DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM...

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View This Week’s Edition at http://DetroitAutoScene.com ® Detroit AutoScene ® VOL. 86 NO. 5 FEBRUARY 12, 2018 ESTABLISHED 1933 AS NEW CENTER NEWS AND 1983 AS OAKLAND TECH NEWS “FIRST IN THE HEART OF DETROIT” [email protected] by TOM KRISHER AP Auto Writer DETROIT (AP) – If auto loan in- terest rates rise as expected this year, General Motors and others are likely to make more subsi- dized loans, including zero-per- cent financing, to keep car sales flowing. CFO Chuck Stevens told re- porters Feb. 6 after GM released its full-year and fourth-quarter earnings that generally, auto com- pany finance arms try to make up for rising rates with subsidies. GM expects rates will increase 0.75 percent this year as the Fed- eral Reserve acts to stave off infla- tion. As many as three quarter- point hikes are expected. Auto loan rates now run around 3 per- cent to 4 percent for buyers with good credit. Across the industry, subsidized loans make up a relatively low per- centage of incentive spending now because financing rates remain so GM Hourly Employees Getting $11,750 Profit Share Bonus GM has five campuses across the metro Detroit area – world headquarters in downtown De- troit, the Tech Center in Warren, the proving ground in Milford, Global Propulsion Systems in Pontiac and Customer Care and After Sale in Grand Blanc. So how does a company geo- graphically spread out encour- age team building? Simple, hold a table tennis tournament. Which is exactly what hap- pened on Feb. 9, at GM’s Global Propulsions Systems site in Pon- tiac. The event, called the GM Multi- Campus Table Tennis Tourna- ment, was held for the second year, said Scott Barone, team leader at Customer Care and Af- ter Sales. He helped organize the company-wide tournaments. Despite the snowy weather, the tournament took place, Read said. The winner this was the team from Milford. The Warren Tech Center took second, Ponti- ac Global Propulsion took third, RenCen fourth and Grand Blanc fifth. “A couple of years ago, we held a fun little table tennis tourna- ment in Pontiac, where a couple of table tennis tables are out for people to play on during their lunch breaks,” Barone said. “Everyone who participated had a lot of fun. It was then decided to expand the tournament to all GM Team Building Done Via Table Tennis FCA’s ‘Battle of the Brands’ hockey event is fun and helps United Way. Dennis Cobb Sr., left, battles Ed Lee at GM Global Propulsion Systems. by Jim Stickford It’s another cold Michigan win- ter, and that means it’s time for the annual United Way Hockey Challenge Battle of the Brands put on by FCA. This will be the sixth annual hockey challenge, said FCA spokeswoman Val Oehmke. Mon- ey raised by the sale of tickets goes to the United Way of South- eastern Michigan. In past years the tournament was held at Comerica Park and the Joe Louis Arena. This year it is scheduled to be played at Lit- tle Caesars Arena in Detroit on Saturday, Feb. 17, beginning at 11 a.m. Adam Hillock, HR manager at the Toledo Assembly Complex in Toledo, Ohio, playing left wing for Team Ram. All in all, Hillock said, there are eight teams playing on Feb. 17. They are Team Jeep, Team Ram, Team Maserati, Team Mopar, Team Demons, Team Hellcat, Team SRT Dodge and Team Alfa Romeo. The first match is Team Jeep FCA Charity Hockey Event Being Held at the LCA Ford’s 2019 Transit Connect Wagon debuted at the Chicago Auto Show. FCA set the stage for the ar- rival of its three newest and high- ly anticipated vehicles – the new 2018 Jeep Wrangler, the new 2019 Ram 1500 and the new 2019 Jeep Cherokee – on Sunday night dur- ing the Super Bowl LII telecast. The company debuted a record five spots during the Su- per Bowl, said FCA spokes- woman Diane Morgan. “The launches of the all-new Jeep Wrangler and Ram 1500 and the new Jeep Cherokee represent the collective efforts of the men and women at FCA who instinc- tively recognize their responsi- bility to these authentic brands,” said Sergio Marchionne, CEO, FCA. “These vehicles, and these commercials, reflect our contin- ued commitment to each brand and serve as a validation to our actions to realign our industrial output in the United States to meet customer demand.” Jeep Brand’s “Jeep Jurassic” was a 60-second spot aired dur- ing the third quarter, Morgan said. The 60-second “Jurassic World” commercial paid homage to the iconic scene in “Jurassic Park,” in which Dr. Ian Malcom (Jeff Goldblum) escapes danger while in the back of a Jeep Wran- gler – as he is being chased by a rampaging Tyrannosaurus Rex. The video was directed by “Jurassic World” director Colin Trevorrow, who returnsed as co- writer and executive producer of "Jurassic World: Fallen King- dom," arriving in U.S. theaters on June 22. Jeep Brand’s “Anti-Manifesto” 30-second commercial aired dur- ing the fourth quarter and was meant to speaks of the “endless automakers that make declara- tions or promises of what their brand or vehicles deliver”, Mor- gan said. The Jeep brand commercial took the approach that only it can unquestionably deliver while introducing the new 2018 Wran- gler, Morgans aid. The brand in- stead chooses to show the world that there is only one vehicle that needs no words to demon- strate the true meaning of “Mani- festo.” Jeep Brand’s “The Road” a 30- second spot that aired during the second quarter introduced the new 2019 Jeep Cherokee. It de- clared that the vehicle is the most capable mid-size sport-utili- ty vehicle – now boasting a new, authentic and more premium de- sign, with superior on-road per- formance with unmatched Jeep 4x4 capability, Morgan said. Ram Truck Brand’s “Built to Serve” was a 60-second spot aired during the second quarter, Morgan said. It was meant to show the core belief of the Ram Truck brand, and Ram truck own- ers, that true greatness is achieved by helping others. It features the new 2019 Ram 1500. The heart of the 60-second spot was a speech that Dr. Martin Luther King Jr. delivered exactly 50 years ago to the day, Feb. 4, 1968, that illustrates this value perfectly. The commercial was not with- out controversy. The Assoicated Press reported it was criticized by viewers and ad experts alike for forging too tenuous a connec- tion with the civil rights hero. On Twitter, according to AP, most people expressed the idea that using King’s speech to “sell trucks” crossed a line between a heartfelt message and exploiting emotions just to push a vehicle. The commercial was meant to show that Ram Truck brand be- lieves in Dr. King’s notion that “everybody can be great because everybody can serve,” and Ram owners demonstrate this com- mitment every day in lending helping hands to their families, FCA Bet Big on Super Bowl Commercials Who said vans can’t be cool? Not the folks at Ford. The company has reinvented the van for Baby Boomers whose idea of rocking doesn’t involve a chair, said Ford spokeswoman Dawn McKenzie . Ford last week unveiled the re- designed Transit Connect Wagon at the Chicago Auto Show. The last Transit Connect Wagon won over Boomers-born from 1946 to 1964 that grew up driving vans- with its unique combination of affordable, fun and easy-to-use people mover attributes and car- go hauling capabilities, McKenzie said. At 111 million strong and hold- ing 63 percent of American finan- cial assets, the 50+ demographic is the number one consumer de- mographic in the United States – far exceeding Gen X’s 61 million and Millennials’ 75 million, McKenzie said. And one in three Ford Unveils News Transit Connect Wagon for Public CONTINUED ON PAGE 2 CONTINUED ON PAGE 3 CONTINUED ON PAGE 3 CONTINUED ON PAGE 2 This 2019 Wrangler was used in the “Anti-Manifesto” commercial. CONTINUED ON PAGE 2

Transcript of DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM...

