This Day in Auto History: 7 MAY
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 | Source: Automobile History Day By Day, by Douglas A. Wick |
Monday, May 07, 2007
Win a Dodge Avenger
PADDOCK NEWS - - When Dodge comes to Darlington for the spring, fans can look for several things beyond just exciting on-track action – the opportunity to go fast in Dodge SRT vehicles, go wild decorating their campsites and go home driving an all-new 2008 Dodge Avenger.Dodge and the Carolina Dodge Dealers have presented the spring race at Darlington since 2001, and this year the Dodge Avenger 500 will honor the arrival of the all-new 2008 Dodge Avenger in dealer showrooms this spring.
Even campers can join in the Dodge festivities at Darlington. Dodge will host a contest to find the campers with the best Dodge Fan Shrine. The contest encourages campers to show their Dodge spirit by decorating their campsites with Dodge banners, signage and merchandise and by wearing their favorite Dodge apparel. The winner gets to meet the Dodge drivers at Dodge hospitality on race morning.
When taking a break from action on the track, fans can enjoy the fast action at Dodge City located in the Fan Midway area and go for a high-speed spin in the Dodge SRT Thrill Rides. Fans can ride for free on a high-speed, closed course in a Dodge Viper SRT10 or Dodge Charger SRT8.
That should set the stage for the Dodge Avenger 500, the first NASCAR Car of Tomorrow race held on a superspeedway. Darlington’s 1.366-mile egg-shaped oval should provide the ultimate test for man and machine, with all of the VIP mothers hoping to honor their sons in the Dodge Avenger 500 victory lane.“Dodge is excited to bring back the action at Darlington once again,” said Mike Accavitti, Director, Dodge Brand and SRT Marketing and Communication – Chrysler Group. “This is a great weekend for the Dodge brand, and it wouldn’t be possible without the support of the Carolina Dodge Dealers who sponsor the race. We have a number activities planned for the fans to help them celebrate the weekend – from campground contests to high-speed thrill rides to the opportunity to drive home a new Dodge Avenger.”
Local country music sensation Josh Turner will sing the National Anthem for the Dodge Avenger 500 on May 12 at Darlington Raceway. Turner, a 29-year-old country music singer from Hannah, S.C., hit the big time with “The Long Black Train” in 2004 and followed up with “Me and God”. His distinctive bass voice has been compared to the late Johnny Cash. The Mother’s Day Eve event will feature many Mothers of the NASCAR Nextel Cup drivers as Grand Marshals. An honorary starter has yet to be named, but fans will not be disappointed when the celebrity mystery man drops the green flag.
Stakes will be high for a Dodge driver to win the Dodge Avenger 500. The first Dodge driver to win a NASCAR NEXTEL Cup race in a Dodge Avenger will win a 2008 Avenger production car to donate to his favorite charity. The race also represents the culmination of the Kasey Kahne Dream Job contest. Thousands of fans vied for a spot working as Kahne’s assistant at Darlington, and David Metzger, a police officer from Fremont, Calif., won the contest. He will work with Kahne throughout the race weekend.
If Kahne, driver of the No. 9 Dodge Dealers/UAW Dodge or Elliott Sadler, driver of the No. 19 Dodge Dealers/UAW Dodge take home a top-five finish in the Dodge Avenger 500, two lucky fans can take home a new Dodge Avenger, courtesy of the Chrysler Business Center in the region.
Who buys these?
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CHIEFTAIN PHOTO/CHRIS McLEANThe Toyota Tundra billboard is directed at the big truck buyer. |
Large-cab pickups not just for work
By JAMES AMOS
THE PUEBLO CHIEFTAIN
Gas, if you haven't noticed, costs a little bit more than a small trailer home. Parking, if you haven't seen, can be as scarce as quarters near a pop machine.
But on TV commercials and billboards around town, you'll see ads from several truck companies all saying they have the biiiiiiiigest truck around, powerful enough to tow a ship and with a back seat large enough to graze cattle.
So who is buying these trucks? The answer, according to Pueblo's truck dealers, is: everyone.
"It's a pretty broad spectrum" of buyers, said Sam Clementi, general sales manager at Freedom Ford on U.S. 50 West.
Ford offers two large-cab pickup trucks, the Super Cab (four doors, the back two are "suicide" style) and the Super Crew cab (four full-size doors) on F-150 bodies. The trucks range in price from about $30,000 to $45,000.
"You're getting people who are wanting to pull trailers and recreational vehicles," he said.
"And you get some people who want the amenities of a car, which a lot of the trucks offer now, and use them as the regular everyday driver."
And these folks apparently aren't worried about gas mileage?
"I guess not," Clementi said.
Dodge has been pushing the "We're Biggest" button in its marketing the longest, not surprising for an auto company that molds muscular lines into every truck it makes, and many of its cars.
