2008 01 08_downturn_ending
1
HYUNDAI AIMS UP FIRST LOOK BEFORE AUTO SHOW DAVID DEWHURST 2009 Hyundai Genesis. Genesis targets luxury market K CMY ▲ DOW: +27.31 Close: 12,827.49 ▼ NASDAQ: -5.19 Close: 2499.46 Inside Briefing 2 People 2 Autos 3 Markets 3 TODAY ON FREEP.COM November consumer credit data, after 3 p.m. Lutz: Chevy Volt on track for 2010 3E E Tuesday, Jan. 8, 2008 Business dept.: 313-222-8765, [email protected] www.freep.com Detroit Free Press The global automotive in- dustry is nearing the end of a massive restructuring period and now will become more fo- cused on growth, profits and environmentally friendly ve- hicles, according to the annu- al Auto Executive Survey by KPMG LLC, to be released to- day. This year’s survey, based on interviews late last year with 113 senior executives at vehicle manufacturers and suppliers worldwide, found executives much more confi- dent than in the recent past about the outlook for the near term. “Many executives in our survey are seeing the light at the end of the tunnel,” said Daron Gifford, national auto- motive industry leader for KPMG, an international au- dit, tax and advisory firm. While not everyone is up- beat, he said the results are clear: “Optimism is on the rise.” While many of the execu- tives surveyed said profits would remain volatile and un- predictable, 26% anticipated that global automotive profits would rise in the next five years, with just 14% predict- ing a decline. That is much more opti- mistic than two years ago, when only 16% expected a rise in profits, and 19% pre- Downturn nearing an end, auto report says Execs set to look at growth, profits By SARAH A. WEBSTER FREE PRESS BUSINESS WRITER Of more than 100 automotive executives surveyed by KPMG around the world, most thought the future looked brighter than last year. When asked for their view of industry profits, here is how they replied: Profitability expectations Note: Percentages were rounded Sources: KPMG LLC KOFI MYLER/Detroit Free Press 2007 2006 26% 26% 14% 37% 23% 38% 16% 19% Will be volatile and unpredictable Will generally decline Will basically be flat Will generally rise See AUTO, 2E Chrysler LLC executives, while touting increased sales outside North America in 2007 on Monday, seemed to down- play recent speculation about potential international part- ners for the Auburn Hills auto- maker. While its sales in the United States were down 3% last year, Chrysler saw its sales jump 15% outside North America in 2007 compared with the previ- ous year, the company an- nounced Monday. Boosted by double-digit growth in expanding markets, such as the Middle East and North Africa, Chrysler says it set company records for over- seas sales, selling 238,218 vehi- cles last year. Worldwide Chrysler sales slipped less than 1% last year, the company said. Chrysler saw sales increase 6% in Cana- da and hold flat in Mexico. Chrysler is the least global of Detroit’s automakers. Gen- eral Motors Corp. sold about 5 million vehicles overseas last year, compared with 3.8 mil- lion in the United States. Ford Motor Co., in 2006, sold more DaimlerChrysler 2007 Jeep Compass. Chrysler says growth in expanding markets, such as North Africa, helped it set company records for overseas sales. Chrysler’s overseas sales increase 15% U.S. results slip 3%; no links set By TIM HIGGINS FREE PRESS BUSINESS WRITER See CHRYSLER, 3E As it wrestles with a tight credit market, Delphi Corp. has turned to a few of its creditors and shareholders to help the company secure a loan that is critical to its exit from Chapter 11 protection. The Troy-based auto suppli- er has asked a judge to allow members of committees that represent shareholders and un- secured creditors in Delphi’s bankruptcy case to take part in a multibillion-dollar loan the company is trying to assemble. Those committees include at least two investment firms, a commercial bank and a union. Although it’s not unheard of, the move is unusual, said Rick Kruger, an insolvency attorney at Southfield-based Jaffe Raitt Heuer & Weiss. It is also another example of the tight credit market forcing Delphi to make unconventional moves in its more than two-year bankruptcy case. Delphi last year lowered the loan that it seeks by $2 billion to $6.8 billion, which led the com- pany to eliminate cash payouts to unsecured creditors. In a regulatory filing on Mon- day, the company said it would further reduce that loan be- cause it generated more cash between July and December than expected as of September when the company filed its ini- tial plan. Delphi didn’t disclose how much