguar Land Rover†* 108 Escape...... 9,400 12 21 at World Omni Financial Corp., a JM G8 (I) ...... 3,000 52 48 Outlander (I) ...... 1,300 18 70 2. Porsche† 86 Expedition ...... 5,600 87 38 Family subsidiary. Grand Prix...... – 83 46 Raider ...... 200 59 139 3. VW 83 Explorer...... 10,200 57 88 Solstice ...... 1,600 73 92 Mitsubishi trk. (D) .... 600 20 31 4. Daimler† 48 Gebhard’s new duties include F series ...... 98,500 56 79 Vibe...... 1,600 5 29 Mitsubishi trk. (I) ...... 1,300 18 70 5. Mitsubishi 41 securing financing and managing Flex ...... 3,600 23 39 Total Mitsubishi trk. .... 1,900 19 56 Pontiac car (D) ...... 12,900 14 42 †Dealer stock only *Estimate interest rate risk for the company Ranger ...... 3,500 12 24 MITSUBISHI ...... 10,600 41 66 Taurus X ...... 200 20 36 Pontiac car (I) ...... 4,300 27 61 Source: Automotive News Data Center and forming strategies for capital Total Pontiac car ...... 17,200 16 45 Infiniti car (I) ...... 8,100 38 49 Transit Connect (I) .... 4,900 57 87 Total Infiniti trk. (D/I) .. 2,600 31 39 allocation and cash management. Ford div. trk. (D) ...... 155,500 40 54 Pontiac Torrent trk..... 700 18 50 Total Infiniti (D/I)...... 10,700 36 47 Ford div. trk. (I)...... 4,900 57 87 Total Pontiac (D) ...... 13,700 14 43 JM Family Enterprises, of Deerfield Total Nissan Div. car (D/I) 53,600 19 49 Total Ford div. trk. .... 160,400 40 54 Total Pontiac (I) ...... 4,300 27 61 Stock by brand Beach, Fla., is a diversified company Total Pontiac ...... 18,000 16 46 Total Nissan Div. trk. (D/I) 25,900 27 36 Ford div. (D)...... 210,300 34 47 Days supply on Sept. 1, 2009 that provides services to auto Ford div. (I) ...... 4,900 57 87 Saab car (I) ...... 2,700 173 166 Total Nissan Div...... 79,500 21 45 dealers. Total Ford division ...... 215,200 35 48 Saab truck ...... 200 79 76 Nissan N.A. car (D/I) .. 61,700 21 49 Smallest Primary subsidiaries include MKS ...... 4,100 78 91 Total Saab...... 2,900 157 151 Nissan N.A. trk. (D/I) .. 28,500 27 36 Astra (I)...... 400 11 64 NISSAN N.A.† ...... 90,200 22 45 1. Toyota/Scion† 11 Southeast Toyota Distributors; Town Car...... 800 74 14 2. Pontiac† 16 MKZ ...... 5,500 88 104 Aura ...... 7,400 82 177 Porsche car (I) ...... 2,400 61 67 World Omni Financial Corp, which Total Lincoln car ...... 10,400 83 64 Sky ...... 1,200 77 127 Porsche trk. (I) ...... 2,700 135 83 3. Subaru† 16 provides retail and wholesale MKX ...... 5,100 62 100 Saturn car (D) ...... 8,600 81 168 PORSCHE† ...... 5,000 86 72 4. Mini† 21 financing for dealers; and JM&A Navigator...... 1,800 99 81 Saturn car (I) ...... 400 11 64 Subaru car (D)** ...... 7,300 20 31 5. Chrysler 21 Total Saturn car...... 9,000 62 142 Group, a provider of finance and Total Lincoln trk...... 6,900 69 96 Subaru car (I) ...... 10,000 14 31 Total Lincoln ...... 17,300 77 74 Outlook ...... 1,800 46 78 Subaru car (D/I) ...... 17,300 16 31 Largest insurance products to dealers. Grand Marquis ...... 900 38 13 Vue ...... 3,900 27 70 Subaru truck (D)**...... 600 21 47 1. Saab† 157 Milan...... 4,100 28 59 Total Saturn trk...... 5,700 31 72 SUBARU† ...... 18,000 16 32 2. Jaguar†* 152 Sable (new)...... 300 27 45 Total Saturn (D) ...... 14,200 50 102 Suzuki car (I) ...... 1,900 14 75 Total Saturn (I) ...... 400 11 64 3. VW 98 Total Mercury car...... 5,300 29 38 Suzuki trk. (D/I)...... 4,600 54 65 4. Land Rover†* 91 Mariner ...... 1,600 11 28 Total Saturn ...... 14,700 45 99 SUZUKI†...... 6,500 29 71 GM car (D) ...... 136,900 32 56 5. Porsche† 86 obituaries Mountaineer ...... 1,300 84 84 Lexus car (I) ...... 13,100 27 36 GM car (I) ...... 19,400 29 108 †Dealer stock only *Estimate Total Mercury trk. .... 2,900 17 34 Lexus trk. (D/I) ...... 6,300 16 19 GM car ...... 156,300 31 61 Source: Automotive News Data Center Total Mercury ...... 8,200 23 36 Total Lexus (D/I) ...... 19,400 22 28 Phil Pascarella Total L-M car ...... 15,700 51 49 GM trk...... 216,700 49 66 GENERAL MOTORS† .... 373,000 39 64 Toyota/Scion car (D/I) 54,800 10 31 Total L-M trk...... 9,800 37 55 Toyota trk. (D/I) ...... 32,100 14 27 FRANKFORT, Ill. — Longtime auto Total L-M ...... 25,500 44 51 RL (I)†† ...... 200 35 79 Total Toyota/Scion (D/I) 86,900 11 30 Domestics vs. imports dealer Phil Pascarella died here on Ford/Lincoln/Mercury car .. 70,500 28 38 TL ...... 4,000 35 55 TSX (I)†† ...... 3,800 34 65 TOYOTA MOTOR SALES† 106,400 12 29 Days supply on Sept. 1 Sept. 1. He was 81. Ford/Lincoln/Mercury trk. .. 170,200 40 54 Ford/Lincoln/Mercury .. 240,700 36 48 Acura car (D) ...... 4,000 35 55 Audi car (I)...... 11,100 47 57 Pascarella founded Phillips Audi trk. (I) ...... 1,500 21 28 On Sept. 1 On Aug. 1 30 series (I) ...... 700 27 63 Acura car (I) ...... 4,000 34 66 Detroit 3 36 53 Chevrolet in Frankfort in 1968. He Total Acura car ...... 8,000 34 60 Total Audi (I) ...... 12,600 41 50 40 series (I) ...... 1,300 37 85 European 57 66 retired in 1994. His son, Curtis 50 series (I) ...... 400 34 62 MDX ...... 2,000 18 42 VW div. car (D/I) ...... 76,400 97 108 RDX...... 1,000 36 50 VW div. trk. (I) ...... 16,800 101 127 Japanese 19 39 Pascarella, is now the dealer. 60 series (I) ...... 100 3 9 70 series (I) ...... 1,500 29 31 Total Acura trk...... 3,000 22 43 Total VW division (D/I) 93,300 98 110 Korean 30 43 80 series (I) ...... 1,100 50 62 Total Acura ...... 11,000 30 54 VW GROUP OF AMERICA 105,800 83 96 Total industry 30 48 Total Volvo car (I) .... 5,000 30 38 Accord (D) ...... 56,000 38 55 Total car ...... 765,200 26 46 Steve Stevenson Source: Automotive News Data Center XC60 (I) ...... 700 25 46 Accord (I) ...... 1,000 24 74 Total truck ...... 667,100 34 49 Total Accord ...... 57,000 37 56 TOTAL...... 1,432,300 30 48 ALTON, Ill. — Longtime auto XC90 (I) ...... 1,300 46 58 Total Volvo trk. (I) .... 2,100 35 52 Civic (D) ...... 34,000 21 44 †Dealer stock only dealer Steve Stevenson died here Total Volvo (I) ...... 7,100 32 41 Civic (I) ...... 1,000 36 40 ††Total car stock figure is actual, but the Insight, RL, S2000 and Perspective Aug. 30. He was 83. Ford Motor Co. car (D) 70,500 28 38 Total Civic ...... 35,000 21 44 TSX breakouts are estimated. Total industry days supply on Sept. 1 He owned Quality Buick-Pontiac- Ford Motor Co. car (I) 5,000 30 38 Fit (I)...... 5,000 10 50 *Estimate Ford Motor Co. car...... 75,500 28 38 Insight (I)†† ...... 5,800 36 68 ‡Ford Motor Co. sold Jaguar and Land Rover to Tata Motors on 2005 51 GMC-Cadillac in Alton. He bought Ford Motor Co. trk. (D) 165,300 40 54 S2000 (I)††...... 200 93 382 June 2, 2008. the dealership, then Quality **Total domestic stock figure is actual, but domestic car and 2006 59 Ford Motor Co. trk. (I) 7,000 48 59 Honda Div. car (D) .... 90,000 29 50 truck stock figures are estimated. Pontiac, in 1958 and served as Ford Motor Co. trk. .... 172,300 40 54 Honda Div. car (I) .... 13,000 17 55 2007 57 president until his death. Sons Greg FORD MOTOR CO...... 247,800 35 48 Total Honda Div. car .. 103,000 27 51 Source: Automotive News Data Center and company sources 2008 61 and David Stevenson now own : Numbers may not add due to rounding; (D) = produced in North America; (I) = imported to U.S. Days supply: Number of days needed to sell all vehicles in inventory, 2009 30 dealership. based on the previous month’s daily selling rate Inventory: Unit count of vehicles on hand at dealerships, factory lots, ports of entry and in transit on a specific date Source: Automotive News Data Center

26 • SEPTEMBER 14, 2009

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SALES MANAGEMENT To respond to a WORLDWIDE HIGHLINE SALES Multi-Franchise Controller Needed CONFIDENTIAL BOX: Mid-West, US Location PROFESSIONALS Multi-Franchise experience as controller BUSINESS PIPELINE Howard Orloff Imports of Chicago is seeking required. Experience with implementing anboxreply@ autonews.com motivated, self-starters to join our BUSY Jaguar, and monitoring processes required. Ex- CONSULTANTS INDUSTRIAL FACILITY Volvo and Land Rover Dealership. Applicants perience with managing large accounting must have recent auto sales experience prefera- office of 15 people required. Or fax to 313-446-8030 bly from a dealer with a strong training program, BUYERS & SELLERS 100-1500 Ton Inj. Molding internet and CSI focus. Superb pay and benefit Please forward your resume, Questions? (773) 227.3200x352 or In today’s market you only want package. Call Diane AT cover letter and salary requirements to: to deal with professionals Full Tool Shop– Forge Tooling Call 800-388-1800 or email [email protected]. Drug Free and EOE E-mail: [email protected] CALL Lg Specialized Machining DAVID GAVIN & ASSOCIATES 313-446-6065 210-366-0111 ISO 9001:2000 Certified NE Ohio Area Oldest Dealership Brokerage Company in the USA [email protected] (800) 411-4086 Please include Box # in subject line SEPTEMBER 14, 2009 • 27 CLASSIFIEDS www.automotivenews.com 800-388-1800 or 313-446-6065 POSITION WANTED DEALERSHIPS AVAILABLE DEALERSHIPS AVAILABLE HELP WANTED — DEALERS To encourage this classification for the benefit of those REALISTIC MARKET VALUE. Blue-Sky is not gone! Your seeking employment, Position Wanted Ads are accepted at dealership is a franchised business with territorial protection. a lower cost than regular rates, namely $17.00 per line for What is the value of your dealership in today’s volatile SERVICE GENERAL each insertion. $40.05 per insertion for use of a box num- environment? Log on to: www.realisticmarketvalue.com ber. Minimum 4 lines. ADVANCE PAYMENT REQUIRED. NORTHERN MICHIGAN FORD/NEWCO CHRYSLER - Major Houston Metro High Line Import Dealer Seeks — RESUMES - RESUMES - RESUMES - RESUMES — Visa, Mastercard, Discover or American Express accepted. Growing sales, profits due to increased market share. If your resume isn’t a Winner, it’s a Killer. Do it right. Strong used, service department. $1.5 Million including www.career-resumes.com View Sample # 6. One of (Lower rate does not apply to display ads in this section). RE. [email protected], Call (715) 354-3452 SERVICE DIRECTOR the largest resume writing services in US. 1-800-800-1220 Must have strong Mercedes/ Lexus/ BMW/ Infiniti/ PENNSYLVANIA CHEVROLET. Marked down aggressively for Acura Credentials. Candidates must be successful in a quick sale. RE available for purchase. Exclusively by Gershon CSI. Six figures guaranteed. Must be qualified with Family Owned Dealership POSITION WANTED Rosenzweig 212-840-1375 & DeVere Boyd 616-844-6247. NBB at 949-770-7451 www.nationalbusinessbrokers.com financial statements and customer pay available for In the Houston Area review. Immediate opening. Confidentiality is a must. SEEKING SERVICE MANAGER POSITION KANSAS CITY AREA- Honda training 100%, also have training in Send resume to Box 5409. Seeking an Experienced Toyota, Nissan, Lexus. Very high CSI. 9 years experi- THRIFTY CAR SALES ence imports dealer service dept. Email: [email protected] FRANCHISES AVAILABLE MANAGEMENT Office Manager/Comptroller AUTO AUCTION BUYER - Cars, trucks, and SUV’s. For- A Thrifty Car Sales franchise in your area eign & domestic. New England area. 30 years experience. can provide: Excellent Atmosphere & Good relationships with local auctions. Call Greg at 508- HIGHLINE SALES MANAGER Benefits 451-9866 or email: [email protected] • Recognized Brand Name and Image NEW! Be the exclusive Network Marketing Dealer • Marketing and Advertising Support We have an immediate opening for an experienced Send Resume to: in your market! Ever heard of Avon or Amway? • A Business Development Center new car sales manager for Mercedes-Benz, BMW Call me if you want to recruit thousands of part-time Box # 5407 sales people - who will sell their relatives and friends! • A Certification Program sharing a new showroom with a short term planning Kenny Pletz @ [800] 395-5696 volume of 45-60 new vehicles per month The suc- To learn more about this great opportunity, cessful candidate should be capable of desking mul- SUBPRIME INVENTORY BUYER call toll free TODAY. tiple deals to meet and exceed volume projections 14 years experience. Looking to add 3 stores. DEALERS I buy cars that book! Florida. Refs. available. 941-544-4436 at benchmark gross profit levels. Ability to train, mo- or [email protected] 1-877-BUY-BLUE [1-877-289-2583] LET US FILL YOUR MANAGEMENT NEEDS! © 2006 Thrifty Car Sales, Inc. Thrifty Car Sales is a trademark of Thrifty, Inc. All rights reserved. 5310 E. 31st Street, Tulsa, OK 74135. This advertisement is not an offer to sell in any reg- tivate and retain talented salespeople in a high cus- istration state until the offering has been exempted from the requirements of registration or declared effective by such state. NEW YORK: This advertisement is not an offering. An offering tomer satisfaction environment. We provide professional screening nationwide. GENERAL MANAGER - TURN AROUND SPECIALIST can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. MNREG#F-3824. With almost 20 years of experience as a GM, I have We are located in a small North Florida metro market CAREERS UNLIMITED broken records in each dealership that I have worked at. Excellent trainer, team builder, closer. Family man, 46 servicing a larger geographic area. We offer a competi- (515) 573-4414 - Fax: (515) 573-4450 TEXAS - HOUSTON AREA. Several opportunities including tive pay plan, medical and retirement benefits and a yrs. old, excellent CSI, strong gross, very knowledgeable Contact: Rich Hrabak - [email protected] about both variable and fixed ops. Can run multiple two major import lines. Seller would like to retire. All are great place to work and grow in your career. If you are Resumes may be sent to: stores. Call Pat at 843-241-8700 TOYOTA & HONDA. These Japanese brands are still popu- facilitated exclusively by Jason Stopnitzky or Brady Schmidt. not being treated with the respect you deserve and the P.O. Box 545, Ft. Dodge, IA 50501 lar. Twelve (12) such dealerships are currently listed with us. NBB at 949-770-7451 www.nationalbusinessbrokers.com compensation you expect email your resume to: Box All are facilitated exclusively by Jason Stopnitzky or Brady Schmidt. CENTRAL WISCONSIN FORD PLUS. Near metro. Good facili- 5405 at [email protected]. NBB at 949-770-7451 www.nationalbusinessbrokers.com ty and economical to operate. Strong used car and established DEALERSHIPS AVAILABLE MD JOHNSON INC. - A Mergers, Acquisition, and Finan- fixed ops. Opportunity is offered for sale exclusively by DeVere cial Advisory Services Firm Specializing in Automotive Boyd 616-844-6247 and Gershon Rosenzweig 212-840-1375. €RESUMES € Dealerships. 360.825.1756 -- www.mdjohnsoninc.com NBB at 949-770-7451 www.nationalbusinessbrokers.com Professionally Prepared HONDA. Single point. Inexpensive new image facility! Add to GORDON PAGE & ASSOCIATES WE HAVE SOLD DEALERSHIPS FOR SALE group or start your next chapter right here. Stable market in a ALMOST 1000 DEALERSHIPS- AMERICA’S #1 AUTO Toyota college town. Opportunity is offered exclusively by DeVere DEALERSHIP BROKER CONTINUING TO SERVE YOU 1-800-414-0286 Boyd 616-844-6247 and Gershon Rosenzweig 212-840-1375. FOR OVER 50 YEARS! If you want to sell your deal- Finance Manager Since 1985, we have NBB at 949-770-7451 www.nationalbusinessbrokers.com ership or purchase a dealership, CALL RIGHT NOW, Serving the automotive industry since 1988 WE ARE READY TO DEAL. Rare Opportunity 24 hour turnaround • Call us today at 813-854-4022 or visit our website at assisted dealers www.gordonpage.net for some of our other listings. Prime and sub prime back ground • NISSAN CAROLINAS - Buy now while you still can. • FORD - Dealer said SELL. Better move quick on this Leadership skills buy-sell. one. Ideal location.  813-854-4022 Excellent work ethics • CAROLINAS - Beautiful Ford location and facility. You RESUMES Good times or bad, will think you have died and gone to heaven. 1,000.00 plus retail average Professionally Prepared Resumes NEW DEALS POURING IN DAILY! CALL FOR DETAILS! Stable track record Richard Cona 813-571-2727/Steve Pritchard 317-852-3529 + A proven system to securing interviews we are available. Tim Wild 937-626-9453/Henry Augustaitis 734-320-2126 The #1 market penetrating Dee Dee Zack 732-821-8836/ Mark Utley 615-790-7160 888-326-8300 Tim Marsh 765-342-9405 /Joan Zack 732-821-8836 dealership in Southeast Toyota, Call Today Danny Zack 954-383-5050 Money Back Guarantee GORDON PAGE & ASSOCIATES  813-854-4022 New state of the art facility, www.gordonpage.net Aggressive pay plan, GARY MINCHEW Possible advancement to director, Dealership Brokers Southeastern States Matching 401k, 800-247-8549 LAWYERS FOR DEALERS Blue Cross medical, detailed We just won a case against one of the background check, RAMAN LATHAM largest banks in America, GMAC. You need drug free environment, 252-825-7281 us working for you! resume only (former Chevrolet Dealer) [email protected] William Wheeler & Associates 215-988-9320

