Buick Testing the Waters with African-Americans

Buick has quietly launched a marketing initiative aimed at rebuilding its image among African-American auto buyers. Launched in Atlanta last month, it follows up on research showing that there is a significant "reservoir of good will" among the black community for General Motors' troubled brand, according to General Manager Steve Shannon. Buick decided to test the waters with a multimedia marketing campaign that features singer/performer Isaac Hayes, known for activities ranging from the song "Shaft," to his former role as the voice of Chef in the popular cartoon series South Park. Shannon declined to discuss the budget for the project, nor would he reveal specific results, suggesting the campaign is still in its early stages, but Buick dealers are reporting a definite uptick in showroom traffic, he said, adding that if the Atlanta project succeeds, Buick would likely follow up in other markets with a large African-American community.

The troubled brand clearly needs a momentum builder, Shannon acknowledged, during an appearance at the Specialty Equipment Marketers' Association (SEMA) convention in Las Vegas. It is the first time Buick has participated in the high-profile aftermarket event, fielding 11 concept vehicles crafted by high-profile customizers, such as California-based Performance West. Buick sales have been steadily eroding, to the point where GM will sell more Buick-badged vehicles in China this year than in the U.S. That's led many industry observers to speculate that without a turnaround soon, the automaker might have to abandon the Buick brand, at least in North America.-Paul A. Eisenstein

See Buick's CXX Lucerne concept from SEMA

Ford Planning Big Production Cuts

Ford's turnaround plan is evolving-and the latest evolution will lead to more production cuts in the first quarter of 2007. The Wall Street Journal reports that Ford will cut its build by 12 percent early next year as it is cutting production 21 percent by the end of this year. The company, like its domestic competitors, is facing slumping sales of its big trucks and SUVs at a time when it's yet to introduce new car-based crossovers vehicles in large numbers.

Get in the driver's seat of the Mustang GT500

Dura Joins Parade of Bankrupt Suppliers

Dura Automotive Systems Inc. filed for bankruptcy Monday, the fifth major auto-parts company since February 2005 to seek Chapter 11 protection from creditors.

Dura, which makes parking brakes, seat recliners, door hinges and other parts, listed liabilities of $1.73 billion and assets of $1.99 billion in papers filed. The company said it was forced to file for Chapter 11 because of North American production cutbacks by U.S. automakers and rising costs for raw materials.

Dura's largest customers, Ford Motor Co. and General Motors Corp., have made major cutbacks in the fourth quarter, and Dura doesn't have enough business with growing automakers like Toyota and Hyundai to make up the difference.

Dura, based in Rochester Hills, Mich., joins Tower Automotive Inc.; Collins & Aikman Corp.; Dana Corp.; and Delphi Corp. in seeking court protection over the past year and a half. Dura has arranged for about $300 million in loans from Goldman Sachs and Barclays and GE Capital so the company can continue to operate.

Dura posted a $138.3 million loss in the first half of the year after profit fell 85 percent in 2005 and 48 percent in 2004.

The supplier's financial woes have been caused by a combination of high raw-materials prices, high debt load and production cuts by U.S. auto makers. It owes its bondholders about $988 million. Earlier this month, the company missed a $17.25 million interest payment. An additional $24 million interest payment is due tomorrow.

Only Dura's U.S. and Canadian subsidiaries filed for Chapter 11. The supplier listed assets of about $2 billion and debt of $1.7 billion. The company's available cash plummeted to $16.2 million in October from $219.3 million in July. Dura employs more than 7,100 people in the U.S. and Canada and had annual sales of $2.34 billion in 2005. Its major customers include GM, Volkswagen AG and Ford.-Jim Burt

Delphi Execs Charged with Fraud

Auto-parts supplier Delphi Corp. and six former executives, including the company's former chief financial officer, on Monday settled fraud charges with the Securities and Exchange Commission (SEC). Former CEO J.T. Battenberg III, named for violations by the regulatory agency, has not settled charges yet.

The SEC said in a disclosure that Delphi, which is now operating under Chapter 11 bankruptcy protection, and former officers engaged in accounting improprieties that led to several years of restated earnings. The SEC settled with six individuals and charged seven others with securities violations.

SEC director of the SEC's division of enforcement Linda Thomsen said that Delphi engaged "in a number of fraudulent schemes," to camouflage true earnings in regulatory filings, press releases and other documents.

The SEC settled its disputes with Delphi's former CFO, Alan Dawes, who agreed to pay $687,000 and to a five-year ban on being a corporate officer or director.

Battenberg was charged with participating in and aiding and abetting Delphi's fraud. Paul Free, Delphi's former chief accounting officer, has not settled either. Laura Marion, a former director of financial accounting and reporting, agreed to pay a $40,000 civil penalty, which will be due once a judgment is entered, for her alleged role. B.N. Bahadur, owner of a Michigan-based private management consulting company, agreed to pay more than $569,000 to settle allegations of participating in the schemes or aiding and abetting Delphi.-Jim Burt

Goodyear Shutters Plant While Facing Strike

Goodyear Tire & Rubber Co., which faces a strike at union plants in the U.S. and Canada, said Monday it will close its Tyler, Texas plant and cut 1,100 jobs as it cuts unprofitable businesses.

