SOME ‘NET VENTURES ARE LEMONS; THIS IS LEMONADE

Toyota site has better closing rate than for walk-ins "The Internet a lemon?" "FounderingSales.com?"That's what banner headlines in Fortune magazine and the Detroit Free Press proclaimed, citing direct-sales dot-coms' gloom and doom in sales results, dealer satisfaction and, perish the thought, common stock values.But the publications should check out the latest report from Gulf States Toyota. Its

By Maynard M. Gordon • Feb. 1, 2001

WHAT NOT TO DO IN A TOUGH SITUATION

Deception and denial are of little help for employers caught in business crisis situations, according to former American Motors Chairman and CEO Gerald C. Meyers.Now a professor of crisis management at the University of Michigan Business School, Dr. Meyers specifically singles out DaimlerChrysler Chairman Juergen E. Schrempp and senior executives of Bridgestone/Firestone for engaging in "D-word" reactions

By Maynard M. Gordon • Feb. 1, 2001

Explore the Trendline➔

Artificial Intelligence

Automakers and dealers alike are increasingly seeing the use case for AI within their operations. Explore some use cases in this trendline.

By WardsAuto staff

Lean and Green

Honda will re-do all of its plants by 2003 SUZUKA, Japan - In refurbishing its Suzuka assembly plant, Honda Motor Co. Ltd. has taken "best practices" from its production facilities in Japan and overseas.The company's goal: to put in place a "green" manufacturing system by 2003.The No. 1 and No. 3 Suzuka lines will be the "standard" for all Honda production facilities around the world, says Honda President

By Roger Schreffler • Feb. 1, 2001

Land Ho!

GM transforms rust belts to green belts The consumer's image of a press conference featuring an industrial company and the Environmental Protection Agency is not very good.And David Skiven, executive director of General Motors Corp.'s Worldwide Facilities Group, recognizes this as he kicks off a gathering of scribes featuring the automaker and the EPA at GM's Truck Product Center (TPC) in Pontiac,

By Brian Corbett • Feb. 1, 2001

CHRYSLER: THE NEW PREMIUM BRAND?

CHRYSLER IS FEELING HIGH CLASS DESPITE ITS current money problems.Consumers for years perceived Chryslers as large and conservative family sedans, according to Maureen Edson, a Chrysler marketing manager."But that's no longer applicable," she says. "More and more consumers see Chrysler as upscale and leading edge."Accordingly, Chrysler is trying to gild its image, move on up and re-position itself

By Steve Finlay • Feb. 1, 2001

CADILLAC UNVEILS ESCALADE PICKUP

Cadillac provided a surprise glimpse at its answer to the Lincoln Blackwood, showing off its '02 Escalade EXT at the Los Angeles Auto Show.The EXT is a cross between a luxury sport/utility vehicle and a pickup truck.The luxury sport/utility truck (SUT) is equipped with the same 345-hp 6.0L V-8 as the Escalade, "making it the most powerful SUT (sport utility/truck) in the world," says Gary White, General

By WARD'S DEALER BUSINESS STAFF • Feb. 1, 2001

BMW Financial sets record selling off-lease vehicles

Sales of off-lease certified BMW vehicles helped set an income record in 2000 for BMW Financial Services, says its president, Robert Devine.In 2000, BMWFS surpassed the $5 billion mark in lease and retail financing income, while the pre-owned vehicle total exceeded the 40,000 mark, says Mr. Devine."This occurred despite BMW's spinoff of Land Rover last June to its new owner, Ford," says Mr. Devine.

By WARD'S DEALER BUSINESS STAFF • Feb. 1, 2001

Belly Up to the Bar Code

2D symbology, now required by GM, can prevent recalls Bar codes are not sexy, but the auto industry would stumble terribly without them. Cars could be built with the wrong colored seats - or no seats at all. There would be so many recalls that automakers would have to start paying dealers for franchises. The build-to-order thing? Forget it.The bar code is ubiquitous. You'd have to watch Little House

By Tom Murphy • Feb. 1, 2001

Bill Lovejoy makes GM dealers happy

His reputation as a straight-shooter serves him well A year ago, the General Motors Corp. high command asked William J. Lovejoy to take a position tantamount to taking over Napoleon's troops at Waterloo. GM wanted the likeable New Yorker to replace Roy S. Roberts as vice president and group executive of the automaker's North American vehicle sales and service operations.GM dealers were up in arms.