Page 1: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

View This Week’s Edition at http://DetroitAutoScene.com

®Detroit AutoScene®

VOL. 86 NO. 5 FEBRUARY 12, 2018ESTABLISHED 1933 AS NEW CENTER NEWS AND 1983 AS OAKLAND TECH NEWS

“F IRST IN THE HEAR T OF DETROIT”

[email protected]

by TOM KRISHERAP Auto Writer

DETROIT (AP) – If auto loan in-terest rates rise as expected thisyear, General Motors and others

are likely to make more subsi-dized loans, including zero-per-cent financing, to keep car salesflowing.CFO Chuck Stevens told re-

porters Feb. 6 after GM released

its full-year and fourth-quarterearnings that generally, auto com-pany finance arms try to make upfor rising rates with subsidies.GM expects rates will increase

0.75 percent this year as the Fed-

eral Reserve acts to stave off infla-tion. As many as three quarter-point hikes are expected. Autoloan rates now run around 3 per-cent to 4 percent for buyers withgood credit.

Across the industry, subsidizedloansmake up a relatively low per-centage of incentive spending nowbecause financing rates remain so

GM Hourly Employees Getting $11,750 Profit Share Bonus

GM has five campuses acrossthe metro Detroit area – worldheadquarters in downtown De-troit, the Tech Center in Warren,the proving ground in Milford,Global Propulsion Systems inPontiac and Customer Care andAfter Sale in Grand Blanc.So how does a company geo-

graphically spread out encour-age team building? Simple, hold atable tennis tournament.Which is exactly what hap-

pened on Feb. 9, at GM’s GlobalPropulsions Systems site in Pon-tiac.The event, called the GMMulti-

Campus Table Tennis Tourna-ment, was held for the secondyear, said Scott Barone, teamleader at Customer Care and Af-ter Sales. He helped organize thecompany-wide tournaments.Despite the snowy weather,

the tournament took place, Readsaid. The winner this was theteam from Milford. The WarrenTech Center took second, Ponti-

ac Global Propulsion took third,RenCen fourth and Grand Blancfifth.“A couple of years ago, we held

a fun little table tennis tourna-ment in Pontiac, where a coupleof table tennis tables are out for

people to play on during theirlunch breaks,” Barone said.“Everyone who participated hada lot of fun. It was then decidedto expand the tournament to all

GM Team Building Done Via Table Tennis

FCA’s ‘Battle of the Brands’ hockey event is fun and helps United Way.

Dennis Cobb Sr., left, battles Ed Lee at GM Global Propulsion Systems.

by Jim Stickford

It’s another cold Michigan win-ter, and that means it’s time forthe annual United Way HockeyChallenge Battle of the Brandsput on by FCA.This will be the sixth annual

hockey challenge, said FCAspokeswoman Val Oehmke. Mon-ey raised by the sale of ticketsgoes to the United Way of South-eastern Michigan.In past years the tournament

was held at Comerica Park andthe Joe Louis Arena. This year itis scheduled to be played at Lit-

tle Caesars Arena in Detroit onSaturday, Feb. 17, beginning at 11a.m.

Adam Hillock, HR manager atthe Toledo Assembly Complex inToledo, Ohio, playing left wingfor Team Ram.All in all, Hillock said, there are

eight teams playing on Feb. 17.They are Team Jeep, Team Ram,Team Maserati, Team Mopar,Team Demons, Team Hellcat,Team SRT Dodge and Team AlfaRomeo.The first match is Team Jeep

FCA Charity Hockey EventBeing Held at the LCA

Ford’s 2019 Transit Connect Wagon debuted at the Chicago Auto Show.

FCA set the stage for the ar-rival of its three newest and high-ly anticipated vehicles – the new2018 Jeep Wrangler, the new 2019Ram 1500 and the new 2019 JeepCherokee – on Sunday night dur-ing the Super Bowl LII telecast.The company debuted a

record five spots during the Su-per Bowl, said FCA spokes-woman Diane Morgan.“The launches of the all-new

Jeep Wrangler and Ram 1500 andthe new Jeep Cherokee representthe collective efforts of the menand women at FCA who instinc-tively recognize their responsi-bility to these authentic brands,”said Sergio Marchionne, CEO,FCA. “These vehicles, and thesecommercials, reflect our contin-ued commitment to each brandand serve as a validation to ouractions to realign our industrialoutput in the United States tomeet customer demand.”Jeep Brand’s “Jeep Jurassic”

was a 60-second spot aired dur-ing the third quarter, Morgansaid.The 60-second “Jurassic

World” commercial paid homageto the iconic scene in “JurassicPark,” in which Dr. Ian Malcom(Jeff Goldblum) escapes dangerwhile in the back of a Jeep Wran-gler – as he is being chased by arampaging Tyrannosaurus Rex.The video was directed by

“Jurassic World” director ColinTrevorrow, who returnsed as co-writer and executive producer of"Jurassic World: Fallen King-dom," arriving in U.S. theaters onJune 22.Jeep Brand’s “Anti-Manifesto”

30-second commercial aired dur-ing the fourth quarter and wasmeant to speaks of the “endlessautomakers that make declara-tions or promises of what their

brand or vehicles deliver”, Mor-gan said.The Jeep brand commercial

took the approach that only itcan unquestionably deliver whileintroducing the new 2018 Wran-gler, Morgans aid. The brand in-stead chooses to show the worldthat there is only one vehiclethat needs no words to demon-strate the true meaning of “Mani-festo.”Jeep Brand’s “The Road” a 30-

second spot that aired during thesecond quarter introduced thenew 2019 Jeep Cherokee. It de-clared that the vehicle is themost capable mid-size sport-utili-ty vehicle – now boasting a new,authentic and more premium de-sign, with superior on-road per-formance with unmatched Jeep4x4 capability, Morgan said.Ram Truck Brand’s “Built to

Serve” was a 60-second spotaired during the second quarter,Morgan said. It was meant toshow the core belief of the RamTruck brand, and Ram truck own-ers, that true greatness is

achieved by helping others. Itfeatures the new 2019 Ram 1500.The heart of the 60-second

spot was a speech that Dr. MartinLuther King Jr. delivered exactly50 years ago to the day, Feb. 4,1968, that illustrates this valueperfectly.The commercial was not with-

out controversy. The AssoicatedPress reported it was criticizedby viewers and ad experts alikefor forging too tenuous a connec-tion with the civil rights hero.On Twitter, according to AP,

most people expressed the ideathat using King’s speech to “selltrucks” crossed a line between aheartfelt message and exploitingemotions just to push a vehicle.The commercial was meant to

show that Ram Truck brand be-lieves in Dr. King’s notion that“everybody can be great becauseeverybody can serve,” and Ramowners demonstrate this com-mitment every day in lendinghelping hands to their families,

FCA Bet Big on Super Bowl Commercials

Who said vans can’t be cool?Not the folks at Ford.The company has reinvented

the van for Baby Boomers whoseidea of rocking doesn’t involve achair, said Ford spokeswomanDawn McKenzie .Ford last week unveiled the re-

designed Transit Connect Wagonat the Chicago Auto Show. Thelast Transit Connect Wagon wonover Boomers-born from 1946 to1964 that grew up driving vans-with its unique combination of

affordable, fun and easy-to-usepeople mover attributes and car-go hauling capabilities, McKenziesaid.At 111 million strong and hold-

ing 63 percent of American finan-cial assets, the 50+ demographicis the number one consumer de-mographic in the United States –far exceeding Gen X’s 61 millionand Millennials’ 75 million,McKenzie said. And one in three

Ford Unveils News TransitConnect Wagon for Public

CONTINUED ON PAGE 2

CONTINUED ON PAGE 3

CONTINUED ON PAGE 3

CONTINUED ON PAGE 2 This 2019 Wrangler was used in the “Anti-Manifesto” commercial.

