GM Inside News Forum - Competition News http://www.gminsidenews.com/forums en Sat, 21 Nov 2009 01:02:10 GMT vBulletin 60 http://www.gminsidenews.com/forums/v2/misc/rss.jpg GM Inside News Forum - Competition News http://www.gminsidenews.com/forums <![CDATA['Different' Chrysler zeroes in on quality]]> http://www.gminsidenews.com/forums/f37/different-chrysler-zeroes-quality-86286/ Thu, 19 Nov 2009 16:16:00 GMT 'Different' Chrysler zeroes in on quality
Executive promises big gains by 2012
ALISA PRIDDLE, The Detroit News
November 19, 2009

Chrysler Group LLC is backing claims that it will be a quality leader by the end of 2012 with a revamped, refocused and much larger quality team, tougher standards and a commitment to achieving sustainable quality gains crucial to its long-term success by changing company culture.

"It's different now," said Doug Betts, senior vice president in charge of quality at Chrysler. "People are talking openly about problems now and how to fix (them.)"

In an exclusive interview Wednesday with The Detroit News, Betts said changing Chrysler's culture to collectively attack quality problems has been as difficult -- and essential-- as making better cars.

Uneven product quality has been Chrysler's Achilles heel for decades and addressing the problem a top priority under a series of corporate owners and chief executives. Most recently, Cerberus Capital Management LP pledged change and two years ago recruited Betts from Nissan Motor Co. to get it done, but Chrysler ran out of money and ultimately into bankruptcy. Cerberus bought Chrysler from Germany's Daimler AG, which talked a good quality game but failed to execute.

The result: Chrysler, Dodge and Jeep cars and trucks have scored poorly in a variety of quality surveys in recent years, scaring consumers away.

Betts doesn't waste time talking about the past. Today, he says, there is company-wide support for doing what it takes to improve quality and everything from management structures to manufacturing processes has been overhauled.

The need for change is clear: Demand for Chrysler products is down 38.9 percent this year, compared to 25.4 percent for overall U.S. auto sales in one of the worst markets in decades. Chrysler must strengthen its reputation and knows promises to do better won't be enough. Validation is needed from independent sources such as Consumer Reports magazine recommending Chrysler models.

"We need to be successful," Betts said, "because business is struggling."

Structural changes begin

Chrysler CEO Sergio Marchionne, also CEO of Chrysler's Italian partner, Fiat SpA, has made quality a priority. Betts is hiring more than 200 engineers, bringing the quality team up to 1,700 from 200 when he started.

And he's fundamentally changed how the quality organization is structured. "Cross-functional" teams include representatives from all departments, instead of handing off problems from one department to another, which delayed any action for an average 71 days.

Quality teams are not organized by vehicle now, but by area of expertise, such as brakes. And since the members of the 14 teams didn't design the part or create the problem, they can objectively tackle fixing it without fear of recrimination.

Additionally, the company is focused on designing quality in from the start of product development, which is important as Chrysler prepares to introduce new vehicles with Fiat's help. Plans call for 75 percent of vehicles to be modified to some degree in the next 14 months, 100 percent renewed by 2012 and new nameplates in high-volume segments by 2013.

Betts said about 75 percent of defects were design-related last year; the rest occurred in the factory. That ratio has already improved to 50/50 through better engineering, he said.

Defects cost money in two main ways. When a vehicle is shipped, the automaker must set aside money to cover estimated warranty costs. Then there is the cost of warranty repairs at the dealership.

Betts said Chrysler reduced overall costs per unit sold by $240 million last year and weekly payouts for repairs have been declining for several months. Additionally, warranty claims fell 30 percent last year to the lowest level in Chrysler history.

Betts identifies problems

A broad exchange is under way with the best Fiat practices being adopted in Auburn Hills and Chrysler initiatives making their way to Turin.

Mistakes on the plant floor are being addressed with the adoption of Fiat's "World Class Manufacturing" system, which includes intense auditing of all aspects of assembly.

MORE AT Detroit News ]]> Competition News nadepalma http://www.gminsidenews.com/forums/f37/different-chrysler-zeroes-quality-86286/ De Tomaso brand to be revived by former Fiat exec http://www.gminsidenews.com/forums/f37/de-tomaso-brand-revived-former-fiat-exec-86285/ Thu, 19 Nov 2009 16:07:12 GMT Former Fiat exec will revive iconic De Tomaso sports car brandLuca Ciferri
Automotive News Europe
November 19, 2009 12:52 CET

TURIN -- Italian businessman Gian Mario Rossignolo plans to revive the De Tomaso sportscar brand.

The former Fiat S.p.A marketing executive aims to build 8,000 De Tomaso cars a year in a former Pininfarina S.p.A. factory near Turin.

Rossignolo, 79, who bought the De Tomaso brand from a Modena bankruptcy court earlier this month, plans a three-model range of aluminum premium vehicles.

The De Tomaso sports car company was founded in 1959 in Modena, northern Italy, by former Argentinean racing driver Alejandro De Tomaso. The company filed for bankruptcy in 2004, a year after De Tomaso's death.