By Tim Keenan • Feb. 1, 2001

Shooting Blanks

Shooting Blanks Aerospace company advances aluminum welding technology A Canadian engineering firm is adopting a unique strategy in the war to reduce vehicle weight.It's shooting blanks.Liburdi Engineering, a Toronto-area company with a high-flying reputation in aerospace, is on the radar screen of at least five automakers because of its welded aluminum blanks.Now a staple of the steel industry, so-called

By Eric Mayne • Feb. 1, 2001

New ZF shifter allows flexible layouts

A cable-operated manual gearshift mechanism developed in Germany by ZF Lemforder Fahrwerktechnik AG & Co. KG permits greatly enhanced installation flexibility, says the company.With the new cable-linkage design, the shift lever can be integrated in the instrument console or steering column - as well as in any position on the floor. The twin stranded-wire Bowden-type cables are easily routed around

By David Scott • Feb. 1, 2001

DCC LOOKS FOR SALES BOOST FROM ITS ALL-NEW JEEP LIBERTY

DaimlerChrysler Corp. is looking to sell 200,000 new Jeep Liberty sport/utility vehicles (SUVs) annually, about 40% more than sales for the outgoing Cherokee it replaces.The all-new '02 model small SUV was unveiled at the Detroit Auto Show. The Liberty goes on sale in the spring. Prices have not been announced but are expected to start at $18,000 and top out at $25,000 when equipped with a V-6 and

By WARD'S DEALER BUSINESS STAFF • Feb. 1, 2001

AUTONATION’S CEO REPORTEDLY SAID `NEIN’ TO CHRYSLER OFFER

AutoNation Inc. CEO Michael J. Jackson reportedly was sounded out by his old boss at DaimlerChrysler to fill the suddenly vacant top spot at DC's Chrysler Group.A highly placed source in DC management and several DC dealers say that before assigning the Chrysler presidency to long-time Mercedes-Benz executive Dieter Zetsche, DC Chairman and CEO Juergen E. Schrempp offered the job to Mr. Jackson.The

By WARD'S DEALER BUSINESS STAFF • Feb. 1, 2001

ANOTHER DETROIT LINCOLN MERCURY STORE BITES THE DUST

A second LincolnMercury point folded in the Detroit market.In Farmington, MI, Jack Demmer LincolnMercury closed three years after it was purchased from Robert Dusseau.Owner William Demmer says the franchise would be consolidated with that of Krug LM in Dearborn, another Detroit suburb. Mr. Demmer, who also has a Ford dealership in Wayne, MI, is president of the Detroit Auto Dealers Association.Mr.

By WARD'S DEALER BUSINESS STAFF • Feb. 1, 2001

UAG BUYS METRO DETROIT DEALERSHIPS;SONIC BULLISH ON FORD, NOT CHRYSLER

UnitedAuto Group joined the dealership buying wave in a market hitherto scorned by most consolidators - metro Detroit.UAG purchased two GM dealerships owned by Kevin Rinke - Rinke Cadillac and Rinke Pontiac-GMC, Warren, MI. UAG also purchased dealer Mel Farr's Toyota-Mazda-Volkswagen store in Bloomfield Hills, MI.In other consolidator news, AutoNation Inc. obtained a Toyota franchise for its former

By WARD'S DEALER BUSINESS STAFF • Feb. 1, 2001

2001 NAIAS

Automakers try `rational exuberance' to stare down a likely U.S. dropoffDETROIT - What the organizers of last month's North American International Auto Show (NAIAS) in Detroit really needed, amongst all the usual glittery and expensive vehicle-touting displays, was a mock graveyard.That way all the automakers could've whistled as they passed by.That was the overwhelming feeling at NAIAS: that although

By Bill Visnic • Feb. 1, 2001

European Ecoplants

Green concerns driving new assembly plant design Small footprints are ecological bragging points of two new European assembly plants now in the pilot-production phase. Volkswagen AG's plant for its new W12 "D" luxury car is in the middle of downtown Dresden, Germany. It rises three stories into the air to remain compact. Toyota Motor Corp. built its Yaris plant in the middle of huge acreage in an

By William Diem • Feb. 1, 2001

Liberty Call!