UPSTATE NY FORD DUAL Purchase Real Estate for $.5 CFO/Controller/Office Manager million under appraisal. Debt free franchises and equipment. Buy-In Buy-Out Opportunities: MO 2nd Tier Import Metro Fringe. $875,000 plus parts. Thomas J. Hayes & -- MO Multiple 2nd Tier Imports on location -- Paradigm shift? Assoc. 860-927-1183 or [email protected]. MS German Imports one location -- Honda Metro Call us to find out how you can hire a well- SOUTHERN CALIFORNIA - Thrifty Car Sales and Car Don Brown Midwest Brokerage 314-909-8800 qualified overseer for your accounting books. Rental Franchise - Two buildings: 14,000 and 8,000 sq. ft. SW MICHIGAN DEALERSHIP 8 lifts. Low start-up costs. Assume lease. Profitable. Part of the new Chrysler. Our low monthly fee covers monitoring, edu- Call 951-662-0806. Available for sale or partnership immediately. cating, and suggesting on how to improve pa- HYUNDAI & MAZDA - PRICE REDUCED [email protected] per flow, processing time, and of course bot- FFE: $285K; Lease: Just $12K on $3M Facility DEALERSHIPS FOR SALE NATIONWIDE. Check out our tom line cost cutting. Our hours are 8 AM un- County Population of 80,000 Plus featured listings. Log on to our web site and take a closer look. til 8 PM (EST) Monday through Saturday. Next to Regional Mall, Big Box Retailers The featured listings change often, so bookmark the page, and Major Manufacturer & Suppliers in Near Future visit frequently. 949-770-7451 www.dealershipforsale.com Call now, we will explain how our business Northern Mississippi. Call Greg (901) 592-9715 model can fit your organization. DO YOU NEED: A qualified professional appraisal of 804-400-9861 your dealership for divorce, partnership problems, estate planning. Report furnished and/or available to testify before IRS or court system. Contact in strict MANAGEMENT confidence: Walter Hall, former factory executive and chain operator, for client references. 800-869-9543.

REBUILDING YOUR TEAM? RESTRUCTURING? NORTH FLORIDA CHEVROLET HIRE SMART. Part of the NEW GM! • Profitable • Great CSI Jim Schaffer t Mark Fisher t Brian Howell • Hottest Franchise Going Forward $2.9 Buys It !! “Automotive Industry’s Recruiting Source” Email: [email protected] Contact us today www.consultSA.com [email protected] (704) 535-9939

To respond to a South Charlotte Nissan is looking for the best GSM in the country CONFIDENTIAL BOX: GENERAL SALES MANAGER If you are a process driven hands on leader then this job is for you. Our anboxreply@ autonews.com business is growing and we are searching for the right individual to take the sales department to the next level. The ideal candidate will have import ex- Or fax to 313-446-8030 perience and a tremendous grasp of how to retail used vehicles. A passion for success is the most important quality that we will be looking for. You will be Questions? reporting directly to the owner. This job is a springboard to our open General Call 800-388-1800 or Manager position. We are not looking for job hoppers or consultants. If you would like to apply please send a current resume: 313-446-6065 [email protected] All inquiries will be kept confidential. Please include Box # in subject line 20090914-NEWS--0028-NAT-CCI-AN_-- 9/10/2009 10:56 AM Page 1

