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July 2009

Opens an Additional Distribution Center in Macon

SCRS 2009 Affiliate Leadership Conference to be Held in September House Subcommittee Holds Hearing on Federal Regulation of Insurance

MECHANICAL NEWS Engine Technology Delivers Greater Efficiency Without A Spark

DEALER NEWS NADA Statement on Chrysler’s Dealership Reduction Announcement “Cash for Clunkers” is an Environmental Clunker Volkswagen Factory in Chattanooga Foundation for Future U.S. Strategy

Tesla Unveils World’s First Mass-Produced, Highway-Capable EV The Model S, which carries its charger onboard, can be recharged from any 120V, 240V or 480V outlet, with the latter taking only 45 minutes. By recharging their car while they stop for a meal, drivers can go from LA to New York in approximately the same time as a gasoline car. Moreover, the floor-mounted battery pack is designed to be changed out in less time than it takes to fill a gas tank, allowing for the possibility of battery-pack swap stations.

The floor-mounted powertrain also results in unparalleled cargo room and versatility, as the volume under the front hood becomes a second trunk. Combining that with a four-bar linkage hatchback rear trunk and flat folding rear seats, the Model S can accommodate a 50-inch television, mountain bike *and* surfboard simultaneously. Tesla Please Turn to Page 4

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Tesla From Front Cover This packaging efficiency gives the Model S more trunk space than any other sedan on the market and more than most SUVs. “Model S doesn’t compromise on performance, efficiency or utility -- it’s truly the only car you need,” said Tesla CEO, Chairman and Product Architect Elon Musk. “Tesla is relentlessly driving down the cost of electric vehicle technology, and this is just the first of many mainstream cars we’re developing.” Tesla expects to start Model S production in late 2011. The company believes it is close to receiving $350 million in federal loans to build the Model S assembly plant in California from the

Dept of Energy’s Advanced Technology Vehicle Manufacturing Program. Building on Proven Technology Tesla is the only production automaker already selling highway-capable EVs in North America or Europe. With 0-60 mph in 3.9 seconds, the Roadster outperforms almost all sports cars in its class yet is six times as energy efficient as gas guzzlers and delivers 244 miles per charge. Tesla has delivered nearly 300 Roadsters, and nearly 1,000 more customers are on the wait list. Teslas do not require routine oil changes, and they have far fewer moving (and breakable) parts than internal combustion engine vehicles. They qualify for federal and state tax credits, rebates, sales tax exemptions, free parking,

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commuter-lane passes and other perks. Model S costs roughly $5 to drive 230 miles – a bargain even if gasoline were $1 per gallon. T h e anticipated base price of the Model S is $49,900 after a federal tax credit of $7,500. The company has not released options pricing. Three battery pack choices will offer a range of 160, 230 or 300 miles per charge. “Model S costs half as much as a Roadster, and it’s a better value than much cheaper cars,” Musk said. “The ownership cost of Model S, if you were to lease and then account for the much lower cost of electricity vs. gasoline at a likely future cost of $4 per July 2009

gallon, is similar to a gasoline car with a sticker price of about $35,000. I’m positive this car will be the preferred choice of savvy consumers.” The standard Model S does 0-60 mph in under six seconds and will have an electronically limited top speed of 130 mph, with sport versions expected to achieve 0-60 mph acceleration well below five seconds. A single-speed gearbox delivers effortless acceleration and responsive handling. A 17-inch touchscreen with in-car 3G connectivity allows passengers to listen to Pandora Radio or consult Google Maps, or check their state of charge remotely from their iPhone or laptop. Tesla is taking reservations online and at showrooms in California. Tesla will open a store in Chicago this spring and plans to open stores in London, New York, Miami, Seattle, Washington DC and Munich later this year.n

Navistar Selects OEConnection as Supplier of Parts Supply Network Technology Solutions