Dodge has Quad Cabs (four-door and big) and Mega Cabs (four-door and bigger) and, according to Alex Trigg, general sales manager at Pueblo Dodge on U.S. 50 West, "everybody buys them." Trigg said the Quad Cabs have sold the most, about seven-to-one versus the Mega Cab models. Some people buy them to haul boats and other recreational supplies, and they are popular with farmers, ranchers and others who use their pickups for actual work.
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CHIEFTAIN PHOTO/JOHN JAQUESJared Erickson (right), a salesman for Pueblo Dodge, shows a Dodge Ram 3500 Mega Cab at the dealership. |
But "Mega Cabs (buyers), it's a person who has a little bit more money to spend, but they're not using it for work purpose," he said. "You see Mega Cabs go for more luxury."
Quad-Cab Dodges sell for between the high $30,000s to the high $40,000s, Trigg said. Mega Cab models sell for $44,000 to as much as $55,000.
Large-cab trucks don't get any worse gas mileage than regular-cab models, Trigg said, and it seems large-truck buyers haven't been scared off by gas prices.
"Our business has been pretty steady as far as the Pueblo area," he said. "I guess we're lucky that we haven't seen the hit because of the rising gas prices."
Still, Dodge is changing its national marketing campaign this month to stress fuel economy and not cab size, according to Trigg.
Nissan is trying to break into the large-truck market, but it is Toyota that has pushed the hardest, bringing its famous brand to the table. The company has long sold thousands of small pickup trucks, and has legions of fans who love them for reliability.
While Toyota's smaller Tacoma has gotten bigger, becoming a mid-sized pickup truck, Toyota recently created the Tundra to really take on the large American models.
Mark Alcon, truck manager at Pueblo Toyota on U.S. 50 West, said the Tundra is selling quite well.
"Yes they are," he said. "The Tundra went on sale Feb. 12 and so far in our area, we've sold over 30 of them."
And who buys it?
"It's really strange," he said. "It's just across the board. It's suburban-ites, urban-ites, farmers, ranchers."
Offered in 31 configurations, the Tundra has a regular cab (with 2 feet behind the seat), the Double Cab (four-door) and Crew-Max Cab (four-door cab with more room).
The Crew-Max is 10 inches bigger than the Dodge Mega Cab, Alcon said.
A fully loaded Crew Max pickup will set you back $50,000. But Alcon said you'll be happy. He said Toyota has given its large-size pickup better mileage and more power than other brands.
"If you do the research, there's no way you'd buy another truck," he said. "We top out everybody."
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Compensation averaged $4.2 million in 2006
Pay climbs for auto execs
May 6, 2007
Executives at the top U.S.-based auto companies received compensation packages worth an average of $4.2 million in 2006, a year in which two-thirds of their companies failed to post profits, according to a Free Press analysis.
Rules for reporting executive compensation changed for this year's filings, but a comparison of similar categories showed that total compensation for these executives rose 22% from 2005 when the average compensation was $3.5 millionFord Motor Co. chief executive Alan Mulally ranked first in the analysis with a total compensation package of $39.1 million, which included an $18.5-million bonus for leaving the Boeing Co. to take the top job at the Dearborn-based automaker. Ford executives accounted for six of the top 15 spots in the rankings, which looked at 80 executives for 14 publicly traded companies.The compensation packages were awarded during a year when the domestic auto industry experienced widespread layoffs and plant closures. Financially strained companies and industries often have to pay more to attract talented executives to what could be a risky, high-pressure career move, experts say.
The pay raises, though, come as Ford, General Motors Corp. and the Chrysler Group prepare for contract talks with the UAW. Many outside analysts have predicted the companies, which are all losing money in North America, will ask for wage and benefit concessions from UAW members.
Even before the talks have formally started, executive pay has created a rift with workers, said Gerald Fischer, a 67-year-old Garden City resident who retired from Ford last year as part of the company's attrition program.
"It frustrates every average working man," Fischer said. "Every time we see it we get upset. ... They're still being compensated and we're still being asked to give back."
Ford said it provided the compensation packages because they were critical to recruit and retain key executives. Like at most companies, Ford's board of directors determined executive pay based on an analysis of executive pay at other global, manufacturing firms, according to its SEC filing.
"We pay competitive wages to attract and keep the best and brightest talent available," said Ford spokesman Tom Hoyt.
But the UAW says executive pay in the auto industry should be scrutinized, especially following agreements by Ford and GM union members to shoulder more of their health care costs to help the companies save money. More than 70,000 hourly workers also agreed to buyouts or early retirement packages.
"UAW members have made significant sacrifices to help auto industry employers get back on track and remain competitive," UAW President Ron Gettelfinger told the Free Press in a statement. "During a period of plant closings, employment reductions, and other painful changes for workers and communities, it's fair to ask whether executives are truly adding value in proportion to any compensation increases they have received."
Gettelfinger made $208,000 in salary, benefits and expenses in 2005, according to the most recent publicly available IRS filing for the UAW. His compensation would have ranked at or near the bottom of the corporate executive list in either year.