28 • SEPTEMBER 14, 2009 CLASSIFIEDS 800-388-1800 Canada light-vehicle sales, August & 8 months SHOP EQUIPMENT FOR SALE Toyota uses Canada sales by model available online at autonews.com/datacenter Aug. Aug. Percent 8 mos. 8 mos. Percent 2009 2008 change 2009 2008 change Advanced Notice - Re: Metaldyne Bankruptcy roadside BMW division (D/I) ...... 2,292 1,902 20.5% 16,081 15,876 1.3% Michigan, Indiana, Ohio, North Carolina and Pennsylvania Mini (I) ...... 457 505 –9.5 2,888 3,357 –14.0 Partial listing of late model equipment (2003-2005) previously used to manufacturer Total car (D/I) ...... 2,213 1,919 15.3 15,272 15,175 0.6 powertrain and chassis parts for Chrysler, Ford and Toyota that will, subject to confirma- Total truck (D/I) ...... 536 488 9.8 3,697 4,058 –8.9 sensors to BMW (D/I) ...... 2,749 2,407 14.2 18,969 19,233 –1.4 tion, may be available for sale by General Electric Capital Corporation: Chrysler Division (D/I)...... 1,498 1,214 23.4 11,384 21,064 –46.0 CNC Machining Centers and Turning: SW, Alfing, MCM "Clock", Chiron, Enshu, Dodge ...... 10,740 10,939 –1.8 76,757 105,345 –27.1 Toyoda, Makino, Maurata, Liberty and Kirby Dial Type, Index, Fiji and Kasper. warn driver Jeep...... 2,194 3,395 –35.4 19,623 35,890 –45.3 Assembly Systems and Robotics: Fanuc, Nachi, Motoman, Westech and Weldon. Total car (D/I) ...... 2,815 2,751 2.3 25,415 44,068 –42.3 Washers and High Pressure Deburring: Ransohoff, Aquamaster, Midbrook. Hans Greimel Total truck (D/I) ...... 11,617 12,797 –9.2 82,349 118,231 –30.3 Inspection: Brown & Sharpe and Zeiss CNC Coordinate Measuring Machines [email protected] CHRYSLER LLC...... 14,432 15,548 –7.2 107,764 162,299 –33.6 Maybach (I) ...... – – – – 4 – Contact Casey Mulqueen 203-227-2808 / [email protected] TOKYO — Imagine trying to merge Mercedes-Benz (D/I) ...... 1,992 1,653 20.5 15,939 13,617 17.1 onto a particularly tricky stretch of Smart (I) ...... 268 385 –30.4 1,732 2,851 –39.2 Total car (D/I) ...... 1,590 1,668 –4.7 11,563 13,314 –13.2 DEALERSHIPS WANTED CARS WANTED expressway where visibility is next to Total truck (D/I) ...... 670 370 81.1 6,108 3,158 93.4 zero. You can’t see behind you be- DAIMLER AG ...... 2,260 2,038 10.9 17,671 16,472 7.3 METRO DETROIT MICHIGAN DEALERSHIPS WANTED ATTENTION SAAB DEALERS FERRARI (I)* ...... 8 10 –20.0 65 80 –18.8 Well capitalized dealer group looking for domestic and/or We will buy your new 2008 Saab inventory. cause of buildings or trees, but sud- import dealerships in Metro Detroit Michigan. 1000 pp + Please contact Bob Barry at Blue Grass Saab at (502) Ford division (D/I) ...... 21,542 20,076 7.3 152,562 147,718 3.3 No Brokers. All inquiries will be kept confidential. 515-5868 or (502) 894-3426 or [email protected] denly an alarm goes off warning that Lincoln...... 624 645 –3.3 4,066 4,146 –1.9 Send information to Box 5408 another car is approaching fast from Mercury ...... – 4 – 107 281 –61.9 STRONG DEALER OPERATOR DESIRES TO PUR- your left. Accident averted. Jaguar (I)†...... – – – – 437 – CHASE store of retiring dealer with terms. Great manu- Land Rover (I)† ...... – – – – 1,024 – facturer relations, unencumbered funds. Easy transition. WANTED 2009 / 2010 Toyota Motor Corp. is rolling out an Volvo (I) ...... 527 453 16.3 4,545 4,770 –4.7 Email Terry at [email protected] with info. onboard safety system that does just Total car (D/I) ...... 5,232 4,589 14.0 38,635 41,930 –7.9 NEW PONTIACS & Total truck (D/I) ...... 17,461 16,589 5.3 122,645 116,446 5.3 that. It will be offered first in a car for DEALER SERVICES FORD MOTOR CO. (D/I) ...... 22,693 21,178 7.2 161,280 158,376 1.8 WILL PAY TOP DOLLAR Japan that Toyota didn’t identify but Buick ...... 536 1,195 –55.1 5,800 11,914 –51.3 said would arrive “soon.” Cadillac ...... 253 538 –53.0 2,761 5,526 –50.0       FOR THE RIGHT PACKAGE. Chevrolet (D/I)...... 11,508 14,222 –19.1 86,910 118,103 –26.4 The technology alerts drivers in real GMC ...... 5,665 4,936 14.8 31,730 36,065 –12.0       WILL PAY ALL SHIPPING time to unseen hazards such as tight Hummer ...... 31 41 –24.4 391 558 –29.9 Pontiac ...... 4,347 8,625 –49.6 41,683 68,246 –38.9    curves, merging traffic or sudden ve- Saab (D/I) ...... 36 178 –79.8 599 1,164 –48.5 FROM ANYWHERE IN CON- hicle backups.   ! "  Saturn ...... 678 2,178 –68.9 6,494 13,849 –53.1 TINENTAL UNITED STATES. Onboard systems, such as sonar, al- Total car (D/I) ...... 8,809 15,958 –44.8 72,628 133,964 –45.8        Total truck (D/I) ...... 14,245 15,955 –10.7 103,740 121,461 –14.6 ready alert drivers to immediate haz- GENERAL MOTORS (D/I) ...... 23,054 31,913 –27.8 176,368 255,425 –31.0 CALL ROBERT MORRIS ards. This new system extends the Acura (D/I)...... 1,644 1,302 26.3 11,408 13,663 –16.5 FORD DEALERS! zone being monitored because it re- Honda Division (D/I) ...... 10,574 13,518 –21.8 82,871 111,571 –25.7 Total car (D/I) ...... 8,321 10,203 –18.4 64,748 90,602 –28.5 READY FOR THE NEW 30-DAY POLICY? 440-327-4181 lies on a network of roadside beacons Total truck (D/I) ...... 3,897 4,617 –15.6 29,531 34,632 –14.7 WE ARE! that constantly monitor traffic condi- HONDA (D/I) ...... 12,218 14,820 –17.6 94,279 125,234 –24.7 tions and transmit radio updates to a Hyundai division (D/I) ...... 10,418 7,530 38.4 73,360 58,339 25.7 1(888) 417-2643 - Since 1966 Kia (I) ...... 4,672 3,875 20.6 31,891 26,478 20.4 WPI: • Fast • Accurate • Secure ****WANTED**** car’s navigation system. Total car (D/I) ...... 10,006 6,796 47.2 69,464 51,669 34.4 http://Save.PaidWarranty.com The technology, which uses a dedi- Total truck (D/I) ...... 5,084 4,609 10.3 35,787 33,148 8.0 NEW SUZUKI INVENTORY HYUNDAI-KIA (D/I)...... 15,090 11,405 32.3 105,251 84,817 24.1 cated short-range communications Jaguar (I)...... 68 83 –18.1 567 275 106.2 SX4 CROSSOVER, GRAND VITARA, EQUATOR unit, interacts with about 3,000 bea- Land Rover (I) ...... 134 184 –27.2 1,164 559 108.2 CAR DEALERS - STOP letting a single source of Insur- One or multiple truckload wanted cons installed on highway signs and JAGUAR LAND ROVER N.A. (I)‡ 202 267 –24.3 1,731 834 107.6 ance drive your Insurance Expense Line. As your LAMBORGHINI (I) ...... 5 6 –16.7 35 48 –27.1 Insurance Broker, I will use my 20 years experience as a Please call Jimmy Jaeger lampposts around Japan’s major Car Dealership CFO to competitively drive your bid proc- @ (631) 666-6720 MASERATI (I) ...... 2 15 –86.7 72 115 –37.4 ess, reduce your Insurance expense and validate your cities. Total car (D/I) ...... 5,006 5,857 –14.5 37,934 42,359 –10.4 coverage! It costs you nothing to get competitive bids Total truck (D/I) ...... 1,874 1,848 1.4 14,228 20,210 –29.6 from A+ rated companies! Call Scott at Renaissance In- The network is maintained by the surance Group. 720-641-1018 or [email protected] MAZDA (D/I) ...... 6,880 7,705 –10.7 52,162 62,569 –16.6 national and local governments. De- Total car (D/I) ...... 993 941 5.5 7,680 8,525 –9.9 ACCOUNTING PERSONNEL ISSUES? DO YOU NEED A Total truck (D/I) ...... 867 548 58.2 6,136 4,535 35.3 CPA? Do you need help with financial statement issues, W velopment began in 2005. Japan’s office training, computer systems, reconciliations, or an anted MITSUBISHI (D/I) ...... 1,860 1,489 24.9 13,816 13,060 5.8 interim controller? Seek help from a CPA/MBA with 20 Ministry of Land, Infrastructure, Infiniti (D/I) ...... 604 699 –13.6 4,647 5,709 –18.6 years of dealership and auditing experience. Transport and Tourism plans to ex- Nissan Division (D/I) ...... 7,071 6,784 4.2 50,029 54,054 –7.4 Lisa McDonall@336-926-3115 or [email protected] New or Used pand it nationwide by 2011. Total car (D/I) ...... 5,219 5,323 –2.0 38,483 40,793 –5.7 Total truck (D/I) ...... 2,456 2,160 13.7 16,193 18,970 –14.6 Warranty Claims Payment Services & Toyota has no plans to offer the fea- NISSAN (D/I) ...... 7,675 7,483 2.6 54,676 59,763 –8.5 Processing and Consulting ture in the United States. But the au- Total car (I) ...... 58 53 9.4 713 766 –6.9 Peace of Mind... tomaker is participating in several Total truck (I) ...... 62 59 5.1 493 492 0.2 Randy Shepard & Associates, Inc.TM We will pick up anywhere in the PORSCHE (I) ...... 120 112 7.1 1,206 1,258 –4.1 U.S. trials, including the Vehicle In- 1-877-656-8900 USA! Total car (D/I) ...... 1,898 1,800 5.4 13,482 12,975 3.9 frastructure Integration system being Total truck (D)...... 42 61 –31.1 362 620 –41.6 Serving Dealers Since 1979 SUBARU (D/I) ...... 1,940 1,861 4.2 13,844 13,595 1.8 view the RS&A operation in action developed by carmakers, suppliers our video Please contact Brian Benstock Total car (I) ...... 1,007 831 21.2 5,376 6,664 –19.3 out and government agencies. c Total truck (D/I) ...... 308 467 –34.0 2,820 2,520 11.9 @ www.randyshepard.com P A aragon uto Group SUZUKI (D/I) ...... 1,315 1,298 1.3 8,196 9,184 –10.8 BUSINESS OPPORTUNITIES 718-507-5000 ext 271 Lexus (D/I) ...... 1,532 1,167 31.3 10,320 10,288 0.3 or email [email protected] Toyota Division (D/I) ...... 16,707 22,037 –24.2 124,593 156,070 –20.2 AUTO DEALERS & MANAGERS – Total car (D/I) ...... 12,255 17,456 –29.8 91,325 121,039 –24.5 IMMEDIATE FRANCHISE OPPORTUNITIES Total truck (D/I) ...... 5,984 5,748 4.1 43,588 45,319 –3.8 Automotive TOYOTA MOTOR (D/I) ...... 18,239 23,204 –21.4 134,913 166,358 –18.9 A brand America trusts. For over 53 AUCTIONS years, Midas has stood for trust, quality Audi (I) ...... 1,058 558 89.6 7,312 5,771 26.7 and entrepreneurship. Put our rock solid ad spending Bentley (I) ...... 4 9 –55.6 36 116 –69.0 reputation for business success to work with your Volkswagen division (D/I) .... 3,605 3,793 –5.0 26,611 26,264 1.3 own automotive expertise. Join the Midas team today. AUCTION Total car (D/I) ...... 3,653 4,089 –10.7 27,293 30,301 –9.9 Contact us at 877.890.5874 or visit **SHORT NOTICE** Total truck (D/I) ...... 1,014 271 274.2 6,666 1,850 260.3 midasfranchise.com/autodealer. off in 1st half VOLKSWAGEN AG (D/I) ...... 4,667 4,360 7.0 33,959 32,151 5.6 DEALERSHIP CLOSED! Automotive advertising plunged Domestic car ...... 38,838 49,554 –21.6 299,017 409,883 –27.0 **By Order of CHRYSLER FINANCIAL Import car ...... 30,320 30,794 –1.5 221,733 244,779 –9.4 LEGAL SERVICES $1.7 billion in the first half of 2009 Total car ...... 69,158 80,348 –13.9 520,750 654,662 –20.5 as Secured Creditor** compared with the same period of Domestic truck ...... 56,157 55,765 0.7 402,577 437,555 –8.0 Formerly OUT OF TRUST? NO FLOOR PLAN? 2008, according to ad industry fig- Import truck ...... 10,094 11,006 –8.3 72,930 88,654 –17.7 FOREST LAKE, MNCJD Total truck...... 66,251 66,771 –0.8 475,507 526,209 –9.6 Losing Money? Protect your valuable franchise. ures. TOTAL CANADA...... 135,409 147,119 –8.0 996,257 1,180,871 –15.6 Call Chapter 11 Attorney- National Practice N of MINNEAPOLIS-ST. PAUL Car and truck advertising, from au- *Estimate 30 yrs experience in Automotive. Don’t Delay! WED, SEPT 23, 2009 tomakers and dealer associations †Ford Motor Co. sold Jaguar and Land Rover to Tata Motors on June 2, 2008; Jaguar’s and Land Rover’s sales are William L. Needler LTD combined, fell 32.1 percent to $3.6 included in Ford Motor Co. totals through May 2008. (910) 673-1820 EQUIPMENT & FURNISHINGS ‡Ford Motor Co. sold Jaguar and Land Rover to Tata Motors on June 2, 2008. billion in the first six months of 2009, [email protected] ************************* Note: (D) = produced in North America; (I) = imported to Canada; vehicles are domestic unless noted For Flyer/Info/Photos: according to Nielsen Co., the New Source: Automotive News Data Center, Association of International Automobile Manufacturers of Canada and company sources PARTS WANTED www.DamicoAuctions.com York audience and ad-spending tracking service. That’s down from Sarasota, FL • (941) 377-6310 $5.3 billion during the first half of Aug. sales dip 8% in Canada DealerMine Corporation 2008. GOT 1.866.936.9908 General Motors Co. and Chrysler New-vehicle sales in Canada in Au- dropped 21.4 percent to 18,239. Ford www.DealerMine.com Unneeded To respond to a Group trimmed advertising in light of gust fell 8.0 percent from a year earli- and Toyota swapped positions from CONFIDENTIAL BOX: their bankruptcies. Chrysler emerged er to 135,409 units. Sales for the first their August 2008 rank. PARTS? from Chapter 11 protection June 10 eight months were down 15.6 per- Hyundai-Kia Automotive jumped and GM emerged July 10. cent to 996,257. to No. 4 from No. 6 in August 2008, as anboxreply@ autonews.com Chrysler, meanwhile, is looking for General Motors Co. was the top sales climbed 32.3 percent to 15,090. CARS WANTED a new creative agency. The automak- seller in August despite a 27.8 percent Hyundai division sales surged 38.4 Or fax to 313-446-8030 er wants new ideas from agencies drop in sales, to 23,054. GMC sales percent; Kia sales rose 20.6 percent. other than the Detroit and New York rose 14.8 percent to 5,665. It was the Chrysler Group’s sales slid 7.2 per- WANTED Questions? offices of BBDO Worldwide, the only GM brand to report an increase. cent to 14,432. Honda Motor Co. Used Dodge Sprinters Call 800-388-1800 or agency that has handled the Ford Motor Co. was the No. 2 seller, rounded out the top six — those with Call Walter at Sherman Dodge 313-446-6065 Chrysler, Dodge and Jeep brands up 7.2 percent to 22,693. Sales for sales of at least 10,000 vehicles. Hon- 888-887-9859 since 2000. third-place Toyota, dragged down by da’s sales fell 17.6 percent to 12,218. Please include Box # in subject line — Crain’s Detroit Business weak Toyota brand car sales, — James B. Treece 20090914-NEWS--0029-NAT-CCI-AN_-- 9/11/2009 5:13 PM Page 1

Page 29 ba SEPTEMBER 14, 2009 • 29 Rollover suit just one of Toyota’s headaches

Chrissie Thompson Toyota also faces a patent violation 1990-95 4Runners, 1989-95 small about Toyota vehicles go to a differ- [email protected] complaint filed this month by Paice, Toyota in court pickups and 1993-98 T100 pickups ent entity, Toyota Motor Sales. Allegations by a former Toyota a company to which the automaker Toyota is facing legal attacks on because of the steering rods. But the Superior Court Judge Conrad lawyer that the company withheld already paid royalties for patent in- at least 3 fronts. suits allege the company knew of the Aragon will consider Toyota’s motion and destroyed rollover evidence are fringement in the second-generation problem long before that. to dismiss the suits Oct. 8. 1. A former in-house attorney only part of the automaker’s litiga- Prius and the Highlander Hybrid and In the suits, Toyota Motor North Toyota spokesman Mike Michels alleges the automaker destroyed tion woes in the United States. Lexus RX 400h crossovers. America says it was unaware of com- said the three sets of suits are not re- or withheld rollover evidence. Dimitrios Biller, a Toyota Motor plaints about the faulty steering rods lated. “It is unusual and coincidental Corp. attorney from 2003 to 2007, filed More hybrids disputed 2. Paice, a company that holds a in the United States in October 2004 to have several pieces of litigation hybrid-related patent that Toyota a suit this summer in U.S. District In this month’s complaint, Paice re- when it informed the National High- come to public attention in a short already has violated, says the Court in Los Angeles. In the suit, he quests a U.S. government ban on im- way Traffic Safety Administration of a time period,” he said in an e-mail. automaker continues to do so in contends that Toyota did not heed his portation of additional vehicles that it similar recall in Japan a year earlier. Toyota has declined to comment other products. urgings to disclose all evidence related alleges violate the same patent, such as But John Kristensen, a lawyer rep- on the wrongful-death suits. But the to more than 300 rollover suits. the Hybrid, the third- 3. Four wrongful-death cases allege resenting the plaintiffs in all four cas- automaker has spoken out against Biller’s case prompted the refiling generation Prius, the Lexus HS 250h Toyota knew its steering columns es, says the automaker had nearly 100 Biller’s suit, calling his allegations of some former accident litigation sedan and Lexus RX 450h crossover. were breaking in the United States U.S. warranty claims for broken relay “inaccurate and misleading.” but did nothing for years. against the automaker. Plaintiffs’ at- Paice says the component in ques- rods before the Japanese recall. The automaker says Biller is violat- torneys say his allegations, if true, tion combines torque from an elec- Source: Government and court documents ing attorney-client privilege and will call into question Toyota’s de- tric motor and an internal combus- Steering failure nondisclosure conditions of his exit fense in past cases. tion engine. The Bonita Springs, Fla., ing that had denied the company’s re- The court filings include a letter to agreement, which included a $3.7 For instance, California attorney company has acquired a handful of quests to limit Toyota imports. the Toyota legal department in Tor- million severance payment. Richard McCune has refiled a suit in U.S. patents for hybrid technology. In a third set of lawsuits, Toyota faces rance, Calif., dated March 26, 2002, Biller also has filed a wrongful-ter- U.S. District Court in Los Angeles seek- In 2005, Toyota was found to have four consolidated wrongful-death cas- from Yigal Schacht in New York City. mination and discrimination suit ing class-action status for two rollover violated one of Paice’s patents, al- es in Los Angeles Superior Court alleg- He said the steering on his 1997 T100 against his most recent employer, suits. And attorneys Todd Tracy and though not willfully. ing that the automaker failed to failed that February while he was ex- Los Angeles County.c Joe Clayton filed a suit last week in U.S. A Toyota statement referencing this promptly recall pickups and SUVs iting his driveway. District Court in Marshall, Texas, month’s complaint says Paice is ap- equipped with defective steering rods. In response, Toyota Motor North Kathy Jackson contributed to this grouping 16 dismissed or settled cases. parently seeking to bypass a court rul- In October 2005, Toyota recalled America says customer complaints report