OEConnection LLC, the leadInitiatives, echoes this connection. “The oping an integrated dealer parts neting Online Parts & Service Exchange automotive industry is not alone in its work that will provide efficiencies for in the automotive industry, announced quest to develop advanced supply netour channel’s ability to improve their recently its agreement with Navistar, Inc. works by leveraging in-channel OE parts parts procurement process. Specifically, (NYSE: NAV) to provide their parts supinventories,” says Rose. “These same reducing the amount of time it takes ply chain and intelligence tools. Navistar challenges of getting the right parts to us to fulfill backordered part requests is the first non-automotive manufacthe right place exist in industries such as will result in increased vehicle uptime turer to select OEConnection to provide heavy-duty truck and heavy equipment, for our customers. Doing so will allow software solutions to its organization, where vehicle uptime is directly related us to increase overall productivity, and joining 14 automotive manufacturers to productivity. OEConnection’s experOEConnection comprehensive tools will and over 15,000 dealerships throughout tise in providing technology solutions help us with this endeavor.” North America that are already utilizing makes us a perfect fit to help Navistar James Rose, Jr., OEConnection Vice OEConnection’s web-based tools. with their parts fulfillment needs.”n President of Emerging Markets & OEM Navistar will implement OEConnection’s solutions for 280 International(R) dealerships across 800 locations in the US and Canada. Upon implementation, International Truck dealerships will have access to OEConnection’s online parts sourcing and idle Plus $500.00 Second $200.00 Third inventory reduction tools to Weekly giveaways of 100 "OPA BUCKS" which can be used as a create a parts supply network discount or payment toward a purchase from any OPA member. and shorten part cycle-times. By enabling the dealership Drawing Sepember 31, 2009 channel’s parts inventories to be utilized in fulfilling backorders and other part types, OEConnection’s solutions will help ensure International vehicles are repaired and on the road faster. These tools will also enable Navistar initiatives that limit in-channel idle inventory and provide boosted fill rates even as capital investment in PDC parts inventories are conDirect 678-259-9500 strained. “We’re incredibly pleased Toll 877-622-2871 that Navistar has chosen OEConnection to help achieve their goals of improved parts FAX 678-259-9555 efficiencies,” stated Charles Rotuno, President and CEO of OEConnection. “In these Call Ken McMillan, tough economic times, organizations are looking to improve Your Trusted Name in Acura Parts operations. OEConnection is uniquely positioned to provide Navistar with solutions for improved in-channel parts procurement, analysis, and performance.” Rommel Miranda, Navistar Vice President Parts Sales and Marketing, indicates “Navistar is focused on devel-

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Eddie Kelley

July 2009

Volkswagen Factory in Chattanooga Foundation for Future U.S. Strategy The Governor of the State of Tennessee, Phil Bredesen, and Professor Dr. Jochem Heizmann, Member of the Board of Management of Volkswagen AG with responsibility for Group production, were joined Thursday (2.00 p.m. local time), by invited guests to celebrate the placement of the first wall at the new U.S. factory in Chattanooga, Tennessee. The plant represents a major milestone for the Volkswagen Group in attaining its ambitious growth targets for the North American market. Production in Chattanooga will begin in 2011 with a maximum annual capacity of 150,000 vehicles. Over the coming months, modern, environmentally-friendly buildings housing a body shop, paint shop, assembly and offices will be built on the site which covers approximately 1,580 acres. “Our own car production ‘made in America’ is an important core element of our growth strategy on the U.S. market. That is why today is a major milestone for the Volkswagen Group. The automobile will always be an essential part of the American way of life. Despite the present situation on world markets, the U.S. market will recover and Volkswagen will be ready when that happens,” said Prof. Dr. Heizmann. “Our new plant in Chattanooga sends a clear and strong message for Volkswagen, for the automotive industry and for the state of Tennessee. The United States is a great car nation and we believe in a promising future for Volkswagen here.” Volkswagen Group of America will invest $1 billion in the plant and employ 2,000 people. As a result of this investment, an independent study estimated the overall impact of the plant will generate an additional $12 billion in income growth and more than 9,500 indirect jobs over the life of the project.

The Chattanooga factory will build a new mid size sedan specially designed for the North American market. Approximately 30 percent of these cars will be powered by Volkswagen’s TDI Clean Diesel Technology. “The partnership between the state, the community and Volkswagen is creating an impact that is literally concrete,” said Governor Bredesen. “The dramatic change we’ve seen on this site over the past year is clear evidence of Volkswagen’s commitment to the people of Tennessee and to the future of the company.”