The Free Press analysis looked at reports filed by General Motors and Ford as well as 12 suppliers with publicly traded stock. It included salary, bonus, incentives, the fair market value of stock and options granted in the year and other compensation, such as use of corporate aircraft and company vehicles. The value of stock and option grants is not guaranteed and could be higher or lower when the executive cashes them in.
Executive pay in the auto industry was in line with pay at other public companies, according to data compiled by Equilar Inc., a California-based firm that specializes in executive compensation analysis. Looking at just the CEOs, usually the highest-paid executives, Equilar found a median CEO compensation for the auto industry of $7.1 million in 2006, compared to a median CEO pay of $8.5 million for public companies in the Standard & Poor's 500 index.
The Free Press analysis looked at CEOs as well as other executives, such as chief financial officers and vice presidents, who are listed in the SEC filings.
Johnson Controls Inc. chief executive John Barth ranked second overall behind Mulally with a total compensation of $30.8 million in 2006. James Padilla, who retired last year as Ford president and chief operating officer, was third at $15.5 million.
The top five also included Johnson Controls executive vice president Stephen Roell at $14.5 million and Eaton Corp. chief executive Alexander Cutler at $12.1 million.
Milwaukee-based Johnson Controls and Cleveland-based Eaton, which both have operating units outside of the automotive industry, posted double-digit gains in profits and revenues in 2006.
Ford lost a company record $12.6 billion in 2006, compared to a $1.4-billion profit in 2005. Every returning executive listed in Ford's filing, except for Bill Ford, received more in total compensation in 2006 than in 2005.
Compensation experts caution against blanket statements about executive pay and its relation to profits. Companies can lose money and still be justified in pay increases if they hit targets moving the companies toward financial stability, they say.
"If you're in a tough world and you didn't go bankrupt, maybe that's a good thing," said Mark Watson, managing director of corporate governance for New York-based Moody's Investors Service. "You look at the airline industry and the auto industry. They must be struggling to keep talent. They're under an enormous amount of stress and strain."
In particular, Mulally is a special case because he was lured away from another company, said Peter Morici, a University of Maryland business professor who follows the auto industry. But few U.S. auto executives have shown that they deserve their pay packages, he said.
GM chief executive Rick Wagoner received $9.6 million in total compensation in 2006, a 75% pay raise from 2005. GM lost $2 billion in 2006, compared to a $10.4 billion loss in 2005.
DaimlerChrysler AG chairman Dieter Zetsche received $10.3 million and Chrysler Group CEO Tom LaSorda $5.2 million, counting phantom shares granted by the company.
DaimlerChrysler was not included in the Free Press analysis because it was not required by German reporting rules to provide comparable data on 2005 compensation. The overall company made $5 billion last year but the Chrysler Group lost $680 million, after restatements for new accounting rules."The reality is there is no accountability on CEO pay in the automobile industry," Morici said. "These companies are going down the drain and the boards are silent. ... In terms of the CEOs, they really haven't delivered."
These compensation packages will make it more difficult for the companies to win concessions from the UAW when contract talks start in July, Morici said.
"The senior executives don't want to come down hard on the autoworkers because if they did, they would have to come down hard on themselves," Morici said.
In the past year, executive compensation in the auto industry depended heavily on stock and option awards, which experts point to as a positive trend. Stock and option awards were, by far, the biggest component, providing an average of $2.2 million, or about half of overall compensation.
Ford's Mulally received the most in stock and options with grants valued at $19.6 million. Also in stock and option grants, Johnson Controls' Barth was provided $17 million, Ford's Padilla $14 million and GM's Wagoner $7.5 million.
A heavy weighting toward stock and options can be a good way to compensate executives, said Charles Elson, chairman of the University of Delaware's Weinberg Center for Corporate Governance. In order to make money on those investments, the company's stock needs to do well, which would also benefit shareholders.
"It aligns their interests with the company's interests," Elson said.
Whether it's stock and options or base salary, though, the increases to this year's compensation packages are bad, said Fischer, the recent Ford retiree.
"We don't begrudge them their money because of their education and background," Fischer said. "Don't get me wrong. But why do we have to give up a buck an hour and they get a $2-million raise?"
PHOTOS
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$14.5 million: Stephen Roell, Johnson Ctr.
