Auto Motor Und Sport Captures More Spy Shots Of The Mercedes GLK-Class
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Tuesday, December 05, 2006
Smart To Offer Special "Edition Limited One" ForTwo Model At Launch
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Let It Snow: Take Part In The AMG Winter-Sporting Event 2007 And Hone Your Arctic Driving Skills
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Mercedes-Benz USA Reports Third-Highest Sales Month In Its 42 Year History
EMERCEDESBENZ | Unfortunately I had to head out of the office a little early Friday afternoon so I wasn't able to bring you this story, but in cased you missed it, Mercedes-Benz USA, in the month of November, achieved the third-highest sales figures in the U.S. division's illustrious 42 year history. In total, Mercedes-Benz USA noted sales of 22,079 new units, a remarkable 20.8% increase over 2005's November figure. To date, MBUSA has achieved total sales of 219,678 units, an increase of 13.9% over 2005's eleven month YTD total.
As for what contributed to the sensational numbers, the new CL-Class, spurred by the sale of 100 limited edition Saks Fifth Avenue CL600 variants, helped tremendously, with the recently introduced model noting a 291% jump over 2005's November sales. The S-Class also continued the tremendous success it's achieved since its market launch earlier this year, with the luxury sedan boosting sales 98.6% to 2,870 new units. Other strong performers included the E-Class, which noted a 26.6% sales increase with 4,918 new units sold, as well as Mercedes luxury light truck segment, with sales of the M-, R-, GL- and G- noting a combined sales increase of 57% when compared to November of 2005.
To learn more about Mercedes-Benz USA's November sales figures along with individual model sales statistics, keep reading for the full press release.
OFFICIAL PRESS RELEASE
MERCEDES-BENZ RECORDS THIRD-HIGHEST SALES MONTH IN ITS 42 YEAR HISTORY IN THE U.S.
MBUSA Sales Up 20.8 Percent for the Month; 13.9 Percent for the Year-to-Date
MONTVALE, N.J. – If record-breaking sales are any indication, some people just may be finding stars under their trees this holiday season … Mercedes-Benz stars, that is. In November, Mercedes-Benz USA (MBUSA) achieved its third-highest sales month in 42 years of doing business in the U.S. with 22,079 units sold for the month, a 20.8 percent increase over last November’s 18,284 units. This is the tenth consecutive month that MBUSA has posted record-breaking sales and marks the company’s best November on record.
MBUSA’s year-to-date sales total 219,678 units, a 13.9 percent increase over the same period last year, and keeping Mercedes-Benz on track for accomplishing its 13th consecutive year of sales growth come the ringing in of the new year.
One hot ticket item on people’s wish lists this year – high-end luxury. All 20 of the Signature Edition CL600 luxury coupes – offered exclusively through Saks Fifth Avenue’s annual “The Gift” holiday catalog – sold at $160,000 each in less than eight minutes on November 14. Sales of the newest generation S-Class were nearly double this month over last November (2,780 vs. 1,400), boosting sales for the high-end vehicles as a group by 57.7 percent for the month (3,627 vs. 2,300) and 51.8 percent for the year-to-date (36,787 vs. 24,230).
Not to be outdone, the E-Class also demonstrated impressive gains with a 26.6 percent increase over last November, coming out on top as the volume leader for the month with 4,918 units sold for the month. Sales of Mercedes-Benz passenger cars, as a whole, grew 9.6 percent for the month (15,301 vs. 13,967).
Additionally, contrary to industry trends, Mercedes-Benz vehicles in the luxury light truck segment – ML-Class, R-Class, GL-Class and G-Class – continued to demonstrate impressive gains with a combined 57 percent increase over last November (6,778 vs. 4,317) and an 81 percent increase over year-to-date 2005 (60,373 vs. 33,360). The ML-Class rose 6.8 percent; the R-Class gained 5.1 percent; and the popularity of the GL-Class, the newest member of the Mercedes-Benz family of SUVs, contributed to the growth as well.
Separately, through the Mercedes-Benz Certified Pre-Owned program, MBUSA sold 3,741 vehicles in November, an increase of 20.9 percent over last November, bringing the year-to-date total to 43,363 units, a 7.3 percent increase over the same period in 2005.
November Sales Chart
| Model | Nov '06 | Nov '05 | Monthly % | YTD 2006 | YTD 2005 | Yearly % |
| C-Class | 4,435 | 4,858 | -8.7% | 44,990 | 50,852 | -11.5% |
| E-Class | 4,918 | 3,884 | 26.6% | 43,079 | 44,049 | -2.2% |
| S-Class | 2,780 | 1,400 | 98.6% | 27,899 | 14,124 | 97.5% |
| CL-Class | 391 | 100 | 291.0% | 965 | 1,124 | -14.1% |
| SL-Class | 456 | 800 | -43.0% | 7,923 | 8,982 | -11.8% |
| CLK-Class | 1,007 | 1,145 | -12.1% | 14,906 | 16,479 | -9.5% |
| SLK-Class | 536 | 829 | -35.3% | 9,746 | 10,302 | -5.4% |
| CLS-Class | 778 | 951 | -18.2% | 9,797 | 13,605 | -28.0% |
| R-Class | 1,275 | 1,213 | 5.1% | 16,622 | 2,529 | 557.3% |
| M-Class | 3,183 | 2,980 | 6.8% | 27,743 | 29,619 | -6.3% |
| GL-Class | 2,285 | n/a | n/a | 15,439 | n/a | n/a |
| G-Class | 35 | 124 | -71.8% | 569 | 1,212 | -53.1% |
| Grand Total | 22,079 | 18,284 | 20.8% | 219,678 | 192,877 | 13.9% |
Copyright © 2006, Mercedes-Benz USA
Monday, December 04, 2006
Airbus Presents New Jet to Battle Boeing
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Airbus said Monday it wants suppliers to fund over 15 percent of the cost of the A350 XWB mid-sized airliner, its euro11.6 billion ($15.4 billion) answer to the Boeing 787 "Dreamliner."