July 2009

“This is a big day in our company’s history. Today, we are putting down new roots in the United States of America. And we are entering a long-term partnership with this community, this state and this country,” said Frank Fischer, Chairman and CEO of Volkswagen Group of America Chattanooga Operations, LLC “You can see our commitment take tangible form in this wall. But that commitment is far more than bricks and mortar. Building a plant VW Factory Please Turn to Page 22

Southern Automotive Journal

Engine Repower Council Opposes ‘Cash for Clunkers’ Program

The Engine Repower Council strongly opposes the federal “Cash for Clunkers” program that is part of the current economic stimulus package being considered by Congress. The Cash for Clunkers program would earmark federal funds for car owners to trade in their older vehicles in exchange for vouchers to be used to obtain newer, more fuel efficient vehicles. These programs are of concern to the vehicle aftermarket since vehicles are scrapped that could be more cost effectively repaired, increasing the country’s carbon footprint and reducing the availability of parts for rebuilders. Congress has considered Cash for Clunker proposals in the past and has decided against them in every

case. In fact, states are prohibited from using federal funding for state-run Cash for Clunkers programs under the Congestion Mitigation and Air Quality Improvement Program (CMAQ). There have been numerous attempts to lift this prohibition, however once lawmakers realize that Cash for Clunkers programs focus only on a vehicle’s age and not its emission levels, they understand that these programs are not cost-effective and do not positively impact air quality or fuel economy. Therefore, time after time, the prohibition has remained in tact. “Many states have attempted to implement this type of vehicle retirement program in the past, but have abandoned the effort because they sim-

ply don’t work,” said Steve Rich, chairman of the Engine Repower Council. “While the programs have a certain appeal to politicians and are sold on the fact that they will get older vehicles off the road, the fact is that these programs reduce the availability of affordable transportation for drivers who, by taking such steps as engine repowering, can keep a vehicle in safe, efficient working order rather taking on the expense of a new vehicle.” Interested parties can send an e-mail in opposition to the Cash for Clunkers program to the Speaker of the House, the Senate Majority Leader and their congressional representatives by visiting http://capwiz.com/aftermarket/home/ and clicking on “Take Action.”n

Most New-Car Shoppers Say ‘Cash-for-Clunkers’ Would Not Affect Purchase Timeframe Kelley Blue Book, www.kbb.com, the leading provider of new car and used car information, has announced the results of the latest Kelley Blue Book Market Intelligence survey of in-market new-car shoppers on kbb.com, detailing consumers’ opinions on the ‘cash-forclunkers’ proposal. When provided specifics about the ‘cash-for-clunkers’ bill as it is currently proposed, 38 percent of in-market newcar shoppers said it would have no effect on their purchase timeframe because they do not have a vehicle to turn in that meets the parameters of the program. However, 13 percent of consumers

say they would be highly motivated to purchase a new vehicle sooner due to ‘cash-for-clunkers,’ and an additional 26 percent want to learn more about the program, even if it would not affect their vehicle purchase timing. “The latest Kelley Blue Book Market Intelligence data is quite telling, showing that most consumers will not change their purchase timeframe if a ‘cash-forclunkers,’ bill passes, largely because their trade-in does not meet the program’s requirements,” said Jack R. Nerad, executive editorial director and executive market analyst for Kelley Blue Book and kbb.com. “But since more than 10

percent say the program will motivate them to buy a new car sooner, it may result in an increase in new-car sales, and that could do nothing but help an industry in need of some upward impetus.” In addition, the Kelley Blue Book survey found only 36 percent of in-market new-car shoppers were aware of the ‘cash-for-clunkers’ proposal. Of those aware of the bill, 77 percent understood the current terms, namely that the government will provide between $2,000 and $4,500 vouchers to people who will swap out their older model vehicles with poor gas mileage for new, more fuel-efficient models.n