kicks it off. The goal is to win the trust WHITACRE of American consumers. “There have been rumors that Chairman leads GM Whitacre demanded he be included in the ads and that he’s the new Ia- board on new path cocca,” Lutz says. “Nothing could be continued from Page 3 further from .” Lutz says GM wanted a credible He is also calculating and will keep new spokesman with a fresh face and order in the boardroom, they say. thought of Whitacre because “he’s “He’s very likable but very direct,” the new guy in town.” one GM insider says. “You get the “He’s tall, good-looking, speaks sense this guy is extremely knowl- with a pleasant Southern drawl, and edgeable on business and life in gen- he limps a little when he walks, which eral. He’ll see through the BS.” gives him that old cowboy look.” But Whitacre is smart, another insider Lutz said GM has strong products says. “Ed asks very deep questions and doesn’t need “the cult of person- and wants to know candidly about ality” to overshadow the vehicles. management and the process in which decisions were made.” Shadow of old board But Whitacre also is frustrated at When Jerry York quit GM’s board in media leaks, one source says. For ex- October 2006, he wrote in a resigna- ample, last week some reports said tion letter: “I have not found an envi- Whitacre gave GM’s management a ronment in the boardroom that is 12-week ultimatum to improve sales. very receptive to probing much be- Those inside GM insist there was yond the materials provided by man- never an ultimatum. Rather, agement.” Whitacre told executives that GM will But that does not seem to be the start “seeing changes as soon as 12 case with the new board. weeks,” the source says. “If anything, this board is too inde- pendent,” the source close to the ‘Spend it’ board says. Each director has his own INA FASSBENDER/REUTERS Whitacre might not have issued an point of view. “They are cordial, but ultimatum, but he’s not afraid to push direct,” says the source. “You have GM says “several key issues” must be resolved over the next few months before Magna International and its people, sources say. Henderson is said people here who really mean busi- chairman, Frank Stronach, can take control of Opel. to work well with Whitacre so far. Ear- ness, and Fritz likes that.” lier this month, Whitacre told Another source familiar with the Bloomberg News that Henderson was board describes the members as ag- Opel-Magna deal still faces hurdles the right leader for GM “at this point gressive, asking tough questions and in time.” willing to second-guess management. Luca Ciferri will provide 4.5 billion euros (about mediate stage of .” An example of Whitacre’s decisive- All sources agree that this board con- [email protected] $6.6 billion) in financing in addition In a statement, GM said “several ness came when he approached Bob siders itself highly accountable to the TURIN, Italy — General Motors Co. to the 1.5 billion euros lent to Opel in key issues” must be resolved. Lutz, GM’s vice chairman in charge public after the federal government has agreed to sell a majority of Opel May. Magna and Sberbank say they “I see no obstacles to getting the of marketing, and asked, “How are provided $50 billion to bail out GM. to supplier Magna International Inc. will invest 500 million euros (about deal done successfully by the end of we going to bridge this communica- The new board faces a lot of hur- and its partner, Russia’s Sberbank. $728.2 million). November,” said John Smith, GM’s tion gap?” dles. GM’s management is known for But the deal won’t close for months In May, before filing for bankruptcy chief negotiator for the deal. Lutz, who recounted the story to re- resisting change, right up to two and faces considerable hurdles. protection, the old GM chose Magna Under the agreement, Magna can- porters during a recent conference months before filing for bankruptcy The agreement is backed by the Ger- and Sberbank as its preferred bidders not sell Opel models in the United call, told Whitacre, “If we do it right, when the Obama administration man government, which faces elec- for Opel. The new GM board consid- States and in China but would be it’ll take a lot of money.” forced Wagoner to resign. tions Sept. 27 and is trying to avoid ered reversing course and hanging granted access to Russia and the Whitacre told Lutz: “Spend it. Go For the most part, the new board massive job losses in the country. on to the European unit. Last week it ownership of two GM plants there. ahead.” has to learn — and revive — a com- Magna and Sberbank would jointly agreed to the sale, but there is a long Some Magna customers including Lutz says he and Whitacre agreed: plicated business in a short period own 55 percent of Opel. Company way to go. Volkswagen AG have expressed con- “We’re not going to dribble this out of while under considerable public employees would hold 10 percent. “Talks were very difficult, and the cern about the potential conflict of a watering can. We’re going to use a pressure. GM would keep 35 percent and says deal’s structure is unprecedentedly interest the deal poses as Magna fire hose.” With his high profile, Whitacre cer- it will cooperate closely with Opel on complicated,” said Sberbank CEO continues to supply Opel’s rivals. GM is launching a massive two- tainly will be identified with GM’s platforms, powertains, manufactur- German Gref. “It is too early to say Magna has promised to fence off its month marketing campaign that in- challenges. The question is whether ing and purchasing. that a final decision has been taken. Opel operations from its component cludes the Whitacre TV spot that he’ll be credited with the solution.c The German government says it This is only a very important, inter- business. c 20090914-NEWS--0030-NAT-CCI-AN_-- 9/11/2009 4:22 PM Page 1

30 • SEPTEMBER 14, 2009 Clunker shoppers didn’t play hardball; margins soared

Mark Rechtin erage margin at Kia stores went from rebate could be the starting point for profits generated in the F&I office. ey on the table.” [email protected] 2.4 percent in June to 5.1 percent negotiations, not the conclusion. As a The firm declined to disclose dollar TrueCar’s calculation of transac- LOS ANGELES — Dealership profit during the Aug. 1-24 period. The in- result, he said, profits on some deals amounts of the dealer profit increas- tion prices showed that consumers margins for several brands more than centive ran from July 24 to Aug. 24. were thousands of dollars more than es by brand, citing client confiden- who bought a four-wheel-drive Nis- doubled during cash for clunkers be- Consumers were convinced that a in June. He said dealer profits on com- tiality. san Xterra, for example, “overpaid” cause many shoppers weren’t bar- $3,500 to $4,500 incentive to trade in pact cars were triple the June level. Consumers also were dazzled by by $3,810 compared with the average gaining as hard as shoppers did be- their clunker was a steal, said Jesse “A lot of dealerships had their best manufacturer-to-dealer incentives transaction price before the clunker fore the program, according to a firm Toprak, vice president of industry months ever in terms of unit sales that were tacked on. On many vehi- program. that tracks vehicle transaction prices. trends and insights at the Santa Mon- and profitability,” he said. “Also, cles, Chrysler Group matched the The firm said customers left an av- TrueCar Inc. says Dodge, Chrysler ica, Calif., firm. So they didn’t seek to when consumers think they’re get- clunker cash with incentives of its erage of $2,868 on the table for the and Jeep dealers were among the drive a harder bargain on their new- ting a great deal, they also drop their own. Mitsubishi Galant V-6; $2,574 for the leaders in profit increases per trans- vehicle purchase and left thousands guard in the F&I office. They are “If a consumer paid $21,000 for a ; and $1,974 for the Maz- action as a result of the program. Kia, of dollars on the table as a result. That more likely to purchase F&I prod- $30,000 Chrysler SUV, they still paid da3 sedan. The data come from True- Suzuki, Volvo, Toyota, Honda and boosted dealer profits, he said. ucts, like an extended warranty, and sticker,” Toprak said. “Consumers Car surveys of 8,000 new-car dealer- Hyundai also fared well. Toprak said consumers did not un- not question the finance rate.” still got a better deal than they would ships, covering about 30 percent of For example, TrueCar says the av- derstand that the cash-for-clunkers The TrueCar data do not include have without clunkers, but left mon- all transactions nationwide. c

CRASH Roller coaster SAARs The seasonally adjusted Post-clunker slump annualized selling rate took a dive creates subpar SAAR after cash for clunkers ended on Aug. 24. continued from Page 1 May 9.9 million June 9.5 million says sales are nowhere near the level of August — the dealership’s best July 11.1 million month ever, with 207 new-vehicle August 13.7 million sales. Aug 25-31* 8.3 million “But it’s just starting to get back to Sep 1-5* 8.9 million normal,” he says. Source: May-August, Automotive News Data White expects to sell 80 new units in Center; Aug. 25-31 and Sept. 1-5, Edmunds.com September, on the low side of a nor- mal range of 80 to 120. Roger Mercer, a Nissan-Mazda Xterras and one Cube.” dealer in Lufkin, Texas, expected a Sales are expected to improve grad- big falloff from a strong August, but ually as manufacturers ramp up pro- says, “We’re having a surprisingly duction and showroom traffic reap- good September.” pears. Anwyl expects fourth-quarter sales Ford’s Pipas says a budding but to top the first half’s 9.5 million JONATHAN ERNST/REUTERS “probably weak and pretty fragile” SAAR. John McDonald, General Mo- At one Virginia car dealership, an old car went into a trash bin to promote the cash for clunkers program. After economic recovery will control the tors’ top sales analyst, expects a the federal incentive plan ended Aug. 24, it was sales that went into the dumper. pace of auto sales in the fourth quar- fourth-quarter rate of 10 million to ter. 10.5 million. On Sept. 10, Dinsmore of Anniston used cars.” Mercer says his early-September “It’s a little bit like a new-born calf,” Dodge said the dealership had fewer Replacements are “trickling in,” he Nissan inventory is less than half of he says. “It might be up, but it’s wob- Low on stock than 20 new units in stock, most of says, but last week Dinsmore was still his normal 120 to 130 vehicles. bly.” c Lack of inventory is a big part of the them trucks. If anybody wanted a car, waiting for his first 2010 model, a “I’m low on stock,” Mercer says. “I problem. he says, “I’d tell them we have some Dodge Journey. have no Armadas, Pathfinders or Amy Wilson contributed to this report

STORES And uncertainty is keeping the and applying more stringent under- wanted us to preserve cash and liq- In the doldrums leases short. Some dealers acquiring writing requirements,” says Breuer, uidity,” says Tony Pordon, Penske Credit crunch Why the valuation of dealerships franchises aren’t seeking typical five- which means treating a new enter- Automotive’s senior vice president. freezes acquisitions remains in the pits to 15-year leases; they’re asking for prise like an extension of a dealership Large, well-capitalized buyers also Ⅲ Dealership profits are down. one- or two-year leases with several that went out of business. “It’s so have lost their appetite for luxury continued from Page 1 Ⅲ Many entrepreneurs lack short-term renewal options, brokers crazy that banks actually ask new dealerships, which no longer are con- financing to buy stores. say. dealers for financials on the closed sidered recession-proof. ship mortgages and capital loans are “They’re afraid their franchises dealership operation.” “You won’t see anyone paying $100 Ⅲ Finding floorplanning for new hard to come by. aren’t going to be around,” Johnson Some selling dealers are requiring million for one Lexus store as they dealerships is tough. “Unless you’ve got lots of cash, says. prospective buyers to provide a bank did in 2005,” Sandler says. Ⅲ you’re not going to be able to buy Real estate values are down. In a year or two, when auto sales re- letter guaranteeing a floorplan line of Americans have shunned conspic- anything,” says dealer David Wilson, Ⅲ “Blue sky” values have plunged. bound, the buyer “could meet the credit before any negotiation starts, uous consumption, he says. He pre- president of David Wilson Automo- seller in the middle,” says Sheldon Breuer says. dicts “bread-and-butter” franchises tive Group in Orange, Calif. The Real Estate Partners, a Phoenix real Sandler, a financial adviser and deal- “Without flooring lines, the up- such as Toyota, Honda and Chevrolet group is No. 11 on the Automotive estate company that specializes in ership broker in Skillman, N.J. and-coming general managers trying are likely to rebound first and says News list of the largest U.S. dealer- dealership real estate, says appraisers But even delaying a sale is a gam- to become dealers are not able to get Hyundai “is also a comer.” ship groups ranked by 2008 retail tend to undervalue properties be- ble. into new deals,” he says. Gordon Stewart, president of Stew- new-vehicle sales. cause of market uncertainty. Johnson warns that a commercial Breuer says this further depresses art Management Group in Harper And dealers who could afford stores “It’s like running around in a pitch- real estate glut could drive dealership dealership values because acquisi- Woods, Mich., owns five dealerships might have trouble obtaining inven- dark cave,” Breuer says. “There’s values down even further in the next tions are limited to established and a dealership brokerage. He pre- tory financing because most lenders nothing to give you a frame of refer- two years. By law, banks can hold dealers who already have floorplan dicts the market — and prices — for are not accepting new floorplan busi- ence of where you’re headed.” nonperforming assets for no more lines. domestic dealerships will pick up ness. Rising dealership foreclosures are than two years so they’re preparing over the next two years as more do- The result is a stagnant market in slicing values further. Banks often to unload the commercial foreclo- Big spenders gone mestic stores close, creating oppor- which few buyers have the finances sell property at 50 cents on the dollar sures that escalated when the credit The public dealership groups that tunities for survivors. to make purchases and sellers are re- to a buyer who uses the real estate for crisis hit in 2007, he says. drove up prices with their late-1990s Sandler says many dealers are opti- luctant to let their dealerships go at a nonautomotive purpose, Breuer buying spree have stopped actively mistic that they will be able to sell bargain-basement prices. says. Floorplan funk shopping for dealerships. They have their dealerships at acceptable prices Auto lenders’ acceptance of new launched aggressive cost-cutting in the next two years. They’re making Ancient appraisals More leases floorplan accounts is selective, to say campaigns to shore up their balance less money, but they’re still profitable Prospective sellers are clinging to Sellers seeking to avoid steep dis- the least. sheets, Sandler says. and are operating with a much lower one- and two-year-old appraisals counts are agreeing to short-term Large, well-capitalized dealership Late last year, Penske Automotive cost structure, he says. that are woefully out of date. leases on dealership property with groups can obtain inventory financ- Group, of Detroit, the No. 2 dealer- “At some point the industry will go “Everyone knows that document is an option to buy so they can post- ing on new dealerships, but the typi- ship group on the Automotive News back to 14 million light-vehicle sales worthless,” says Mark Johnson, a pone the sale of their businesses for cal entrepreneur is out of luck. list and the most aggressive buyer a year,” Sandler says. “And those 14 dealership consultant in Seattle. better times when real estate values “I’ve heard of banks designating among the public retailers, slowed million sales will be distributed Rick Breuer, vice president of SRS recover. closed stores as restarts or reopens the pace of acquisitions. “Investors among fewer dealers.” c 20090914-NEWS--0031-NAT-CCI-AN_-- 9/11/2009 5:12 PM Page 1