But the European planemaker said no decision had been made on the rest of the funding or where to build the new plane, planned to enter service in 2013.
Giving his first news conference as Airbus CEO, Louis Gallois confirmed the overall program cost but warned that he would give no information about future increases unless they altered the budget by a "material" amount.
"We feel under no obligation to update these figures in the future, any more than our competition does," Gallois said. Boeing refuses to say how much it is spending on the 787.
Monday's presentation was scheduled at short notice, three days after the board of Airbus parent EADS approved the launch of the A350 - badly needed to plug a gap in the European aircraft maker's product line. Airbus is set to fall behind Boeing on orders this year for the first time since 2000.
The overall program cost includes euro10 billion ($13.3 billion) in research and development funding and a further euro1.6 billion ($2.1 billion) of capital expenditure announced by Gallois, who also stayed on as EADS co-chief executive after his appointment in October to replace departing Airbus boss Christian Streiff.
The figure is significantly higher than the euro8 billion ($10 billion) number given by Tom Enders, the other EADS chief executive, before July's Farnborough Air Show. Airbus said during the show that the A350-900 would be 7 percent cheaper to run than the rival Boeing 787-9, based on operating cost per seat.
To meet that promise - repeated Monday - the European aircraft maker has had to pare weight from its design by increasing the share of composite materials to 50 percent, compared with the 45 percent it announced in July.
After concentrating massive resources on its flagship A380 superjumbo, Airbus has been outmaneuvered by Boeing's two-engine 787, which delivers better fuel economy than older four-engine Airbus jets in the same size category. Higher fuel prices have made the fuel-efficiency argument more persuasive.
Airbus set an industry record in 2005 with 1,111 orders to Boeing's 1,002, but its market share by value fell to 45 percent from 54 percent in 2004, as its widebody airliners lost ground to the rival Boeing 777 and upcoming 787. That share is set to fall to about 37 percent this year, based on the catalog value of the 635 orders it has taken so far, to Boeing's 823.
Toulouse, France-based Airbus is asking suppliers to the A350 program to fund euro1.8 billion ($2.4 billion) of overall cost by paying for their own share of development work, in exchange for a share of profits - in the way Boeing has done for the 787. Airbus is in talks with "about 10" potential partners and aims to finalize the risk-sharing agreements in the first half of 2007, Gallois and other company officials said.
EADS had said the plane would be financed "predominantly from the company cash flows," but Gallois refused Monday to rule out state guarantees or refundable launch aid from governments. "No decision has been taken or is even imminent," he said.
A decision to fund part of the A350 with government loans could exacerbate an EU-US dispute over subsidies to Airbus and Boeing currently before the World Trade Organization.
Calls for an EADS capital increase have not found favor with the company's main private shareholders, Germany's DaimlerChrysler AG and Paris-based Lagardere SCA, which have recently reduced their stakes. A rights issue in which they did not participate could allow the French state to increase its 15 percent share of the European defense group.
In an interview published Monday by financial daily La Tribune, French Finance Minister Thierry Breton said the government plans to play a role in the financing of EADS.
French President Jacques Chirac and German Chancellor Angela Merkel are expected to discuss EADS funding when they meet on Tuesday.
The Franco-German company says the A350 program also depends on the achievement of cost-cutting targets announced in the wake of a second setback to production of the 555-seater A380, revealed earlier this year.
The superjumbo's overall two-year delay wiped euro4.8 billion ($6.4 billion) off profit over four years and has forced Airbus to consider basing assembly work on new models at a single site, rather than splitting it among several countries.
Gallois, who has warned workers to expect job cuts, said a decision on the A350 final assembly would be announced early in 2007 along with other restructuring measures.
Shares of European Aeronautic Defence & Space Co. rose 1.2 percent to close at euro23.15 ($30.89) in Paris.
U.S. Light-Vehicle Sales - Jan thru November 2006 [Quick look]
| YTD | ||||
| 11 mos. | ||||
| 11 mos. | 11 mos. | percent | ||
| 2006 | 2005 | change | ||
| GENERAL MOTORS | 3,730,840 | 4,069,765 | -8.3% | |
| FORD MOTOR CO. | 2,669,472 | 2,887,739 | -7.6% | |
| TOYOTA MOTOR SALES U.S.A. | 2,314,203 | 2,057,016 | 12.5% | |
| DAIMLERCHRYSLER | 2,172,041 | 2,308,573 | -5.9% | |
| AMERICAN HONDA MOTOR CO. | 1,377,580 | 1,329,672 | 3.6% | |
| NISSAN NORTH AMERICA | 927,474 | 985,416 | -5.9% | |
| HYUNDAI-KIA AUTOMOTIVE | 682,453 | 669,075 | 2.0% | |
| VWoA | 296,598 | 275,538 | 7.6% | |
| BMW | 280,493 | 278,466 | 0.7% | |
| MAZDA | 248,874 | 239,183 | 4.1% | |
| SUBARU | 180,090 | 176,083 | 2.3% | |
| MITSUBISHI | 108,648 | 114,322 | -5.0% | |
| PORSCHE | 31,377 | 29,072 | 7.9% | |
| ISUZU | 7,977 | 11,338 | -29.6% | |
Trademark Update: FULL SWING
Mark
(words only): FULL SWING
Standard Character claim: Yes
Current Status: A statement of use has been filed and the application and statement of use have been forwarded to the examining attorney for examination.
Date of Status: 2006-12-01
Filing Date: 2005-05-04
Transformed into a National Application: No
Registration Date: (DATE NOT AVAILABLE)
Register: Principal
Law Office Assigned: LAW OFFICE 102
Attorney Assigned:
SUAREZ MARIA VICTORIA Employee Location
Current Location: L20 -TMEG Law Office 102
Date In Location: 2006-12-01
1. DaimlerChrysler Corporation
Address:
DaimlerChrysler Corporation
CIMS 483-02-19 1000 Chrysler Dr.