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July 2009

“Cash for Clunkers” is an Environmental Clunker As “Cash for Clunkers” legislation moves closer to becoming law, the unintended negative consequences of this radical bill should be of concern to all Americans. The legislation, which in theory is supposed to be environmentally-friendly, would actually increase the amount of pollution generated for years to come. “’Cash for Clunkers’ is touted as protecting the environment by taking older vehicles off the road and replacing them with new, more fuel efficient vehicles. The reality is that these scrapped vehicles will be heading to landfills. It’s ironic that a proposal designed to reduce pollution will actually further damage the environment,” said Aaron Lowe, vice president of government affairs for the Automotive Aftermarket Industry Association (AAIA). “While the true intention of this legislation is not to protect the environment but to financially stimulate the automobile industry in the short term, the hidden costs of this bill could cause environmental

havoc indefinitely.” The “Cash for Clunkers” amendment, included as part of the American Clean Energy and Security Act of 2009 (HR 2454), states that “For each eligible trade-in vehicle, the title of which is transferred to a dealer under the Program, the dealer shall certify to the Secretary, in such a manner as the Secretary shall prescribe by rule, that the vehicle, including the engine and drive train - i) will be crushed or shredded within such period and in such manner as the Secretary prescribes, or will be transferred to an entity that will ensure that the vehicle will be crushed or shredded within such period and in such manner as the Secretary prescribes; and ii) has not been, and will not be, sold, leased, exchanged or otherwise disposed of for use as an automobile in the United States or in any other country, or has been or will be transferred, in such a manner as the Secretary prescribes, to an entity that will ensure that the vehicle has not been, and will not

be, sold, leased, exchanged or otherwise disposed of for use as an automobile in the United States or in any other country.” “Cash for Clunkers is loaded with so many potholes that the American people will be paying a steep bill both economically and environmentally for a long time,” continued Lowe. “In addition to the wasteful nature of destroying perfectly good vehicles, a tremendous amount of energy and resources will be exhausted to build new vehicles to replace the scrapped ones. Providing incentives for motorists to have their current vehicles maintained for fuel efficiency would be a much better use of federal money that would truly benefit the environment.” Interested parties can send an e-mail in opposition to the Cash for Clunkers program to the Speaker of the House, the Senate Majority Leader and their congressional representatives by visiting www.fightcashforclunkers.org and clicking on “Take Action.”n

“NADA congratulates Rep. Sutton and the House Energy and Commerce Committee on their success in advancing a cash-for-clunkers amendment on the climate change bill. A successful fleet modernization program will provide significant economic and environmental benefits to the nation. “NADA will now work with both

House and Senate leadership to refine the program in order to maximize consumer demand and stimulate new vehicle sales. A cash-for-clunkers program gets gas-guzzlers off the road and replaces them with more fuel economical vehicles. This will help boost auto sales which, in turn, will help revive the overall economy.”n

NADA Applauds Progress of Cash-for-Clunkers Legislation The National Automobile Dealers Association issued the following statement of support from David Regan, NADA vice president for legislative affairs, following the passage of the cash-for-clunkers amendment, sponsored by Rep. Betty Sutton (D-Ohio), during the markup of H.R. 2454, the American Clean Energy & Security Act:

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NADA Statement on GM Dealership Cuts General Motors’ plans to cut its dealer network are drastic and far-reaching and will impact more than 63,000 dealership employees and thousands of their sales and service customers. We view GM’s action with a profound sense of sadness and disappointment.

GM’s decision comes through no fault of the dealers, who are, in many cases, family-run businesses that have been loyal partners with GM – through good times and bad – for multiple generations. NADA fully expects GM to honor all its obligations to the affected deal-

ers, whether or not they decide to wind down their operations. It’s critical for GM to treat each affected dealer fairly and equitably. NADA will work aggressively on all fronts with regard to assisting these dealers during these historically challenging times.n

NADA Statement on Chrysler’s Dealership Reduction Announcement The announcement by Chrysler that it is rejecting 789 of its Chrysler, Dodge and Jeep dealers marks a very sad day in retail automotive history. These dealers and their more than 40,000 employees have done nothing but proudly represent the Chrysler brand through good times and bad, and today find themselves left behind as the company reorganizes itself in bank-

ruptcy court. While NADA understands the realities of the current marketplace, we also know that dealers didn’t cause the situation that Chrysler finds itself in today. Furthermore, we believe that these draconian dealer cuts are not only misguided but counterproductive. Fewer dealers mean less revenue for the automakers. Dealers are the manufacturer’s custom-

