Dfp20120108 30(1)
1
8B WWW.FREEP.COM SUNDAY, JAN. 8, 2012 When Mike Jackson talks, auto CEOs listen. There are two reasons. First, he’s their largest customer. As CEO of AutoNation, Jackson sees what’s hot and what’s not across more than 250 dealerships in 15 states. Second, he’s not afraid to speak inconvenient truths. During the 2009 bankruptcies of General Motors and Chrysler, Jackson, 62, became one of the people President Barack Obama’s auto task force asked how to re- structure the two automakers. In short, Jackson argued that they were building more cars than consumers wanted, then slashed their own profit margins to move bloated inventory. He urged that all manufacturers produce fewer vehicles and secure a high enough price on new vehicles to cover the cost of technology, creature com- forts and other gadgets they put into their products. That’s helped boost profit mar- gins for automakers and dealers. But why is that good for con- sumers? Rebates, no-interest loans and subsidized leases may have cut into automakers’ profits, but they sure worked for consum- ers. “Here’s the irony I’ve seen play out a million times on showroom floors,” Jackson said. “When you have a mismatch between what has been produced and what the customer wants, the only way you fill that gap is with a lower price. You make the sale, but the custom- er is not convinced that for what they paid that he got value that is sustainable.” AutoNation has worked to sim- plify the process of selecting and financing a new vehicle. Rather than confuse customers with multiple types of loans and add-on financial services that are of dubious benefit, AutoNation has tried to remove complexity and add transparency in explain- ing loan and lease terms. Jackson, a Philadelphia native, started his industry career as a technician at a Mercedes-Benz dealership in Cherry Hill, N.J. “When I graduated from col- lege, I bought an old Mercedes, a 1959 190SL. It broke down after a month,” Jackson said. “So I got a job in the service department at a dealership, sweeping the floors, in exchange for them to fix my car.” He planned to go to law school, but changed plans when he be- came fascinated with the car busi- ness. In 1974, Jackson became a technical specialist, traveling to Mercedes-Benz dealerships throughout the country to help mechanics resolve technical prob- lems. In 1979, he teamed up with several investors to buy the Be- thesda, Md., dealership where he had swept floors to pay for repairs on his ’59 190SL. From 1997 to 1999, he was presi- dent of Mercedes-Benz USA, the job he held just before AutoNation founder Wayne Huizenga hired him to lead the Ft. Lauderdale, Fla.-based retailer. National retail AutoNation CEO has industry’s ear 250 dealerships in 15 states give clout By Greg Gardner Free Press Business Writer 2006 PHOTO BY AMY LEANG/DETROIT FREE PRESS AutoNation CEO Mike Jackson advised the auto task force in 2009. Like the turbochargers it makes, BorgWarner is revved up. The Auburn Hills-based auto sup- plier produces engine and transmis- sion parts that help make cars more en- vironmentally friendly. “Our mission is focused on improv- ing fuel economy, lowering emissions and at the same time improving vehi- cle performance,” said Chairman and CEO Tim Manganello. It’s outpacing the industry. Accord- ing to the company, BorgWarner sales are growing at an annual rate of 11.6%, well ahead of industry trends. Engine- related components account for 72% of sales, and drivetrain-related tech- nology generates the other 28%. The federal government’s new Corporate Average Fuel Economy (CAFE) stan- dards, which are requiring automak- ers to aggressively improve fuel effi- ciency over the next 15 years, are driv- ing demand for nearly all of Borg- Warner’s products. The challenge is to downsize engines without cutting their performance and fun-to-drive appeal. Manganello said customers are choosing more four-cylinder turbo- charged engines in small and midsize vehicles that may also offer a V6 op- tion. Other buyers are selecting V6s on sports cars, pickup trucks and SUVs that five years ago may have offered only a V8 engine. BorgWarner also makes dual- clutch transmission modules, engine timing systems, exhaust-gas recircu- lation systems and actuators and ac- tively controlled all-wheel drive cou- plings. Manganello predicts $2.5 billion of net new business in 2012 through 2014, a 9% increase over the previous three- year period. About 80% of that would be overseas.The company has focused on delivering leading technology, di- versifying its customer and geograph- ic base and financial discipline. With about17,500 employees in19 countries, BorgWarner serves all the major auto- makers, but VW-Audi, with 15% of