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ADDITIONAL INFORMATION
| Top 20 in U.S. auto industry | |||
| The Free Press analyzed SEC filings for two U.S. automakers and 12 leading suppliers for 2006. The average total compensation for these executives was $4.2 million. See the full list and its components at www.freep.com. | |||
| Name | Company | Title | Pay |
| Alan Mulally | Ford Motor Co. | President and CEO | $39,128,100 |
| John M. Barth | Johnson Controls | Chairman and CEO | $30,756,614 |
| James Padilla | Ford Motor Co. | Former president and COO | $15,489,659 |
| Stephen A. Roell | Johnson Controls | Vice chairman and exec. VP | $14,514,725 |
| A. M. Cutler | Eaton Corp. | Chairman, chief executive officer and president | $12,096,994 |
| Keith E. Wandell | Johnson Controls | President and COO | $11,461,499 |
| Mark Fields | Ford Motor Co. | Exec. VP and president of the Americas | $10,858,886 |
| John C. Plant | TRW Automotive | President and CEO | $10,376,215 |
| Rick Wagoner | General Motors | Chairman & CEO | $ 9,573,556 |
| Don Leclair | Ford Motor Co. | Exec. VP and CFO | $ 7,992,593 |
| Richard E. Dauch | American Axle | Cofounder, chairman & CEO | $ 7,541,367 |
| Lewis W.K. Booth | Ford Motor Co. | Exec. VP of Ford of Europe and Premier Auto Group | $ 7,425,983 |
| R. Bruce McDonald | Johnson Controls | Exec. VP and CFO | $ 6,745,781 |
| Mark A. Schulz | Ford Motor Co. | Exec. VP and president of International Operations | $ 6,590,366 |
| William Clay Ford Jr. | Ford Motor Co. | Exec. chairman and former CEO | $ 5,343,841 |
| Michael F. Johnston | Visteon Corp. | Chairman and CEO | $ 5,271,987 |
| Timothy M. Manganello | BorgWarner Inc. | Chairman and CEO | $ 5,153,799 |
| José Maria Alapont | Federal-Mogul | Chairman, president and CEO | $ 5,101,314 |
| Bob Lutz | General Motors | Vice chairman, Global Product Development | $ 5,086,120 |
| Steven Lunn | TRW Automotive | Exec. VP and COO | $ 5,066,441 |
Executive pay methodology
The Free Press analysis compared executive compensation for two U.S.-based automakers and 12 suppliers using the following components in their SEC filings: salary, bonus, incentives, fair market value of stock and options granted in the year and other compensation, such as personal use of company aircraft and car allowances.
These figures may differ from what is reported by the company in its summary compensation table, which includes accounting expenses taken by the company for stock and options and pension liabilities. The Free Press analysis, following recommendations from outside experts, makes adjustments to these figures to provide a more accurate assessment of what an executive was given in the year as a compensation package. It also provides a better comparison to compensation packages reported for 2005 and previous years.
| Elsewhere in Michigan | ||
| A sampling of what CEOs at non-auto companies in Michigan made in 2006 | ||
| Name | Company | Compensation |
| Richard J. Dugas Jr. | Pulte Homes Inc. | $12,433,862 |
| Andrew N. Liveris | Dow Chemical Co. | $11,921,267 |
| Jeff M. Fettig | Whirlpool Corp. | $ 9,536,602 |
| Richard A. Manoogian | Masco Corp. | $ 8,690,734 |
| James M. Jenness | Kellogg Co. | $ 7,742,436 |
| Anthony F. Earley Jr. | DTE Energy Co. | $ 7,007,225 |
| How they compare | ||
| Chief executives in the auto industry are paid about the same as other CEOs -- and less than some. | ||
| Industry | 2006 Median CEO Pay | Change From 2005 |
| All S&P500 | $ 8,512,509 | 6.0% |
| Auto | $ 7,130,327 | 1.1% |
| Defense | $ 15,507,932 | 13.8% |
| Finance | $ 37,447,330 | 61.4% |
| Oil | $ 13,605,964 | 4.4% |
| Source: Equilar Inc. | ||
Magnitude 5.5 - NORTHERN COLOMBIA
Earthquake Details
| Magnitude | 5.5 |
|---|---|
| Date-Time | = Coordinated Universal Time = local time at epicenter |
| Location | 6.692°N, 73.084°W |
| Depth | 170.2 km (105.8 miles) |
| Region | NORTHERN COLOMBIA |
| Distances | 50 km (30 miles) S of Bucaramanga, Colombia 95 km (60 miles) ESE of Barrancabermeja, Colombia 130 km (80 miles) NNE of Tunja, Colombia 255 km (160 miles) NNE of BOGOTA, Colombia |
| Location Uncertainty | horizontal +/- 5.3 km (3.3 miles); depth +/- 5.4 km (3.4 miles) |
| Parameters | Nst=171, Nph=171, Dmin=245.7 km, Rmss=0.68 sec, Gp=104°, M-type=body magnitude (Mb), Version=6 |
| Source |
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| Event ID | us2007caas |
This Day in Auto History: 06 MAY
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| Source: Automobile History Day By Day, by Douglas A. Wick |
Union: Contract Approved at Freightliner
Associated Press 05.05.07, 8:49 PM ET - - Workers at Freightliner LLC's largest truck manufacturing plant have approved a new contract, barely two weeks after rejecting an earlier agreement.
Members of United Auto Workers Local 3520 approved the latest contract Friday with an 89 percent vote, according to the union Web site. A breakdown of votes and details of the agreement were not available. Messages left with the union and Portland, Ore.-based Freightliner were not immediately returned Saturday.
At last month's 749-to-621 vote to reject the contract, some workers at the plant said they opposed the deal in part because it would have paid them less than workers at the Freightliner plant in Mount Holly. Others didn't like what they said was a lack of profit sharing.