De Tomaso became an iconic brand for sports car fans in the 1960s and 1970s with three coupes - the 1963 Vallelunga, the 1966 Mangusta and the 1970 Pantera.

Geneva launch

During his 22-year career with Fiat group, Rossignolo was a top marketing executive and CEO of the Italian automaker's Lancia brand from 1977 to 1979.

The flamboyant businessman two years ago failed to buy Bertone's contract manufacturing business for his De Tomaso car project. Bertone's coachbuilding operations have since been bought by Fiat.

In October, Rossignolo signed a preliminary deal to rent Pininfarina's factory in Grugliasco, in the western outskirts of Turin, one of three Pininfarina plants.

Rossignolo plans to build 3,000 units a year of a De Tomaso crossover as well as 3,000 luxury sedans and 2,000 coupes.

The first model is scheduled to debut at the Geneva auto show in March 2011.

Rossignolo said his new De Tomaso company will invest 116 million euros ($172 million) in the project in the next four years.

The Grugliasco plant employs 900 people and includes a body shop, paint shop and final assembly facility.

Innovative aluminum construction

Rossignolo has been promoting for the past four years his business plan for a three-model range of aluminum vehicles based on an innovative construction technology called Univis.

MORE AT AutoNews.com ]]> Competition News nadepalma http://www.gminsidenews.com/forums/f37/de-tomaso-brand-revived-former-fiat-exec-86285/ <![CDATA[2011 Dodge Charger Illustrations & Teaser]]> http://www.gminsidenews.com/forums/f37/2011-dodge-charger-illustrations-teaser-86262/ Wed, 18 Nov 2009 23:35:43 GMT 2011 DODGE CHARGER ILLUSTRATIONS & TEASER

http://www.leftlanenews.com/dodge-charger-2011.html

]]> Competition News GMusa http://www.gminsidenews.com/forums/f37/2011-dodge-charger-illustrations-teaser-86262/ <![CDATA[Toyota Calls IIHS Top Safety Pick Results "Extreme And Misleading"]]> http://www.gminsidenews.com/forums/f37/toyota-calls-iihs-top-safety-pick-results-extreme-misleading-86257/ Wed, 18 Nov 2009 21:17:49 GMT Toyota Calls IIHS Top Safety Pick Results "Extreme And Misleading"

http://jalopnik.com/5407606/toyota-c...and-misleading ]]> Competition News GMusa http://www.gminsidenews.com/forums/f37/toyota-calls-iihs-top-safety-pick-results-extreme-misleading-86257/ <![CDATA[Ford, Subaru, VW win insurance industry picks, "Toyota is Shut Out"]]> http://www.gminsidenews.com/forums/f37/ford-subaru-vw-win-insurance-industry-picks-toyota-shut-out-86237/ Wed, 18 Nov 2009 13:27:33 GMT http://www.ctv.ca/servlet/ArticleNew...8?s_name=Autos

WASHINGTON — Ford, Subaru and Volkswagen sit atop the insurance industry's annual list of the safest new vehicles, according to a closely watched assessment used by car companies to lure safety-conscious consumers to showrooms.

The Virginia-based Insurance Institute for Highway Safety awarded its "top safety pick" on Wednesday to 19 passenger cars and eight sport utility vehicles for the 2010 model year. The institute substantially reduced the number of awards compared with 2009, because of tougher requirements for roof strength.

Ford Motor Co. and its Volvo unit received the most awards with six, followed by five awards apiece for Japanese automaker Subaru and German automaker Volkswagen AG and its Audi unit.

Chrysler Group LLC received four awards followed by two each for Honda Motor Co. and General Motors Co.

Toyota Motor Corp., BMW AG, Mazda Motor Corp. and Mitsubishi Motors Corp. were shut out in the annual IIHS review.

Ford's recipients include the Ford Taurus and Lincoln MKS passenger cars and the Volvo S80 and C30 passenger cars and the XC60 and XC90 SUVs.

Ford said in a statement it is "committed to providing customers with safe vehicles for a broad range of real-world crash conditions."

Subaru recorded winners with the Subaru Legacy, Outback and Impreza cars and Tribeca and Forester SUVs. Subaru was the only automaker with an IIHS winner in all four vehicle classes in which it competes.

The automaker, which has bucked the brutal U.S. sales market with a 13 percent increase during the first 10 months of 2009, attributed its safety success to a unique engine design that sits low in the vehicle chassis and moves down and under occupants in a frontal collision.

Tom Doll, executive vice president and COO of Subaru of America, said the awards were a "tribute to the engineering that goes into Subaru products."

Volkswagen scored with the 4-door versions of the Jetta, Passat and Golf, the Audi A3 and the Volkswagen Tiguan, a small SUV. Mark Barnes, Volkswagen of America's chief operating officer, said the "safety of our cars is of the utmost concern, from the initial design stages all the way through the maintenance procedures at dealerships."

Chrysler won the award for the Chrysler Sebring and Dodge Avenger sedans equipped with optional electronic stability control, the Dodge Journey midsize SUV and the Jeep Patriot with optional side thorax air bags.