sales, and Ford, with 8% of sales, are its two largest customers. “Our vision is to be the technology leader in powertrain solutions,” Man- ganello said. Judges unanimously agreed to move BorgWarner, which wasn’t nom- inated in this category, after it placed No. 2 in the Engineering & Technology category and Manganello placed sec- ond in the Executive Leadership cate- gory. ❚ CONTACT ZLATI MEYER: 313-223-4439 OR [email protected] ROMAIN BLANQUART/DETROIT FREE PRESS BorgWarner CEO Tim Manganello Suppliers BorgWarner growth is outpacing the industry Auburn Hills firm focuses on engine improvements By Zlati Meyer Free Press Business Writer FREE PRESS AUTOMOTIVE LEADERSHIP AWARDS Ed Welburn has led General Motors design from irrelevance to greater influence and respect than it has enjoyed in decades. Along the way, the 61-year-old designer helped create distinctive new looks for Buick, Chevrolet and Cadillac and forged GM’s de- sign operations around the world into a cohesive team for the first time in the automaker’s history. ”He has truly taken GM design from lackluster back to glory,” re- tired GM Vice Chairman Bob Lutz said. Lutz made restoring GM de- sign to greatness his priority when he joined the company in 2001. He called the job search that led to Welburn becoming GM design chief in 2003 “the crowning achievement” of his career. Designs created under Wel- burn’s leadership have re-estab- lished Buick’s prestige, launched Chevrolet’s global expansion and netted awards for everything from luxury cars to midsize se- dans and sport coupes. Welburn’s biggest challenge at GM may have been clearing a space within the organization where the designers could create beautiful vehicles unimpeded by a stodgy and risk-averse organiza- tion. He established design as a lead- ing voice in GM product develop- ment, reinstating a hierarchy that dates to the legendary Harley Earl, who started GM on the road to decades of global design preem- inence. Born in Philadelphia and edu- cated at Howard University in Washington, D.C., Welburn knew what he wanted to do at an early age. His father and uncles owned a body shop, where Ed developed an appreciation for automotive de- sign. He and his dad would spend hours drawing cars of vintage de- sign, with Welburn tracing over the sketches his father had done of 1930s Duesenbergs and similar classics. Self-promotion is as much a tool of many automotive design- ers as their computers and clay models, but the soft-spo- ken Welburn projects a rare humility. He al- ways promotes the team more than himself. “When I joined GM I just wanted to design cars. I didn’t know I would be in charge of designing cars,” he said in a recent interview. Welburn gets as close to boasting as his nature allows when he talks about how design- ers and studios within the organization have grown. He’s particular- ly proud of how GM de- sign created a coherent global look for Chevro- let, and the fact that stu- dios in Asia understand it and are as capable of creating authentic Chevrolet designs as the team at GM’s design studios in Warren. “He’s an excellent coach and mentor to the legions of young de- signers which will have even more of an impact on the company down the road than the fantastic work he’s leading now,” Lutz said. Welburn travels tirelessly to GM studios around the world, but it was a point of pride with him to fly commercial long before GM grounded its corporate jets. EMILE WAMSTEKER FOR CHEVROLET GM Vice President for Global Design Ed Welburn and the original Chevy Corvette. Design New looks, new influence SOFT-SPOKEN CHIEF WELBURN RESTORES GM UNIT TO PROMINENCE By Mark Phelan Free Press Auto Critic The following judges evaluat- ed the nominees for the Detroit Free Press Automotive Leadership Awards. They were divided into three groups, and each group was responsible for selecting winners in multiple categories. TEAM ONE Tom Walsh is the Free Press business columnist. John McElroy is a veteran automotive journalist, president of Blue Sky Productions, host of Autoline Daily and blogger for AOL Autoblog. Kim Korth is CEO and president of Supreme Industries and Su- preme Indiana, and she is found- er and president of International Resource Network. Michael Omotoso is senior manager of global powertrain at J.D. Power & Associates. Before joining J.D. Power, he was a senior market analyst at TI Automotive. Mary Petrovich is a former CEO and chairman of AxleTech In- ternational. She is senior adviser to the Carlyle Group’s industrial and transportation group. William M. Perkins is the owner of Taylor Chevrolet in Taylor and Merollis Chevrolet in Eastpointe. He also is chairman of the 2012 North American In- ternational Auto Show. TEAM TWO Sarah A. Webster