Freightliner, a unit of DaimlerChrysler AG (nyse: DCX - news - people ), has said it is cutting up to 4,000 jobs nationwide, including about 1,900 in North Carolina. The company said the cuts were in response to slow sales of trucks equipped with new and expensive technology aimed at curbing diesel exhaust emissions.
In April, Freightliner laid off 1,160 of its 3,400 workers at the Cleveland plant, about 44 miles north of Charlotte.
Magnitude 5.6 KEPULAUAN BARAT DAYA, INDONESIA
Earthquake Details
| Magnitude | 5.6 |
|---|---|
| Date-Time | = Coordinated Universal Time = local time at epicenter |
| Location | 7.392°S, 128.432°E |
| Depth | 119 km (73.9 miles) set by location program |
| Region | KEPULAUAN BARAT DAYA, INDONESIA |
| Distances | 330 km (205 miles) W of Saumlaki, Tanimbar Islands, Indonesia 340 km (210 miles) ENE of DILI, East Timor 620 km (385 miles) NNW of DARWIN, Northern Territory, Australia 2400 km (1490 miles) E of JAKARTA, Java, Indonesia |
| Location Uncertainty | horizontal +/- 5.9 km (3.7 miles); depth fixed by location program |
| Parameters | Nst=171, Nph=171, Dmin=729.4 km, Rmss=0.86 sec, Gp= 32°, M-type=body magnitude (Mb), Version=R |
| Source |
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| Event ID | us2007bza8 |
Ridenour: Chrysler will simplify vehicle lineup
  | Chrysler COO Eric Ridenour says three trim lines with a few combos will be offered. Photo credit: JOE WILSSENS |
Ridenour: Chrysler will simplify vehicle lineup
COO wants 650 combinations -- not 167,000
Bradford Wernle | Automotive News / May 7, 2007 - 1:00 am / DETROIT -- The Chrysler group may be for sale, but the company is going full speed ahead to simplify its vehicle offerings and features, says COO Eric Ridenour.
"Instead of having hundreds of thousands of combinations, we're trying to get it under 1,000" per nameplate, Ridenour said in an interview last week. He said there are about 167,000 possible combinations of options and features on the 2007 Dodge Nitro SUV. Ridenour would like to see that slashed to about 650.
That means greatly reducing the complexity in Chrysler's vehicle lines. There will be three basic trim lines - "good, better and best" - with a limited number of combinations offered in each, he said.
Reduced complexity is part of Chrysler's Recovery and Transformation Plan, announced by CEO Tom LaSorda on Feb. 14. That same day, DaimlerChrysler CEO Dieter Zetsche told the world that the automaker might sell its U.S. division.
Dealers complained last year that many Chrysler group vehicles came from the factory with strange configurations, making them difficult to sell.
Ridenour acknowledged that some elements of the plan have been obscured by the hoopla surrounding the possible sale and potential suitors. That news has been distracting, he said.
"Any time there's uncertainty, you want to get to certainty" as quickly as possible, he said. But Ridenour said his job has been to keep employees focused on executing the plan.
Some analysts say the success of LaSorda and Ridenour in doing a quick turnaround could have an impact on the possible sale or could even persuade DaimlerChrysler to hang onto all or part of Chrysler.
Chrysler group plans Hemi hybrids
Put the words Hemi and hybrid together, and that's what the Chrysler group will bring to market next year.
The 2009 versions of the Dodge Durango and Chrysler Aspen SUVs, arriving in dealerships in 2008, will be powered by a 5.4-liter Hemi engine mated to the dual-mode hybrid system, said Chrysler spokesman Todd Goyer.
Bradford Wernle | Automotive News / May 7, 2007 - 1:00 am / Current Hemi-powered versions of the Durango and Aspen are rated at 13 mpg city and 18 highway. Chrysler says the hybrid versions will get 25 percent better gas mileage overall and 40 percent better mileage in the city. The engines will continue to feature Chrysler's multiple-displacement system, which turns off half the cylinders at highway cruising speeds.
The dual-mode hybrid system was developed jointly by General Motors, DaimlerChrysler and BMW. It will be equipped with a four-speed automatic transmission with two electric motors in the transmission case.
The hybrid system will propel the vehicle on electric power alone at low speeds. The system was designed for rear-drive, body-on-frame vehicles.
Chrysler has unveiled a Hemi-hybrid badge that will be used on vehicles with the combination.
A Chrysler official declined to say whether the system will be in other vehicles.
ASC files for Chapter 11, finds buyer for roof systems, design businesses
Rhoda Miel | Automotive News / May 4, 2007 - 10:35 am /
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ASC, which specialized in making sunroofs and low-volume specialty cars for the North American auto industry and evolved into a roof systems specialist, closed four plants last year and cut its work force from 1,250 people at the start of 2005 to 252. It began seeking a buyer in 2005.
The pending sale to Hancock Park Associates will retain ASC's sunroof and design units but liquidate nonproductive assets. Hancock Park, of Los Angeles, is a private equity firm founded in 1986 that focuses on small to mid-sized businesses in retail and manufacturing segments.