that reduction would be. Delphi is expected to begin formally seeking investors for exit loans this week, sources said. A hearing on Delphi’s re- quest to borrow from creditors and shareholders is slated for Thursday. That hearing comes See DELPHI, 3E TIGHT CREDIT MARKET MANEUVER Delphi asks for aid to get Chapter 11 exit loan Firm seeks OK for creditors to help By JEWEL GOPWANI FREE PRESS BUSINESS WRITER Hyundai Genesis Available: Summer 2008 Price: Starting below $30,000 Engines: 3.3-liter V6; 3.8-liter V6; 4.6-liter V8 (all-new for Hyundai). Transmission: 6-speed automatic with Shiftronic manual control. Features: Soft-touch instrument panel with wood-grain accents, Bluetooth hands-free mobile phone interface, USB/iPod auxiliary in- puts, Lexicon audio system and smart cruise control. By JOE GUY COLLIER FREE PRESS BUSINESS WRITER Hyundai Interior of the 2009 Hyundai Genesis, which was made to compete with luxury brands. See HYUNDAI, 3E Hyundai Motor Co. released today photos and details of the production version of the Genesis, a rear-wheel drive sedan the South Korean auto- maker hopes will move the brand upscale. Hyundai is tagging the Genesis, scheduled to be shown next week at the North American In- ternational Auto Show in Detroit, as its new flag- ship vehicle with a starting price below $30,000. Hyundai will offer 3.3-liter and 3.8-liter V6 ver- sions and a new 4.6-liter V8 with an estimated 369-horsepower engine. The Genesis, expected to go on sale this sum- mer, pushes Hyundai into new territory, said John Krafcik, vice president of product develop- ment and strategic planning for Hyundai Motor America. “This car is a very important statement of our engineering capability,” Krafcik said. “I think it’s going to demonstrate to a lot of people really the extraordinary engineering prowess that we’ve got through our worldwide engineering cen- ters.” Hyundai developed the Genesis against Auto show details What: North American In- ternational Auto Show Where: Cobo Center, Detroit When: Media previews: Sunday-Jan. 15 Industry days: Jan. 16-17 Charity preview: Jan. 18 Public days: Jan. 19-27 Hours: 9 a.m.-10 p.m. Jan. 19-26; 9 a.m.–7 p.m. Jan. 27 More informa- tion: 248-643- 0250 or www.naias.com
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Transcript of 2008 01 08_downturn_ending
HYUNDAIAIMS UP
FIRST LOOK BEFORE AUTO SHOW
DAVID DEWHURST
2009 Hyundai Genesis.
Genesistargetsluxurymarket
KC M Y
� DOW: +27.31Close: 12,827.49� NASDAQ: -5.19Close: 2499.46
InsideBriefing 2People 2Autos 3Markets 3
TODAY ON FREEP.COMNovember consumercredit data, after 3 p.m.
Lutz: Chevy Volt ontrack for 2010 3E
ETuesday, Jan. 8, 2008 Business dept.: 313-222-8765, [email protected] www.freep.com Detroit Free Press
The global automotive in-dustry is nearing the end of amassive restructuring periodand now will become more fo-cused on growth, profits andenvironmentally friendly ve-hicles, according to the annu-al Auto Executive Survey byKPMG LLC, to be released to-day.
This year’s survey, basedon interviews late last yearwith 113 senior executives atvehicle manufacturers andsuppliers worldwide, foundexecutives much more confi-dent than in the recent pastabout the outlook for the nearterm.
“Many executives in oursurvey are seeing the light atthe end of the tunnel,” saidDaron Gifford, national auto-motive industry leader forKPMG, an international au-dit, tax and advisory firm.
While not everyone is up-beat, he said the results areclear: “Optimism is on therise.”
While many of the execu-tives surveyed said profitswould remain volatile and un-predictable, 26% anticipatedthat global automotive profitswould rise in the next fiveyears, with just 14% predict-ing a decline.
That is much more opti-mistic than two years ago,when only 16% expected a risein profits, and 19% pre-
Downturnnearing anend, autoreport saysExecs set to lookat growth, profits
By SARAH A. WEBSTER
FREE PRESS BUSINESS WRITER
Of more than 100 automotive executives surveyed by KPMG around the world, most thought the future looked brighter than last year. When asked for their view of industry profits, here is how they replied:
Profitability expectations
Note: Percentages were rounded
Sources: KPMG LLC KOFI MYLER/Detroit Free Press
20072006
26%
26%14%
37% 23%38%16%
19%Will be
volatile and unpredictable
Will generally decline
Will basically be flat
Will generally rise
See AUTO, 2E
Chrysler LLC executives,while touting increased salesoutside North America in 2007on Monday, seemed to down-play recent speculation aboutpotential international part-ners for the Auburn Hills auto-maker.