Auburn Hills, MI 48326
United States
Legal Entity Type: Corporation
State or Country of Incorporation: Delaware
Phone Number: 248-944-6511
Fax Number: 248-944-6537
International Class: 012
Class Status: Active
Motor vehicle component parts, namely doors
Basis: 1(b)
First Use Date: 2006-06-30
First Use in Commerce Date: 2006-06-30
(NOT AVAILABLE)
(NOT AVAILABLE)
2006-12-01 - Statement of use processing complete
2006-12-01 - Extension 1 granted
It's time to reinvent the minivan
 |  | Rick Kranz is product editor of Automotive News. |
RICK KRANZ
Little has changed since the original Caravan, Voyager
Rick Kranz | | Automotive News / December 4, 2006 - 1:00 am The formula Chrysler Corp. created for making minivans hasn't changed much in 22 years.
It's quite simple: Create a rectangular shape, provide seats that can be removed or hidden when cargo space is needed, add sliding doors to ease second-seat entry, and attach it all to a front-drive engine configuration.
It all started with the 1984 Dodge Caravan and Plymouth Voyager, and it has been repeated over and over by most automakers.
But it's time for a change, because the 22-year-old recipe is losing its appeal with today's buyers. Although competition has intensified, U.S. minivan sales nose-dived 19 percent from 2000 to 2005. The pattern for the future is just as gloomy unless an automaker can reinvent the segment. And that's just what Honda and Toyota are trying to do as they develop their next-generation redesigned minivans, due around 2009.
Both companies are concerned about the segment's sliding sales, even though the sales of their own minivans have increased since 2000. Both hope to reinvent the minivan concept, creating a vehicle that breaks the mold without risking sales, says Jim Hall, vice president of AutoPacific, a consulting company in Southfield, Mich.
How bad is the drop in minivan sales? Last year 1,110,541 minivans were sold, 260,693 fewer than in 2000. The Chrysler Town & Country, Dodge Caravan/Grand Caravan, Honda Odyssey and Toyota Sienna accounted for 66.9 percent of the 2005 sales. Their totals were Dodge, 226,771; Chrysler, 180,759; Honda, 174,275; and Toyota, 161,380. Through October this year, the total market slipped 10.9 percent, while those four nameplates held 71.4 percent of the market. General Motors' decision to drop out of the minivan market is no surprise. Its Buick Terraza, Chevrolet Uplander and Saturn Relay held a mere 9.8 percent of the market last year, and through October that percentage was down to 7.9 percent. Why is the minivan segment dying off? Many of those avoiding minivans are kids of baby boomers. They spent their childhoods in minivans. They have no interest in owning their father's minivan, no matter who produced it. Others are current or former minivan owners who want something different, such as a crossover. Some in the industry fear the minivan eventually could go the way of the full-sized passenger van. So automakers have tried to distinguish their minivans by such things as theater seating, Stow 'n Go seats, clear glass roof panels, even the number of cupholders. But the overall market keeps slipping away. |
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Doors might be one way to reinvent the minivan.
I've never understood why the industry believes all minivans must be equipped with sliding doors. Yes, I know, the first Caravan and Voyager had a sliding door.
While I like a minivan's flexibility -- the flat floor, seats that can be removed or lowered into the floor -- I've never been a fan of sliding doors. When my daughters were in grade school, they had the strength to close a conventional door but usually had difficulty closing our minivan's sliding door. It required the assistance of an adult.
And, as the minivan got older and the parts for the sliding door system wore out, it sometimes took two hands to close the sliding-door -- one to pull the door and the other to push it closed when it was properly lined up.
Instead of sliding doors, why not use conventional hinged side doors that open 100 degrees? A passenger of nearly any age could handle that -- if it's designed so it doesn't interfere with opening a front door.
The Ford Fairlane concept foretells the replacement for the Ford Freestar minivan. But Ford is not using the word "minivan" for that vehicle. "People mover" is one term Ford representatives use to describe the Fairlane.
Instead of sliding doors, the concept has suicide-style doors (rear doors hinged on the C-pillar). It's not clear what type of doors Ford will engineer when that vehicle heads to production in 2008. They could be conventional doors. But at least Ford is thinking outside the box.
The world has changed. And with a forecast of fewer minivan buyers, the doors might be a starting point for reinventing the minivan.
DaimlerChrysler Offers Dealers Huge Incentives
DaimlerChrysler's US division is giving dealers incentives of up to $7,000 per vehicle. The goal is to clear out 2006 models and boost year-end sales.
The incentives provide money that dealers can keep for themselves as profit, or pass on to consumers in addition to existing rebates. The dealer cash ranges from $2,500 on the Dodge Charger and Chrysler 300 sedan to $7,000 on the Ram pickup and Durango SUV.
Auburn Hills-based Chrysler Group also is offering $1,000 incentives to consumers who buy or lease most of its 2006 and 2007-model vehicles through January second.
Friday, December 01, 2006
Chrysler Group Reports November 2006 U.S. Sales Rise 3 Percent
* Sales in November establish five-year November recordSOURCE Chrysler Group
* Jeep(R) Wrangler sales surge 95 percent year-over-year; Dealers place
orders for 62,000 units of Jeep Wrangler
* Dodge Nitro sales increase 80 percent over October 2006 sales; Dealer
orders exceed 50,000 units
* Sales of Dodge Ram Pickup rise 8 percent
AUBURN HILLS, Mich., Dec. 1 /PRNewswire-FirstCall/ -- Chrysler Group
reported that unadjusted sales in November 2006 rose 3 percent to 164,556
units, compared to November 2005 sales of 159,898 units. November 2006
sales establish a five-year November record.
"Chrysler Group sales in November were up 3 percent over last year,
marking the best November in five years," said Steven Landry, Vice
President, Sales and Field Operations - Chrysler Group. "Our new product
lineup continues its customer appeal as they arrive at our dealerships and
drive a big part of the sales improvement for the Chrysler Group."