CONTINUED ON PAGE 2

Page 2: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

against Team Ram, Oehmke said.Team Maserati will be play TeamMopar, while Team Demons playsTeam Hellcats and Team SRTDodge will play Team AlfaRomeo.Between matches there will be

open skating periods where fami-ly and friends of players can taketo the ice and skate.Hillock said it’s always exciting

when people get to skate at rinkswhere NHL hockey is played.Hillock and his brother Brett,

also an FCA employee who worksat senior manager for QualityControl for Assembly Stamping,are on Team Jeep.The brothers grew up outside

Windsor, Ontario, in a towncalled Belle River.“We lived near Detroit, but

were not Red Wings fans,” AdamHillock said. “We liked the Tigers,but when it came to Hockey, werooted for the Toronto MapleLeafs. Growing up in Canadameant watching the show ‘Hock-ey Night in Canada’ every Satur-day night.”Brett Hillock has been working

for FCA since 1999. Then it thecompany was part of Mercedes.Since then, it’s been owned by ahedge fund and now FiatChrysler Auto. He got his startworking in the factories, first atthe Windsor plant, then theBrampton plant, then JeffersonNorth, and finally Warren Truck.He is now in management.“I first played in the challenge

several years ago, in 2014, thatwas the year when the MapleLeafs played the Wings in theOutdoor Winter Game held atComerica Park,” Brett Hillocksaid.“I am a goalie and had concus-

sion problems, so didn’t play fora while, but when the challengewas held last year at the Joe

Louis Arena, I played, and willplay this year at Little CaesarsArena (LCA).”Adam Hillock said that one

thing that amazed him when hefirst played last year at the JoeLouis Arena was how humble thefacilities were.He said the arena was actually

one of the most plain in terms ofthe locker room, when comparedto other pro hockey arenas. De-scribing it as “bare bones”,Hillock said he felt he was in theold movie “Youngblood” whichwas about a minor league hockeyplayer.“We’re excited to play at LCA

because from what we haveheard, it’s very modern and veryup-to-date,” Hillock said. “Part ofthe fun of participating in thechallenge is that when we go intothe locker rooms, our team jer-seys are placed in a cubicle thesame way the pros’ jerseys arewhen they play at LCA, and therewill be a tub filled with ice andGatorade, just like the pros aswell.”

Brett Hillock said that with theexception of FCA’s plants in Mexi-co, the company’s facilities arebased in areas where hockey is asport played by many.“We get to meet people who

work at the company that we’dnever have had the chance tomeet before,” Brett Hillock said.“And our family and friends havethe chance to enjoy skating on areal pro hockey arena’s rink. Yousee the look on their faces andit’s just a joy to be around.”Adam Hillock said that another

reason it’s fun to play in the chal-lenge is that there are always ex-Red Wing players who join in onthe fun.This year players will have the

chance to meet and skate withDarren McCarty, who played forthe Red Wings in the 1990s and2000s – the years in which theWings won four Stanley Cupchampionships.Teams practicing together isn’t

that difficult, Adam Hillock said,because the managers and assis-tant managers have connections

with local rinks. That allowsthem to reserve ice time for prac-ticing.And, Brett Hillock said, while

everyone has a good time, it’s al-so important to remember thatthe money raised through thesale of tickets goes to the UnitedWay, a truly worthy cause.“I’ve worked in a number of

plants in the U.S. and Canada andI saw first hand how the UnitedWay does work in the communi-ties where our plants are located.This is a truly good cause andthat fact shouldn’t be forgottenamidst all the fun we have everyyear.”Oehmke said tickets are $15 a

piece, with children under fivegetting in for free.Three packs of tickets go for

$35, four packs cost $45, fivepacks are $50 and six packs are$60.There will be two open skating

sessions where the public cantake to the rink, Oehmke said.One at 1:45 p.m. and another at 5p.m.

Boomers plans to purchase a carin the next three years, accord-ing to AARP.One such active Baby Boomer

is Kevin Brown, age 63, of NassauBay, Texas. McKenzie said he isthe kind of “active Boomer” wholoves the Transit Connect Wag-on. Brown grew up driving vansin the 1970s and now, this GulfCoast surfer and grandfather ofnine drives a 2014 Ford TransitConnect Wagon for his work asan illustrator and custom T-shirtprinter.“If I’m not shuttling family to

the beach, I’m working,” Brownsaid. “My Transit Connect letsme pull double duty.”With room for five to seven

passengers and offering easyconversion to cargo duty, the2019 Ford Transit Connect Wag-on was designed to take care ofbusiness with a versatility and

maneuverability that makeeveryday use easy, McKenziesaid.The wagon features a new gas

and diesel engines and a suite ofdriver-assist technologies, in-cluding standard AutomaticEmergency Braking. The featureis included with Pre-Collision As-sist with Pedestrian Detection – asegment-exclusive.“Baby Boomers have always

embraced life’s adventures andto them age is just another expe-rience to master,” said Mark La-Neve, Ford vice president, U.S.Marketing, Sales and Service.“From being easy to get in andout of, plus flexible seating andcargo space, Transit ConnectWagon makes it convenient forBoomers to keep enjoying familytime or explore new hobbies andcareers.”The new Transit Connect Wag-

on features new driver-assist fea-tures, including standard Auto-

matic Emergency Braking, LaN-eve said. To help avoid lane driftwhile driving, available LaneKeeping System vibrates thesteering wheel and can apply ex-tra steering wheel torque to helpyou keep the vehicle centered onthe road.It is available in two wheelbas-

es to accommodate five or sevenpassengers and in three trim lev-els, XL, XLT and Titanium, Tran-sit Connect Wagon can be builtto meet the needs of any cus-tomer, LaNeve said. A spacious,flexible interior makes loadingcargo easier. Dual sliding sidedoors provide added conven-ience, and available roof rails ex-tend its versatility with any num-ber of accessories that can be fit-ted to the roof to haul bikes,kayaks, stand-up paddle boardsor luggage.A new powertrain lineup pro-vides greater customer choicewith a class-exclusive diesel en-gine offering. The new 2019 Tran-sit Connect with all-new 1.5-literEcoBlue diesel engine is targetedto return an EPA-estimated fueleconomy rating of at least 30mpg highway. The diesel engineis paired with an all-new 8-speedautomatic transmission.A new 2.0-liter four-cylinder

gasoline engine with direct injec-tion comes with Auto Start-Stopas standard equipment. It toocomes mated to the all-new 8-speed automatic.LaNeve said the Transit Con-

nect Wagon is expected to be oneof the most affordable seven-pas-senger vehicles in the UnitedStates.The long-wheelbase model has

more interior cargo volume be-hind the first row than the 2018Chevrolet Tahoe, making the taskof getting oversized items homea snap. And with a turning radiusof just 38.3 feet for the short-wheelbase van, getting aroundbusy streets is easy.For those who need to tow a

trailer, Transit Connect Wagon isexpected to offer unsurpassedtowing capability of 2,000pounds when paired with theavailable trailer tow package.The 2019 Ford Transit ConnectWagon goes on sale this fall.

PAGE 2 FEBRUARY 12, 2018DETROIT AUTO SCENE

CONTINUED FROM PAGE 1

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FCA Hockey Event Raising Money for the United Way

Ford Transit Connect Van For BoomersCONTINUED FROM PAGE 1

friends and communities, Mor-gan said.The spot was comprised of 26

powerful images of those servingothers, with Dr. King’s command-ing voice calling for all of us toserve.Ram Truck Brand’s “Icelandic

Vikings | We Will Rock You” wasthe 60-second commercial thataired during the first quarter ofthe game.It featured “Icelandic Vikings”

and was covered by the famousrock song “We Will Rock You”was meant humorously paystribute to the setting of thisyear’s big game, Minneapolis,Morgan said.The Ram Truck brand fittingly

enlists the help of IcelandicVikings, thought to be some ofthe first European settlers inMinnesota, to showcase the new2019 Ram 1500 Limited – a truckbuilt to “take on anything thatmight come its way” Morgansaid.