The United Steelworkers have been on strike for three weeks, but the action hasn't done much to Goodyear's share price. After falling the first day of the strike, the stock bounced back and has traded around $14 despite 'Sell" ratings places on the shares by a few leading brokerages. The tiremaker's share priced closed at $15.18, up 1.47 percent.

Merrill Lynch analyst John Murphy said Monday, "It's unclear whether the announcement will incite the USW to greater solidarity or will put greater pressure on the union to make concessions." The Tyler plant makes private label tires for non-Goodyear retailers. It's a low-margin/no margin business, and the kind of business that Goodyear is exiting to concentrate on more profitable branded lines.-Jim Burt

Nissan Prices New Altima from $17,950

Nissan's new Altima for the 2007 model will wear a pricetag starting at $17,950, the automaker said in a release. The base vehicle comes with a four-cylinder engine and a six-speed manual gearbox. The top 3.5-liter V-6 edition, with a six-speed manual gearbox, starts at $24,000. Nissan will also offer an Altima 2.5S for $19,800; a 2.5S with a continuously variable transmission for $20,300; a 3.5 SE with a CVT, from $24,500; and a 3.5SL with a CVT, from $28,400. A hybrid edition will be available later in the model year. Options will include Sirius or XM satellite radio, leather trim, stability control, and a rear spoiler.

Infiniti Prices G35 from $31,450

The new generation of Infiniti's G35 will be priced from $31,450, the Nissan luxury brand said in a release. The new sedan, with its 306-hp V-6 engine, comes with a five-speed automatic in its base trim. A Journey model with a five-speed automatic starts at $31,900, while the all-wheel-drive edition with a five-speed automatic retails from $33,950. A Sport edition with a six-speed manual is priced from $32,250, while the Sport with five-speed automatic starts at $33,450. Options will include a four-wheel steer package, 18-inch wheels, XM satellite radio and an in-car music hard drive.

 

FROM THE SOURCE headlines from the latest press releases

American Suzuki Shows Full Deck of 'Cars' in Las Vegas - Photos Available

Name	Symbol	Last	Change
Autobytel, Inc.	ABTL	3.36	-0.04 (-1.18%)
Autoliv Inc.	ALV	55.56	+0.05 (+0.09%)
AutoNation Inc.	AN	20.24	+0.26 (+1.30%)
ArvinMeritor Inc.	ARM	15.18	-0.28 (-1.81%)
American Axle & Mfr. Holdings Inc.	AXL	18.74	-0.43 (-2.24%)
Ballard Power Systems Inc.	BLDP	6.95	+0.09 (+1.31%)
BorgWarner Inc.	BWA	58.20	+0.11 (+0.19%)
Cummins Inc.	CMI	132.39	+1.43 (+1.09%)
DaimlerChrysler AG (ADR)	DCX	55.09	+0.25 (+0.46%)
Dura Automotive Systems	DRRA	0.29	+0.00 (+1.58%)
Eaton Corporation	ETN	72.43	-0.56 (-0.77%)
Ford Motor Company	F	8.25	-0.04 (-0.48%)
General Motors Corporation	GM	34.53	+0.60 (+1.77%)
Gentex Corporation	GNTX	15.71	-0.07 (-0.44%)
Goodyear Tire & Rubber	GT	15.18	+0.22 (+1.47%)
Honda Motor Co. Ltd. (ADR)	HMC	35.26	-0.63 (-1.76%)
Johnson Controls Inc.	JCI	82.19	-0.44 (-0.53%)
Lear Corporation	LEA	30.37	-0.74 (-2.38%)
Magna International Inc.	MGA	74.56	-0.83 (-1.10%)
Motorola Inc.	MOT	23.11	-0.06 (-0.26%)
Nissan Motor Co. Ltd. (ADR)	NSANY	23.82	-0.18 (-0.75%)
Sonic Automotive Inc.	SAH	25.33	+0.31 (+1.24%)
Siemens AG	SI	90.37	+0.18 (+0.20%)
Sirius Satellite Radio	SIRI	3.79	-0.06 (-1.56%)
Toyota Motor Corporation (ADR)	TM	118.55	-0.48 (-0.40%)
TRW Automotive Holdings	TRW	25.50	-0.71 (-2.71%)
Tower Automotive Inc.	TWRAQ.PK	0.06	-0.01 (-7.69%)
United Auto Group Inc.	UAG	23.15	+0.09 (+0.39%)
Visteon Corporation	VC	7.26	-0.44 (-5.71%)
XM Satellite Radio Hold.	XMSR	11.40	-0.54 (-4.52%)