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Got a gripe about your car? Gov't investigators sift complaints for ... - Chicago Tribune
Boston-Power adds EV-1 executive Robert Purcell to Board - autoblog
Ford’s Jobless Recovery Means No Hiring in Retooling (Update1) - BusinessWeek

Posted: 22 Feb 2010 08:35 AM PST

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Almost 700,000 new vehicles were purchased under the "cash for clunkers" program, and while it helped some dealers and automakers, it hardly made a dent in the average age of America's cars and trucks: 9.8 years.

But then it is not easy to affect a fleet of 240 million vehicles on America's roads.

That fleet -- which includes cars from the 1967 to 2010 model years -- has been getting steadily older, said Marty Miller, senior product marketing manager for Experian Automotive.

Reasons for that range from dramatically fewer new vehicles being sold in the past few years to cars being more reliable and lasting longer, Miller said.

Illinois has a slightly younger fleet than the national average. It is 9.1 years, which also beats the Midwest's average of 10 years.

"That's probably not too surprising for Illinois, especially since Chicago encompasses a great chunk of the vehicles, and there is a large bit of money in the Chicago area," Miller said.

Nationally, the fleet is about evenly split between cars and trucks, according to Experian's analysis. Full-size pickups are the largest group, about 14.5 percent, followed by midsize cars at about 12.5 percent. Only 0.65 percent of the registered vehicles are hybrids.

General Motors has about 29 percent of the national fleet, followed by Ford with 21 percent, Chrysler with 13 percent, Toyota with 11 percent, Honda with almost 8 percent, Nissan with 5 percent and Hyundai with almost 3 percent.

In the "cash for clunkers" program, which provided vouchers for $3,500 to $4,500, Ford was the brand most likely to be junked (29 percent), followed by Chevrolet (17 percent), Dodge (11 percent) and Jeep (9 percent), said Jeffrey Anderson, director of consulting and analytics at Experian Automotive.

Only 2.6 percent of the vehicles junked were Toyotas, and only one-half percent were Hondas, he said. But 18 percent of the new vehicles purchased were Toyotas and 13 percent were Hondas. Ford and Chevrolet each got 13 percent.

"Toyota and Honda were clear beneficiaries of this program," Anderson said.

But he said the requirement that the vehicle purchased be more fuel-efficient than the one scrapped may have played better to Honda and Toyota.

Junked

Here's what Experian found participants junked -- and the most popular replacements:

Of those who junked a Chevrolet, 26 percent bought another Chevy, 14 percent bought a Toyota, 10 percent bought a Honda and 10 percent bought a Ford.
Of those who junked a Ford, 24 percent bought another Ford, 16 percent bought a Toyota, 11 percent bought a Honda and 10 percent bought a Chevy.
Of those who junked a Dodge, 17 percent bought a Toyota, 12 percent bought a Honda, 12 percent bought a Chevrolet, 11 percent bought a Ford and 9 percent bought a Dodge.
Of those who junked a Chrysler, 20 percent bought a Toyota, 17 percent bought a Honda, 10 percent bought a Hyundai and 9 percent bought a Nissan. Only 3 percent bought a Chrysler.
Of those who junked a Honda, 29 percent bought a Honda, 23 percent bought a Toyota, 11 percent bought a Nissan and 6 percent bought a Hyundai.
Of those who junked a Toyota, 41 percent bought another Toyota, 18 percent bought a Honda and 8 percent bought a Nissan.

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Got a gripe about your car? Gov't investigators sift complaints for ... - Chicago Tribune

Posted: 22 Feb 2010 08:28 AM PST

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In this Feb. 17, 2010 photo, Toyota Motor Corp. President Akio Toyoda waits for the start of his press conference in Tokyo, Japan. Scores of Toyota owners filed formal complaints with the U.S. government about mysterious problems with gas pedals, brakes and steering in recent years, sometimes after terrifying accidents. The complaints, often described in remarkable detail, exist inside an enormous database intended to alert federal investigators to early signs of looming safety problems. (AP Photo/Shizuo Kambayashi) (Shizuo Kambayashi, AP / February 17, 2010)

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Boston-Power adds EV-1 executive Robert Purcell to Board - autoblog

Posted: 22 Feb 2010 07:59 AM PST

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Q & A

1. You've been pioneering the electric vehicle since the 1990s. What drives that dedication?
My passion for affordable electric vehicles that will have minimal environmental impact, and will be fun to drive, is what motivates me. The world is increasingly becoming urban-centered, with roughly 50% of the world's population living in major urban centers today. That percentage is expected to increase to 65% in the next 15 to 20 years; and at the same time, the demand for energy continues to increase. New solutions for personal transportation need to emerge, reducing our dependence on fossil fuel. I truly believe that electric drive is a solution. It is far more efficient and much cleaner than any of today's technologies.