Scott Kunselman, Chrysler's senior vice president-engineering, said the awards underscore the Auburn Hills, Mich., automaker's "engineering capability and leadership in occupant protection."

General Motors Co. and Honda Motor Co. both received two awards. GM was recognized for the Buick LaCrosse and the Chevrolet Malibu while Honda won for 4-door versions of the Civic with optional electronic stability control and the Honda Element.

Other winners included the Nissan Cube, the Kia Soul and the Mercedes C Class.

The vehicles are selected for best protecting motorists in front, side and rear crash tests based on Institute evaluations during the year. The vehicles are required to have electronic stability control, or ESC, to qualify for the award. Earlier this year, the Institute said vehicles would need to receive its highest score in its roof strength evaluation to qualify the safety pick designation.

"With the addition of our roof strength evaluation, our crash test results now cover all four of the most common kinds of crashes," said Institute president Adrian Lund. "Consumers can use this list to zero in on the vehicles that are on the top rung for safety." ]]> Competition News doh http://www.gminsidenews.com/forums/f37/ford-subaru-vw-win-insurance-industry-picks-toyota-shut-out-86237/ Opinion: German taxpayers should not bear Opel burden http://www.gminsidenews.com/forums/f37/opinion-german-taxpayers-should-not-bear-opel-burden-86212/ Tue, 17 Nov 2009 15:24:09 GMT FT.com

German taxpayers should not bear Opel burden
By Kurt Lauk
National chairman of the economic council of Germany’s Christian Democratic party

When General Motors reversed its decision to sell off Opel/Vauxhall to Canada’s Magna, the US carmaker caused significant collateral damage to many governments in Europe. Nowhere was this more the case than in Germany, which had pledged €4.5bn ($6.7bn) in state aid to the prospective buyer of GM’s European operations. Chancellor Angela Merkel, at the end of a successful visit to the US in which she spoke before both houses of Congress, was informed of the decision by newswire. Certainly, this was not the style that one would associate with a world-class company.

It was to be assumed, at least, that GM had conducted a thorough strategic analysis and come up with a plan to allow Opel to stand on its own feet. Yet in the weeks that followed, high-ranking GM executives were to be found lobbying the federal and state governments in Berlin, Wiesbaden and Düsseldorf for state aid.

Such blackmail should be resisted. The German government, the governments of the European Union and the European Commission itself should refrain from getting involved. GM should not even think of asking.

This is even more important in a year when 20 of the EU’s 27 member states have failed to keep their budget deficits within limits set by the Maastricht treaty. It makes no sense to increase national debt to bail out floundering businesses.

Financial aid provided by the Deutschlandfonds package, a €100bn German fund that provides credit guarantees and loans for companies struggling to obtain financing, is also out of the question. This was intended to help companies sucked into the global financial crisis through no fault of their own. Opel’s problems go back much further. In the past 15 years its market share has halved, falling from 17 per cent to 8.4 per cent.

German taxpayers cannot afford to be the paymasters for all of Opel’s European locations, nor is there any reason why they should. They are aware of this. A recent survey by TNS Emnid, the pollster, revealed that two-thirds are opposed to state subsidies for Opel.

Governments in Europe should be clear on one thing: state ownership and long-term subsidies cannot replace management skills and accountability. The fact is that the automobile industry has a problem with overcapacity globally. According to the latest estimate, only 56m new cars will be produced in 2009, with a worldwide capacity of 90m. No taxpayer should be asked to subsidise overcapacity.

GM is reportedly threatening the federal and state governments with sending Opel into insolvency if there is no state aid forthcoming. It seems to expect a state subsidy of up to €4bn, with estimates for the total cost of restructuring now approaching €4bn-€6bn. Berlin is leaning towards refusing GM’s requests. Individual states with larger Opel factories, such as Hesse and North Rhine-Westphalia, may be more receptive.

Going through with this threat would ruin the image of GM in Europe, or what is left of it. The decision to keep Opel in order to send it subsequently into insolvency would be an impossible act to explain. But if GM cannot or will not shoulder the burden on its own, insolvency is probably the best option for restructuring Opel in the long run.

The difficulty, a messy one indeed, is that there is no European insolvency law. However, a procedure exists under the new German insolvency law, similar but not identical to America’s Chapter 11, that would allow Opel to restructure while continuing to produce and sell cars and employ people. A much leaner and stronger Opel could emerge soon.

for more CLICK HERE ]]> Competition News Simon says http://www.gminsidenews.com/forums/f37/opinion-german-taxpayers-should-not-bear-opel-burden-86212/ Ford Falcon Wagon faces extinction http://www.gminsidenews.com/forums/f37/ford-falcon-wagon-faces-extinction-86199/ Tue, 17 Nov 2009 01:10:57 GMT http://www.carandsuv.co.nz/news/8900...ces-extinction

Ford Falcon Wagon faces extinction
Quote:
Ford Australia is looking at ditching the Falcon wagon, leaving the Mondeo wagon and Territory SUV to pick up its sales. Marin Burela, President of Ford Australia, said that a decision on the ageing wagon is due in January, in the meantime the company is closely monitoring Territory and Mondeo wagon sales.