CHELSEA, MI If DaimlerChrysler AG can just hurry up and get this new Jeep compact sport/utility vehicle (SUV), the 2002 Liberty, to market, it'll go a long way toward balming the cross-continental squabbling. It's usually easier to bury the hatchet when you've got a winner on your hands, and after viewing and driving the all-new Liberty (internally known as KJ) at DC's proving grounds here, we're

By Bill Visnic • Jan. 1, 2001

Toledo Gives Birth

It's industry chic cheap. The new Toledo North Assembly Plant is home to the latest member of the Jeep family, the '02 Liberty sport/utility vehicle (SUV), and it represents the latest in flexible manufacturing technology. But if you ask Frank Ewasyshyn, DaimlerChrysler Corp. senior vice president of advance manufacturing engineering, what makes this new $750 million plant stand out from the crowd,

By Alisa Priddle • Jan. 1, 2001

Audi gets a lift from its new Allroad

At first glance the new Audi AG Allroad looks like just another station wagon on steroids, one of a growing list coming from SUV-less automakers hoping to get a piece of the lucrative light truck market.While some automakers pursue new customers with increasingly car-like SUVs, Subaru, Volvo AG and now Audi are chasing potential SUV buyers with station wagons beefed up to be more truck-like. Jacked

By Drew Winter • Jan. 1, 2001

200,000 - No, 220,000 - Wait! - 240,000

"We've changed our 2000 sales estimates three different times." Robert Cosmai, vice president of national sales for Hyundai Motor America, has reason to be confident in 2001 after its sales performance in 2000.His company initially projected sales of 200,000 units in 2000. By June, they increased that estimate to 220,000. Now, they are saying they 240,000 is more like it. That represents a 46% increase

By Cliff Banks • Jan. 1, 2001

ALL HAD TO BE CHANGED - AND WAS

"Van Tuyl style" turns Nissan dealership around ERRITOS, CA - Like the weather, customer satisfaction is something dealers and just about everyone else talk about.Ask a dealer what his top priority is. The answer most often is "customer satisfaction" or "customer loyalty."At Cerritos Nissan, they've taken that principle and yielded real results in only a few years. The Cerritos Auto Mall store in

By Maynard M. Gordon • Jan. 1, 2001

Honda tops million sales

And it does it without a pickup truck Reaching more than a million new-vehicle sales a year without a pickup truck line has been American Honda's singular achievement in 2000 - and there's no reason why the record can't be broken in 2001.That's what they're saying at Honda's U.S. headquarters in Torrance, CA, and unless the market really tanks, doubters are few and far between.In optimistic fashion,

By Maynard M. Gordon • Jan. 1, 2001

COURT SHOOTOUT BREWING OVER FORD BLUE OVAL PROGRAM

A courtroom battle that could reach the U.S. Supreme Court is shaping up over Ford's Blue Oval certification program.Ford President and CEO Jacques A. Nasser, responding to a suit filed by five dealers in U.S. District Court, Newark, NJ, called Blue Oval a dealership program the company "can't live without" because of its customer-satisfaction merits.He warns, "Anyone who is going to hide behind legal

By Maynard M. Gordon • Jan. 1, 2001

The Contrarian

My column in Nov. '99 was headlined Occupied Chrysler and it was darn good, ending with Change your ways. End the occupation. Make Chrysler a true partner, or free us. And that was written well before Jim Holden got the axe. You know what happened. The iron boot came down harder. Okay, no more Mr. Nice Guy. This column is a message to all Chrysler employees: Resist. Your company was conquered with

By Jerry Flint • Jan. 1, 2001