FCA Bets BigWith SuperBowl Spots

CONTINUED FROM PAGE 1

Page 3: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

low, Stevens said. But as ratesrise, companies likely will movedollars from other sales incen-tives to keep loan rates low, hesaid.

“Leasing and cash-based incen-tives are kind of predominantnow,’’ Stevens said. “As interestrates increase, there will be moresubvented financing. Then you’llreduce other parts of the tool-box.’’

A quarter-point rate increasepushes up a typical monthly carpayment by only $3, Stevens said.General Motors expects 2018 tobe another strong year for sales frthe company because wages aregrowing, gas prices are low andconsumers will have more dispos-able income due to tax cuts,Stevens said.

He made the comments Feb. 6,just after General Motors report-ed a $3.9 billion net loss for 2017driven largely by a $7.3 billion ac-counting charge. Excluding one-time items, the company made$9.9 billion, or $6.62 per share,the greatest since leaving bank-ruptcy in 2009.

The earnings beat Wall Streetestimates. Analysts polled byFactSet expected $6.33 per share.Full-year revenue was $145.6 bil-lion, which also topped expecta-tions.

GM said the rewrite of the U.S.tax code forced it to write downaccumulated losses that it uses toavoid income taxes.

Assets fell from $33.6 billion, to$24 billion. Since the corporatetax rate dropped from 35 percent,to 21 percent, the losses areworth less.

Stevens said GM still won’t paymuch in U.S. corporate taxes untilafter 2022 or 2023.

GM also announced that about50,000 union factory workers willget $11,750 profit-sharing checksthis month, based on a full-yearpretax North American profit of$11.9 billion.

For the fourth quarter, GMposted a $5.2 billion net loss dueto the accounting charge. Withoutcharges, the company made $2.4billion, or $1.65 per share, sound-ly beating analyst estimates of$1.39.

Company executives also toldanalysts they are in talks with mi-nority stakeholders and its unionin South Korea, which may be thenext market that General Motorsexits.

CEO Mary Barra said GeneralMotors has to get improved costperformance.

Executives also said General

Motors expects to increasespending on transportation as aservice, including autonomousvehicles, moving up to around $1billion this year.

It now has about 100 electricself-driving cars operating at themoment.

Executives told reporters thatGeneral Motors is on track toreach its goal of $6.5 billion in an-nual cost efficiencies this yearcompared with 2014 and that thecompany was able to achieve a10.7 percent pretax profit marginin North America despite vehiclesales to dealers and fleet buyersfalling more than 11 percent lastyear.

It did so with higher pricesmainly for revamped SUVs thatentered the company’s lineup in2017.

GM CEO Mary Barra speaking at a 2017 stockholder’s meeting.

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GM Enjoys Strong Profits for Year 2017CONTINUED FROM PAGE 1

five campuses around metro De-troit.”

The first tournament had morethan 100 people sign up to par-ticipate, Barone said, in the first24 hours.

“There was a lot of excitementwhen people heard about thetournament,” Barone said. “Bothfrom people who wanted to beplayers and from management,because they saw the tourna-ment as a great team-building ex-ercise. Last year the Milfordteam won.”

Barone said it’s a “table tennis”tournament, not a ping pongtournament for a specific reason.

“Interesting fact,” Barone said.“Back in the old days, Sears solda table tennis package under thename of ‘Ping Pong’ and thatcaught on with the public andbecame interchangable with theterm table tennis. But the propername of the game is table ten-nis.”

This year, 345 people sighedup to play. Each campus sent sixpeople to the final tournament,Barone said. Players one throughfour from each campus playedplayers one through four fromthe other campuses. Players fiveand six play as a team in doublesmatches against players five andsix from the other campuses.

Through a round robin system,the final campus winners arechosen.

The top six players were cho-sen via individual campuses pre-tournaments, Barone said. Somecampuses didn’t have their owntable tennis tables, so he andothers “schleped” tables fromtheir campuses to the other cam-puses as needed. In fact, he evenlent a couple of his personal ta-bles to the cause.

Barone said he has gotten in-volved with the tournament be-cause of his 30-year love of thegame. He builds his own paddlesusing parts from the Butterflytable tennis equipment manufac-turer.

“I personally like to use what iscalled the ‘hand shake’ grip,”Barone said. “That’s where yougrip that paddle handle the sameway you would grip a person’shand when shaking it. The otherpopular grip is known as the ‘penholder’ grip. That’s where yougrip the paddle blade and handlethe way one grips a pen.”

Table tennis is a game played

across the globe, said GMspokesman Tom Read. Thatmakes it perfect for a companylike GM, which employes peoplewho come from around theworld at its Michigan facilities.

“What we’re trying to do isbulding a culture of winner,”saidGM spokesman Tom Read. “Withour company being transformedover the past few years, we arenow fostering an enironmentthat creates collaboration withinand among our campuses. Andhaving a contest that brings peo-ple together in the spirit of joyfulcompetition does that. These arepeople who wouldn’t otherwisemeet and get to know each oth-er.”

GM Employees Battle inTable Tennis Tournament

CONTINUED FROM PAGE 1

CHICAGO (AP) – CanadianPrime Minister Justin Trudeausays his nation will not bepushed into any redo of theNorth American Free TradeAgreement that does not benefitCanada.

Speaking Feb. 7 at the Univer-sity of Chicago’s Institute of Poli-tics, Trudeau said Canada willengage “thoughtfully and con-structively’’ in talks with the U.S.and Mexico. He added his nationwill not be pushed into any deal,going on to say it may be that“no deal is better for Canada.’’

President Donald Trump hasthreatened to withdraw from the24-year-old pact. Trudeau saysCanada has a stake in a good U.S.economy.

Canadian PMFights For

NAFTA Treaty

Page 4: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

SUVs are known for a lot ofthings, but not usually their abili-ty to be customized. But Moparis doing something about that.Performance enthusiasts look-

ing for a three-row SUV with afactory-custom look need lookno further than the 2018 DodgeDurango, said FCA spokesmanDan Reid.New for 2018, Durango R/T and

SRT models will feature factory-custom stripes and available per-formance exhaust systems, Reidsaid. The Durango SRT will alsooffer an available carbon fiber in-terior and performance loweringspring kit, giving the menacingSUV an even lower stance andimproved handling. Dodgeshowcased the new features atthe 2018 Chicago Auto Show,Feb. 7-19.“Our Dodge//SRT performance

enthusiasts are always lookingfor ways to make their vehicletheir own,” said Steve Beahm,head of Passenger Cars,Dodge//SRT, Chrysler and Fiat,FCA – North America. “The avail-able stripes and carbon fiberthroughout the interior reallygive Durango a custom look fromthe factory, and they are perfect-ly complemented by Mopar’savailable exhaust systems andperformance springs, whichmake Durango even more fun todrive.”New features available in the

coming months include newdual-center exterior stripe de-sign covers the front and rearfascias, hood, portions of theroof and the tailgate.The kit also comes with a dual

stripe is tailored to the signatureNACA duct-hood vent to empha-size the Durango R/T and Duran-go SRT models functional yet ag-gressive design, Reid said. With a

U.S. Manufacturer’s SuggestedRetail Price (MSRP) of $1,195, thestripes are offered in five colors:Bright Blue, Flame Red, Gun-metal Low Gloss (metallic finish),Low Gloss Black and Sterling Sil-ver (metallic finish). Dealer or-ders for the new stripe packagewill start in March 2018.