The company has launched nearly all of the 10 new products that were
announced at the beginning of the year, and those products are generating
customer and media praise while driving traffic into Chrysler, Jeep(R) and
Dodge showrooms.
Sales of the Jeep Wrangler, a direct descendant of the original Jeep
vehicle, rose 95 percent to 8,735 units, setting a new November sales
record. Previous year sales of the Jeep Wrangler totaled 4,482 units. The
Jeep Wrangler has received in excess of 62,000 dealer orders, which exceeds
three- quarters of total Jeep Wrangler sales in calendar year 2005.
The all-new Dodge Nitro, the first mid-sized SUV for the Dodge brand
continues to distinguish itself in the retail marketplace with consumers.
Sales of the Dodge Nitro totaled 5,489 units for November 2006, 80 percent
higher than October 2006 sales of 3,044 units. Customer response to the
Dodge Nitro has been very strong and Dodge dealers nationwide are
responding by placing orders for more than 50,000 units.
Sales of the Chrysler Group's best selling product, the Dodge Ram
Pickup, rose 8 percent in November, posting sales of 27,826 units. Previous
year sales totaled 25,667 units.
Chrysler Group finished the month with 499,036 units of dealer
inventory, or a 76-day supply.
DaimlerChrysler Corporation U.S. Sales Summary Thru November 2006
Month Sales DR % Vol %
Model Curr Yr Pr Yr Change Change
Sebring 7,582 6,538 16% 16%
Concorde 0 0 0% 0%
300 10,772 12,647 -15% -15%
Crossfire 62 1,009 -94% -94%
PT Cruiser 13,629 11,193 22% 22%
Aspen 2,365 0 0% 0%
Pacifica 6,483 5,306 22% 22%
Town & Country 11,507 13,224 -13% -13%
CHRYSLER BRAND 52,400 49,917 5% 5%
Compass 3,723 0 0% 0%
Wrangler 8,735 4,482 95% 95%
Liberty 7,360 7,815 -6% -6%
Grand Cherokee 7,944 13,733 -42% -42%
Commander 8,023 3,825 110% 110%
JEEP BRAND 35,785 29,855 20% 20%
Neon 0 4,103 -100% -100%
Caliber 7,008 0 0% 0%
Stratus 287 7,501 -96% -96%
Intrepid 0 0 0% 0%
Charger 7,247 6,827 6% 6%
Viper 76 178 -57% -57%
Magnum 2,138 3,949 -46% -46%
Dakota 4,538 5,898 -23% -23%
Ram P/U 27,826 25,667 8% 8%
Caravan 14,240 13,324 7% 7%
Durango 5,935 11,143 -47% -47%
Nitro 5,489 0 0% 0%
Ram Van/Wagon 0 0 0% 0%
Sprinter Van 1,587 1,536 3% 3%
DODGE BRAND 76,371 80,126 -5% -5%
TOTAL CHRYSLER GROUP 164,556 159,898 3% 3%
TOTAL CG CAR 33,760 39,375 -14% -14%
TOTAL CG TRUCK 130,796 120,523 9% 9%
Selling Days 25 25
Sales CYTD DR % Vol %
Model Curr Yr Pr Yr Change Change
Sebring 57,200 84,660 -32% -32%
Concorde 0 210 -100% -100%
300 127,397 131,866 -3% -3%
Crossfire 8,206 13,611 -40% -40%
PT Cruiser 130,435 123,573 6% 6%
Aspen 4,623 0 0% 0%
Pacifica 72,946 78,329 -7% -7%
Town & Country 148,228 164,836 -10% -10%
CHRYSLER BRAND 549,035 597,085 -8% -8%
Compass 13,513 0 0% 0%
Wrangler 71,648 73,654 -3% -3%
Liberty 121,578 149,218 -19% -19%
Grand Cherokee 126,295 191,852 -34% -34%
Commander 80,931 8,590 842% 842%
JEEP BRAND 413,965 423,314 -2% -2%
Neon 17,239 108,954 -84% -84%
Caliber 82,799 0 0% 0%
Stratus 50,934 95,795 -47% -47%
Intrepid 0 298 -100% -100%
Charger 103,634 37,667 175% 175%
Viper 1,387 1,489 -7% -7%
Magnum 37,360 49,586 -25% -25%
Dakota 70,954 96,742 -27% -27%
Ram P/U 331,302 369,565 -10% -10%
Caravan 197,045 207,732 -5% -5%
Durango 66,284 109,024 -39% -39%
Nitro 9,499 0 0% 0%
Ram Van/Wagon 0 405 -100% -100%
Sprinter Van 20,653 17,728 16% 16%
DODGE BRAND 989,090 1,094,985 -10% -10%
TOTAL CHRYSLER GROUP 1,952,090 2,115,384 -8% -8%
TOTAL CG CAR 460,536 491,489 -6% -6%
TOTAL CG TRUCK 1,491,554 1,623,895 -8% -8%
Selling Days 280 280
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Chrysler weighs moving vs. staying
Newark facility vies with michigan plant
Dodge Durango
shown here, and Chrysler Aspen share
their platform with the Dodge Dakota
pickup, which is assembled at the Warren, Mich., plant.
The News Journal file/FRED COMEGYS
A month after rumors circulated of Chrysler's possible plans to shutter its Newark plant, analysts remain divided on the fate of the plant and its workers.
Auto analysts agree Chrysler is under intense pressure to slash costs and make its North American plants more efficient. They also agree the company will continue production of the Dodge Durango and Chrysler Aspen, both of which are assembled in Newark.
Chrysler expects to report a loss in 2006 totaling $1.3 billion and has yet to figure out how it plans to restructure its operations and trim costs. Company officials have said that everything, including closure of the Newark plant, is a possibility.