2. What's fueling the demand for hybrid and electric vehicles today?
It is a combination of customer expectations and regulatory requirements. The industry has moved significantly since the mid-1990s when I led the team that brought the GM EV-1 to production. Most of the world's major automakers now embrace the technology and see the merits in the future of electric drive. Governments have also largely moved to a cooperative approach, rather than the "command and control" mandates of the past. I really believe that a critical mass is now coming into play that bodes well for large-scale application of the technology.

3. You've been quoted as saying you've been looking for a battery like Boston-Power's for 20 years. What's so compelling about it?
I believe Boston-Power has done the best job of "systems engineering" an advanced battery technology for automotive applications of any battery company that I have been exposed to in nearly 20 years in the sector. Their solution offers outstanding energy density, long cycle life, quick recharge time, low cost, redundant safety, and environmental accreditations in both Europe and China. I believe the Boston-Power battery has the potential to create the new industry standard.

4. You talk about "green cars deserve green batteries." What does that mean to you and to automobile manufacturers?
To me, when I say "green cars deserve green batteries," I mean that the total statement for these electric vehicles needs to be green. We need a green battery that fulfills the requirements for clean technology, as well as the vehicle itself. Boston-Power is one company that is uniquely positioned with an environmentally-accredited advanced lithium-ion battery. As buyers of "green vehicles," we should demand that they be equipped with green batteries. And to automobile manufacturers, they now have access to a green battery solution.

5. Are electric cars safe?
Yes, electric cars are safe because the new advanced batteries are designed to prevent overcharging, overheating and damage in the event of an accident. Advanced batteries are high-energy density systems. These high energy storage systems need to be designed with safety in mind. I believe Boston-Power has done the best job in the industry of designing a safe, reliable high energy storage solution, because they have approached this from a systems perspective, building safety into the process from the individual cell all the way up to the complete battery pack, and in every step along the way.

6. Do you envision a day when consumers rank the battery at the top of the list of considerations when buying cars, trucks and other forms of transportation?
Yes, as electric drive becomes more commonplace in the industry, I believe consumers will consider their battery system as a key variable in the purchase decision. Electrical energy storage will be fundamental in the operation of their vehicle. And I believe they will demand a battery system that meets

PRESS RELEASE

Boston-Power Names Former General Motors Senior Executive Robert Purcell to Board of Directors

30-Year Auto Industry Veteran Spearheaded Launch of GM's Electric Vehicles

Most Recently Served as General Manager for Group Overseeing Multibillion Dollar Component Sales and Technology Licensing

WESTBOROUGH, Mass. – February 22, 2010 – Boston-Power®, Inc., the rapidly growing provider of next-generation lithium-ion batteries, today announced that internationally respected automobile industry executive Robert C. Purcell, Jr. has joined its board of directors. Working closely with Boston-Power's executive team and fellow board members, Purcell is applying his expertise in battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) to help drive the deployment of Boston-Power's batteries throughout the transportation sector.

Motivated by a love for cars since he was a teenager, Purcell, 57, embarked on his career by serving as a certified mechanic for luxury models and high performance sports cars. During the next three decades, his vision for the future of transportation and the role that electric vehicles could play led him to a series of progressively more strategic and influential roles within General Motors (GM).

"Boston-Power is bringing to the transportation industry a game-changing lithium-ion battery that delivers unmatched levels of high energy density, safety, low cost, fast charge and environmental sustainability," said Boston-Power Founder and CEO Dr. Christina Lampe-Onnerud. "As a pioneer in the electrification of transportation, Bob Purcell brings a perfect combination of invaluable insights, real-world experiences, and an established, international executive network to our company. We're thrilled to add him to our team."