Mopar’s new performance ex-haust systems are bolt on, high-performance units factory-tunedfor improved flow, sound andoverall performance. The ex-haust system’s chromium 304stainless steel construction im-proves corrosion resistance.Stainless steel band-style clampsprovide tight seals and make in-stallation easy. Welded and pol-ished 4-inch tips provide an ag-gressive appearance.Both exhaust systems were de-

veloped in concert withDodge//SRT engineers and de-signers, which provided accessto proprietary sound data, creat-ing unique and unmistakablesound characteristics, Reid said.The new performance exhaust

system for the Durango SRT(Part Number 77072487) ispriced at a U.S. MSRP of $1,850and will be available in the sec-ond quarter of 2018. The new Du-rango R/T system (Part Number77072479) is priced at a U.S.MSRP of $1,595 and is availablenow.

“Mopar’s performance lower-ing spring kit enhances the Du-rango SRT’s already outstandinghigh-speed cornering stabilityand consistency,” Beahm said.“The new springs lower thefastest SUV in its class an aver-age of 15 mm (0.6 inches) closerto the pavement for improvedhandling and an in-your-face ve-hicle stance.“As with the performance ex-

haust, Mopar worked closelywith Dodge//SRT engineers andused proprietary data — unavail-able to the aftermarket — to tunethe lowering springs to the facto-ry-fitted dampers. Performancegains include less rear-end squatduring acceleration, less nosedive under braking and reducedbody roll while cornering.”

The new performance lower-ing spring kit (Part Number77072488) is priced at a U.S.MSRP of $325 and will be avail-able in March.

The new SRT Interior Appear-ance Group, which features apremium-wrapped instrumentpanel isa vailable for orders inFebruary at a MSRP of $2,495.

PAGE 4 FEBRUARY 12, 2018DETROIT AUTO SCENE

*PRICES AND PAYMENTS BASED ON EMPLOYEE ADVANTAGE DISCOUNT, PLUS TAX, TITLE, LICENSE, DOC FEE AND DESTINATION. 10,000 MILES PER YEAR.ALL FACTORY/FINANCE/LEASE LOY-ALTY REBATES ASSIGNED TO DEALER. SECURITY DEPOSIT WAIVED. MUST QUALIFY FOR PREFERRED CREDIT RATING, NOT EVERYONE WILL QUALIFY. INCENTIVES SUBJECT TO CHANGE BYMANUFACTURER. LEASE PAYMENTS INCLUDE ALL REBATES AVAILABLE. PICTURES MAY NOT REPRESENT ACTUAL VEHICLES. MUST TAKE DELIVERY FROM DEALER INVENTORY BY 2/28/18.

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Page 5: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

FEBRUARY 12, 2018 PAGE 5DETROIT AUTO SCENE

It’s shaping up to be a busy2018 season for Leah Pritchett.In addition to the Don Schu-macher Racing (DSR) star’s re-sponsibilities behind the wheelof her Mopar Dodge//SRT NHRATop Fuel Dragster, Pritchett willalso steer a supercharged MoparDodge Challenger Drag Pak inthe full slate of 2018 SAM TechNHRA Factory Stock Showdownevents.Pritchett’s 354-cubic-inch He-

mi engine-powered Drag Pak willbe prepped and maintained bythe DSR team, led by crew chiefand new DSR employee KevinHelms. Helms brings years of ex-perience driving and tuning aMopar Dodge Challenger DragPak to his new role, including a2015 NHRA Stock EliminatorWorld Championship and 2017NHRA Stock and Super Stockrunner-up finishes.“We’re excited that, in addi-

tion to competing under the ban-ner of the Mopar and Dodgebrands in the NHRA Top Fuelclass, Leah Pritchett will alsocarry our colors into NHRA Fac-tory Stock Showdown competi-tion,” said Pietro Gorlier, Head ofParts and Service (Mopar), FCA.“Leah is a fierce competitor anda great brand ambassador, andwe look forward to cheering heron in double-duty at sevenevents this year.”Pritchett first tasted Factory

Stock Showdown competitionlast year, racing at two events inthe popular NHRA Sportsmancategory. That exposure stokedher competitive fires to embarkon a full 2018 schedule.“You should see the smile on

my face, whether I’m talkingabout it or my team is talkingabout it,” said Pritchett, who in2018 will also mark her secondfull year in a Top Fuel dragster.“It’s a dream come true. Thedouble-duty aspect, I had a tasteof it last year and honestly, Ithink it makes me a better raceroverall. When we roll out in 2018,the Mopar Dodge ChallengerDrag Pak will be put on the trackby Don Schumacher Racing,which makes me feel fulfilled inevery way. We have proven tohave a very competitive racecar,and the goal is to be the quickestand fastest in both silos (FactoryStock and Top Fuel).”

Pritchett RacingFor SchumackerWith Mopar Tech

DETROIT (AP) – Under pres-sure from U.S. safety regulators,Harley-Davidson is recalling over250,000 motorcycles worldwidebecause the brakes might fail.Documents posted Feb. 7 by

the U.S. National Highway TrafficSafety Administration say the re-call covers more than 30 modelsfrom the 2008 through 2011 mod-el years. Harley says depositscan form on brake parts if thefluid isn’t changed every twoyears as specified in the owner’smanual. That can cause a valvein the antilock brake control unitto stick.The U.S. agency began investi-

gating problems in July of 2016after getting 43 complaints in-cluding three reports of crashesand two injuries.Documents show Harley want-

ed to do a field service campaigninstead of a recall, but the gov-ernment refused.The company says it cooperat-

ed with NHTSA and began a thor-ough evaluation of the issue.“Complex, ongoing discussionsregarding what was ultimatelyidentified as a maintenance issuecontinued with the agencythrough January 2018,’’ Harley-Davidson said in a printed state-ment.

U.S. GovernmentOrders Recall forHarley-Davidson

Page 6: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

PAGE 6 FEBRUARY 12, 2018DETROIT AUTO SCENE

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FRANKFURT, Germany (AP) –Automaker Volkswagen has sus-pended a top executive in re-sponse to widespread publiccriticism over experiments inwhich monkeys were exposed todiesel exhaust.The company said in a state-

ment Jan. 30 that Thomas Steg,head of government relationsand sustainability, was steppingaway from his duties at his ownrequest.The statement said the compa-

ny was “drawing the first conse-quences’’ as it investigates theactivities of EUGT, the entitybacked by Volkswagen and othercarmakers that commissionedthe monkey experiment.Steg had said in an interview

published in the newspaper Bildthat he had known about the ex-periment but did not inform thecompany’s then-CEO, MartinWinterkorn. Steg said he rejectedan initial proposal to use humanvolunteers and said that even af-ter animals were substituted theexperiment “should not have tak-en place.’’The move follows a report in

The New York Times that thenow-disbanded EUGT commis-sioned the 2014 monkey test atthe Lovelace Respiratory Insti-tute in Albuquerque, N.M., tomeasure how VW’s diesel tech-nology was succeeding in con-trolling harmful emissions.Diluted exhaust gases from a

late-model Volkswagen vehiclewere fed into chambers wherethe monkeys were exposed forfour hours. Then lung fluid sam-ples were taken from the sedatedmonkeys, which were not killedin the experiment. The study did-n’t deliver a definitive result.The test was done with a vehi-

cle that used illegal software to

cheat on emissions tests, turningcontrols off when the vehiclewas not being tested. That prac-tice was exposed in 2015, leadingto Winterkorn’s resignation.The Lovelace Respiratory Re-

search Institute said in a state-ment that the tests were de-signed by EUGT and the lab itselfwas initially not aware the vehi-cle had been rigged. It said itcomplied with regulations for thetreatment of lab animals and wascommitted to their humane andethical treatment.The labs president and CEO,

Robert W. Rubin, said in a state-ment that when the lab laterlearned that the vehicle enginehad been modified to produceless pollution “we determinedthe study was compromised’’and did not meet the standardsfor publication.“We understood that the EUGT

organization was financially sup-ported by automobile manufac-turers, but we believed the goalof the study was to advance thescientific understanding of theeffects of diesel fumes on ourlungs, including the effects ofnew vehicle technologies thatare designed to produce less pol-lution,’’ he said.VW’s current CEO, Matthias

Mueller, said in a statement that“we are investigating in detail thework of EUGT, which was dis-solved in 2017, and drawing thenecessary conclusions.’’ He saidSteg “has saided he takes full re-sponsibility, and I respect that.’’VW said the probe would be

carried out “at top speed.’’ BoardChairman Hans Dieter Poetschsaid the board’s executive com-mittee expected to hear the sta-tus of the investigation by mid-February week, the dpa newsagency reported.