The question is whether Chrysler can justify keeping a plant open with only one shift. Higher gas prices and a shift in consumer tastes away from large SUVs to smaller, more fuel-efficient trucks have shrunk Durango sales by double digits virtually every month for most of this year.
Chrysler needs to determine whether it is more cost effective to shut down its Newark plant, which employs about 2,100 people, and transfer production elsewhere, or keep it operating.
"It is too premature to make any conclusion because it is not the end of the world for the Durango and the Aspen yet," said Guido Vildozo, auto analyst at Global Insight in Lexington, Mass. "Chrysler is still reviewing what their strategy is going to be."
But some analysts already have begun making forecasts.
"Newark will close and we have that production transferring to the Warren truck plant," said Erich Merkle, director of forecasting at IRN Inc. in Grand Rapids, Mich. He predicts the change will occur in 2009.
If Chrysler decides to move production of the Durango and Aspen to another plant, the most likely candidate is the Warren, Mich., which makes the Dodge Ram, Dodge Dakota and Mitsubushi Raider. The Dakota pickup uses the same platform, or underbody, as the Durango and Aspen, making it easy to assemble in Warren.
Merkle said the transfer makes sense because the Warren plant, which added a third shift more than a year ago, has had to idle the plant for more than four months this year because of sagging sales for its pickups. The 3,712 workers there could use the extra work from the Newark plant.
"Clearly, they could take the volume, because it has becomes so much smaller in Delaware," Merkle said.
Still, other analysts are doubtful the transfer of the Durango and Aspen would be smooth.
The Warren plant would have to reconfigure its paint and body shops -- the two most expensive sections of an auto plant -- to accommodate the Durango and Aspen. That could take a couple of years and cost Chrysler hundreds of millions of dollars.
The paint shop typically makes up 30 percent to 50 percent of an assembly plant's total cost, according to Ward's Auto World, an industry publication. A brand new paint shop can cost up to $500 million.
In addition to the costs associated with the move, Chrysler would have to deal with the cost of closing the plant, including possibly offering buyouts to workers.
Under its current United Auto Workers contract, which is up for negotiation next year, the company cannot shutter a plant before next September, when those discussions will reopen. Unlike General Motors or Ford, Chrysler hasn't openly announced any plant closings and buyout offers.
"What is the least expensive, best decision to make?" said David Cole, chairman of the Center of Automotive Research in Ann Arbor, Mich."It's a tough decision."
Cole said the fact that the Warren plant requires a lot of time and investment to handle Durango production works in favor of Newark. Chrysler historically has gotten along well with the local union and praised the quality of its work, he said. The company also has recently invested more than $180 million in the plant and would rather keep production here, he said.
"It would be a mistake for the community to sit on their hands and say, 'This is going to go somewhere else,'" Cole added. "This is not a foregone conclusion."
Analysts said there is still room for the state, labor and the local community to offer Chrysler incentives to stay in Newark.
Jim Fisher, president of UAW Local 1183, which represents most of the workers in Newark, did not return calls.
State officials and Delaware's congressional delegation said they are continuing to hold behind-the-scenes discussions with Chrysler to see what needs to be done to keep it here. State officials said they have not offered financial incentives to the automaker, but they are reviewing legislation including workers compensation and the gross receipts tax which would help lower Chrysler's operating costs in Delaware.
"Clearly, we have our work cut out for us," said Lt. Gov. John C. Carney Jr., who spoke about the Newark plant at a chamber breakfast last week. "This is a very serious situation and we are taking it seriously."
Chrysler is expected to unveil some of its restructuring plans in the first quarter. But analysts don't expect any important plant closing announcements until next fall. Until then, Chrysler will continue to weigh whether Newark is worth keeping.
"A lot really depends on cost," said Vildozo, the Global Insight analyst. "If some other state were to throw out a nice incentive package, then Newark is going to go."
Daimler to Help Drive Trucks in China
The mainland's need for commercial fleets is leading a surge in truck sales. Interest from foreign makers may improve quality
BUSINESS WEEK NEWS | Brian Bremner | CHINA - - It's no secret that China's rapidly expanding passenger car market has global automakers engaging in a historic build-out of plant capacity and new models for the mainland. Yet China's commercial truck market is also enjoying double-digit gains. That's why DaimlerChrysler (DCX), the world's biggest truck maker, on Nov. 30 agreed to spend $104 million to acquire a 24% stake of Beijing-based Beiqi Foton Motor.
Beiqi Foton is China's biggest light truck manufacturer, with about a 30% share of that market and 10% of the heavy truck segment, according to data compiled by Citigroup (C) analyst Charles Cheung based in Hong Kong. In October, truck sales in China cruised along at a 28.5% year-on-year clip, which was actually a slightly better performance than the 28% growth for sales in the mainland passenger car market.
Improved Emissions Needed
China's construction boom in anticipation of the 2008 Beijing Olympics, and double-digit economic growth, have attracted investment from overseas truck makers, including Volvo AB (VOLV). Yet, unlike the foreign brand-dominated passenger car market, overseas vehicle makers are still trying to make inroads in the truck market.
That said, the mixed quality of Chinese-made trucks—and the need for better engine technologies as Beijing demands improved emission performance—is creating interest in tie-ups with foreign players who have expertise in this segment. Daimler is the industry leader globally and actually earned more from turning out trucks and buses last year than from its marquee Mercedes division.
Three Million Mark
"It's a smart move" for Daimler, says Lubo Li, senior director for Business and Market Development at J.D. Power Asia Pacific, given the long-term growth dynamics of the mainland's truck market. Demand is being driven by Chinese corporate investment in "large commercial fleets, and then there are small businesses and private enterprises, and a large rural market as well."
China's truck and bus sales are expected to hit 3 million units this year, and the mainland likely will overtake Japan as the world's second biggest vehicle market by yearend or in early 2007, most analysts predict.