is a former Detroit Free Press business and automotive editor who is now the editor in chief of Manufactur- ing Engineering magazine, a publication of the Society of Manufacturing Engineers. Bud Liebler is a former senior vice president of communications at Chrysler, president of the Liebler Group and owner of the Whitney, the iconic Detroit restaurant and mansion. Dale Phillips is an adjunct professor at Central Michigan University who worked for General Motors for more than 35 years. Debbie Dingell is chairwoman of the manufacturing initiative of the American Automotive Policy Council, a member of the Wayne State University Board of Gover- nors, former General Motors executive and wife of U.S. Rep. John Dingell, D-Mich. Jean Halliday is a veteran automotive journalist and former Detroit bureau chief for Ad- vertising Age and AdWeek magazines. Michael Bernacchi is a market- ing professor at the University of Detroit Mercy. TEAM THREE Mark Phelan is the Free Press auto critic. Anne Doyle is a leadership and communications strategist with three decades of news media, business and political credentials to support her consulting work with executives, visionary organi- zations and emerging leaders. She is the author of “Powering Up: How America’s Women Achievers Become Leaders.” Imre Molnar is dean of the College for Creative Studies and former design director for Patago- nia, the international outdoor clothing retailer. Keith Cooley is president and CEO of Principia, a crisis-manage- ment consulting business. Richard Ruzzin is a former GM designer who at various times influenced the styling of vehicles sold under the Chevrolet, Cadil- lac, Opel and Saab brands. Jim Seavitt is owner of Village Ford in Dearborn. He also served as president of the Detroit Auto Dealers Association for 2010-11. A look at the judges
-
Upload
sarah-webster -
Category
Documents
-
view
73 -
download
0
Transcript of Dfp20120108 30(1)
8B WWW.FREEP.COM SUNDAY, JAN. 8, 2012
WhenMike Jackson talks, autoCEOs listen.
There are two reasons. First,he’s their largest customer. AsCEO of AutoNation, Jackson seeswhat’s hot and what’s not acrossmore than 250 dealerships in 15states.
Second, he’s not afraid to speakinconvenient truths.
During the 2009 bankruptciesof General Motors and Chrysler,Jackson, 62, became one of thepeople President Barack Obama’sauto task force asked how to re-structure the two automakers.
In short, Jackson argued thattheywerebuildingmore cars thanconsumers wanted, then slashedtheir own profit margins to movebloated inventory. He urged thatall manufacturers produce fewervehicles and secure a high enoughprice on new vehicles to cover thecost of technology, creature com-forts and other gadgets they put
into their products.That’s helped boost profit mar-
gins for automakers and dealers.But why is that good for con-
sumers? Rebates, no-interestloans and subsidized leases mayhave cut into automakers’ profits,but they sure worked for consum-ers.
“Here’s the ironyI’veseenplayout a million times on showroomfloors,” Jackson said. “When youhave a mismatch between whathas been produced and what the
customer wants, the only way youfill that gap is with a lower price.Youmake thesale,but thecustom-er is not convinced that for whatthey paid that he got value that issustainable.”
AutoNation has worked to sim-plify the process of selecting andfinancing a new vehicle.
Rather thanconfusecustomerswith multiple types of loans andadd-on financial services that areof dubious benefit, AutoNationhas tried to remove complexity
and add transparency in explain-ing loan and lease terms.
Jackson, a Philadelphia native,started his industry career as atechnician at a Mercedes-Benzdealership in Cherry Hill, N.J.
“When I graduated from col-lege, I bought an old Mercedes, a1959 190SL. It broke down after amonth,” Jackson said. “So I got ajob in the service department at adealership, sweeping the floors, inexchange for them to fix my car.”
He planned to go to law school,but changed plans when he be-came fascinatedwith the car busi-ness. In 1974, Jackson became atechnical specialist, traveling toMercedes-Benz dealershipsthroughout the country to helpmechanicsresolve technicalprob-lems. In 1979, he teamed up withseveral investors to buy the Be-thesda, Md., dealership where hehad swept floors to pay for repairson his ’59 190SL.
From1997 to1999,hewaspresi-dent of Mercedes-Benz USA, thejobheheld just beforeAutoNationfounder Wayne Huizenga hiredhim to lead the Ft. Lauderdale,Fla.-based retailer.
National retail
AutoNation CEO has industry’s ear250 dealerships in15 states give cloutBy Greg GardnerFree Press Business Writer
2006 PHOTO BY AMY LEANG/DETROIT FREE PRESS
AutoNation CEOMike Jackson advised the auto task force in 2009.