July 2009

er; they buy the cars and parts and even the signs in front of their dealerships. NADA fully expects Chrysler to honor all its obligations to the affected dealers who have been nothing but good partners over the years. NADA will continue to work aggressively on all fronts with regard to assisting these dealers during these historically challenging times. n

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I-Car Thanks Volunteers During National Volunteer Week In recognition of their enormous contribution of time and energy, I-CAR asks members of the collision inter-industry to thank the thousands of volunteers who make I-CAR training possible during National Volunteer Week from April 19-25. Established in 1974, National Volunteer Week presents an opportunity to celebrate the ordinary people who accomplish extraordinary things through their volunteer service. As part of its celebration of industry volunteers, I-CAR has launched a volunteer recruitment and training initiative along with a volunteer recognition program in conjunction with the President's Council on Service and Civic Participation. “I-CAR volunteers make a difference in the lives and careers of tens of thousands of collision inter-industry professionals each year through their dedicated service to training and education,” said John Edelen, I-CAR President and CEO. “As we prepare to celebrate volunteerism and inter-industry training at the I-CAR 30th Annual Industry Conference

Southern Automotive Journal

in July, there can be no better way to launch these celebrations than through the recognition of these dedicated interindustry volunteers.” Individuals interested in becoming an I-CAR volunteer, along with those who already give their time to interindustry education, can now participate in a series of I-CAR Volunteer Orientation training seminars designed to improve the volunteer experience and help individuals achieve their personal goals. According to Mike Miller, I-CAR Field Support Manager, “This four-part Volunteer Orientation program will help both new volunteers and our veterans better leverage the time they invest in their local volunteer I-CAR committees. As a training organization, providing these seminars was a natural path to take to improve the volunteer experience.” Information on the I-CAR Volunteer Orientation training seminars including a seminar schedule is available at the I-CAR website by clicking on the Committee/ Volunteers link near the bottom of the home page.

July 2009

I-CAR also announced that it has been approved by the President's Council on Service and Civic Participation to recognize individuals for their volunteerism with the President's Volunteer Service Award. “I-CAR has recognized its volunteers since the organization’s inception nearly 30 years ago,” said Jeff Peevy, I-CAR Director of Field Operations. “Adding the President’s Volunteer Service Award eligibility is an honor our volunteers greatly deserve.” The President's Council on Service and Civic Participation created the President's Volunteer Service Award program as a way to thank and honor Americans who, by their demonstrated commitment and example, inspire others to engage in volunteer service. The President's Volunteer Service Award recognizes individuals, families, and groups that have achieved a certain standard – measured by the number of hours served over a 12-month period or cumulative hours earned over the course of a lifetime.n

Kia Motors’ New Five-passenger Vehicle Offers Consumers A New Way To Roll

Kia Motors America (KMA) rolls out the all-new 2010 Kia Soul urban passenger vehicle onto the streets of Miami, following its recent North American debut during the 2008 Los Angeles Auto Show. Soul stands out from the crowd with modern, unique styling aimed toward the young and young-at-heart. Designed by Kia Motors’ Southern California-based design team, Soul is the newest product offering to join the company’s everexpanding line-up and is currently on sale at dealerships across the United States. “Soul offers the perfect combination of style, value and personalized options,” said Michael Sprague, vice president of marketing, KMA. “It defies categorization and has a long list of features and available accessories that really speaks to today’s consumer.” Available in four trims, Soul, Soul+, Soul! (exclaim) and Soul sport, pricing for the versatile five door will begin at $13,300 for the base trim, while Soul+ starts at $14,950 and tops out at $17,100 when all options are included. Moving up to the Soul! offers a price beginning at $16,950 and peaks at $17,900 with all available options included and the Soul sport, designed for those with active lifestyles, starts at $16,950 and tops out at $18,600 with all available options included.