The just-completed 2006 Beijing Auto Show pulled in a record number of visitors. Foreign multinational auto companies showcased 10 car launches, while domestic players unveiled more than 90 new models, points out Citigroup's Cheung
Events consultant takes leap with DCX buyout
Former executive uses exit money to publish book after launching company in Southfield.
Maureen McDonald / Special to The Detroit News
Ricardo Thomas / The Detroit News
"The actual spider web has an overriding practical purpose -- to acquire food. An event marketer attempts to 'capture' imaginations," says event consultant Lou Bitonti, who penned "The Cosmic Spiderweb." See full image
Lessons
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SOUTHFIELD -- At Camp Jeep, an annual owner-loyalty retreat for 10,000 Jeep owners and family members sponsored by DaimlerChrysler, Lou Bitonti gave the impression he could be 100 places at once, checking and rechecking to assure everything worked.
Bitonti ran events for Jeep, Dodge and Chrysler brands that involved a multimillion dollar budget and thousands of vendors, contractors and employees. Then came a lucrative buyout offer, bringing excitement and unease for the DaimlerChrysler executive, former advertising manager and once restaurant owner.
Faced with marketing himself as a solo consultant to events, Bitonti formed LD3 Event Management LLC in Southfield. He used $8,000 in exit money to self publish a book, "The Cosmic Spiderweb."
"The image of the cosmic spider web perfectly captures the complexity, variety and yet the interconnectedness of the various components that come together to create the contemporary special event," Bitonti said. "The actual spider web has an overriding practical purpose -- to acquire food. An event marketer attempts to 'capture' imaginations."
The ability to capture loyal customers for hours or days of product messages, surveys and family-oriented fun helped garner numerous honors for Bitonti. Dan Hanover, editor and publisher of Event Marketer Magazine in Norwalk, Conn., named him to its dream team of professionals.
"Lou is one of the event industry's pioneers," Hanover said. "He literally helped invent experience-based engagement marketing. The lessons he's learned over an impressive marketing career need to be told."
In the book, Bitonti defines an event as "an experience" and event marketing as a "specific focus on the lifestyle experiences of customers and integrating those experiences with buying preferences."
But even with the best laid plans and super team, nothing is more important than onsite supervision, says Bitonti who created the P.T. Cruiser Block Party, the Jeep Collegiate Health and Fitness Tour and a Jim Henson Muppets auto-safety tour. What can go wrong, may go wrong, so extra preparations and emergency funds are key.
"I'm a devotee of the Weather Channel, it is essential to know what is happening in all directions when you have a large-scale event," Bitonti said.
His book tells of the hurricane that blew into Florida's east coast, threatening to destroy a $250,000 concept car set up on Daytona Beach for a spring break rally one year. He awoke to a raging storm, left his hotel, ran to the beach and rescued the car before the tide sent it drifting.
The former DaimlerChrysler executive plans to distribute copies of the book to the heads of major corporations and coordinate his own lecture series on proper event staging.
He cites a 2002 study by Intellitrends, a Clarkston-based research organization that found 47 percent of companies feel that event marketing provides the greatest return on investment when compared with other marketing and communications tactics -- advertising, direct mail, sales promotion and Internet. Vendors of Bitonti's events say leadership is critical.
"The guy (Bitonti) is smart. He made a lot of contacts over the years and now it is time to contact them," said Jay F. Gordinier, Sr., owner of the Gordinier Group in Highland.
Maureen McDonald is a Metro Detroit freelance writer.
EADS Shares Jump on A350 Report
European Aeronautic Defence and Space Co. stock rose as much as 4.3 percent to euro23.16 (US$30.57) in Paris after the Financial Times said its main shareholders had agreed on how to fund the new plane, which is badly needed to fill a gap in the Airbus product line and stem a loss of business to Chicago-based Boeing (nyse: BA - news - people ) Co.
The Franco-German dominated defense group had pledged to announce a decision by the end of November, but a board meeting scheduled for Nov. 24 was called off amid disagreements over funding for the planned A350 XWB program, expected to cost at least euro8 billion (US$10.5 billion).
The French state owns a 15 percent stake in EADS, while Paris-based Lagardere SCA owns 7.5 percent. The two main French shareholders are balanced by Germany's DaimlerChrysler AG (nyse: DCX - news - people ), which owns a 22.5 percent stake.
EADS officials could not immediately be reached for comment.
Chrysler offers $1,000 incentives through Jan. 2
AUBURN HILLS, Mich. - DaimlerChrysler AG's Chrysler Group is offering $1,000 incentives for the purchase or lease of most of its 2006- and 2007-model vehicles through Jan. 2.
Chrysler is mailing the incentive offers to 3.4 million people. The offer is in addition to existing incentives on Chrysler, Dodge and Jeep vehicles.
"This is the largest mailing we've ever done," Chrysler spokesman Kevin McCormick told the Detroit Free Press. "The mailing is being sent to customers who've previously bought from Chrysler or who have identified themselves as potential customers."
Chrysler inventories rose this year when high gas prices shifted demand to cars from the pickups and sport utility vehicles on which Chrysler depends.
The offer does not apply to the 2007 Chrysler Sebring sedan, Dodge Viper sports car, Dodge Nitro and Jeep Wrangler SUVs or Jeep Patriot, or to the 2006 and 2007 Grand Cherokee SRT-8, The Detroit News said.
Thursday, November 30, 2006
China: TRW opens new plant to supply Beijing Benz-DaimlerChrysler
By Automotive World staff writer (SS)
30 November, 2006
Source: Automotive World
Livonia, Michigan-based components manufacturer TRW Automotive has announced that its Changchun-based subsidiary, TRW Fawer Automobile Safety Systems (TFASS), has set up a manufacturing plant to produce chassis modules for Beijing Benz-DaimlerChrysler Automotive (BBDC).
The new facility, to be built in Tongzhou, an industrial suburb of Beijing, will be spread out over 4,500 sq m and is expected to employ up to 100 local workers within the next five years. Initially, the plant will supply rear axles, brake assemblies, front struts and knuckle assemblies to the Chrysler 300 sedan series and another future locally-built sedan. The 300 recently had its Chinese premiere at the Beijing motor show.