ASC, of suburban Detroit, is the second major auto supplier to file for bankruptcy this year. Eight suppliers filed for protection in 2006.
ASC failed to find a buyer for the four closed plants. In January, liquidators sold presses, paint lines, sanding stations, injection-molding machines and other equipment from three of the plants, according to Hilco Industrial LLC, an industrial equipment liquidator.
According to an affidavit filed in bankruptcy court by ASC CEO Paul Wilbur, ASC ran into trouble after 2001 when it invested nearly $250 million to make the Chevrolet SSR sports truck and three other specialty vehicles for General Motors.
ASC expected a $225 million boost in its annual revenue from the program, but GM in 2005 decreased SSR production, canceled it early and terminated the contract for the other three vehicles, Wilbur said.
At the same time, DaimlerChrysler AG halted production of its Dodge Viper car for a year - which used composite parts from ASC - because of problems with an engine.
Prechter died in July 2001. ASC was purchased in May 2002 by a private equity fund controlled by Questor Management Co. LLC. Questor was co-founded in 1995 by turnaround expert Jay Alix and Wall Street financier Dan Lufkin.
ASC has used both reaction injection molding and sheet molding compound to make automotive specialty parts, including fascias, spoilers and hoods.
This Day in Auto History: 05 MAY
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| Source: Automobile History Day By Day, by Douglas A. Wick |
Magnitude 4.2 BAJA CALIFORNIA, MEXICO
Earthquake Details
| Magnitude | 4.2 |
|---|---|
| Date-Time | = Coordinated Universal Time = local time at epicenter |
| Location | 32.035°N, 115.847°W |
| Depth | 0.1 km (~0.1 mile) (poorly constrained) |
| Region | BAJA CALIFORNIA, MEXICO |
| Distances | |
| Location Uncertainty | horizontal +/- 6.8 km (4.2 miles); depth +/- 8.2 km (5.1 miles) |
| Parameters | Nph= 14, Dmin=68 km, Rmss=0.26 sec, Gp=266°, M-type=local magnitude (ML), Version=2 |
| Source | |
| Event ID | ci14288992 |
Bernhard visits Chrysler
Company's ex-chief operating officer, who works for Cerberus, comes back for talks; some analysts say familiarity is an advantage.
Jeff Kowalsky / Associated Press
In 2003, Chrysler's then-COO Wolfgang Bernhard took a spin at the Detroit autoBill Vlasic / The Detroit News
Wolfgang Bernhard, a leader of the Chrysler Group's last corporate comeback, quietly returned to Auburn Hills on Thursday as a key player in Cerberus Capital Management's bid to buy the ailing automaker.
The visit to Chrysler headquarters was the second this week for Bernhard, who led a product renaissance during his three-year stint as Chrysler's chief operating officer, according to people familiar with the situation.
Bernhard is now working with New York-based Cerberus in its effort to win a three-way bidding war to acquire the U.S. division of DaimlerChrysler AG.
Cerberus is competing for Chrysler with rival private-equity firm Blackstone Group and Canadian supplier Magna International Inc. DaimlerChrysler is expected to pick one of the three soon to enter into exclusive negotiations, according to people familiar with the process.
All three bidders have sent study teams to Auburn Hills to meet Chrysler executives, tour its facilities and preview its future products.
A fourth interested bidder, billionaire investor Kirk Kerkorian, has yet to be allowed the same access to Chrysler's internal data and operations.
Bernhard was noticeably absent when Cerberus officials made their first on-site visit in March. But people close to Chrysler said the 46-year-old German executive met with Chrysler management last weekend and again Thursday.
"He walked right in the front door (Thursday) and went up to the executive offices," said one source who spoke on condition of anonymity.
A Chrysler spokesman declined to comment.
The presence of Bernhard on the Cerberus team, along with former Ford Motor Co. executive David Thursfield, has been viewed by some analysts as giving the firm an edge in the bidding process.
"It gives them (Cerberus) a tremendous amount of credibility," said Joseph Phillippi of AutoTrends Consulting Inc. in Short Hills, N.J. "I suspect there's a lot of latent loyalty to someone like Bernhard inside (Chrysler)."
Bernhard came to Chrysler in 2001 after running the Mercedes-Benz high-performance AMG unit at DaimlerChrysler. As chief operating officer, he was instrumental in the development of Chrysler's most recent round of hit products, including the 300C sedan.
His success at Chrysler won him a promotion in 2004 to run Mercedes. But after clashing with Mercedes managers and German unions, the job offer was withdrawn by DaimlerChrysler's supervisory board. Bernhard left DaimlerChrysler and was hired by Volkswagen AG. He resigned as head of the Volkswagen brand earlier this year after a management shake-up.