SEPTEMBER 14, 2009 • 31

Chrysler ends bid for Volvo Car Corp. Geely’s privately held parent, SUPPLIERS engine alliance Geely Holding Group Co., would Investor Wilbur Magna co-CEO make any bid for the Ford Motor Co. No bloodbath, but Ross expects Don Walker said DETROIT — Chrysler Group has unit in conjunction with a supplier the supplier ended its engine-manufacturing government-backed investor, CEO problems remain consolidation has picked up alliance with Hyundai Motor Co. Gui Shengyue told Reuters. Rather continued from Page 1 to intensify business from and Corp. It is than taking a stake in Volvo, Geely by year end. ailing rivals. the latest Holding would seek full ownership, pliers to file for bankruptcy. But few partnership he said. in the industry expect to see a mas- Ontario, supplier has picked up $650 severed under Ford declined to confirm sive wave of failures. Why they survived million in annualized revenue by tak- the new Chrysler discussions with Geely. Chrysler and GM bankruptcies and ing over the work of distressed sup- management led ‘Too many mouths’ big production cuts didn’t spark pliers or acquiring some of their facil- by Fiat S.p.A. Milliken will sell auto unit “We have a vehicle market of 10 to the widely predicted liquidation of ities, Magna CFO Vince Galifi said Hyundai and DETROIT — Milliken & Co., one 12 million,” says one senior execu- many suppliers. Here’s why. last month during an earnings call Mitsubishi have sold their interests of the world’s largest textile tive of an interiors maker. “But we Ⅲ Suppliers put plants in with analysts and the media. in a Dundee, Mich., joint-venture suppliers, will sell its automotive still have supplier capacity for at hibernation, furloughing workers Some of that business came from engine plant with Chrysler, Reuters unit soon to a group of company least 15 million vehicles. The fact is and slashing spending. the defunct Cadence Innovation reported. The plant has built four- managers, say sources familiar with we have too many mouths to feed Ⅲ GM and Chrysler made sure LLC., which was sold during Chapter cylinder engines since 2005. the deal. out here.” suppliers got paid for parts 11 reorganization, and from Meridi- The plant now will build engines The automotive body cloth Suppliers such as Glenn Reid sur- delivered before bankruptcy an Automotive Systems Inc., which only for Chrysler vehicles, including division will move to Sage vived the summer by putting their filings. also is being liquidated, Magna co- the Dodge Caliber and Jeep Automotive Interiors Inc., a new auto parts companies into what Ⅲ After bankruptcy, GM and CEO Don Walker said during the Compass and Patriot. company led by CEO Dirk Pieper, amounted to hibernation. Chrysler kept most suppliers — same call. formerly Milliken’s global business Reid owns Flexible Products Co., a unlike they way they shed Plastic trim supplier Cadence had Beijing Auto in Saab deal manager for interior textile business. maker of molded rubber muffler dealers. North American sales of about $746 STOCKHOLM — China’s Beijing Milliken spokesman Richard hangers in suburban Detroit. When million in 2007, according to Plastics Automotive Industry Holding Corp. Dillard did not respond to phone Chrysler, his largest customer, News, a sister publication of Automo- will take a minority stake in inquiries. stopped making vehicles during its tive News. Bumper systems supplier Koenigsegg Group AB to help the bankruptcy, Reid laid off nearly half Meridian had estimated North Amer- Swedish company finance its bid to GM offers 60-day guarantee his 253 employees, furloughed his There are no dumb or ican sales to automakers of $500 mil- buy Saab from General Motors Co. DETROIT — General Motors Co., r&d staff, slashed salaries and sales lion last year. Saab spokesman Eric Geers said, seeking to win shoppers’ trust after commissions and halted customer fat companies left. But consolidation is moving slow- “We are now completely convinced its federal bailout, will offer a 60-day entertainment. “ ly. The estimated 19 supplier bank- that we will be able to complete the money-back guarantee on vehicles It was a drill repeated across the ruptcies so far this year is double deal by the end of October.” sold through November. parts industry, allowing Flexible DAN SHARKEY the number for all of last year. But Koenigsegg CEO Christian von In conjunction with the stepped- Products and other resilient suppliers Brooks Wilkins Sharkey & ”Turco in a year of seismic disruptions, Koenigsegg declined to say how up marketing effort, GM will cut the to survive a two-month production that hardly suggests wholesale col- much capital would come from dealer discount on new vehicle sales shutdown by Chrysler, rolling plant lapse. Beijing Automotive but told Reuters by half a percentage point, Reuters closures at GM and steep North In contrast, Chrysler’s ties with its And overpopulation in the supplier that Koenigsegg’s plans for Saab reported. American production cuts by virtually dealers were exclusive and direct, he ranks breeds cutthroat bidding that required about $1.5 billion. The dealer discount is the every other carmaker. says. That allowed dealership reduc- is lethal to a segment’s financial difference between the wholesale Suppliers got a break from decisions tions without any influence from health. Geely wants Volvo price and the sticker price, Chrysler and GM made in bankruptcy. competitors. “We didn’t close any For example, an executive at a SHANGHAI — China’s Geely expressed as a percentage of the The automakers went to great lengths Toyota stores,” Gates says. North American interiors company Automotive said its parent wants to sticker price. to minimize the impact of their re- GM also paid most of its suppliers says he is bidding to supply a center structuring on their suppliers. Indeed, in bankruptcy for pre-bankruptcy console on a new vehicle. He’s up the automakers’ treatment of their parts deliveries, spokesman Dan against 10 competitors; in his opin- stock watch suppliers contrasts starkly with the Flores says. But unlike Chrysler, ion, there should only be two or three Manufacturers culling of their dealers. which halted all production while in others. That plethora of bidders is Closing Closing Weekly For example, Chrysler convinced Chapter 11, GM’s factories took likely to lead to a contract with little price price percent 52-week 52-week Sept. 11 Sept. 4 change high low the Bankruptcy Court in New York turns closing so that at least one or no profit margin, he says. BMW-ADR $52.00 $45.30 14.8% $52.00 $21.05 that the preservation of its supply plant somewhere was always build- Dan Sharkey, a lawyer whose firm Daimler AG 48.78 45.89 6.3 58.67 21.53 base required Chrysler to pay nearly ing vehicles. represents many suppliers, says au- Fiat S.p.A.-ADR 25.50 25.50 – 34.85 14.15 the entire $1.7 billion that it owed The failure to pay suppliers could tomakers have pushed consolida- Ford 7.33 7.43 –1.4 8.86 1.01 suppliers for parts delivered before have caused parts interruptions for tion, but “there are no dumb or fat Honda-ADR 31.46 31.42 0.1 34.29 17.35 the bankruptcy filing. the GM plants that continued to op- companies left.” The suppliers that Hyundai-ADR 16.65 16.50 0.9 17.00 6.25 Those types of unsecured claims erate, Flores says. “You can’t build are still standing had to survive the Nissan-ADR 13.52 13.69 –1.2 15.65 5.59 typically are paid only partially, at cars and trucks with most of the steel and resin price surges of 2004 PSA-ADR 31.10 29.00 7.2 46.49 14.76 best, at the end of a bankruptcy. parts,” he says. “You need all of the and the recession and historically -ADR 43.75 43.75 – 77.35 13.00 parts.” low volumes of 2008 and 2009, says Suzuki-ADR 23.85 23.00 3.7 25.40 11.85 Keeping contracts Sharkey, a partner with the firm Toyota-ADR 83.96 83.90 0.1 91.87 55.41 Thinning the herd Volkswagen-ADR 37.25 34.90 6.7 232.30 34.00 When Fiat S.p.A. took control of Brooks Wilkins Sharkey & Turco. Chrysler at the end of the 41-day Flores says GM has been reducing Retail Groups Closing Closing Weekly bankruptcy, it decided to keep con- its direct suppliers to concentrate Survival of the fittest? price price percent 52-week 52-week tracts with 1,200 of the 1,300 direct business with the ablest few. By the The attrition will continue, turn- Sept. 11 Sept. 4 change high low parts suppliers that Chrysler had in end of 2011, GM intends to cut the around expert John Groustra says. Asbury Automotive Group $14.12 $12.55 12.5% $14.68 $1.60 its stable. If it had chosen to, number of direct North American Automakers will concentrate busi- AutoNation 17.86 17.67 1.1 21.33 3.97 Chrysler could have asked the court suppliers to 1,000, from about ness among fewer, stronger suppliers Group 1 Automotive 27.61 27.79 –0.7 33.50 4.34 for permission to shed unwanted 1,500. as new program awards are made. CarMax 17.96 17.28 3.9 20.70 5.76 Lithia Motors 15.60 13.14 18.7 15.60 1.53 contracts. The reduction will be accom- That, in fact, is Ford’s strategy. In Penske Auto Group 16.87 16.99 –0.7 21.40 4.82 Contrast that with the way Chrysler plished largely by moving work as ve- 2008, Ford cut the ranks of its global Sonic Automotive 11.16 11.02 1.3 15.15 0.72 dealt with dealers while in Chapter hicles are re-engineered or new mod- direct production suppliers eligible 11. With the court’s permission, it els are brought out, Flores says. for future business 26 percent to Suppliers chose not to pay nearly a quarter of GM acknowledges that its suppliers 1,600. Its goal is 750, though Ford Biggest weekly swings from among the Automotive News top 150 the $1 billion in incentive payments need bigger volumes to provide the hasn’t set a date for reaching that lev- suppliers to North America whose stocks are traded in the United States it owed dealers. It followed that up by development budgets for technolo- el. Just five years ago, Ford had 3,300 Closing Closing Weekly terminating 789 of its 3,200 dealer- gies that will serve the automaker in suppliers worldwide. price price percent 52-week 52-week Winners Sept. 11 Sept. 4 change high low ships. the future, Flores says. “Ford is the most precisely stated American Axle $7.34 $5.87 25.0% $8.38 $0.26 Chrysler spokesman Max Gates Investor Wilbur Ross still predicts a example of that strategy,” but all ArvinMeritor 8.90 7.72 15.3 18.11 0.32 says Chrysler paid suppliers in bank- round of supplier consolidation. leading automakers are following SPX Corp. 63.52 57.18 11.1 107.95 25.45 ruptcy to protect future production. The New York financier says that a similar plans, says Yann Delabriere, Johnson Controls 26.95 24.73 9.0 36.00 8.35 “We were driven by self-interest,” he recent uptick of liquidations and CEO of French supplier Faurecia. Timken Co. 22.75 21.15 7.6 30.96 9.88 says. Chapter 11 filings should accelerate But Groustra, senior managing di- Losers Not having paid the claims would by year end. The failed companies’ rector of Conway MacKenzie Inc., Shiloh Industries $4.02 $5.13 –21.6% $9.99 $1.18 have damaged suppliers already hurt contracts will be transferred to sur- says, “It will be interesting to see if Navistar Intl. Engine Group 41.78 46.35 –9.9 63.49 15.24 by production cuts, he says. Gates viving suppliers, he says. Ross’ giant the automakers stick to that plan. Magna International 43.18 43.40 –0.5 62.27 19.63 notes that Chrysler shares more than International Automotive Compo- “In the past, automakers could not Strattec Security Corp. 14.61 14.68 –0.5 29.11 6.26 three-quarters of its suppliers with nents Group was formed by a series resist having several suppliers” for a Information obtained as of 4:30 p.m. on Friday, Sept. 11, 2009. Because of a lag in the reporting of GM and Ford Motor Co., calling into of mergers with several interior parts given part, in the hope that one of the trades the closing prices disclosed above may differ slightly from the eventual closing prices. question whether Chrysler could companies. companies competing for the con- ADR = American Depository Receipt Compiled by PricewaterhouseCoopers, Intraweek data provided by have encouraged a shakeout on its Magna International Inc. sees the tract would offer a low-ball price. Comstock. Powered by Stockgroup own. same trend. Year-to-date, the Aurora, “It’s a cultural thing.” c 20090914-NEWS--0032-NAT-CCI-AN_-- 9/11/2009 4:04 PM Page 1

32 • SEPTEMBER 14, 2009

Customer Incentives Chrysler dealers await leasing Incentives in this table are a summary of retail programs offered. Programs may vary by region and model.