According to Steve Lunn, executive vice president and chief operating officer of TRW Automotive, the facility's proximity to the BBDC plant will allow for sequenced, just-in-time production.
A joint venture between TRW and the Chinese automotive manufacturer First Auto Works, TFASS recently added the production of airbags and steering wheels to its traditional portfolio of braking and steering systems.
Chrysler losses mount
Pressure grows for restructuring as profits slip
By JOSEPH SZCZESNY
Press Automotive Editor
The Chrysler Group faces a major restructuring in the wake of mounting losses flowing from a combination of high labor costs and a truck-oriented product portfolio that has lost appeal for consumers.
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Mike Aberlich, Daimler-Chrysler spokesman, said seven separate studies, covering every facet of the Chrysler Group's operation, are now under way. The results are to be announced in early 2007.
"We're studying everything," Aberlich said. "We wouldn't expect anything to break until we complete the studies. The studies were launched last month shortly after Chrysler reported a $1.5 billion operating loss for the third quarter.
With sales slowing, Chrysler is expected to post another large operating loss for the fourth quarter.
Laurie Harbour-Felax of the Royal Oak-based Harbour-Felax Group said Wednesday that the Chrysler Group's losses are mounting.
"The fourth quarter is going to be a killer," said Harbour-Felax, who estimated that the Chrysler Group has gone from making a profit of $150 a vehicle last year to losing $1,144 a vehicle through the first three quarters of 2006.
Another analyst, who asked not to be identified, suggested that the Chrysler Group's losses could reach $2 billion in the fourth quarter.
Harbour-Felax said the losses are putting enormous pressure on Chrysler to launch a major restructuring similar to those already under way at GM and Ford. "They have got to do something," she said.
Sean McAlinden, vice president of research at the Center for Automotive Research in Ann Arbor, said the speculation is that Chrysler could be forced to close three and possibly more plants as part of the restructuring. The company's assembly plants in Newark, Del., and the St. Louis North truck plant as well as the Detroit Axle plant could all be on the chopping block, said McAlinden. He suggested Chrysler may have to eliminate as many as 10,000 jobs.
The Mount Elliott tool and die plant and Detroit transportation hub also could be targeted by DaimlerChrysler cost cutters, he said.
Meanwhile, Daimler-Chrysler AG has made little progress in its efforts to win health-care concessions from the United Auto Workers. In September, UAW president Ron Gettelfinger vetoed concessions at Chrysler, saying it was impossible to get them approved by union members.
Gettelfinger said last month that the union planned to take another look at the company's financial data. So far there has been no indication the union has changed its position.
McAlinden said the impasse leaves Chrysler with high labor costs. "Chrysler's got to make a move. Clearly they have the most expensive labor in the auto industry," he said.
Dale Hunt, president of UAW Local 7 in Detroit, said the last word from union headquarters was no concessions.
In addition, the UAW's council, which is made up of local union presidents and bargaining chairs, sent a clear and unambiguous message to company management when it selected Bill Parker, president of UAW Local 1700, as chairman of union bargaining for 2007 negotiations.
Parker, whose local represents workers at Chrysler's Sterling Heights assembly plant, was one of the leaders who shot down the healthcare concessions. A long-time union activist, Parker has been an outspoken critic of company policies and clashed frequently with the late Nate Gooden, who ran the UAW Chrysler department until last summer.
Gooden had been noted for reaching an accommodation with Chrysler's management. There is no way that Parker would have become chairman of the bargaining committee if Gooden were still running the UAW Chrysler department, said one activist.
Gooden's replacement, UAW Vice President Major Holifield, was quite comfortable with Parker's election.
Harbour-Felax said one of the problems Chrysler faces is that it had done a lot of things right in the past few years to no great change. The product line has been improved substantially and more new products are due out in 2007.
"It's going to be interesting to see what DaimlerChrysler does," she said.
Chrysler losses mount
Pressure grows for restructuring as profits slip
By JOSEPH SZCZESNY
Press Automotive Editor
The Chrysler Group faces a major restructuring in the wake of mounting losses flowing from a combination of high labor costs and a truck-oriented product portfolio that has lost appeal for consumers.
Advertisement
Mike Aberlich, Daimler-Chrysler spokesman, said seven separate studies, covering every facet of the Chrysler Group's operation, are now under way. The results are to be announced in early 2007.
"We're studying everything," Aberlich said. "We wouldn't expect anything to break until we complete the studies. The studies were launched last month shortly after Chrysler reported a $1.5 billion operating loss for the third quarter.
With sales slowing, Chrysler is expected to post another large operating loss for the fourth quarter.
Laurie Harbour-Felax of the Royal Oak-based Harbour-Felax Group said Wednesday that the Chrysler Group's losses are mounting.
"The fourth quarter is going to be a killer," said Harbour-Felax, who estimated that the Chrysler Group has gone from making a profit of $150 a vehicle last year to losing $1,144 a vehicle through the first three quarters of 2006.
Another analyst, who asked not to be identified, suggested that the Chrysler Group's losses could reach $2 billion in the fourth quarter.
Harbour-Felax said the losses are putting enormous pressure on Chrysler to launch a major restructuring similar to those already under way at GM and Ford. "They have got to do something," she said.
Sean McAlinden, vice president of research at the Center for Automotive Research in Ann Arbor, said the speculation is that Chrysler could be forced to close three and possibly more plants as part of the restructuring. The company's assembly plants in Newark, Del., and the St. Louis North truck plant as well as the Detroit Axle plant could all be on the chopping block, said McAlinden. He suggested Chrysler may have to eliminate as many as 10,000 jobs.
The Mount Elliott tool and die plant and Detroit transportation hub also could be targeted by DaimlerChrysler cost cutters, he said.