VW Suspends Top ExecutiveOver Monkey Test Scandal

Page 7: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

FEBRUARY 12, 2018 PAGE 7DETROIT AUTO SCENE

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Page 8: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

PAGE 8 FEBRUARY 12, 2018DETROIT AUTO SCENE

Van Dyke Across FromGMTech Center

Payments on these 2018 Cadillac’s are for a standard model ATS Sedan AWD with an MSRP of $39,340, XT5 MSRP of $41,190and a StandardAWDEscaladewithMSRPof $78,615. Lease is throughGMFinancial with top tier credit approval, 10,000mile peryear.Mileage charge of $.25 for anything over themiles allowed.$0 cap cost reduction down,only typical startup costs of taxes,license, registration,electronic filing fee, firstmonths payment,acquisition and dealer fees due at signing.Must take delivery outof dealer stock by 2/28/18. Lessee pays for excess wear, over mileage and disposition fee of $595 at end of lease. Residencyrestrictions apply.May not be availablewith other offers.Must have Cadillac Lease Loyalty rebate (must currently lease a Buick,Cadillac, Chevrolet or GMC through Ally, GM Financial or US Bank). Not required to terminate current lease or trade vehicle.Loyalty offer is transferable to members of the same household, not required to terminate lease. All quotes using GMS pricing,others slightly higher.©2017 General Motors. Cadillac® ATS® XT5® Escalade®

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Plymouth-based Adient, aglobal manufacturer of automo-tive seating, has been named bythe Women’s Business EnterpriseNational Council (WBENC) to its18th annual list of America’s TopCorporations for Women’s Busi-ness Enterprises (WBEs).This is the only national award

honoring corporations for world-class supplier diversity pro-grams that reduce barriers anddrive growth for women-ownedbusinesses, said Adient spokes-woman Mary Kay Dodero. Thecompany was honored for itscommitment to innovative sup-plier development initiatives.“Fostering diversity across our

business is an important compo-nent of Adient’s values,” saidBruce McDonald, chairman andCEO of Adient. “Being honoredas a top corporation for women’sbusiness enterprises is recogni-tion of our commitment to devel-oping diverse suppliers, whichbrings significant benefit to ourcompany.”Adient operates an innovative

program to recruit and developdiverse suppliers, Dodero said.The company is a member of theBillion Dollar Roundtable, a non-profit organization created in2001 made up of 27 Fortune-levelcorporations that each spend $1billion or more annually on a Tierl basis with minority- andwomen-owned businesses.“Supplier diversity is em-

braced at every level of our com-pany. Our relationships withwomen-owned and other diversesuppliers are key to our success,enabling innovation across oursupply chain and strengtheningour capabilities,” said KellyBysouth, vice president of globalprocurement and supply chain atAdient.

“America’s Top Corporationsknow that stronger women’sbusiness enterprises drive newsources of revenue, deepen cus-tomer satisfaction, and generatea stronger economy,” saidPamela Prince-Eason, presidentand CEO of WBENC.Adient is a global leader in au-

tomotive seating, Dodero said.“With 85,000 employees operat-ing 238 manufacturing/assemblyplants in 34 countries worldwide,we produce and deliver automo-tive seating for all vehicle classesand all major OEMs,” he said.“From complete seating sys-

tems to individual components,our expertise spans every step ofthe automotive seat-makingprocess,” McDonald said. “Ourintegrated, in-house skills allowus to take our products from re-search and design all the way toengineering and manufacturing –and into more than 25 million ve-hicles every year.”Adient will be honored at the

WBENC Summit & Salute toWomen’s Business EnterprisesMarch 20-22, in Dallas, Doderosaid.

Plymouth-Based SupplierAdient ‘Woman-Friendly’

Kelly Bysouth

Cooper Standard has appoint-ed Jeffrey A. DeBest to the newlycreated position of president, ad-vanced technology group.Based at the company’s global

technology center in Livonia, hewill report to Jeffrey Edwards,chairman and CEO. DeBest wasalso appointed a member ofCooper Standard’s Global Lead-ership Team, said Cooper Stan-dard spokeswoman Sharon S.Wenzl.In his new role, DeBest will

lead the company’s AdvancedTechnology Group, responsiblefor accelerating and maximizingthe value stream of Cooper Stan-dard’s material science innova-tions in non-automotive markets.“With his extensive opera-

tions, engineering, portfolio man-agement and leadership back-ground, Jeff brings the uniqueskillset required to foster the

success of our new AdvancedTechnology Group,” said Ed-wards. “Our material science ad-vancements have the potentialto transform products acrossmany industries, with near termfocus in the construction, wireand cable, and footwear markets,and I’m pleased that Jeff is on-board to lead this endeavor.”Before joining Cooper Stan-

dard, DeBest served as chief op-erating officer of APM TerminalsB.V., one of five companies with-in the Maersk Group of Copen-hagen, Denmark.In that position, he had full op-

erational responsibility for thecompany’s more than 100 termi-nals and depots, as well as man-aged its transition from a holdingcompany into an operating com-pany. While at APM Terminals, heheld many board positions withAPM regional companies.

DeBest at Cooper Standard

Page 9: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

FEBRUARY 12, 2018 PAGE 9DETROIT AUTO SCENE

by COREY WILLIAMS, TOM KR-ISHER and ALEXANDRA OLSONAssociated Press

DETROIT (AP) – In the 60-sec-ond spot aired during the SuperBowl, viewers see images of therugged Ram pickup along withpeople working, helping othersor hugging loved ones.The images are set against au-

dio of “The Drum Major Instinct’’sermon delivered by MartinLuther King Jr. at the EbenezerBaptist Church in Atlanta exactly50 years ago, in which he saysthat in order to be “great’’ and toserve the greater good, “you onlyneed a heart full of grace, a soulgenerated by love.’’Missing from the Ram ad are the

slain civil rights leader’s words inthe same speech guarding againstcommercialism: “In order to makeyour neighbors envious, you mustdrive this type of car ... And youknow, before you know it, you’rejust buying that stuff. That’s theway advertisers do it.’’The irony is not lost on the

throngs of critics who took to so-cial media to question how FiatChrysler could use King’s ser-mon to sell trucks.“It should have been used for

something more important – thethings that are going on in Ameri-ca now,’’ said Samantha Williams,26, while visiting the MartinLuther King Jr. Historic Site in At-lanta.An FCA spokeswoman said the

company intended to inspirepeople with King’s words thateveryone can be great by servingothers. FCA, she said, knows thatRam truck owners often volun-teer to use trucks for charitablework, and the ad was intended toreinforce their service.“It was selling the message of

serving in your community, thatwas the message,’’ she said.