Rick Kranz tory leasing program since July 31. Cash Finance Cash Finance Cash Finance [email protected] Chrysler was forced to stop leasing rebate rate rebate rate rebate rate G3, G5, Solstice, Torrent, Vibe $2,500 2.9-5.9% 2009 models Chrysler Group dealers are en- vehicles when Chrysler Financial was BMW GROUP Expires Nov. 2. Saab 9-3, 9-5, 9-7X – 6.9% Lexus ES 350, IS 250, IS 350 – 0.9-2.9% thused about the automaker’s ex- unable to renew its full line of credit. 2010 models AMERICAN HONDA MOTOR CO. $0-$3,000 0-3.9% pected return to consumer leasing. The return of consumer leases “will BMW 5 series, M5 – 2.9% Expires Nov. 2. Camry Matrix, Tacoma $0-$1,500 0-3.9% The Chrysler program is expected have a great impact on our business, 1 series, 6 series, M6, Z4 – 3.9% 2009 models Camry Hybrid, RAV4, Yaris $0-$1,000 0-3.9% Acura MDX,TL, RDX, RL, TSX – 1.9-6.49% Avalon, Corolla, Sienna $0-$1,000 – to be announced this week. but the residuals must make sense,” 3 series – 3.9-4.9% 2009 models Honda Accord, Civic – 1.9-6.49% Highlander (excl. Hybrid) $0-$500 2.9-3.9% “In our dealership, it was 60 per- says Dan Boettcher, general manager BMW 6 series, M3, M6, X3 – 0.9% Odyssey, Pilot, Ridgeline – 2.9-6.49% Highlander Hybrid, Venza – 2.9-3.9% cent of our business,” says Ed Nolan, of Stew Hansen Dodge City Chrysler- 7 series, Z4 – 1.9% CR-V, Element, Fit, S2000 – 6.0-6.49% VW GROUP OF AMERICA general manager of Lowery Brothers Jeep in Des Moines, Iowa, and Dewey 3 series – 0.9-4.9% HYUNDAI-KIA AUTOMOTIVE Volkswagen expires Sept. 30; Audi expires Nov. 2. 1 series, X6 – 2.9% Expires Sept. 30. In lieu of rebates, cut-rate financing 2010 models Chrysler-Jeep in Syracuse, N.Y. “I am Dodge-Jeep in Ankeny, Iowa. 5 series, M5 – 3.9% is available. Audi A3, A4, A5, A6, A8, Q5, looking so forward to it, I could cry if “We were starting to get real good X5 – 2.9-5.9% 2010 models S4, TT, TTS – 3.9-4.9% it is true.” at leasing when they dropped it,” Mini Cooper, Cooper Clubman 1.9% Hyundai Sonata, Veracruz $1,000 – R8 – 5.3-6.3% Genesis Coupe – 0-4.9% The consumer leases, which will Boettcher says. “By good, I mean ef- CHRYSLER GROUP 2009 models Expires Sept. 30. In lieu of rebates, cut-rate financing Kia Soul – 0% Audi A3, A4, S4, TT, TTS – 0.9-2.9% originate with GMAC Financial Ser- fective in selling that program.” Forte – 0-6.75% is available. A6, A8, Q7, S6, S8 – 1.9-4.9% 2009 models vices, are expected to be offered only Leasing had accounted for 12 to 14 2009 models A5, Q5, R8 – 3.9-6.3% Hyundai Sonata $3,000 – Chrysler Aspen (incl. Hybrid), Volkswagen CC, Passat, Routan, on select vehicles. Chrysler, Dodge percent of new-vehicle business at Elantra (excl. Touring), Santa Fe, 300 (incl. C and SRT8) $4,500 0% Touareg 2 (excl. TDI) – 0% and Jeep dealers have not had a fac- each of his stores. c Veracruz $2,000 – Town & Country $3,500 0-2.9% Eos, GLI, GTI, Jetta (excl. TDI), Elantra Touring $1,500 – Sebring $2,500-$3,500 – New Beetle, Rabbit, Tiguan – 0-3.9% Accent $0-$1,500 – PT Cruiser $3,000 – Jetta TDI, Touareg2 TDI – 6.0% Azera, Tucson $1,000 – Dodge Charger, Durango, Nissan has Genesis – 0-4.9% Ram 2500/3500 $4,500 0% Dealer Incentives Kia Sorento, Spectra $2,500-$3,500 – positioned Ram 1500 $3,500-$4,500 0-2.9% Incentives in this table are a summary of Amanti, Borrego $3,000 – Grand Caravan, Journey $3,500 0-2.9% the 370Z Optima, Sportage $2,000-$2,500 – dealer programs offered. Programs may Dakota $3,500 – Roadster as Rio, Rondo, Sedona $1,000-$2,000 – vary by region and model. Nitro $3,000 0-2.9% a cheaper JAGUAR BMW GROUP Avenger $2,500 – Expires Nov. 2. alternative Jeep Commander, Expires Sept. 30. 2009 models Grand Cherokee $4,500 0% 2010 models for European BMW 5 series, M5, X5 $2,500-$4,500 Liberty $3,000 0-2.9% XF series, XK series – 2.9-4.9% roadster Compass, Patriot $1,500 – 2009 models 3 series $1,840-$4,500 shoppers. Wrangler $0-$1,000 – XF series, XK series – 2.9-4.9% CHRYSLER GROUP FORD MOTOR CO. LAND ROVER Expires Sept. 30. Expires Oct. 5. In lieu of rebates, cut-rate financing is Expires Sept. 30. 2009 models Chrysler 300 (incl. C and SRT8) $0-$1,000 available. 2010 models 2010 models Range Rover – 2.9-4.9% Dodge Sprinter (incl. cargo) $1,000-$3,000 Z Roadster adds power, Ford Edge, Explorer $1,500-$2,000 0-5.9% 2009 models Charger $0-$1,000 Explorer Sport Trac, F-150 $1,000 3.9-8.9% LR2, LR3 – 0-0.9% Ram 1500, Ram 2500/3500 $0-$500 Flex, Mustang $0-$1,000 0.9-6.9% Range Rover, Range Rover Sport – 0-2.9% GENERAL MOTORS CO. features — but little cost Expedition, Fusion, Transit Connect $500 2.9-8.8% MAZDA Expires Sept. 30. Escape, Ranger, Taurus – 0-6.9% Expires Sept. 30. In lieu of rebates, cut-rate financing 2010 models Lindsay Chappell change is from a vinyl top Focus – 4.9-8.9% is available. Pontiac Vibe $500 [email protected] Lincoln MKX $1,000-$2,000 0.9-4.9% 2010 models 2009 models to a cloth top. The lined canvas roof, MKZ, Navigator $1,000-$1,500 0.9-8.9% Maza3, Mazda6 – 0-3.9% Chevrolet Suburban, Tahoe $0-$1,000 SAN JOSE, Calif. — Nissan Motor produced by Magna International MKS, MKT – 3.9-7.9% CX-7, RX-8, Tribute – 3.9-4.9% Hummer H2, H2 SUT, H3, H3T $3,000-$6,000 Co. has stayed true to its roots with Inc., was a key part of Nissan’s effort to Mercury Mountaineer $2,000 1.9-5.9% 2009 models Pontiac G3, G5, G6, G8, the 2010 370Z Roadster, which goes shave the car’s weight. Despite adding Mariner, Milan $0-$500 1.9-6.9% RX-8 $4,000 2.9-4.9% Solstice, Torrent, Vibe $500 2009 models Tribute $1,000-$3,000 1.9-4.9% Saab 9-3, 9-5, 9-7x $6,000-$8,000 on sale this month. The Roadster, tra- more than 100 pounds of side-curtain Ford Explorer $2,500-$3,500 0-3.9% Mazda3 $1,500-$2,000 1.9-4.9% (incl. Hybrid) $4,000 ditionally positioned as a lower-cost airbags and other equipment, the F-250 Super Duty, MazdaSpeed3 $500-$1,000 – Outlook, Sky, Vue (incl. Hybrid) $2,500-$3,000 F-350 Super Duty, alternative to European sports cars, Roadster comes in about 150 pounds CX-7, CX-9, Mazda6 – 0-4.9% AMERICAN HONDA MOTOR CO. F-450 Super Duty $2,500-$3,000 0-4.9% Mazda5 – 0.9-4.9% Expires Nov. 2. features more engine, new technolo- less than the previous Roadster. Explorer Sport Trac $1,000-$3,000 0-5.9% MERCEDES-BENZ Flex, Ranger $1,000-$2,500 0-4.9% 2010 models gy, better handling and reduced Weight savings also came from Expires Sept. 30. Acura RL $2,000 Edge, Fusion, Mustang $1,500-$2,000 0-5.9% 2010 models weight, at little additional cost. switching the hood from steel to alu- Expedition, Expedition EL, 2009 models Nissan has given the car a sticker minum. C class, GL, GLK, M class – 2.9-3.9% Acura MDX, RDX, RL, TL, TSX $1,000-$3,000 F-150 $1,000-$2,000 0.9-6.9% 2009 models Escape, Taurus $1,000-$1,500 0-3.9% Honda Accord, Ridgeline $750-$1,500 price of $37,690 including shipping, What Nissan says: “The Z has al- CLK, CLS, SL, SLK – 1.9-2.9% Focus, Taurus X $500-$1,000 0-7.9% Odyssey, Pilot $1,250 just $100 more than the 350Z Road- ways been a story of value,” says Lar- Econoline – 1.9-5.9% MITSUBISHI Civic (incl. Hybrid), CR-V $0-$750 ster it replaces. ry Dominique, vice president of Lincoln Town Car $3,000 4.9-8.9% Expires Sept. 30. In lieu of rebates, cut-rate financing HYUNDAI-KIA AUTOMOTIVE The basics: Nissan took the con- product planning at Nissan North MKZ, Navigator $2,000-$3,000 0-6.9% is available. Expires Sept. 30. 2010 models vertible’s redesign seriously, making America Inc. “The first Z we did many MKS, MKX $1,000-$2,500 0-4.9% 2009 models Mercury Grand Marquis $3,500 0.9-4.9% Endeavor $3,500 0-2.9% Azera, Accent $500 the rear end more pronounced and years ago cost $2,100. We really want- Lancer, Lancer Sportback – 0-4.9% Milan, Mountaineer $2,000-$2,500 0-3.9% LAND ROVER Mariner, Sable $1,000-$1,500 0-3.9% Eclipse, Eclipse Spyder – 4.9-6.9% pushing the rear window back 6 ed to get back to that sense of value.” Expires Sept. 30. GENERAL MOTORS CO. 2009 models inches to give the two-seater a more Compromises and shortcomings: Galant $3,500 0-1.9% 2009 models Expires Sept. 30. In lieu of rebates, cut-rate financing BMW-ish look. The car’s length has The Roadster is designed to move Raider $3,500 – Range Rover, Range Rover Sport $5,000-$9,000 is available. been trimmed 2.7 inches compared forward. Moving in reverse can be Eclipse Spyder $2,000 0-3.9% LR2, LR3 $3,000-$4,000 2010 models Eclipse, Lancer $1,500 0-3.9% MERCEDES-BENZ Buick Enclave $500 3.9-5.9% with the 350Z. But it is 1.3 inches tricky because of a raised back end Outlander $1,000 0-3.9% Expires Sept. 30. LaCrosse – 3.9-6.9% wider, sitting on a wheelbase that has that obstructs the view for parking. NISSAN NORTH AMERICA 2009 models Cadillac SRX – 6.9% CL, CLK, E class, M class, S class $0-$15,000 been reduced 3.9 inches. Body stiff- The shorter body also leaves the $1,000 3.9-5.9% Expires Sept. 30. In lieu of rebates, cut-rate financing C class, GL $5,000-$10,000 ness has been increased 40 percent in cockpit with legroom that is just ade- Cobalt, Equinox, HHR, Impala, is available. 2010 models the front and 45 percent in the rear. quate. Traverse – 6.9% MITSUBISHI Infiniti QX56 – 0-2.9% Expires Sept. 30. The market: GMC Acadia $500 3.9-5.9% Under the hood, the Roadster gets a The Roadster is a key Terrain – 6.9% Nissan Armada $4,000 0-2.9% 2009 models 3.7-liter V-6 with 332 hp, a boost of 26 piece of Nissan’s sports car business, Pontiac Vibe $2,500 2.9-5.9% Maxima, Sentra $500-$1,000 0.9-4.9% Raider $0-$1,000 2009 models 2009 models NISSAN NORTH AMERICA hp from the previous-generation 3.5- since it accounts for 30 percent of Z Infiniti EX35, FX35, FX50, Buick LaCrosse, Lucerne $2,500 4.9% Expires Sept. 30. liter engine. Nissan has paired a six- sales, Dominique says. Convertible G37, M35, M45, QX56 – 0-3.9% Enclave $2,000 0-5.9% 2010 models Nissan Titan $5,000 0-0.9% speed manual transmission with its sales represent an even higher per- Infiniti QX56 $6,000 Cadillac XLR, XLR-V $10,000 4.9% Altima Hybrid, Quest $0-$3,250 0-2.9% new SynchroRev Match technology, centage of some of the competitor Escalade, Escalade ESV, Frontier, Pathfinder $2,500-$3,000 0-2.9% 2009 models which recalibrates engine revs during models Nissan is targeting. Escalade EXT, Escalade Hybrid $3,500 0-5.9% 350Z, Xterra $2,000-$2,500 0-2.9% Infiniti QX56 $7,000 DTS, SRX, STS, STS-V $3,000 0-5.9% M35, M45, FX35, FX50 $5,000-$6,000 downshifting to allow smoother gear The skinny: Nissan has positioned Sentra $1,500-$2,000 0-0.9% CTS $2,000 0-5.9% Maxima $750-$1,750 0-1.9% EX35, G37 $2,500-$4,000 meshing. The car also offers a seven- the Z Roadster to be a moderately Chevrolet Corvette $4,000 1.9-3.9% Altima (excl. Hybrid) $1,500 0-1.9% Nissan 350Z $2,500 speed automatic. priced alternative for European road- Silverado 2500HD, Murano, Rogue, Versa $500-$1,250 0-3.9% TOYOTA MOTOR SALES Notable features: c Silverado 3500HD $3,000-$4,000 0-4.9% SUBARU Expires Oct. 5. The biggest ster shoppers. Avalanche $3,500 0-4.9% Expires Sept. 30. In lieu of rebates, cut-rate financing 2010 models TrailBlazer $3,500 2.9-4.9% Toyota Tundra $0-$3,000 Silverado 1500 $2,000-$3,500 0-4.9% is available. How they compare 2010 models Camry, Corolla, Sienna $0-$750 Traverse $2,000-$3,000 0-5.9% Forester, Impreza, Legacy, Outback – 3.9-4.5% 2010 370Z ROADSTER 2009 350Z ROADSTER Equinox, Impala $2,500 0-4.9% 2009 models 2009 models HHR $2,000 3.9% Toyota Tundra $0-$3,000 Wheelbase 100.4 in. 104.3 in. Impreza, Outback, Tribeca $0-$3,200 0-4.9% Cobalt, Malibu (excl. Hybrid) $1,500 0-4.9% Camry (excl. Hybrid), Corolla, Prius $0-$1,500 Forester, Legacy – 2.9-4.9% Length 167.1 in. 169.8 in. Aveo, Suburban, Tahoe $1,500 0-5.9% Sienna $0-$1,250 SUZUKI Width 72.8 in. 71.5 in. Express (incl. cargo) $1,000-$1,500 1.9-5.9% Camry Hybrid, Highlander (incl. Hybrid), Colorado $500-$1,500 4.9% Expires Sept. 30. In lieu of rebates, cut-rate financing Matrix, RAV4, Tacoma, Yaris $0-$1,000 Height 52.1 in. 52.5 in. Malibu Hybrid $1,000 0-3.9% is available. VOLVO GMC Sierra 2500HD, 2009 models Expires Sept. 30. Curb weight 3,426 lbs. 3,575 lbs. XL7 $2,000-$4,000 0-4.9% Sierra 3500HD $3,000-$4,000 0-4.9% 2010 models Equator, Grand Vitara $1,000-$3,000 0-4.9% Base engine 3.7-liter V-6 3.5-liter V-6 Envoy $3,500 2.9-4.9% S80, V70, XC70 $3,000-$3,750 SX4 $500-$2,500 0-4.9% Horsepower 332 hp @ 7,000 rpm 306 hp @ 6,800 rpm Sierra 1500 $2,000-$3,500 0-4.9% C30, C70, S40, V50 $1,250-$2,500 Acadia $2,000 0-5.9% TOYOTA MOTORS SALES XC60, XC90 $500-$1,000 Torque, lbs.-ft. 276 @ 5,200 rpm 268 @ 4,800 rpm Yukon, Yukon XL $1,500 0-5.9% Lexus expires Sept. 30; Toyota expires Oct. 5. In lieu of 2009 models EPA mpg 18 city/25 hwy. 17 city/24 hwy. Savana (incl. cargo) $1,000-$1,500 1.9-5.9% rebates, cut-rate financing is available. S60, S80, XC70 $5,000-$5,750 Canyon $500-$1,000 4.9% 2010 models C70, V70, XC90 $1,500-$4,500 Base price $37,690* $37,590* Hummer H2, H2 SUT, Toyota Tundra $0-$3,000 0-3.9% C30, S40, V50 $2,000-$3,000 *Includes $720 shipping H3, H3T – 6.9% Camry, Corolla $0-$1,000 0-2.9% , G8 $3,500 2.9-5.9% Sienna – 1.9-3.9% Source: Automotive News and Edmunds.com 20090914-NEWS--0033-NAT-CCI-AN_-- 9/11/2009 5:12 PM Page 1