Friday, May 04, 2007
Actress Jenny McCarthy and the Chrysler Brand Announce the Winner of the 'Hats Off to the Derby' National Hat Design Contest at Churchill Downs
- Three finalists showcase Derby hats created with convertible top fabric
- Celebrity guest, Jenny McCarthy, reveals winner Friday at Churchill Downs
- Grand prize winner receives an all-new 2008 Chrysler Sebring Convertible
LOUISVILLE, Ky., May 4 /PRNewswire-FirstCall/ --
What: Actress and New York Times Best Selling author Jenny
McCarthy will join Chrysler Group executives in announcing
the grand prize winner of the "Hats Off to the Derby"
national hat design contest. Chrysler challenged hat
designers, horse racing and automobile enthusiasts and all
other creative types to design a Kentucky Derby hat "with a
twist." The hat had to be inspired by the styling of the all-
new 2008 Chrysler Sebring Convertible and utilize a portion
of the soft top fabric in the design.
Hundreds of entries were received from across the county and
three finalists -- from Ohio, Kentucky and West Virginia --
won trips to Louisville for a special Kentucky Derby weekend,
an event also for it equally stylish removable tops. The
weekend includes Jenny McCarthy presenting one grand prize
winner with keys to their own 2008 Chrysler Sebring
Convertible, a once-in-a-lifetime experience of attending the
Barnstable-Brown celebrity charity gala, tickets to the
133rd Kentucky Derby and a VIP tour of Churchill Downs.
When: Friday, May 4, 2007 - 9:30 a.m.
Where: Inside entrance to Marquee Village, just outside Gate 10
Churchill Downs - 700 Central Avenue, Louisville, Ky. 40208
Visuals: Moment of surprise when McCarthy announces grand prize winner
-- McCarthy and finalists showcasing hat
designs
-- Grand prize winner receiving car keys from Jenny
McCarthy
B-ROLL
COORDINATES: 05/04/2007 14:00 End: 05/04/2007 14:15
Galaxy 25: Gal25/ Transponder 13C ( 97' West )
Downlk Freq: 3960MHz (V)
05/04/2007 15:00 End: 05/04/2007 15:15
Galaxy 25: Gal25/ Transponder 13C ( 97' West )
Downlk Freq: 3960MHz (V)
05/04/2007 16:00 End: 05/04/2007 16:15
Galaxy 25: Gal25/Transponder 13C ( 97' West )
Downlk Freq: 3960MHz (V)
Senator: CAFE hike could kill Chrysler
Harry Stoffer | Automotive News / May 4, 2007 - 8:53 am / WASHINGTON -- A U.S. senator from Michigan is vowing to filibuster fuel economy legislation that he says discriminates against the Detroit 3 automakers.
Democrat Carl Levin made the remark to reporters outside a Senate Commerce Committee hearing Thursday on a bill that would raise fuel economy standards by 10 mpg over 10 years.
Levin said that if a law required each automaker to sell a fleet of vehicles averaging 35 mpg, it would be unfair to those that sell more trucks and bigger vehicles, namely the Detroit 3. And he said such a requirement would put the Chrysler group out of business.
A filibuster enables a minority of the 100 members of the Senate to keep a measure from coming to a vote even if a majority is prepared to pass it.
Levin and the prime sponsor of the bill, Sen. Dianne Feinstein, D-Calif., have agreed on an alternative proposal that would have all vehicles sold by the industry average 35 mpg by 2019. Some companies could be higher and some could be lower, based on fleet mix.
The commerce committee, however, is going to consider a somewhat different bill when it votes on fuel economy legislation on Tuesday, May 8.
Sen. Daniel Inouye, D-Hawaii, committee chairman, announced at the end of Thursday's hearing that senators and staffs have been consulting behind the scenes and intend to merge elements of various fuel economy bills that have been introduced this year.
The new measure was to be distributed to interested parties late Friday.
The goal will be the same: A significant jump in corporate average fuel economy standards, or CAFE.
Such measures have been soundly and repeatedly defeated over the years, but sentiment has been shifting. Lawmakers say they are worried both about the security of energy supplies and about greenhouse gas emissions from cars and trucks.
Sen. Tom Carper, D-Del., said during the hearing that Detroit 3 warnings about losing money, losing market share, closing plants and laying off workers don't work any more. They did all those things even without higher fuel economy standards.
Now, "we listen to those arguments with a bit of skepticism," said Carper, whose tiny state has General Motors and Chrysler assembly plants.
Automaker witnesses echoed recent comments from other industry leaders on government's escalating interest in reducing petroleum consumption and cutting greenhouse gas emissions:
They said that automakers, already more regulated than other sectors of the economy, have been making big investments in advanced technology to reduce emissions in the future and want to contribute to solutions. But car companies alone should not be expected to solve the global warming problem.
Dave McCurdy, president of the Alliance of Automobile Manufacturers, also said the alliance "opposes legislation that is not technologically feasible." And it opposes standards "that are not based on a balance of objective criteria."
McCurdy said Feinstein's bill effectively would require by 2019 that cars average almost 40 mpg and that light trucks average nearly 32 mpg. Existing standards are 27.5 mpg for cars and 22.2 mpg for trucks.
He said the added costs, especially for trucks, would be hard on small business and trades people, farmers and others who rely on the vehicles for their livelihoods.