Unfortunately for FCA, noteveryone got that message.Chris Allieri, founder of the

New York-based public relationsagency Mulberry & Astor, saidcorporations often use the SuperBowl to showcase their corpo-rate ethos – but Fiat Chryslerwent too far.“Let’s not fool ourselves ... this

is about branding and seekingproducts,’’ Allieri said. “In an at-tempt to unite us, in increasinglydivisive times, behind the wordsof a great American, it fell flat be-cause it seems to co-opt and triv-ialize his monumental words tothat of ad copy.’’Allieri said it was difficult for

him to imagine any scenariowhere using King’s legacy to sellproducts would not cause abacklash.“Dr. King’s words should never

be confused with ad copy. To meit really misses the mark,’’ Allierisaid. “If you are a marketer, usingthe words of Dr. King to sell yourproducts is a hard no. There isno way I could see defendingthis.’’FCA’s spokeswoman said the

company’s advertising agencyapproached the King estate toget licensing to use words from“The Drum Major Instinct’’ ser-mon and was referred to Intellec-tual Properties Management Inc.,which manages King’s estate.Both his estate and the manage-ment firm were involved in everystep of the ad, she said.“The message of our spot and

the quotes that were used wereall about service and serving,’’the spokeswoman said. “That’ssomething the estate felt com-fortable with granting permis-sion for us to use.’’A similar debate was sparked

nearly two decades ago whenTelecom Alcatel used King’s “IHave a Dream’’ speech in an adthat was also approved by IPM.That ad shows King giving hismost famous speech to an emptyMall in Washington D.C. to illus-trate the idea that “before you cantouch, you must first connect.’’Eric Tidwell, managing direc-

tor of IPM, confirmed that itgranted FCA permission and saidin an email that the overall mes-sage of Ram Truck’s “Built To

Serve’’ ad embodies King’s phi-losophy on serving others.Business records filed with the

Georgia secretary of state’s officeshow that Dexter Scott King, oneof the late King’s children,is chief executive of IPM. Itwasn’t immediately clear Mon-day whether the younger Kingwould have had to sign off on theuse of his father’s sermon orwhether someone else withinone of those companies wouldhave been authorized to do so.Dexter Scott King and his sib-

lings Bernice King and MartinLuther King III are the sole share-holders and directors of the Es-tate of Martin Luther King Jr., Inc.Dexter is the estate’s chief execu-tive, records show.The Martin Luther King Jr. Cen-

ter for Nonviolent Social Change,known as The King Center, wasfounded by Martin Luther KingJr.’s wife, Coretta Scott King, tocarry on her husband’s legacy.Bernice King is now the CEO ofthe center, located in Atlanta.On Twitter, the King Center dis-

tanced itself from the Ram ad bynoting that neither the center norBernice King “is the entity that ap-proves the use of #MLK’s wordsor imagery for use in merchan-dise, entertainment (movies, mu-sic, artwork, etc) or advertise-ment, including tonight’s @Dodge#SuperBowl commercial.’’ It alsoretweeted a YouTube clip of thecivil rights leader’s full sermon.University of Detroit Mercy

marketing professor MichaelBernacchi disagrees with how theRam truck ad is being interpreted.“To suggest it was to sell auto-

mobiles is just crazy,’’ he said.“That wasn’t the purpose of thead. I think that’s important. Wehave to doff our cap to that adand to the brand for doing it.’’Despite the uproar, the ad has

become exactly what any compa-

ny wishes after spending millionsof dollars to get it aired – a talker.Wayne Gibson, 51, founder of a

Los Angeles nonprofit that workswith troubled youth, said his takefrom the commercial was that theautomaker was saying “we’re go-ing to try to start serving andhelping people and indoctrinateDr. King’s philosophy.’’“You don’t connect Dr. King

with selling a product,’’ Gibsonsaid. “It’s logical to think thesepeople are trying to do some-thing different than the regularlyautomakers.’’Meanwhile, the Drum Major In-

stitute, a nonprofit think tankand social activist group, put outa statement reminding the publicof what King’s original sermonwas all about.

Ram’s 2018 Super Bowl Commercial Raises Controversy

Ram faced criticism for its recent Super Bowl commercial.

DETROIT (AP) – The wife of alate union official has pleadedguilty to a tax crime in a federalcorruption investigation at atraining center run by FiatChrysler and the United AutoWorkers.Monica Morgan pleaded guilty

Feb. 6 and faces up to 27 monthsin prison. She owes $191,000 inrestitution.Morgan was married to Gener-

al Holiefield, who was a UAWvice president before his deathin 2015. Former Fiat Chrysler la-bor negotiator Al Iacobelli ad-mits he spent more than $1.5 mil-lion in cash and gifts on high-ranking UAW members, includ-ing Holiefield.A $262,000 mortgage on

Holiefield's home was paid offwith training center money thatcame from Fiat Chrysler.

Widow of UAWOfficial Makes

Guilty Plea

Page 10: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

RENO, Nev. (AP) – Ed Shadle’sfirst race was a soapbox derby inPuyallup, Washington, in 1955.Now, more than 60 years later,

Shadle, 76, is preparing for whatmight be the biggest race of hislife in Nevada’s Diamond Valley.Shadle’s plan is to pilot a jet-

powered car across an isolated,desert playa at more than 763miles per hour.It would be fast enough to

break the world’s land-speedrecord, set 20 years ago on theplaya in Nevada’s Black Rockdesert.Even more impressive?It would mark Shadle’s come-

back from a lung cancer diagno-sis that threatened to put an endto his racing career – and his life.“I’m not in remission, but it is-

n’t dragging me down,’’ he said.Shadle said he was diagnosed

with stage four cancer in Juneand has since undergone 33 radi-ation treatments and 18chemotherapy sessions.And he’s done so while contin-

uing to manage preparation andlogistical planning for the pend-ing speed record attempt.The preparation and persever-

ance is expected to pay off laterthis year when Shadle’s NorthAmerican Eagle team arrives inNevada. Two other teams, oneBritish and one Australian, alsohave eyes on the record.“Technologically it is really

challenging,’’ Shadle said. “Mostof us gearheads and geeks, that iswhat gets us off, meeting thatchallenge.’’THE TEAMShadle, a former IBM engineer

who served in the Air Force do-ing communications and criticalmaintenance work, is a lifelongracer and tinkerer.He’s also participated in Civil

Air Patrol, raced on the Bon-neville Salt Flats, and generally

spent his life scratching his itchto build things and go fast.Shadle isn’t the only member

of the North American Eagleteam with big dreams and garagemechanic roots.The team is composed of near-

ly 50 members, many of whomare friends and family, who spe-cialize in everything from jetpropulsion to parachutes to datacollection and management.Also on the team is Jessi