SEPTEMBER 14, 2009 • 33

Scheduled plant overtime Plant closings for the week ending Sept. 19‡ Plant Plant Resumes Output rises 43% over July Chrysler Group Ford Motor Co. North America production for August was down 21.8 per- Cuautitlan, Mexico* 1st qtr. 2010 Not available at press time; updates are available cent compared with August 2008. It is the fourth month in a Michigan Assembly (Wayne)* mid-2010 Stories about these companies at autonews.com/section/data. row that production has improved from the previous month, with August increasing 43.0 percent over July. are on these pages: Plants working short weeks Ford Motor Co. Car production dropped 31.4 percent in the United States, Acura...... 22 Mercedes-Benz: Vance, Ala. (four-day week) Kansas City (Mo.) SUV truck 20.6 percent in Canada, 39.6 percent in Mexico and 31.4 per- Alfa Romeo ...... 6 Nissan: Canton, Miss., and Smyrna, Tenn., car lines, Wayne (Mich.) Assembly car cent in North America. Aston Martin ...... 34 four-day week Truck output dropped 8.1 percent in the United States, Audi ...... 20 16.6 percent in Canada, 14.3 percent in Mexico and 10.3 per- General Motors Co. Other downtime BBDO ...... 28 cent in North America. AM General: Mishawaka, Ind., Hummer H2 only, Beijing Automotive Industry Holding...... 31 Arlington, Texas truck Vehicle output was down 19.8 percent in the United States, pending sale of Hummer , Mich. truck 18.9 percent in Canada and 31.4 percent in Mexico. Black Book...... 12 Oshawa (Ontario) Consolidated car ‡Overtime worked during the week could be daily, Saturday or both. — Debi Domby BMW...... 8,T O C O M P A N 10,I 16,E S34 Spring Hill, Tenn. truck *Down for changeover Brilliance ...... 16 Source: Automotive News Data Center and company sources Buick ...... 8, 12, 20 North America car and truck production Unless noted vehicles are cars and assembled in the United States. BYD Auto ...... 16 9/7- Aug. 1/1- 1/1- 9/7- Aug. 1/1- 1/1- 9/7- Aug. 1/1- 1/1- Cadence Innovation ...... 31 9/12/09† total 9/12/09† 9/13/08 9/12/09† total 9/12/09† 9/13/08 9/12/09† total 9/12/09† 9/13/08 AM GENERAL Hummer H2 (trk.) 00 05,199 LaCrosse/Allure 1,218 3,064 6,519 0 Sonata 1,871 9,784 75,132 128,275 Cadillac ...... 8, 12, 20 Ford Mustang 1,573 6,231 48,040 82,751 LaCrosse/Allure (Can.) 0 0 11 36,360 Santa Fe (trk.) 1,859 9,730 55,169 76,546 Mazda Mazda6 sedan 1,153 4,553 14,535 43,078 Lucerne 403 2,072 13,101 40,470 HYUNDAI 3,730 19,514 130,301 204,821 Cerberus...... 34 Mazda Mazda6 hatchback 0 0 0 1,564 Enclave (trk.) 1,070 4,277 27,113 42,319 GL class (trk.) 439 2,055 12,177 32,720 Chevrolet...... 8, 10, 12, 20, 30 AUTOALLIANCE 2,726 10,784 62,575 127,393 Total Buick 2,691 9,413 46,744 119,149 M class (trk.) 1,372 8,009 47,627 86,383 Z4 Coupe 0 0 0 1,502 CTS 846 3,317 18,297 65,318 R class (trk.) 40 335 6,906 17,035 Chrysler...... 1, 3, 4, 6, 10, 12, 20, Z4 Roadster 0 0 0 8,269 CTS wagon 134 177 417 0 MERCEDES-BENZ 1,851 10,399 66,710 136,138 ...... 28, 30, 31, 32, 34 X5 (trk.) 1,277 6,484 50,908 93,089 DTS 299 1,535 6,303 24,841 Eclipse 17 72 1,268 9,976 X6 (trk.) 707 3,550 29,300 23,683 STS 73 280 2,218 13,169 Eclipse convertible 4 17 1,014 3,280 Chrysler Financial ...... 32 Total U.S. car 0 0 0 9,771 XLR 0 0 234 1,277 Galant 394 1,649 5,517 32,122 Total U.S. truck 1,984 10,034 80,208 116,772 Escalade (trk.) 298 810 8,125 20,799 Endeavor (trk.) 166 710 2,200 3,980 Citation...... 17 BMW MFG. CORP.‡ 1,984 10,034 80,208 126,543 Escalade ESV (trk.) 147 401 3,413 9,358 Total U.S. car 415 1,738 7,799 45,378 Continental ...... 34 Chevrolet Equinox (Can. trk.) 1,676 8,763 38,462 70,172 Escalade EXT (Mex. trk.) 23 132 1,065 3,824 Total U.S. truck 166 710 2,200 3,980 GMC Terrain (Can. trk.) 439 2,180 3,035 0 SRX (trk.) 0 0 5 14,426 MITSUBISHI MOTOR MFG. 581 2,448 9,999 49,358 Dodge ...... 4, 6, 20, 28, 30, 31, 32 Pontiac Torrent (Can. trk.) 0 0 5,289 26,290 SRX (Mex. trk.) 732 2,484 5,458 0 Infiniti QX56 (trk.) 138 913 4,179 19,493 Faurecia...... 8, 31 Suzuki XL7 (Can. trk.) 0 0 4 11,714 Total Cadillac 2,552 9,136 45,535 153,012 Altima coupe 294 717 10,164 37,406 CAMI 2,115 10,943 46,790 108,176 Aveo (Mex.) 276 1,068 17,089 11,207 Altima sedan 2,636 13,591 113,743 236,796 Fiat ...... 4, 6, 31 300 (Can.) 820 4,101 20,668 47,792 Camaro (Can.) 3,056 15,183 53,967 0 Maxima 1,125 5,870 31,259 42,901 PT Cruiser (Mex.) 110 458 9,836 44,516 Chevy C2 (Mex.) 475 1,835 13,176 44,658 Platina (Mex.) 15 61 1,417 5,316 Flexible Products ...... 31 Sebring 232 809 6,169 40,480 Cobalt 1,316 6,799 36,847 170,919 Sebring convertible 66 230 1,633 22,660 Sentra (Mex.) 2,693 11,311 82,101 97,891 Ford ...... 3, 6, 8, 10, 16, 20, 28, 31, 34 Corvette 258 382 4,918 24,436 Tiida (Mex.) 477 2,005 10,477 16,286 Aspen (trk.) 0 0 0 18,777 HHR (Mex.) 836 3,229 28,204 70,487 Geely...... 31 Town & Country (trk.) 0 0 0 10,945 Tsuru (Mex.) 1,365 5,734 46,805 65,577 Impala (Can.) 2,155 10,682 81,132 211,168 Versa (Mex.) 2,392 10,045 64,864 135,077 Town & Country (Can. trk.) 1,622 8,516 41,094 103,912 Malibu 4,053 21,028 100,750 169,104 Getrag ...... 6 Total Chrysler Division 2,850 14,114 79,400 289,082 Armada (trk.) 339 1,617 5,537 15,301 Avalanche (Mex. trk.) 248 1,404 11,423 23,010 Frontier (trk.) 510 3,255 17,651 36,565 GM ...... 1, 3, 4, 8, 10, 12, 14, Avenger 578 2,013 13,558 62,537 Captiva Sport (Mex. trk.) 237 1,342 10,998 10,906 Caliber 848 3,796 18,397 97,471 Pathfinder (trk.) 553 2,575 13,323 25,399 ...... 16, 20, 28, 29, 31. 34 Colorado (trk.) 269 1,058 13,164 46,238 Pickup (D21, Mex. trk.) 0 0 0 8,156 Challenger (Can.) 708 3,539 17,627 13,264 Express (trk.) 751 3,850 33,986 61,314 Pickup/Chassis (NP300, Mex. trk.) 859 3,608 19,894 30,781 GMAC ...... 8, 24, 32 Charger (Can.) 1,049 5,244 28,627 90,366 Medium (trk.) 0 0 1,485 5,243 Quest (trk.) 0 0 5,080 25,147 Magnum (Can.) 0 0 0 4,733 Medium (Mex. trk.) 0 0 0 1,440 GMC ...... 8, 12, 20, 28 Viper 19 7 172 1,298 Silverado (trk.) 5,530 28,343 142,224 163,566 Titan (trk.) 410 2,472 8,766 75 Dakota (trk.) 593 1,482 10,188 24,450 Silverado (Can. trk.) 0 0 18,546 58,930 Xterra (trk.) 383 2,588 12,435 27,717 Honda ...... 16, 20, 22, 28, 30 Durango (trk.) 0 0 0 18,052 Total Nissan Division 14,051 65,449 443,516 806,391 Silverado/Cheyenne (Mex. trk.) 2,017 11,416 59,253 75,647 Hummer...... 12, 20 Grand Caravan/Caravan (trk.) 0 0 0 50,347 Suburban (trk.) 1,250 3,409 25,391 22,255 Renault Clio (Mex.) 80 334 2,384 7,553 Gr. Caravan/Caravan (Can. trk.) 3,287 17,254 66,232 76,377 Suburban (Mex. trk.) 0 0 0 6,878 Suzuki Equator (trk.)† 0 0 2,331 7,830 Hyundai...... 6, 8, 20, 23, 28, 30, 31 Journey (Mex. trk.) 2,139 8,941 35,524 91,851 Tahoe (trk.) 1,898 5,190 37,180 70,693 Total U.S. car 4,055 20,178 155,166 317,103 Nitro (trk.) 515 1,804 8,637 31,795 TrailBlazer (trk.) 0 0 5 55,439 Total Mexico car 7,022 29,490 208,048 327,700 Hyundai-Kia...... 20, 28 Ram (trk., 2008 model) 0 0 0 113,661 Total U.S. truck 2,333 13,420 69,302 157,527 Traverse (trk.) 2,736 12,920 58,144 2,264 International Automotive Components ...... 31 Ram (trk.) 3,494 8,735 80,770 11,295 Uplander (trk.) 0 0 0 61,112 Total Mexico truck 859 3,608 19,894 38,937 Ram (Mex. trk.) 0 8,032 36,793 72,711 Total Chevrolet 27,361 129,138 747,882 1,366,914 NISSAN‡ 14,269 66,696 452,410 841,267 ...... 14 Sprinter (trk.)† 0 0 418 13,053 Acadia (trk.) 1,317 5,266 24,178 64,495 Pontiac Vibe 0 3,437 27,951 57,617 Total Dodge 13,230 60,847 316,943 773,261 Canyon (trk.) 69 267 3,998 12,945 Toyota Corolla 3,796 16,579 93,873 118,268 Jaguar ...... 20, 34 Commander (trk.) 164 844 4,049 16,043 Envoy (trk.) 0 0 3 18,879 (trk.) 2,310 9,271 30,342 104,164 J.D. Byrider ...... 24 Compass (trk.) 578 2,603 9,415 36,252 Medium (trk.) 0 0 4,149 11,192 Total U.S. car 3,796 20,016 121,824 175,885 Grand Cherokee (trk.) 1,056 5,454 29,911 53,096 Savana (trk.) 206 1,056 9,558 20,883 Total U.S. truck 2,310 9,271 30,342 104,164 Jeep...... 4, 6, 28, 30, 31, 32 Liberty (trk.) 1,104 3,864 22,616 66,710 NUMMI‡ 6,106 29,287 152,166 280,049 Sierra (trk.) 2,394 12,336 56,123 63,329 Jim Click Automotive ...... 4 Patriot (trk.) 1,084 4,877 16,761 66,927 Sierra (Can. trk.) 0 0 8,555 32,810 Subaru Legacy 1,878 9,090 42,468 61,035 Wrangler ( trk.) 986 4,932 22,148 39,865 Sierra (Mex. trk.) 1,200 6,790 32,138 23,294 Toyota Camry 1,354 7,366 57,761 72,249 J.L. French Automotive Castings...... 17 Wrangler Unlimited 4-door (trk.) 1,419 7,096 31,244 63,717 Yukon (trk.) 354 965 17,302 35,799 Subaru Tribeca (trk.) 4 183 2,346 16,021 Total Jeep 6,391 29,670 136,144 342,610 Yukon XL (trk.) 240 653 10,159 23,533 Total U.S. car 3,232 16,456 100,229 133,284 JM Family Enterprises ...... 24 Total Chrysler brands 22,471 104,631 532,487 1,404,953 Yukon XL (Mex. trk.) 0 0 0 6,753 Total U.S. truck 4 183 2,346 16,021 Mitsubishi Raider 00 14,003 Kia ...... 20, 28, 30 Total GMC 5,780 27,333 166,163 313,912 SUBARU‡ 3,236 16,639 102,575 149,305 Volkswagen Routan (Can. trk.) 23 93,298 Lexus RX 350 (Can. trk.) 1,326 6,405 39,659 60,784 Total U.S. car 1,743 6,855 39,929 224,446 H3 (trk.) 0 0 1,631 12,936 Koenigsegg Group ...... 31 H3 SUT (trk.) 0 0 1,028 624 Avalon 510 2,716 17,451 46,410 Total Canada car 2,577 12,884 66,922 156,155 Camry 3,324 25,601 125,493 278,152 Land Rover ...... 20 Total Mexico car 110 458 9,836 44,516 Total Hummer 0 0 2,659 13,560 Total U.S. truck 10,993 41,691 236,158 638,988 Ascender (trk.) 0 0 0 310 Camry Hybrid 148 794 12,016 37,390 Lexus ...... 20, 29 i-280, i-350 pickup (trk.) 0 0 0 701 Camry Solara 0 0 0 17,108 Total Canada truck 4,911 25,773 107,335 183,587 Lincoln ...... 34 Total Mexico truck 2,139 16,973 72,317 164,562 Medium (trk.) 0 0 58 342 Venza 1,364 7,668 49,626 0 Total Isuzu 0 0 58 1,353 CHRYSLER GROUP 22,473 104,634 532,497 1,412,254 Corolla (Can.) 2,484 12,113 81,904 100,721 Magna ...... 3, 29, 31, 32 Crown Victoria (Can.) 731 1,096 27,461 46,780 Opel GT roadster 00213,039 Matrix (Can.) 666 3,761 26,708 70,474 Focus 4,955 19,734 97,659 167,994 G3/Wave (Mex.) 0 0 1,945 199 RAV4 (Can. trk.) 1,390 7,244 51,389 0 Mazda ...... 30 G5 172 872 7,208 39,322 Sequoia (trk.) 720 1,302 10,782 33,221 Fusion (Mex.) 5,178 16,488 113,398 143,058 Mercedes-Benz...... 20 Taurus (new) 1,732 4,724 27,405 36,287 G6 1,082 5,569 34,438 120,441 Sienna (trk.) 1,774 8,871 42,965 113,332 E series, Econoline (trk.) 1,561 6,188 63,138 101,580 Solstice 0 0 1,771 5,680 Tacoma (Mex. trk.) 1,008 3,487 27,577 40,321 Meridian Automotive ...... 31 Edge (Can. trk.) 2,064 5,143 59,900 99,749 Montana SV6 (trk.) 0 0 0 19,402 Tundra (trk.) 1,686 8,798 53,986 119,693 Escape (trk.) 3,384 15,117 133,709 155,043 Total Pontiac 1,254 6,441 45,362 185,044 Total Toyota Division 15,074 82,355 499,897 856,822 Milliken...... 31 Saab 9-7X (trk.) 00 22,207 Total U.S. car 5,346 36,779 204,586 379,060 Expedition (trk.) 851 4,382 19,428 39,399 Mini...... 20 Explorer (trk.) 1,459 5,786 42,887 72,703 Aura 0 0 3,707 47,408 Total Canada car 3,150 15,874 108,612 171,195 F series (trk.) 6,543 26,061 244,621 252,477 Sky 0 0 275 7,081 Total U.S. truck 4,180 18,971 107,733 266,246 Mitsubishi ...... 6, 10, 30, 31 F-series Heritage (Mex. trk.) 0 0 0 27,146 Outlook (trk.) 0 0 3,866 16,709 Total Canada truck 2,716 13,649 91,048 60,784 F-series Super Duty (trk.) 3,142 16,402 113,297 154,101 Vue (Mex. trk.) 0 0 8,455 64,988 Total Mexico truck 1,008 3,487 27,577 40,321 Nissan ...... 14, 20, 23, 30, 32 Total Saturn 0 0 16,303 136,186 F-series chassis (trk.) 50 193 415 3,549 TOYOTA‡ 16,400 88,760 539,556 917,606 Opel ...... 3, 29 Flex (Can. trk.) 910 2,254 19,582 27,902 Total U.S. car 9,854 45,095 237,024 732,505 Toyota incl. joint ventures* 23,860 121,976 721,532 1,212,287 Medium (Mex. trk.) 112 411 2,757 4,436 Total Canada car 5,211 25,865 135,110 247,528 New Beetle 584 1,984 16,709 26,709 Paice...... 29 Ranger (trk.) 1,458 5,778 42,530 68,825 Total Mexico car 1,587 6,132 60,414 126,551 New Beetle Cabrio 121 411 7,893 12,888 Penske Automotive Group ...... 30 Taurus X (trk.) 0 0 1,649 17,640 Total U.S. truck 18,529 80,801 482,290 879,312 Jetta (old) 965 3,282 27,322 56,045 Total Canada truck 0 0 27,101 91,740 Total Ford division 34,130 129,757 1,009,836 1,418,669 Jetta/Bora 4,090 13,906 102,713 147,204 ...... 10 MKS 398 1,078 9,456 12,166 Total Mexico truck 4,457 23,568 128,790 216,740 GENERAL MOTORS CO. 39,638 181,461 1,070,729 2,294,376 Jetta/Bora/Golf wagon 1,986 6,754 71,931 79,672 MKZ (Mex.) 407 1,281 11,980 26,521 Medium (trk.) 18 60 749 1,383 Pontiac ...... 12, 20 Town Car (Can.) 194 291 7,643 14,752 GM incl. joint ventures* 41,753 195,841 1,145,466 2,453,654 Total Mexico car 7,746 26,337 226,568 322,518 Preh ...... 10 Mark LT (trk.) 19 69 278 4,823 CSX (Can.) 1 3 1,172 1,650 Total Mexico truck 18 60 749 1,383 MKT (Can. trk.)† 83 225 468 0 TL 77 402 12,594 33,709 VOLKSWAGEN (Mex.) 7,764 26,397 227,317 323,901 PSA/Peugeot-Citroen ...... 10 MKX (Can. trk.) 475 1,176 15,642 26,248 MDX (Can. trk.) 298 1,568 17,386 49,065 Med./hvy. truck (Can. trk.) 441 1,631 14,993 23,117 Renault...... 14 Navigator (trk.) 193 994 4,409 11,250 RDX (trk.) 239 1,253 5,002 19,239 Med./hvy. truck (Mex. trk.) 924 4,912 29,850 26,649 Total Lincoln 1,769 5,114 49,876 95,760 Total Acura 615 3,226 36,154 103,663 Med./hvy. truck (trk.) 2,940 10,878 99,964 157,096 Grand Marquis (Can.) 722 1,083 16,210 21,416 Accord 6,292 33,032 190,935 274,813 Saab ...... 12, 20, 31 OTHER (trk.) 4,305 17,421 144,807 206,862 Milan (Mex.) 394 1,241 13,661 23,605 Civic 1,518 7,969 53,034 84,333 Saturn ...... 12, 20 Sable 0 3,613 7,412 10,015 Civic (Can.) 4,248 22,297 152,949 204,700 Total U.S. car 48,010 238,237 1,402,759 2,892,417 Mariner (trk.) 307 1,379 15,334 26,785 CR-V (trk.) 2,771 14,549 86,983 70,257 Total Canada car 16,834 79,393 516,079 864,176 SCI...... 8 Total Mexico car 22,444 81,427 643,905 1,014,469 Mountaineer (trk.) 130 511 3,054 8,712 CR-V (Mex trk.) 920 3,229 32,866 36,543 Scion...... 20 Total Mercury 1,553 7,827 55,671 90,533 Element (trk.) 235 1,234 10,008 16,693 Total North America car 87,288 399,057 2,562,743 4,771,062 B series (trk.) 3 2 976 3,407 Odyssey (trk.) 1,375 7,220 52,779 123,671 Total U.S. truck 72,094 319,477 2,124,461 3,811,523 Siltanen & Partners ...... 23 Tribute (trk.) 211 948 4,487 12,540 Pilot (trk.) 774 4,063 35,505 90,840 Total Canada truck 14,013 62,362 400,245 690,764 Total Mazda 214 950 5,463 15,947 Ridgeline (trk.) 240 1,260 11,550 0 Total Mexico truck 10,437 56,248 314,800 556,717 Subaru ...... 6, 20, 23 Total U.S. car 7,085 29,149 141,932 226,462 Ridgeline (Can. trk.) 0 0 0 20,396 Total North America truck 96,544 438,087 2,839,506 5,059,004 Suzuki ...... 23, 30 Total Canada car 1,647 2,470 51,314 82,948 Total Honda Division 18,373 94,853 626,609 922,246 Total U.S. 120,104 557,714 3,527,220 6,703,940 Total Mexico car 5,979 19,010 139,039 193,184 Total U.S. car 7,887 41,403 256,563 392,855 Total Canada 30,847 141,755 916,324 1,554,940 Toyota ...... 16, 20, 23, 28, 29, 30 Total U.S. truck 19,311 83,810 690,212 932,834 Total Canada car 4,249 22,300 154,121 206,350 Total Mexico 32,881 137,675 958,705 1,571,186 Total Canada truck 3,532 8,798 95,592 153,899 Total U.S. truck 5,634 29,579 201,827 320,700 Volkswagen ...... 8, 20, 29, 34 TOTAL NORTH AMERICA 183,832 837,144 5,402,249 9,830,066 Total Mexico truck 112 411 2,757 31,582 Total Canada truck 298 1,568 17,386 69,461 Volvo ...... 8, 20, 30 FORD MOTOR CO. 37,666 143,648 1,120,846 1,620,909 Total Mexico truck 920 3,229 32,866 36,543 †Automotive News estimate ‡Actual *Not included in production grand totals Ford incl. joint venture* 39,239 149,879 1,168,886 1,703,660 HONDA 18,988 98,079 662,763 1,025,909 Source: Automotive News Data Center and company sources Wheego ...... 34 20090914-NEWS--0034-NAT-CCI-AN_-- 9/11/2009 2:45 PM Page 1