While its sales in the UnitedStates were down 3% last year,Chrysler saw its sales jump15% outside North America in2007 compared with the previ-ous year, the company an-nounced Monday.
Boosted by double-digitgrowth in expanding markets,such as the Middle East andNorth Africa, Chrysler says itset company records for over-seas sales, selling 238,218 vehi-cles last year.
Worldwide Chrysler salesslipped less than 1% last year,the company said. Chryslersaw sales increase 6% in Cana-da and hold flat in Mexico.
Chrysler is the least globalof Detroit’s automakers. Gen-eral Motors Corp. sold about 5million vehicles overseas lastyear, compared with 3.8 mil-lion in the United States. FordMotor Co., in 2006, sold more
DaimlerChrysler
2007 Jeep Compass. Chrysler says growth in expanding markets, suchas North Africa, helped it set company records for overseas sales.
Chrysler’s overseassales increase 15% U.S. results slip3%; no links set
By TIM HIGGINS
FREE PRESS BUSINESS WRITER
See CHRYSLER, 3E
As it wrestles with a tightcredit market, Delphi Corp. hasturned to a few of its creditorsand shareholders to help thecompany secure a loan that iscritical to its exit from Chapter11 protection.
The Troy-based auto suppli-
er has asked a judge to allowmembers of committees thatrepresent shareholders and un-secured creditors in Delphi’sbankruptcy case to take part ina multibillion-dollar loan thecompany is trying to assemble.
Those committees include atleast two investment firms, acommercial bank and a union.
Although it’s not unheard of,the move is unusual, said RickKruger, an insolvency attorneyat Southfield-based Jaffe RaittHeuer & Weiss.
It is also another example ofthe tight credit market forcingDelphi to make unconventionalmoves in its more than two-yearbankruptcy case.
Delphi last year lowered theloan that it seeks by $2 billion to$6.8 billion, which led the com-pany to eliminate cash payoutsto unsecured creditors.
In a regulatory filing on Mon-day, the company said it wouldfurther reduce that loan be-cause it generated more cashbetween July and December
than expected as of Septemberwhen the company filed its ini-tial plan.
Delphi didn’t disclose howmuch that reduction would be.
Delphi is expected to beginformally seeking investors forexit loans this week, sourcessaid.
A hearing on Delphi’s re-quest to borrow from creditorsand shareholders is slated forThursday. That hearing comes
See DELPHI, 3E
TIGHT CREDIT MARKET MANEUVER
Delphi asks for aid to get Chapter 11 exit loanFirm seeks OK forcreditors to help
By JEWEL GOPWANI
FREE PRESS BUSINESS WRITER
Hyundai GenesisAvailable: Summer 2008Price: Starting below $30,000Engines: 3.3-liter V6; 3.8-liter V6;4.6-liter V8 (all-new for Hyundai).Transmission: 6-speed automaticwith Shiftronic manual control.Features: Soft-touch instrumentpanel with wood-grain accents,Bluetooth hands-free mobile phoneinterface, USB/iPod auxiliary in-puts, Lexicon audio system andsmart cruise control.
By JOE GUY COLLIER
FREE PRESS BUSINESS WRITER
Hyundai
Interior of the 2009 Hyundai Genesis, whichwas made to compete with luxury brands.
See HYUNDAI, 3E
Hyundai Motor Co. released today photos anddetails of the production version of the Genesis, arear-wheel drive sedan the South Korean auto-maker hopes will move the brand upscale.
Hyundai is tagging the Genesis, scheduled tobe shown next week at the North American In-ternational Auto Show in Detroit, as its new flag-ship vehicle with a starting price below $30,000.Hyundai will offer 3.3-liter and 3.8-liter V6 ver-sions and a new 4.6-liter V8 with an estimated369-horsepower engine.
The Genesis, expected to go on sale this sum-mer, pushes Hyundai into new territory, saidJohn Krafcik, vice president of product develop-ment and strategic planning for Hyundai MotorAmerica.
“This car is a very important statement of ourengineering capability,” Krafcik said. “I think it’sgoing to demonstrate to a lot of people really theextraordinary engineering prowess that we’vegot through our worldwide engineering cen-ters.”
Hyundai developed the Genesis against
Auto showdetailsWhat: NorthAmerican In-ternational AutoShowWhere: CoboCenter, DetroitWhen: Media previews:Sunday-Jan. 15Industry days:Jan. 16-17Charity preview:Jan. 18Public days: Jan.19-27Hours: 9 a.m.-10p.m. Jan. 19-26;9 a.m.–7 p.m.Jan. 27More informa-tion: 248-643-0250 orwww.naias.com
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