While the Falcon wagon has been a member of the local Ford range since 1960, the current BF Mk III model is little more than an updated BF model and wasn't replaced with the newer FG Falcon line-up.

Currently most of the Falcon wagon’s 400 to 500 monthly sales are to fleet purchasers.

When the updated BF MkIII wagon went on sale last year, Ford Australia’s Vice President of Marketing and Sales acknowledged the preference in the fleet market for a larger storage area.

“The current Falcon wagon remains an ideal tool of trade vehicle for a broad spectrum of fleet and private buyers alike, who appreciate its large load area and excellent payload capacity,” Mr Winslow said last year.

The current model Falcon wagon is only available in base-level XT trim, and Ford Australia is banking on the Mondeo’s higher-spec wagon models to prove popular in the coming months.

An end to the Falcon wagon has been on the cards for some time, with Ford pumping very little money and development time into the model - the current generation runs only Ford's older six-cylinder petrol engine or the E-Gas engine, along with the dated four-speed automatic transmission.

Mr Burela acknowledged that fleet buyers will ultimately determine the direction of Ford’s wagon offerings in Australia, with some larger companies like Telstra continuing to prefer the larger Falcon model.
]]> Competition News mattyman1010 http://www.gminsidenews.com/forums/f37/ford-falcon-wagon-faces-extinction-86199/ Toyota to Fix Accelerators after Largest US Recall http://www.gminsidenews.com/forums/f37/toyota-fix-accelerators-after-largest-us-recall-86157/ Sun, 15 Nov 2009 15:39:14 GMT Toyota to fix accelerators after largest US recall ever
Link to article

By Mark Kleis
November 14, 2009


Quote:
Toyota will soon fix or replace the accelerator pedals on up to 4 million Toyotas and Lexus vehicles in the US. This comes after Toyota Corp’s largest-ever recall of 3.8 million vehicles over potential for a loose floormat to force down the accelerator causing unintended acceleration.

The report coming from the Kyodo news stated that Toyota and the National Highway Traffic Safety Administration (NHTSA) had been discussing the need for a solution beyond the replacement of floormats and are in the final stages of agreeing upon a solution.

According to the report, it is likely that Toyota will voluntarily repair or replace the accelerators out of approximately 4 million vehicles in the US. The report suggests that Toyota preferred this solution as they do not believe that the vehicles’ pedals are defective – and thus do no warrant an official recall.

The NHTSA indicated today that at this time the decision on what parts will need to be replaced or repaired is still under investigation – suggesting that the accelerator pedal is only one of the possible fixes under consideration at this time.

Hideaki Honma, a Toyota spokesman, said that Toyota and the NHTSA have not reached an agreement on this matter and that talks are on-going.

The report also pointed out that the vehicles most likely to be targeted by the eventual solution will include the Toyota Prius, Camry, Avalon, Tacoma and Tundra as well as the Lexus IS250, IS350 and ES350 models.

Since 2000 there have been over 2,000 documented cases of unintended acceleration in Toyota vehicles, and as many as 19 deaths from resulting crashes – Federal regulators say that is far more than any other automaker has experienced.

A class-action lawsuit filed on behalf of victims of unintended acceleration accidents against Toyota is still in early stages at this time.
]]> Competition News FenwickHockey65 http://www.gminsidenews.com/forums/f37/toyota-fix-accelerators-after-largest-us-recall-86157/ Ford workers begin voting for strike authorization http://www.gminsidenews.com/forums/f37/ford-workers-begin-voting-strike-authorization-86111/ Fri, 13 Nov 2009 18:19:45 GMT http://www.freep.com/article/2009111...vote-on-strike

Less than two weeks after UAW workers rejected modifications to a national labor contract with Ford Motor, workers in Claycomo, Mo., are voting to authorize a strike.

Voting began Thursday at UAW Local 249 and is expected to conclude Saturday.

"This doesn't mean we are going on strike," said UAW Local 249 President Jeff Wright. "This is just one step in the process. We are continuing to talk with Ford."

UAW Local 249 represents 3,737 workers who build the F-150 pickup and the Ford Escape and Mercury Mariner SUVs at Ford's Kansas City Assembly Plant.

Wright said Ford is in the middle of rebalancing production at the plant, a process that typically occurs annually. During a rebalancing, job requirements are adjusted. But the rebalancing isn't going well. The number of disciplinary actions at the plant has increased and workers are concerned about job cuts.

"They are getting more efficient," Wright said. "We want the work loads to be fair and equitable."

Ford spokeswoman Marcey Evans said members of Ford's management team and national UAW representatives were at the plant Thursday.

"Ford is currently working jointly with the union to address the concerns that have been raised," Evans said.

The strike authorization vote gives the UAW leadership the ability to call a strike, but that does not mean a strike will occur. It has been more than 20 years since a strike authorization vote has resulted in a work stoppage, according to Ford.

"On the other hand, I think it's a strong sign of frustration, and this is the second recent sign of frustration," said Gary Chaison, a professor of labor relations at Clark University in Worcester, Mass. "They can't understand why they have to give up more from a company that continues to do better."