Like the turbochargers it makes,BorgWarner is revved up.
The Auburn Hills-based auto sup-plier produces engine and transmis-sionparts thathelpmakecarsmoreen-vironmentally friendly.
“Our mission is focused on improv-ing fuel economy, lowering emissionsand at the same time improving vehi-cle performance,” said Chairman andCEO TimManganello.
It’s outpacing the industry. Accord-ing to the company, BorgWarner salesare growing at an annual rate of11.6%,well ahead of industry trends. Engine-related components account for 72%of sales, and drivetrain-related tech-nology generates the other 28%. Thefederal government’s new CorporateAverage Fuel Economy (CAFE) stan-dards, which are requiring automak-ers to aggressively improve fuel effi-ciency over the next15 years, are driv-ing demand for nearly all of Borg-Warner’s products. The challenge is todownsizeengineswithoutcutting theirperformance and fun-to-drive appeal.
Manganello said customers arechoosing more four-cylinder turbo-charged engines in small and midsizevehicles that may also offer a V6 op-tion.Otherbuyers are selectingV6s onsports cars, pickup trucks and SUVsthat five years ago may have offeredonly a V8 engine.
BorgWarner also makes dual-clutch transmission modules, enginetiming systems, exhaust-gas recircu-lation systems and actuators and ac-tively controlled all-wheel drive cou-plings.
Manganello predicts $2.5 billion ofnet new business in 2012 through 2014,a 9% increase over the previous three-year period. About 80% of that wouldbe overseas.The company has focusedon delivering leading technology, di-versifying its customer and geograph-ic base and financial discipline. Withabout17,500employees in19countries,BorgWarner serves all themajor auto-makers, but VW-Audi, with 15% ofsales, and Ford, with 8% of sales, areits two largest customers.
“Our vision is to be the technologyleader in powertrain solutions,” Man-ganello said.
Judges unanimously agreed tomoveBorgWarner, whichwasn’t nom-inated in this category, after it placedNo. 2 in the Engineering&Technologycategory and Manganello placed sec-ond in the Executive Leadership cate-gory.❚ CONTACT ZLATI MEYER: 313-223-4439 [email protected]
ROMAIN BLANQUART/DETROIT FREE PRESS
BorgWarner CEO TimManganello
SuppliersBorgWarnergrowth isoutpacingthe industryAuburn Hills firm focuseson engine improvementsBy Zlati MeyerFree Press Business Writer
FREE PRESS AUTOMOTIVE LEADERSHIP AWARDS
Ed Welburn has led GeneralMotorsdesignfromirrelevance togreater influence and respectthan it has enjoyed in decades.
Along the way, the 61-year-olddesignerhelpedcreatedistinctivenew looks for Buick, Chevroletand Cadillac and forged GM’s de-sign operations around the worldinto a cohesive team for the firsttime in the automaker’s history.
”He has truly taken GMdesignfrom lackluster back to glory,” re-tiredGMViceChairmanBobLutzsaid. Lutz made restoring GM de-signtogreatnesshisprioritywhenhe joined the company in 2001. Hecalled the job search that led toWelburn becoming GM designchief in 2003 “the crowningachievement” of his career.
Designs created under Wel-burn’s leadership have re-estab-lished Buick’s prestige, launchedChevrolet’s global expansion andnetted awards for everythingfrom luxury cars to midsize se-dans and sport coupes.
Welburn’s biggest challenge atGM may have been clearing aspace within the organizationwhere the designers could createbeautiful vehiclesunimpededbyastodgy and risk-averse organiza-tion.
Heestablisheddesignasa lead-
ing voice in GM product develop-ment, reinstating a hierarchy thatdates to the legendary HarleyEarl, who started GM on the roadtodecadesofglobaldesignpreem-inence.
Born in Philadelphia and edu-cated at Howard University inWashington, D.C., Welburn knewwhat he wanted to do at an earlyage.His fatherandunclesowneda
body shop,whereEddevelopedanappreciation for automotive de-sign. He and his dad would spendhours drawing cars of vintage de-sign, with Welburn tracing overthesketcheshis fatherhaddoneof1930s Duesenbergs and similarclassics.
Self-promotion is as much atool of many automotive design-ers as their computers and clay
models,but thesoft-spo-ken Welburn projects arare humility. He al-wayspromotes the teammore than himself.
“When I joined GM Ijust wanted to designcars. I didn’t know Iwould be in charge ofdesigning cars,” he saidin a recent interview.