From 1994 to 2002, Purcell led the GM Advanced Technology Vehicles Group (GM ATV). GM ATV was responsible for the development and production of the GM EV-1, the world's first modern electric vehicle, which went into production in 1996. His organization also developed and produced the S-10 Electric Truck and developed the GM Precept Hybrid Vehicle, which was part of President Clinton's Partnership for a New Generation of Vehicles program. Many of the
technologies pioneered at GM ATV are still widely used today throughout the industry in electric, hybrid and fuel cell vehicles. In addition to his responsibilities at GM ATV, he also served as chairman of the GM-Ovonic Advanced Battery Joint Venture.

Prior to completing his career at GM in 2008, Purcell served as vice president of global planning, sales and strategic alliances for the General Motors Powertrain Group. In that position, he was responsible for global business and technology planning for GM's engine and transmission operations. His organization also managed Powertrain's $2 billion annual direct component sales and $1 billion technology licensing activities.

"I've been looking for a battery like Boston-Power's for 20 years," Purcell said. "I knew immediately upon meeting the team and reviewing the technology platform that I wanted to play a role within the company. In addition to being in mass production and embodying the right combination of capabilities in terms of extended range, weight and space, safety, cost and quick recharge, Boston-Power's batteries are the only ones to earn stringent certifications for environmental sustainability. They're already being well received by the auto industry and I'm confident they will be adopted for a range of vehicles by manufacturers around the world."

Purcell currently serves as founder and president of Purcell & Associates, LLC, a senior advisory group specializing in advanced automotive and alternative energy investment projects. His clients have included companies ranging from MidAmerican Energy Holdings, a Berkshire Hathaway Company, to EDC Automotive, an emerging leader in automotive thermal management systems.

Boston-Power's products have earned the company worldwide recognition. Last month, the company earned a prestigious Technology Pioneer Award from the World Economic Forum. Proving that a commitment to environmental sustainability can complement sought-after, competitively differentiated products and world-class mass manufacturing, Boston-Power counts HP among its customers – making it the first U.S.-based firm ever to provide battery technology to a global notebook PC vendor. Boston-Power is the first and only battery provider whose rechargeable lithium-ion battery cells have earned the prestigious Nordic Ecolabel accreditation. The company's products have also earned a similar industry-first certification from the China Environmental United Certification Center (CEC).

About Boston-Power
Boston-Power, Inc. is an award-winning provider of next-generation lithium-ion battery technology. Designed to fuel a wide range of applications, its flagship offering, Sonata®, serves as the foundation for HP's new brand of longer lasting notebook batteries that also help the environment – the HP Long Life Battery. The company's Swing™ product delivers unmatched capabilities for Plug-In Hybrid and Battery Electric Vehicles (PHEV/BEV). Founded in 2005 and with more than 100 patents filed, Boston-Power is led by founder and CEO Dr. Christina Lampe-Önnerud, an internationally recognized innovator, entrepreneur and technology advisor with regard to portable power, energy storage and climate change. To date, the company has raised $125 million in venture funding from Foundation Asset Management, Oak Investment Partners, Venrock, GGV Capital and Gabriel Venture Partners. Boston-Power is headquartered in Westborough, Massachusetts, and has Six Sigma-level mass manufacturing operations in Asia.

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Ford’s Jobless Recovery Means No Hiring in Retooling (Update1) - BusinessWeek

Posted: 22 Feb 2010 06:54 AM PST

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February 22, 2010, 09:58 AM EST

(Updates shares in the 14th paragraph.)

By Keith Naughton

Feb. 22 (Bloomberg) -- Ford Motor Co.'s $1.6 billion U.S. investment plan will retool plants to build fuel-efficient autos to compete with Toyota Motor Corp. models. Hiring workers paid on par with Toyota's will have to wait.

After cutting 47 percent of its North American workforce since 2006, Ford isn't ready to resume adding employees even as it upgrades factories and grabs a larger share of U.S. sales, Chief Financial Officer Lewis Booth said in an interview. One analyst estimates Ford may not hire for two years.

Ford's jobless recovery shows the constraints on the only U.S. automaker to avoid bankruptcy in 2009. With fewer employees taking buyouts and auto demand about a third less than in 2007, Ford doesn't have openings for a new class of lower-paid union workers who would help cut labor costs.

"It's probably just a little premature to talk about hiring," Booth said. "The first thing to do is to take our existing employees and make sure they're fully occupied. That's very important for us and very important for them."

Toyota, the world's largest automaker, was the benchmark for labor costs when General Motors Co., Chrysler Group LLC and Dearborn, Michigan-based Ford reached their current accords in 2007. The U.S. companies won the right to give fewer benefits to new hires and pay them about $14 an hour, half what current employees make.