On Nov. 2, Ford reported a third-quarter profit of $997 million, beating Wall Street's expectations. That same day, the UAW announced that 70% of production workers and 75% of skilled-trades workers had voted to reject changes to Ford's national labor contract.

The proposal included a clause that would have required binding arbitration, or a no-strike clause, for matters related to wage and benefit improvements, as well as several other provisions.

Opposition to the national contract was strong at UAW Local 249, where 92% voted no. ]]> Competition News doh http://www.gminsidenews.com/forums/f37/ford-workers-begin-voting-strike-authorization-86111/ BREAKING: Ford Announces it Will Build All-New Police Interceptor for 2011 http://www.gminsidenews.com/forums/f37/breaking-ford-announces-will-build-all-new-police-interceptor-2011-a-86107/ Fri, 13 Nov 2009 16:49:42 GMT PRESS RELEASE:

FORD ANNOUNCES DEVELOPMENT OF ALL-NEW POLICE INTERCEPTOR FOR LAW ENFORCMENT USE NATIONWIDE

* Ford confirms development plans of an all-new Ford Police Interceptor and affirms continued commitment to the police and municipal vehicle businesses
* New Police Interceptor's durability, safety and performance will exceed the existing Crown Victoria's law enforcement vehicle lineup
* Ford is the market leader in the law enforcement vehicle segment, selling 45,000 of the 60,000 police vehicles sold in each year in the U.S.

Dearborn, Mich., Nov. 13, 2009 – Ford Motor Company announced today it will produce an all-new purpose-built Police Interceptor specially designed and engineered to replace the Ford Crown Victoria law enforcement vehicle lineup in 2011.

The new Ford Police Interceptor is being developed in conjunction with Ford's Police Advisory Board, which provided input during the past 14 months on key vehicle attributes, such as safety, performance, durability, driver convenience and comfort. The new Police Interceptor will be offered without interruption when production of the Ford Crown Victoria ends in late 2011.

"We have heard the repeated requests from the law enforcement community to continue uninterrupted support of the law enforcement community," said Mark Fields, Ford's president of The Americas. "Ford is answering the call with the new Police Interceptor – engineered and built in America."
Ford – which currently controls approximately 75 percent of the police pursuit vehicle business in the U.S. – has invested significantly in designing the purpose-built new police and municipal vehicles to meet the needs of these crucial customers.

The new Police Interceptor is designed to provide municipalities with reduced ownership costs through improved fuel efficiency, quality and the kind of durability police departments nationwide have come to expect from Ford.

"Ford's commitment to the law enforcement community produced the Crown Victoria, the benchmark police vehicle," said Lt. Brian Moran, fleet manager, Los Angeles County Sheriff's Department and a member of Ford's Police Advisory Board. "This commitment has continued, and Ford has been working closely with the Police Advisory Board on developing the new Police Interceptor. I am confident that the next-generation Ford police vehicle will meet the future needs of the law enforcement community and will set the new standard."

Ford plans to reveal the new model and provide full vehicle specifications in the first quarter of 2010 – in time for law enforcement agencies, police equipment manufacturers and upfitters to develop a transition plan from the Crown Victoria to the new product.

Each year, Ford sells approximately 45,000 police vehicles, making the Blue Oval the nation's largest provider of police and municipal vehicles.

"Ford long has supported our public servants with vehicles that work as hard as they do," said Ken Czubay, Ford vice president, Marketing, Sales and Service. "We intend to build on this legacy with a new generation of municipal and police vehicles that set even higher standards."




http://www.ford.com/about-ford/news-...pment-of-31418 ]]> Competition News TuffG929 http://www.gminsidenews.com/forums/f37/breaking-ford-announces-will-build-all-new-police-interceptor-2011-a-86107/ VW Buys Flagship NYC GM Dealership Property; Will Spend $125 MILLION http://www.gminsidenews.com/forums/f37/vw-buys-flagship-nyc-gm-dealership-property-will-spend-125-million-86074/ Thu, 12 Nov 2009 17:54:05 GMT Source: Special Automotive News Email Alert

Diana T. Kurylko - Automotive News - November 12, 2009 - 12:34 pm ET

Volkswagen Group of America is expected to sign an agreement today to buy the Potamkin family’s massive dealership in Manhattan and convert it into flagship VW and Audi stores.

VW confirmed plans to buy the 265,000-square-foot store at 11th Avenue and 56th Street from Potamkin Auto Group. The building currently houses Potamkin GM, which has Cadillac, Chevrolet, Buick, GMC, Hummer and Saab franchises.

The Potamkins are moving the six franchises five blocks south on 11th Avenue into a smaller store that housed Potamkin Honda, said Robert Potamkin, who owns the Potamkin Auto Group with his brother Alan.

Potamkin said VW will spend about $125 million for the property, with about a third of that going toward renovation of the site.

Potamkin GM sells about 1,500 new vehicles annually, said Robert Potamkin.

Potamkin said the brothers are selling the Honda franchise and moving the GM operations because property is often worth more than an auto franchise in New York. “In most places, the franchise is the dog and the real estate is the tail,” he said. “In Manhattan, the real estate is the dog and the franchise is the tail.”