34 • SEPTEMBER 14, 2009

FRANKFURT >> Get live coverage all week of the Frankfurt motor show finalfinal assemblyassembly at autonews.com/frankfurt.

comment Would Conan Ford’s EV technology Whitacre caught the contrarian gets big PR boost from the disease: He’s replace his Leno’s leadfoot guests or Jay Leno, the objective of the Green Car an instant car guy Taurus? FChallenge on his NBC show debuting this week is to get celebrities to drive an electric car hat is it about the onan O’Brien, host of “The Tonight fast. Wautomobile business that CShow” on NBC, has long been But for Ford, the goal is to convince makes people believe they can attached to his green 1992 Taurus consumers that electric cars aren’t dreary come to town and magically be SHO. Now Ford CEO Alan Mulally futuristic science experiments. They can be transformed into car guys? is trying to get the comedian driven fast and will look like the next Now Ed Whitacre, the behind the wheel of the restyled car over in the parking lot. nonexecutive chairman of 2010 Taurus. To that end, Ford is loaning General Motors Co., wants to be “My dream is to get him into a “The Jay Leno Show” two Lee Iacocca. new SHO,” Mulally told KOMO, electric-powered Ford Focuses. Whitacre will pitch GM’s the ABC affiliate in Seattle. The Once or twice a week, products on TV. former Boeing executive was celebrities — starting with It smacks of visiting his old stamping grounds Drew Barrymore this week those spots from over Labor Day to promote the — will drive an electric the early 1980s revamped Taurus. Focus on a handling track. when Iacocca But it might not be so easy They’ll race against the challenged to pry the old SHO out of clock, competing for the consumers to O’Brien’s garage. He brought it best time of the season. EDWARD LAPHAM look at : with him to Los Angeles when he Ford is getting ready to IS EXECUTIVE “If you can find a moved from New York earlier sell an electric Focus in EDITOR OF better car, buy this year to take over “The 2011. That car will have a AUTOMOTIVE it.’’ Tonight Show” from Jay Leno. The Conan O’Brien: Despite Alan Mulally’s Jay Leno will have some fun with Ford’s electrics. new design that won’t be NEWS. After the car featured prominently in a efforts, the host’s old SHO may go on. unveiled until next year. federal bailout, GM’s corporate debut episode in June. The Leno cars are electric versions of the current Focus. reputation is so weak that the The old SHO has served O’Brien well. The comedian once told Vanity Fair Lisa Drake, chief engineer of Ford’s hybrid and automaker is removing the GM magazine: “It’s a stick-shift model. The ladies go crazy for it.” programs, said in a statement: “Having our Focus battery electric vehicle on Mark of Excellence jewelry from The 2010 SHO has more horsepower and paddle shifters. But O’Brien the show is a great way to demonstrate how fun-to-drive these cars really its products. So Whitacre’s won’t be able to get a stick shift. can be.” message is about trusting GM. But Iacocca spent his career in the car biz. He fathered the Mustang, was fired by Henry Ford Leftists prevail in Samoa; II and then saved Chrysler from Reitzle: A car guy is bankruptcy. Iacocca was a drivers change lanes believable spokesman because he back in the biz, sort of After a seven- s leftist revolutions go, this one was had street cred. year absence, A fairly peaceful — though still a bit Whitacre may be a corporate n the broad sweep of history, Continental announced that Wolfgang dangerous. whiz, but that doesn’t guarantee Ithis was supposed to be a huge Reitzle had agreed to take over as Reitzle, that Last week, drivers in Samoa, the tiny success. transition year at BMW. chairman of the auto supplier’s charismatic Pacific island nation of 214,000 citizens, John Smale, former chairman of Wolfgang Reitzle was going to supervisory board. car guy, is switched from the right side to the left side Procter & Gamble, led GM’s board retire after 16 years in command, Lots of auto people remain back. of the road. when it deposed car guys at the having been only the second nostalgic for Reitzle, a special After weeks of driver training and a top, replacing them with a CEO in the company’s modern car-guy talent by almost Lincoln as head of the new two-day national holiday to replace traffic dynasty of financial staffers. era. unanimous reckoning who got Premier Automotive Group. signs, Prime Minister Tuilaepa Sailele Don’t forget Ron Zarrella, who Eberhard von Kuenheim was sideways with his BMW bosses at Reitzle walked away from Ford in Malielegaoi broadcast a signal at 6 a.m. came from Bausch & Lomb and BMW’s empire-building boss the wrong times and twice 2002, a few months after Nasser Monday, Sept. 7, and drivers symbolically hired marketing experts from from 1970 through 1993. After missed out on the top job. In was ousted. steered their cars from the right side to the consumer goods companies. that, Reitzle, von Kuenheim’s Europe they call him the “nearly But Reitzle isn’t all the way left. Scores of policemen stood along the More recently, Stephen Feinberg prodigy, was presumed to man.” back in the auto business. He’ll roadside imploring drivers to go slow. figured Cerberus Capital become CEO and stick around A charismatic executive with an chair Conti’s supervisory board; The last countries to change sides — Management LLC could remake until 2009, when the one-time Errol Flynn mustache, Italian he won’t be the company’s CEO. Sweden and Iceland in the 1960s and Chrysler with a little help from boy wonder would hit the suits and TV star girlfriend, (Elmar Degenhart has assumed Nigeria, Ghana and Yemen in the 1970s — Bob Nardelli, who had bailed out company’s mandatory Reitzle had much to do with that job.) Reitzle will remain CEO went from left to right. Samoa went the other of General Electric and then retirement age of 60. BMW’s transformation from a of Linde. way because most of the cars there are gifts Home Depot. That didn’t happen, of course. wobbly Mercedes pretender to Then again, German to relatives from the 170,000 expatriate And, of course, the automotive Instead, this will be the year that perhaps the world’s purest supervisory board chairmen can Samoans living in Australia and New Zealand task force included a contingent of Reitzle returns to the auto automotive brand. After Reitzle play powerful roles in company and have steering wheels on the right side. Wall Streeters and politicos such business after seven years as left BMW in 1999, Ford CEO affairs. Think of Volkswagen’s One little problem: The nation’s buses as Steve Rattner and Ron Bloom. head of the German industrial Jacques Nasser asked him to run Ferdinand Piech. Either way, have doors on the right side — meaning Too often, newcomers tend to be group Linde. Last week, Jaguar, Volvo, Aston Martin and welcome back, Wolfgang. riders now have to board from a traffic lane. like the sorcerer’s apprentice in the Disney flick Fantasia. They learn how to make brooms fetch water but not how to shut them off. And away Wheego — at 35 mph There has been heavy criticism of Detroit corporate cultures that heego cranked up its Ontario, Calif., a low-speed vehicle, can go 50 miles on a charge create execs who think they know Wassembly line for the first time this month, running at speeds of 25-35 mph. everything there is know about installing electric guts into a China-built small So far, Boyd says, Wheego has signed 15 the car business. And rightly so. car to create a low-speed vehicle. dealers and is negotiating with 30 more for But almost as dangerous as the The first electric-powered Wheego Whip off mid-2010. arrogance of a know-it-all is the the line is being shipped to a dealer in Holland, By then, he says, Wheego should have ignorance of a novice who doesn’t Mich., says Jeff Boyd, president of Wheego, of finished crash testing and developing a know how much he doesn’t know. Atlanta. For the rest of the year, Wheego plans more robust all-electric powertrain to give to produce 100 Whips a month, adding largely the same platform a top speed of 65 mph Ⅲ Edward Lapham writes U.S.-built motors, batteries, controllers and and a single-charge range of 100 miles. commentaries for autonews.com. other parts to the chassis and two-seat body of Wheego plans to sell the upgraded vehicle as a You can read them at cars built by China’s Shuanghuan Auto. car — legal for America’s highways, not just its autonews.com/edwardlapham. The $18,995 Whip, a pure electric registered as retirement villages. By mid-2010, Wheego plans to whip its Whip into shape. ANpageAD.qxd 9/2/2009 3:16 PM Page 1

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