Meanwhile, Daimler-Chrysler AG has made little progress in its efforts to win health-care concessions from the United Auto Workers. In September, UAW president Ron Gettelfinger vetoed concessions at Chrysler, saying it was impossible to get them approved by union members.
Gettelfinger said last month that the union planned to take another look at the company's financial data. So far there has been no indication the union has changed its position.
McAlinden said the impasse leaves Chrysler with high labor costs. "Chrysler's got to make a move. Clearly they have the most expensive labor in the auto industry," he said.
Dale Hunt, president of UAW Local 7 in Detroit, said the last word from union headquarters was no concessions.
In addition, the UAW's council, which is made up of local union presidents and bargaining chairs, sent a clear and unambiguous message to company management when it selected Bill Parker, president of UAW Local 1700, as chairman of union bargaining for 2007 negotiations.
Parker, whose local represents workers at Chrysler's Sterling Heights assembly plant, was one of the leaders who shot down the healthcare concessions. A long-time union activist, Parker has been an outspoken critic of company policies and clashed frequently with the late Nate Gooden, who ran the UAW Chrysler department until last summer.
Gooden had been noted for reaching an accommodation with Chrysler's management. There is no way that Parker would have become chairman of the bargaining committee if Gooden were still running the UAW Chrysler department, said one activist.
Gooden's replacement, UAW Vice President Major Holifield, was quite comfortable with Parker's election.
Harbour-Felax said one of the problems Chrysler faces is that it had done a lot of things right in the past few years to no great change. The product line has been improved substantially and more new products are due out in 2007.
"It's going to be interesting to see what DaimlerChrysler does," she said.
Police to get 57 new cars for $1.2M
Dodges, Fords to be purchased
By Brittany Butcher,
Staff Writer
Twenty-two new Dodge Chargers will be added to the Wilmington Police Department fleet.
Hitting the streets with the muscle cars will be 35 new Ford Crown Victorias.
Sixteen of the Chargers and all of the Crown Victorias will be outfitted as patrol cars, while six Chargers will be unmarked cars used in the police department's take-home program.
City Fleet Manager Ed Thorpe said the police department will be replacing 48 vehicles this year and adding a few to the 239-vehicle fleet.
The total cost for the 57 new cars is $1,210,065.
Thorpe said the cars are paid for through the fleet replacement fund. Money in the fund comes from fees charged by Fleet Management, which owns the vehicles and leases them to the city, with a portion set aside for new vehicles.
Lt. Kathy Cochran, who heads the vehicle replacement program for the police department, said the Chargers have been well received by the officers.
"Officers' comments have been positive about the handling of the vehicle," she said. The Chargers have tested well according to other law enforcement agencies around the nation, she noted.
Chief Ralph Evangelous is also a fan of the car and was looking to add more to the fleet, Thorpe said.
Wilmington City Council member Jason Thompson expressed concerns at last week's meeting about purchasing two different types of cars. His basis for hesitation comes from general maintenance and upkeep costs. If one type of car is a proven a better choice, then why not buy all of the same car, he said.
Cochran said the department is testing the new technology Dodge is offering, adding a little bit of variety to the fleet.
She also mentioned that Ford, possibly feeling the sting of losing money to Dodge through law enforcement contracts, upped the ante this year with an improved warranty.
Both auto makers offer a 3-year, 36,000 mile warranty. Ford's extra incentive in 2006 came with a 5-year, 60,000 mile power-train warranty - a bet Dodge didn't match.
Putting all the cards on the table, though, Ford plans to phase out the Crown Victoria in the next four to six years.
Consumer Guide Automotive's Web site confirms that fact, and opines that the Dodge Charger is a better-handling car: "Large-car traditionalists may have lingering affection for the Crown Victoria and Grand Marquis. But these cars are ancient in design terms, so they're far less nimble and efficient than the Chrysler 300, Dodge Charger, Toyota Avalon, and Ford's own Five Hundred and Mercury Montego."
Cochran said the department wasn't necessarily phasing in Chargers, just giving the cars a good test run. The department previously purchased some Chevy Impalas for the same purpose but found the cars weren't holding up to the standards patrol cars need to meet.
Union vote canceled at Mercedes supplier
April Wortham | | Automotive News /NASHVILLE -- A union organizing vote set for Friday, Dec. 1, at a supplier to Mercedes-Benz U.S. International Inc. in Vance, Ala., has been canceled after the United Auto Workers accused the company of unfair labor practices.
About 380 employees at Ai3, a supply-chain management company that assists Mercedes in its just-in-time sequencing, were scheduled to vote on whether to organize under the UAW.
Doug Marshall, resident officer of the National Labor Relations Board’s Birmingham, Ala., office, said the UAW filed an initial complaint on Nov. 15 along with a request to allow the vote to proceed.
The first complaint listed eight separate allegations against Ai3, beginning Sept. 29 when the union says Ai3 management ordered employees to remove UAW stickers and pins from their uniforms.
Under NLRB regulations, a charge of unfair labor practices automatically cancels a pending vote unless the union petitions otherwise.
But the UAW late Tuesday, Nov. 28, filed an amendment to its initial complaint that adds 21 allegations. Because the amended complaint does not include a request that the vote take place as scheduled, it has been canceled, Marshall said.
Ai3 is a joint venture of trucking and logistics company Averitt Express Inc., of Cookeville, Tenn., and i3 Logistics Group, of Atlanta. Workers are employed by Averitt Express and Team One Contract Services, of Alpharetta, Ga.
The amended complaint added Averitt Express, i3 Logistics and Team One Contract Services as defendants.
Mercedes leases space in the 400,000-square-foot Ai3 warehouse, which opened in July 2004 and sits within a half-mile of the automaker's assembly plant in Vance, Ala.
The UAW has tried unsuccessfully to organize the Mercedes plant in Alabama and is awaiting word from an AFL-CIO arbitrator to determine whether the UAW or the International Association of Machinists and Aerospace Workers should have exclusive rights to try to organize the plant.