Soul’s tagline, “A new way to roll,” positions the car as the first of a line of next-generation Kia vehicles set to launch during the next two years. The new ad campaign for Soul also is different from what KMA has done in the past, celebrating how Soul playfully stands out in a sea of sameness. Edgy and Confident Exterior Soul’s low, wide stance is paired with an angled window line, rounded nose and large flared back headlamps, giving it a playful and youthful appearance. With a friendly face and exuberant personality, Soul is perfect for coasting along the beach or cruising downtown city streets, embodying the vehicle’s tagline “A new way to roll.” The beltline rises from the front wheel arch to create a gentle wedge shape and continues under and around the rear side window. The rear is dominated by the vertical rear combination lamps set into the body color panel with clear outer lenses. The body and wheel arch crease line extends around the bumper for a tough, not rough, style matching the look of the front. Offering plenty of standard features, the Soul trim offers a chromeaccented grille, clear lens auto-off headlamps, solar glass, black door handles and side mirrors, body-colored front July 2009

and rear fascias with black inserts, black bodyside molding, rear wiper/washer, variable intermittent windshield wipers and 15-inch steel wheels fitted with P195/65R15 tires. Spacious, State-of-the-Art Interior Inside the cabin is where Soul really shows its power to surprise. For those who want a personal lounge on wheels or an efficient cargo carrier with 14 storage zones, Soul has it covered. While Soul offers a relatively small footprint, it offers a surprisingly spacious interior. Passengers will find comfort in the roomy cabin that offers 40.2/39.6 inches of headroom (front/rear), shoulder room of 55.2/55.1 inches, 42.1/39.0 inches of legroom and a passenger volume of 102.3 cubic feet. All five adult passengers will find ingress and egress simple and effortless, credited to tall doors and a high seating position, and each Soul has its own personality credited to multiple options for interiors with different colors, fabrics and audio system packages available for selection. Soul’s interior design is decidedly influenced by the car’s highly specified audio system. An uncluttered dashboard with a three-dial instrument cluster, LCD Soul Please Turn to Page 19 Southern Automotive Journal

2009 Infiniti Fx Offers Luxury, Performance And Suv Utility, Along With New Advanced Safety Technology Created as a including a beautifully fusion of luxury, performance and the utility of an SUV, it offers head-turning styling and an advanced sports platform, along with a choice of a new 390horsepower 5.0-liter 32valve DOHC V8 engine with VVEL (for Variable Valve Event & Lift) or 303-horsepower 3.5liter 24-valve DOHC V6. Each engine is paired with standard 7-speed automatic transmission featuring Adaptive Shift Control (ASC) and available solid magnesium paddle shifters. The 2009 FX is also offered with available Intelligent All-Wheel Drive, doublewishbone front/multi-link rear suspension and large 4-wheel disc brakes, along with available Continuous Damping Control (CDC) suspension system, RearActive Steer and 21-inch Enkei super lightweight aluminum-alloy wheels. “The Infiniti FX combines sporty performance with the utility of an SUV – an unbeatable combination that we’ve taken to even higher levels with the new second-generation FX design,” said Mark Igo, vice president and general manager, Infiniti. “For 2009, FX continues the technology leadership that was a hallmark of the original, including a new, advanced 5.0-liter V8 design, 7-speed automatic transmission and an incredible array of innovative safety features designed to reduce the stress of everyday driving.” As a showcase of Infiniti’s innovative technology capabilities, the new FX offers a number of available advanced safety systems – including Intelligent Brake Assist (IBA), which provides forward collision warning and automatic emergency braking if a collision with the vehicle ahead is imminent; Distance Control Assist (DCA), which reduces the burden of driving in heavy traffic by intuitively helping to release the throttle and apply the brakes to maintain a safe dis14