Welburn gets asclose to boasting as hisnature allows when hetalks about how design-ers and studios withinthe organization havegrown. He’s particular-ly proud of how GM de-sign created a coherentglobal look for Chevro-let, and the fact that stu-dios in Asia understandit and are as capable ofcreating authenticChevrolet designs asthe teamatGM’s designstudios in Warren.
“He’s an excellent coach andmentor to the legions of young de-signerswhichwill haveevenmoreof an impact on the companydownthe road than the fantastic workhe’s leading now,” Lutz said.
Welburn travels tirelessly toGM studios around the world, butit was a point of pride with him tofly commercial long before GMgrounded its corporate jets.
EMILE WAMSTEKER FOR CHEVROLET
GM Vice President for Global Design Ed Welburn and the original Chevy Corvette.
Design
New looks, new influenceSOFT-SPOKEN CHIEF WELBURN RESTORES GM UNIT TO PROMINENCEByMark PhelanFree Press Auto Critic
The following judges evaluat-ed the nominees for the DetroitFree Press Automotive LeadershipAwards. They were divided intothree groups, and each groupwas responsible for selectingwinners in multiple categories.
TEAMONETom Walsh is the Free Pressbusiness columnist.
John McElroy is a veteranautomotive journalist, presidentof Blue Sky Productions, host ofAutoline Daily and blogger forAOL Autoblog.
Kim Korth is CEO and presidentof Supreme Industries and Su-preme Indiana, and she is found-er and president of InternationalResource Network.
Michael Omotoso is seniormanager of global powertrain atJ.D. Power & Associates. Beforejoining J.D. Power, he was asenior market analyst at TIAutomotive.
Mary Petrovich is a former CEOand chairman of AxleTech In-ternational. She is senior adviserto the Carlyle Group’s industrialand transportation group.
William M. Perkins is theowner of Taylor Chevrolet inTaylor and Merollis Chevrolet inEastpointe. He also is chairman ofthe 2012 North American In-ternational Auto Show.
TEAM TWOSarah A. Webster is a formerDetroit Free Press business andautomotive editor who is now
the editor in chief of Manufactur-ing Engineering magazine, apublication of the Society ofManufacturing Engineers.
Bud Liebler is a former seniorvice president of communicationsat Chrysler, president of theLiebler Group and owner of theWhitney, the iconic Detroitrestaurant and mansion.
Dale Phillips is an adjunctprofessor at Central MichiganUniversity who worked forGeneral Motors for more than 35years.
Debbie Dingell is chairwomanof the manufacturing initiative ofthe American Automotive PolicyCouncil, a member of the WayneState University Board of Gover-nors, former General Motors
executive and wife of U.S. Rep.John Dingell, D-Mich.
Jean Halliday is a veteranautomotive journalist and formerDetroit bureau chief for Ad-vertising Age and AdWeekmagazines.
Michael Bernacchi is a market-ing professor at the University ofDetroit Mercy.
TEAM THREEMark Phelan is the Free Pressauto critic.
Anne Doyle is a leadership andcommunications strategist withthree decades of news media,business and political credentialsto support her consulting workwith executives, visionary organi-zations and emerging leaders.
She is the author of “PoweringUp: How America’s WomenAchievers Become Leaders.”
Imre Molnar is dean of theCollege for Creative Studies andformer design director for Patago-nia, the international outdoorclothing retailer.
Keith Cooley is president andCEO of Principia, a crisis-manage-ment consulting business.
Richard Ruzzin is a former GMdesigner who at various timesinfluenced the styling of vehiclessold under the Chevrolet, Cadil-lac, Opel and Saab brands.
Jim Seavitt is owner of VillageFord in Dearborn. He also servedas president of the Detroit AutoDealers Association for 2010-11.
A look at the judges
![[XLS] · Web view1 1 30 1 2 30 1 3 17 1 4 30 1 5 17 1 6 17 1 7 17 1 8 17 2 1 30 2 2 30 2 3 30 2 4 30 2 5 17 2 6 17 2 7 17 2 8 30 2 9 30 2 10 30 2 11 30 2 12 30 2 13 17 2 14 17 2 15](https://static.fdocuments.net/doc/165x107/5aab4d357f8b9a8d678bacb3/xls-view1-1-30-1-2-30-1-3-17-1-4-30-1-5-17-1-6-17-1-7-17-1-8-17-2-1-30-2-2-30.jpg)