The new VW store is expected to open next spring and the Audi store in late 2011. Both will have new showroom concepts for the brands.

The new stores are part of VW’s “aggressive plan to increase sales in the U.S.,” VW of America President Stefan Jacoby said in a draft press release.

“There is no better place to demonstrate our commitment than in New York City,” he said. ]]> Competition News Perian http://www.gminsidenews.com/forums/f37/vw-buys-flagship-nyc-gm-dealership-property-will-spend-125-million-86074/ <![CDATA[At Ford, it's all about focus]]> http://www.gminsidenews.com/forums/f37/ford-its-all-about-focus-86018/ Tue, 10 Nov 2009 22:32:08 GMT http://www.theglobeandmail.com/globe...rticle1351146/


Michael Vaughan

From Thursday's Globe and Mail
Published on Wednesday, Nov. 04, 2009 3:13PM EST

Last updated on Friday, Nov. 06, 2009 2:52AM EST


Ford's in a tricky situation.

Both of its Detroit-based competitors – GM (that would be Government Motors) and Chrysler – soaked up billions of taxpayer dollars to get out of bankruptcy this year while the Blue Oval paid its own bills.

Now Ford has new products in the showrooms and its sales and cash flow are easily outperforming its refinanced rivals.

But Ford doesn't dare utter a word that sounds like boasting for fear of derailing efforts to get the same concessions from the unions that General Motors and Chrysler got. Ford now carries more debt and works under less competitive work rules than the other two. The Canadian Auto Workers union settled late last week, although some locals of the United Auto Workers in the United States are still refusing.

David Mondragon has learned his lines well. He's a very competitive individual, an ex-football player from California and a good communicator who I'm sure would love to tell the world that superior Ford management has trounced the domestic competition once and for all. Instead, he speaks quietly about adhering to the business plan and promotes the virtues of Ford technology like EcoBoost.

Mondragon was on a panel recently pointing out that Ford's EcoBoost uses gasoline-turbocharged direct-injection to deliver up to 20-per-cent better fuel economy and that EcoBoost produces 15-per-cent fewer CO{-2** emissions.

The panel's moderator, Allan Gregg of TVOntario, then queried Mondragon: “Tell me more about EcoBust.”

Sometimes even a skilled communicator like David Mondragon can't get his point across.

Vaughan: You have General Motors and Chrysler on the run right now. Is this Ford's day?

Mondragon: At Ford, it's all about working our own plan.

We're not gauging ourselves against the competition, we're not following the competition. We're setting our own course and we're excited about that because our products are delivering the story about Ford today.

C'mon, one day taxpayers are going to realize they're never getting their money back from GM and Chrysler. I think that's going to change perceptions in the marketplace.

Well, we are fixated at Ford on financing our own way.

We've gone through some very difficult times and we made tough decisions. We started making tough decisions years ago – well before our competitors – and that's put us in a position of strength today and we'll continue to finance our own way going forward.

But all that government help for GM and Chrysler hasn't helped you at all. Do you feel the playing field is level?

We don't feel disadvantaged in any way over the government actions. We're going to continue to stay focused on our plans working closely with our stakeholders.

We bought down over $10-billion in debt this year and that helped our bottom line by about half a billion in terms of improved profitability.

We're going to work smart and we're going to work efficient.

But our product is our key differentiation from our competitors. Ultimately, the consumers will decide who wins or loses in the marketplace – it won't be the government.

Your sales are recovering nicely but there's no subcompact in your lineup and the compact Focus has been around for a while. This is where the Canadian marketplace is – compacts and subcompacts – and you're not there yet.

We have six new entries coming from Europe. They're all world-class vehicles.

Next year, we start off with our world car. It's a B car [subcompact] and it's on the road today as the Fiesta. The Fiesta will fit a great niche for us in the B segment.

It's also going to be a great feeder to the C car [compact] segment. We're bringing the all-new Focus to the market next year.

That's the largest segment in the market in Canada – it's huge – it's about 30 per cent of the car market. In certain markets like Montreal, it's 50 per cent.

What we're going to do in that segment is bring a multitude of new entries with the all-new European Focus. We're going to be back in the five-door segment and in four doors, too.

We'll be fishing where the fish are biting.

David, I want to congratulate you on being here for a full year. There's been a revolving door in that president's office. Are you going to stay? ]]> Competition News doh http://www.gminsidenews.com/forums/f37/ford-its-all-about-focus-86018/ <![CDATA[Chrysler's Fiat-influenced product plan crosses brands]]> http://www.gminsidenews.com/forums/f37/chryslers-fiat-influenced-product-plan-crosses-brands-86010/ Tue, 10 Nov 2009 16:34:58 GMT Chrysler's Fiat-influenced product plan crosses brands
Rick Kranz and Luca Ciferri
Automotive News | November 9, 2009 - 10:10 am EST

By 2014, 12 nameplates from Chrysler, Dodge, Jeep or Ram will have heavy Fiat influence. They will either be developed on Fiat Group platforms or rebadged and imported from the Fiat Group.