Combs, a professional automo-tive fabricator and accomplisheddriver eager to break a record ofher own.Combs, 34, is widely known as

an automotive TV personality.She appeared on the Spike TVshow Xtreme 4x4 from 2005-09and has appearances on Myth-busters and other auto and tech-nology-themed shows.After pursuing a career in

snowboarding, Combs shiftedgears and took up an automotivecareer, earning a degree in cus-tom automotive fabrication.Land-speed racing is a differ-

ent type of challenge, she said.“It is the most thrilling thing

I’ve ever done,’’ Combs said. “It isso fast it is slow, it is so loud it isquiet, it is so bumpy it issmooth.’’Like Shadle, Combs has experi-

ence facing catastrophic healthproblems.In 2007 Combs survived being

crushed underneath a 550-pound, industrial band saw. Theaccident crushed her L3 verte-brae and left her out of work forfive months.“I’m actually lucky to be walk-

ing,’’ she said. “I have a differentappreciation for life and my legsand the things I can do.’’THE VEHICLEThe goal of reaching 800 miles-

per-hour, which is greater thanthe speed of sound, takes a vehi-

cle that’s faster and more power-ful than even the fastest race car.Even something like a beefed-

up version of a top fuel drag rac-er wouldn’t work because send-ing the amount of power it takesto go that fast from an enginethrough a transmission and tothe wheels would tear the vehi-cle apart.Instead, the team has installed

a General Electric J79 turbojetengine onto the body of a Lock-heed F-104 Starfighter, sanswings.From 1958 through 2004, nu-

merous national militaries flewStarfighters, the first combat air-craft capable of sustained Mach2 speeds.“We needed a platform that

was capable of high speeds andaerodynamically very efficient,’’Shadle said.Given that Shadle and Combs

are attempting land speedrecords the aircraft hardware isgoing to rest on a set of wheelsspecially designed for the task.Instead of rubber tires on steel

rims, the car will ride on solid,aluminum wheels. The specialwheels are necessary becausethe centrifugal force generatedfrom the high speeds would flingrubber tires off the rims. Insteadof standard brakes it uses water-cooled, magnetic brakes and aspecially designed parachute tostop.THE VENUE AND ATTEMPTWhen the North American Ea-

gle team lands in Nevada they’llbe heading to Diamond Valleynear Eureka.Previous land speed record

teams have used the Black Rockdesert playa near Gerlach andthe North American team haspracticed on the dry lake bed inthe Alvord Desert in southeast-ern Oregon.The driving by Shadle and

Combs will be the first time any-one has used Diamond Valley fora land speed record attempt.They chose the venue in part

because it has fewer visitorsthan the Black Rock playa, whichis the site of the annual BurningMan counterculture festival.Burning Man takes up much ofthe playa for weeks prior to thelate August event, which is theprime season for land speed driv-ing.To count as an official record,

the car needs to sustain thespeed for a mile over two runs,which are averaged together.The extra space on the playa

provides room to get up to speedbefore the timed mile and slowdown after.“We could probably set a

record still at Alvord desert butthere is absolutely no room forerror,’’ Combs said.Shadle and other team mem-

bers plan to visit the playa tomeet with local officials andneighboring ranchers as early asFebruary and return later in thesummer for the attempt.The team has already complet-

ed an environmental assessmentand received a special recreationpermit from the Bureau of LandManagement for the attempt.The record of decision had a

finding of no significant impact,which means the BLM thinks theteam can make the attempt with-out hurting the playa.NOT ALL ARE ONBOARDWhile the BLM has approved

of the plan, there has been someopposition.Photographer Bruce Couch of

Bend, Oregon, is a frequent visi-tor to the Alvord Desert and hasaccused the North Americanteam of leaving trash and debrison the dry lake bed followingruns there.Shadle said the Alvord incident

was a misunderstanding blownout of proportion. He said nearthe end of their time at Alvord awind and dust storm kicked upand obscured the playa and milemarkers on it.“The guys went out and

searched all over for it in a duststorm, so we had to leave it be-hind,’’ he said.In response to Couch’s official

comments the BLM stated theNorth American Eagle team hasagreed to clear the playa of anydebris to, “ensure the pristine na-ture of the resource.’’

Old Car Fan Gets Back into Driving RocketsPAGE 10 FEBRUARY 12, 2018DETROIT AUTO SCENE

FRANKFURT, Germany (AP) –German automaker Daimlermade lots of money last year.That’s a good thing, because thecompany says it will need tospend heavily this year to keepup with the technologicalchange expected to disrupt thecar industry.The maker of Mercedes-Benz

luxury cars said Feb. 1 that itsearnings this year faced the bur-den of “very high’’ expenditureon new models and technologiessuch as battery-powered cars.Like the rest of the industry, thecompany is positioning itself foran anticipated shift to au-tonomous driving and to trans-portation services such as car-sharing and ride-hailing throughsmartphone apps.Based on that, the company is-

sued a measured outlook for thisyear despite a record profit of$13.5 billion last year, saying thatoperating earnings would onlybe of “the magnitude of the pre-vious year’’ and not increasing.Daimler AG said spending on

research and developmentwould increase slightly in 2018after spending 8.7 billion eurosin 2017, a rise of 15 percent.CEO Dieter Zetsche’s position

is that the company’s core busi-ness – selling gasoline- anddiesel-powered luxury cars withfat profit margins, plus trucksand buses – is “very healthy andhighly profitable’’ and can pro-vide the investment cash neededto remain a leader as the indus-try changes rapidly. Daimlersays it will spend 10 billion euroson new electric vehicles in thenext few years. It has shown offpre-production versions of a newelectric-driven EQ sub-brandwithin Mercedes, saying the firstEQ sport-utility vehicle will belaunched by 2020.Tighter government restric-

tions on auto emissions are partof the reason behind the indus-try-wide push into electric vehi-cles, even though they have lim-ited appeal to consumers due tohigher prices, limited range andthe amount of time it takes tocharge them. Sales could pick upif battery-powered vehicles be-come cheaper and more conven-ient than internal combustionones – a tipping point that someexperts say could be reached bythe early to mid-2020s.

Daimler BetingBig on New

Auto Technology

SACRAMENTO, Calif. (AP) –Gov. Jerry Brown outlined a $2.5billion plan Jan. 27 to help Cali-fornians buy electric vehiclesand expand a network of charg-ing stations as part of a goal ofgetting 5 million zero-emissioncars on the road by 2030.The ambitious proposal to

transform California’s car culturecomes as Brown begins his finalyear in office and works to setthe stage for his environmentallegacy to continue under his suc-cessor. The Democratic governorhas positioned California as aglobal leader in fighting climatechange amid President DonaldTrump’s decision to pull the U.S.out of the Paris climate accord.The number of zero-emission

cars is a significant expansion ofBrown’s goal of selling 1.5 millionsuch vehicles by 2025. It’s a near-ly 15-fold increase over the350,000 zero-emission vehiclesalready on California’s roads.The $2.5 billion in spending stillneeds legislative approval.Reaching the goal will require

that 40 percent of vehicles soldin 2030 be clean, said MaryNichols, chairwoman of the Cali-fornia Air Resources Board, upfrom about 5 percent now.“We think that’s a very reason-

able proposal,’’ Nichols said. “It’snot a stretch.’’

Brown’s plan would extendsubsidies to help people buyemission-free vehicles. It seeks tohave 250,000 electric-vehiclecharging stations and 200 hydro-gen fueling stations, an increasefrom about 14,000 charging sta-tions and 31 hydrogen stations.California offers subsidies of

up to $7,000 for the purchase orlease of a new electric, fuel-cellor plug-in hybrid vehicle, thoughmost subsidies are smaller.Brown’s proposal would offer

$200 million worth of subsidiesin each of the next eight years.California will need to radically

reduce pollution from the trans-portation sector to reach its goalof reducing greenhouse gases 40percent below 1990 levels by2030. Pollution from cars, trucksand other modes of transporta-tion account for the largest por-tion of greenhouse emissions.The state has successfully re-

duced emissions from powerplants thanks to the widespreadadoption of wind, solar and hy-droelectricity, but pollution fromtransportation has inched up.Brown proposes using money

from a mixture of existing pro-grams at the California EnergyCommission and the state’s cap-and-trade program, which capspollution levels and auctions offpermits to pollute.

California Sets New Rules

Page 11: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

FEBRUARY 12, 2018 PAGE 11DETROIT AUTO SCENE

Page 12: DetroitA utoScene - springerpublishing.com · CFO Chuck Stevens told re-porters Feb. 6 after GM released ... several years ago, in 2014, that was the year when the Maple Leafs played

PAGE 12 FEBRUARY 12, 2018DETROIT AUTO SCENE