Compensation for U.S. workers including wages and benefits averages about $55 an hour at Ford, compared with $50 at Toyota, according to Booth.

First in Line

Because laid-off union employees are first in line for any vacancies before new, low-wage hires can be made, Ford can't yet take advantage of hiring at lower rates. Ford said it has about 600 hourly employees still on indefinite layoff from a U.S. union workforce of about 41,000. On Feb. 16, Ford said it will cut a shift of 900 workers from its Michigan Mustang factory in July.

Ford probably won't begin hiring for two years, which means it wouldn't match Toyota's labor rates until 2014 or 2015, said Sean McAlinden, chief economist at the Center for Automotive Research in Ann Arbor, Michigan.

"The market sucks and it needs to recover by 30 percent to 40 percent before Ford can hire," McAlinden said in an e-mail. "They have too many hourly workers now."

Ford's average hourly labor cost would fall to $50 once new hires make up 20 percent of the workforce, Booth said on a Jan. 28 conference call. "But we haven't got near-term hiring plans that will get us up to that," he said.

Cost Disadvantage

By 2012, Ford will be at a labor-cost disadvantage to Detroit-based GM and Chrysler because its UAW members voted in November to reject concessions freezing new hires' wages until 2015, McAlinden said.

GM and Chrysler, based in Auburn Hills, Michigan, won those givebacks as the automakers slid toward bankruptcy last year, and will reach U.S. labor-cost parity with Toyota and Honda Motor Co. by 2012, he said.

"Investors should be careful not to count on labor cost savings in North America from Ford," said Brian Johnson, a Barclays Capital analyst in Chicago. "To the extent that they should look for a rebound in earnings, it's going to come from a growing market and a fine new product line."

Johnson has a neutral rating on the shares, which surged more than fourfold last year. Ford rose 3 cents to $11.32 at 9:47 a.m. in New York Stock Exchange composite trading, giving it a gain for the year of 13 percent.

Shrinking Expenses

The lack of a tailwind from low-wage hires underscores the urgency for Chief Executive Officer Alan Mulally to keep shrinking costs and sell more-profitable autos after reporting net income of $2.7 billion in 2009 to end Ford's streak of three annual losses.

Ford is investing $1.15 billion to retool factories in Michigan, Kentucky and Illinois to make more fuel-efficient autos this year, along with spending $450 million to build hybrid models in Michigan starting in 2012. Capital spending will rise by $1 billion this year, Booth said in the interview.

Factory upgrades, a 25 percent jump in U.S. sales in January and Ford's first annual U.S. market-share gain since 1995 haven't brought an end to the company's retrenchment, with pullbacks such as the shift reduction at the Mustang plant. Ford said employees are being offered transfers to factories in Wayne, Michigan, and Chicago.

"We're going to redeploy almost all the workers," Executive Chairman Bill Ford told reporters on Feb. 16.

Buyout Offers

Ford's relative prosperity compared with GM and Chrysler has shrunk the acceptance rates for buyouts, McAlinden said.

About 300 workers, or fewer than 1 percent of Ford's UAW employees, accepted a buyout last month. About 6,800 hourly workers accepted buyouts in 2008, roughly 13 percent of a U.S. workforce that numbered 54,000 at the start of that year.

Workers are reluctant to leave as Ford's prospects improve, according to Mark Truby, a spokesman. Auto researcher Edmunds.com has predicted that Ford may vault past Toyota and reclaim the No. 2 spot in U.S. sales this year as the Japanese company's recalls chase off some buyers.

Booth said Ford won't be in a position to hire until the U.S. auto market rebounds from 2009's 10.4 million vehicle sales, the lowest since 1982. Ford predicts U.S. car and light- truck sales will range from 11.3 million to 12.3 million this year. The annual average from 2000 to 2007 was 16.8 million.

"The most important thing is to see the economy grow," Booth said. "It's important to see that happen and that we see it is sustainable. That will get our employees back to work."

--Editors: Ed Dufner, Steve Walsh, Jeffrey Taylor.

To contact the reporter on this story: Keith Naughton in Southfield, Michigan, at +1-248-827-2941 or Knaughton3@bloomberg.net.

To contact the editor responsible for this story: Jamie Butters at +1-248-827-2944 or jbutters@bloomberg.net

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