For example, a fwd Lancia will be badged as a Chrysler. A subcompact Jeep will share a platform with the next-generation Fiat Panda Cross. A redesigned Chrysler Sebring and Dodge Avenger will evolve from an unspecified Fiat Group platform.

Chrysler's newest brand, Ram, will add two rebadged vans from Fiat.

Rear-drive vehicles, namely trucks and big cars, will continue to be Chrysler's area of expertise. The next-generation Charger will woo baby boomers, with styling cues drawn from the iconic 1968-1970 Chargers.

Meanwhile, Ram executives say the model line will be expanded up to Class 5 medium-duty trucks. It is an effort to push Ram sales over the 400,000 mark. Last year, Chrysler sold 245,840 Rams

While V-8 engines such as the Hemi will continue to play a prominent role in the automaker's largest vehicles, Fiat's four-cylinder engines will rule elsewhere. Displacements will range from 1.4 to 2.0 liters.

Chrysler executives project that in 2014, Fiat-derived engines will account for 42 percent of the company's mix. Chrysler's new Pentastar V-6 family, developed before Fiat came on the scene, will account for 38 percent.

Hybrid development will continue. The 2011 Ram pickup hybrid is slated for next year.

Additionally, Fiat-designed dual-clutch transmissions will be offered, beginning at the end of 2010.

Listed below are Chrysler Group's future vehicle plans through 2014, from the company and other sources. All references are for the calendar year.

Dodge
Subcompact: The fwd car will be a rebadged version of the next generation Alfa Romeo MiTo three-door hatchback. It debuts here in the 2013 calendar year.

Caliber: A new interior is featured on the 2010 model. Caliber production will end in 2012.

Compact sedan: The car will be developed on a Fiat Group platform; production begins here in 2012.

Avenger: Late in 2010, the Avenger will receive a new grille, headlights, and front and rear fascias. A redesign is due in 2013, using a Fiat Group platform.

Journey: A freshened exterior, new interior and handling improvements are due late in 2010.

Grand Caravan: An exterior facelift is planned in late 2010, along with interior and handling improvements. The next-generation minivan debuts in 2014. Still to be decided is whether Dodge will sell a short wheelbase model.

Charger: A new Charger debuts late next year. The sheet metal and interior are new. The Charger will continue to share a vehicle platform with the Challenger and Chrysler 300. The re-engineered platform incorporates a new rear suspension. The current suspension was adopted from the Mercedes-Benz E class.

Challenger: Minor exterior and interior changes are slated for 2012.

Nitro: Production ends in 2011. A replacement is under consideration.

Large crossover: A seven-seater based on the redesigned Jeep Grand Cherokee platform is due next year.

Viper: Dodge's V-10-powered sports car goes out of production in mid-2010. A replacement is under review, possibly for 2012.

Ram
Dakota: Production of the small pickup ends in the 2011 calendar.

Mid-sized pickup: A unibody pickup is under consideration but not yet approved.

Ram 1500: Engine and minor styling changes are planned in 2012.

Ram heavy-duty: Engine and minor styling changes are slated in 2012.

Ram chassis cab: Debuts in 2010. Engine and minor styling changes are slated for 2012.

Small van: The next-generation, fwd Fiat Doblo will be imported from either Turkey or Brazil in 2012. It will be about same size as the Ford Transit Connect.

Full-sized van: Sales begin here in 2012. Although not identified by Chrysler, the van will either be the body-on-frame Iveco Daily or unibody Fiat Ducato. The truck will be assembled in North America.

Chrysler
Subcompact: The next-generation Lancia Ypsilon five-door hatchback will be rebadged and sold here as a Chrysler starting in 2013. The car is expected to be about size of the Ford Fiesta and Mini Cooper.

Compact sedan: The new car will be developed on a Fiat Group platform. Sales begin in 2012.

PT Cruiser: Production ends in late 2010. A final edition model is planned.

Sebring: New front and rear styling changes are planned for late 2010, as well as a new interior. The suspension will be retuned for a sporty ride. A redesigned Sebring will be developed here on a Fiat Group platform; sales begin in 2013.

Mid-sized crossover: The vehicle will be developed on a Fiat Group platform. Sales start in 2013.

300: The next-generation 300 debuts late in 2010. The car receives all new sheet metal but styling change are evolutionary. Significant styling cues from 2005 model.

Town & Country: The front end is restyled and the interior receives some upgrades in 2010. Chrysler's goal is to take the Town & Country upmarket, aiming it at affluent families. The next generation arrives in 2014. Significant exterior and interior styling differences are expected, separating the Chrysler from the Dodge Caravan.

Jeep
Subcompact SUV: A small SUV is planned in 2013, based on the platform for the next generation Fiat Panda Cross.