Mike Stanton, president of the Association of International Automobile Manufacturers, said car companies should have a minimum of three years to prepare for expected, more stringent increases in standards.
Federal law provides 18 months of lead time. For example, regulators had to give notice by April 1, 2006, for an increase in the light truck standard taking effect in the 2008 model year, which begins officially on Oct. 1, 2007.
AIAM's 14 automaker-members include Honda, Toyota, Nissan and Hyundai.
The alliance represents the Detroit 3, Toyota and five other automakers.
Levin told the committee the Detroit 3 "compete against countries," not just other automakers. He said other countries manipulate currencies, pay for health care, fund r&d and otherwise back their manufacturers.
Instead of incremental increases in CAFE that do little to reduce global greenhouse gas emissions, the U.S. focus should be instead on "leap-ahead technology," he said.
Chrysler names new head of Dodge marketing
Reuters / May 4, 2007 - 10:00 am /
DETROIT (Reuters) -- DaimlerChrysler AG's Chrysler Group said it named Michael Accavitti as director of Dodge Brand & SRT Marketing and Communications, effective immediately.
Accavitti was earlier director of Motorsports Programs and SRT Product & Brand Marketing.
Chrysler April sales up 17% outside North America
Reuters / May 4, 2007 - 10:29 am / DETROIT (Reuters) -- DaimlerChrysler AG's Chrysler Group said today that sales outside of North America were up 17 percent in April, boosted by demand in Russia and the Middle East.
The company's sales outside North America last month reached 18,289 vehicles and marked the best April in 10 years, Chrysler said.
Sales jumped 97 percent to 1,871 vehicles in the Middle East and Northern Africa region, while sales in Russia grew 95 percent over the same month last year, the company said.
Chrysler's business plan calls for doubling overseas sales to 400,000 units by 2012 as it executes a reorganization plan that will cut 13,000 jobs and close a plant in North America to halt losses by next year.
Chrysler is counting on foreign sales growth -- in part with allies -- to help offset its weak U.S. showing.
The automaker expects significant sales growth outside North America this year and is holding talks with potential partners to boost its global presence.
Chrysler sales outside North America rose 15 percent to 207,000 units in 2006.
Shareholders Blast EADS Leaders
Associated Press
By TOBY STERLING 05.04.07, 6:29 AM ET
The two chairmen and two chief executives of the parent company of Airbus took turns facing angry shareholders at the company's annual meeting Friday, asking for approval of future plans after a dismal 2006.
The tone was set early as EADS' French co-Chairman Arnaud Lagardere was interrupted by a shouting shareholder before he had finished his opening remarks.
"Sir, you will have the chance to ask questions and receive answers later in the meeting," Lagardere said.
After a delay in the launch of Airbus's A380 superjumbo airplane has stretched into two years, the European Aeronautic Defence & Space Co. posted a loss of euro768 million ($1.01 billion) in the October-December period.
Airbus still delivered more planes than major rival Boeing Co. in 2006, but is expected to fall behind somewhere in 2008, given current order backlogs.
The company has announced a major restructuring program, shedding 10,000 jobs across Europe - especially in France and Germany, where the bulk of the company's operations are based.
That has led to strikes, two of which were ongoing at plants in Saint-Nazaire and Nantes in western France even as Friday's meeting took place.
Airbus workers blame bad management - and shareholder demands - for their troubles.
"It was the financial demands of the shareholders that brought us here," Patrice Bernard, a CGT labor union representative at the Nantes Airbus plant, said Thursday.
German co-Chairman Rudiger Grube - appointed in April - told shareholders Friday the board recommended not paying any dividend in 2006, but shareholders will have to propose and vote on a dividend later at the meeting. Grube said that, depending on the dividend and company's financial performance, it will also need to consider whether to raise money, either by debt or by issuing equity to new investors.
The French government currently owns 15 percent of EADS, while Paris-based Lagardere SCA owns 7.5 percent. Their combined stake is balanced by Stuttgart, Germany-based DaimlerChrysler AG, which holds 22.5 percent of voting rights in the defense group.
EADS is to publish first-quarter earnings next week.
Mercedes-Benz SLR McLaren Roadster unveiled
05/04/07, 05:47am, EDT
LEFT LANE NEWS - - Mercedes-Benz announced today that it will offer the SLR McLaren super sports car in the form of a roadster. Powered by a supercharged (Kompressor) 5.5-liter, 617-hp AMG V8 engine, the SLR McLaren Roadster can achieve a top speed of 207 mph.
Coupled to an AMG Speedshift R five-speed automatic transmission, the engine delivers maximum torque of 575 pound-feet, and a zero to 62 mph time of 3.8 seconds.
Apart from two aluminium engine frames, its body is made entirely of carbon-fiber reinforced plastic (CFRP) materials. Its newly developed roof material - which is available in three different colors - offers desirable aerodynamics while up. Favorable aeroacoustics with the top down mean conversation is still possible at well over 120 mph.