MORE AT AutoNews.com ]]> Competition News nadepalma http://www.gminsidenews.com/forums/f37/chryslers-fiat-influenced-product-plan-crosses-brands-86010/ Ford: The Mother of All Subprime Mortgages http://www.gminsidenews.com/forums/f37/ford-mother-all-subprime-mortgages-86006/ Tue, 10 Nov 2009 15:09:08 GMT http://www.fool.com/investing/genera...mortgages.aspx


Ford's (NYSE: F) recovery has hit some impressive milestones recently. Consider:

Profits! A billion dollars worth of operating income in the third quarter, including $446 million from "automotive," meaning the business of selling cars and trucks.
North American profits! Ford's North American operations were profitable for the first time since 2005 -- $357 million worth of pre-tax profits, to be exact. In fact, of Ford's major operational and financial divisions, only Volvo -- which is in the process of being sold (probably to China's Geely Automotive) -- lost money.
Credit upgrade! After pondering Ford's latest quarter, Standard & Poor's upgraded the company's debt rating a notch to B-. That's still junk bond territory, but it's a big psychological step up from the "highly speculative" CCC+ rating they had before. Moody's (NYSE: MCO) announced a similar upgrade the day before.
Consumer Reports! The venerable consumer watchdog might not be ready to declare Ford's products quite equal to quality kings Toyota (NYSE: TM) and Honda (NYSE: HMC), but they have made a point of acknowledging that Ford has made tremendous strides and is, finally, in the neighborhood -- and eclipsing its U.S. rivals in the process.
CEO Alan Mulally and his management team are moving the company through its turnaround plan in impressive style. If they keep it up, Ford's turnaround will be a legend for the ages -- or at least, a key MBA case study for decades.

But how are they really doing?

A deeper look at the numbers
Let's start with some basics. Ford's market cap is roughly $26 billion. They have $23.8 billion of gross cash on hand (up from $21 billion last quarter). On the other side of the balance sheet, what they call "total automotive debt" is $26.9 billion, up from $24.2 billion at the end of 2008.

Ford Credit's financials are more complicated, but long story short: They're making money and have reduced their leverage, meaning the ratio of assets on hand to equity. Leverage is a key metric when evaluating banks, and it can be calculated a couple of different ways depending on how one accounts for certain derivatives, but in this case, the more conservative calculation puts it just under 10, which is good.

Good thing, too, because they're going to need a steady cash flow to service all of that operational debt.

About that debt ...
On Tuesday, Ford announced the sale of $2.5 billion in "senior convertible notes" -- bonds that mature in 2016 with a 4.25% coupon or are convertible to common stock at $9.30 a share. Ford is also planning on issuing more common stock, up to $1 billion worth.

These issues will dilute the value of the common stock -- by about 7%, according to a Goldman Sachs (NYSE: GS) estimate, of course that was before Ford increased the sale by $500 million and allowed and underwriters option of an addition $375 million. But I don't expect them to be a significant drag on the stock's performance going forward.

Ford's also doing some more restructuring of its existing debt, specifically a $10.1 billion revolving credit line due to be repaid in December of 2011. They've asked lenders to extend the due date to 2012 "in exchange for reducing lenders' commitments and increasing interest margins and fees." This and a couple of related deals are the "mother of all subprime mortgages" -- the credit line that was set up by Goldman Sachs, Citgroup (NYSE: C), and JPMorgan Chase (NYSE: JPM) for Ford back in 2006, shortly after Alan Mulally's arrival. Why the nickname? Because the debt is secured by pretty much everything of value that Ford owns.

But I think this round of restructuring will go forward without too much trouble. I expect that the lenders, having watched General Motors' and Chrysler's debt holders get taken for a ride during those companies' bankruptcy proceedings, will be very happy to work something out with Ford.

The upshot
You really only need to look at one number -- $26.9 billion in debt -- to know that Ford is still a very sick company. I'd say it's still in intensive care, though the priest who came by to give the last rites has probably been sent home. They are executing very well on their extremely ambitious turnaround plan, but some key questions remain. Here they are as I see them:

Will Ford survive without bankruptcy in the near term? If they keep executing on their plan, and if the economy doesn't take a sharp turn for the worse, yes.
Will they be able to pay down that gruesome debt load? Yes, eventually, assuming they reach a sustainable level of profitability by 2011, as they are currently predicting, though we may see more restructuring (or re-restructuring) of their debt in the next year or two. ]]> Competition News doh http://www.gminsidenews.com/forums/f37/ford-mother-all-subprime-mortgages-86006/ First official images of all-new Volvo S60 http://www.gminsidenews.com/forums/f37/first-official-images-all-new-volvo-s60-86004/ Tue, 10 Nov 2009 13:53:10 GMT SWEDEN: First official images of all-new Volvo S60 *By Viknesh Vijayenthiran Author November 10th, 2009* Image: http://images.thecarconnection.com/lrg/2010-volvo-s60_100232719_l.jpg Image: http://images.thecarconnection.com/lrg/2010-volvo-s60_100232718_l.jpg Image: http://images.thecarconnection.com/lrg/2011-volvo-v60-rendering_100232917_l.jpg http://www.motorauthority.com/blog/1038125_2010-volvo-s60-preview SWEDEN: First official images of all-new Volvo S60
By Viknesh Vijayenthiran Author November 10th, 2009




http://www.motorauthority.com/blog/1...vo-s60-preview ]]> Competition News Quest http://www.gminsidenews.com/forums/f37/first-official-images-all-new-volvo-s60-86004/