Southern Automotive Journal

tance from the vehicle ahead; and Lane Departure Warning/Lane Departure Prevention system, which helps keep the vehicle in its travel lane. Inside, the new FX interior provides a warm, modern, inviting environment highlighted by a driver-oriented cockpit with intuitive controls, available sport seating and advanced audio, navigation and technology ranging from an 11-speaker Boseâ-developed audio system to Infiniti Intelligent Key, available Intelligent Cruise Control (Full Speed Range) and available Around View Monitor system. The all-new FX is available in three models: FX50 AWD with 5.0-liter V8, FX35 AWD with 3.5-liter V6 and, and FX35 RWD with 3.5-liter V6. The all-new FX continues with the head-turning exterior styling and sporty proportions that helped the first-generation FX stand out from all other performance luxury crossovers on the market – a long hood, stretched wheelbase, short front and rear overhangs, and low center of gravity. “The Infiniti FX’s aggressive styling serves notice of its performance underpinnings, yet FX also offers room for five and the cargo capacity to hold four full-size golf bags,” said Igo. “FX proves that utility comes in all shapes, July 2009

elegant one.” For 2009, distinctive side air vents have been added behind the front wheels. Like everything else on the FX, the new side air vents are about function, not mere ornamentation. They allow air to flow through the engine compartment and out the side of the vehicle, reducing front end lift by a full five percent, improving high speed stability. The new FX’s wheelbase has been stretched approximately 1.4 inches, with the front wheels moved forward and out – providing an even more pronounced performance stance. The front end look has also been refined, though it retains the FX’s traditional, lustrous Infiniti signature doublearch front grille, fog lamps and iconic High Intensity Discharge (HID) bi-xenon projector headlights. FX’s aggressive silhouette is once again highlighted by a strong front-torear shoulder line, tight greenhouse, kicked-back roofline and integrated rear spoiler. The large LED taillights extend beyond the body, helping create aerodynamic downforce, while big dual exhaust outlets with chrome finishers cap the action-ready appearance. The coefficient of drag has been lowered to 0.35 (FX35) from 0.37, with the engineers finessing even the smallest details to help manage airflow, including the front bumper sides, rear spoiler angle and, again, taillight shape. Under FX’s polished, assertive styling is an equally advanced body structure. FX utilizes the rigid platform architecture used on the performanceslanted Infiniti G Sedan, G Coupe and M Sedan. The FM platform offers a performance foundation and balanced frontFX Please Turn to Page 21

NADA Chairman Urges Congress to Intervene to Prevent Unfair Treatment of Auto Dealers Bankruptcy courts should not be used to circumvent rights under state laws

to empower GM to do this.” McEleney called GM’s efforts a manipulation of the bankruptcy process to eviscerate the state franchise laws. “State franchise laws inject balance in the inherently one-sided economic relationship between a dealer and the manufacturer and provide consumers a reliable, convenient, and com-

petitive auto retail network,” McEleney added. “The terms of the GM "go-forward" Agreements must be changed. No manufacturer has ever imposed such outrageous terms in dealer operator agreements.” Chrysler and GM have announced plans to terminate 3,400 dealerships, which will affect more than 100,000 employees.n

John McEleney, chairman of the National Automobile Dealers Association, commended a Senate committee for focusing on the unfair treatment of the General Motors and Chrysler dealers. Also, McEleney expressed grave concerns about GM’s plan to require all of its surviving dealers to sign a one-sided, openended operating agreement as a condition for remaining a GM dealer. GM delivered the socalled “Participation Letter,” actually a 24-page binding, legal contract, to all of its Call Steve with 30 Years of GM surviving dealers on Tuesday, Parts Experience June 2. Local 770.274.1131 “If I sign it, I will be Toll Free: committing my business to 1.800.727.5920 STEVE spend hundreds of thousands of dollars that I know GM Exclusise Parts Team e! about today, and coml b ila Direct GM mitting to millions of dolAva w o 706-776-1144 N lars of potential financial Toll Free obligations in the future,” 866-262-7407 DONALD McEleney said. Fax MANAGER Ext. “Also, I will be subject706-776-7398 125 ing my business to sales performance standards that are not specified in the contract. Even worse, GM can alter the JIMMY KEN AJ ROGER terms of these requirements EXT. EXT. EXT. 126 135 123 at any time at its sole discretion. The final blow: I must Direct Conncect Sales for GM - Chrysler -Aftermarket waive any right of protest to any action taken by the manufacturer,” he added. “This is a classic examKELI CHRIS MATT FRANKLIN ANDY LEE DANIEL ARNOLD ple of opportunistic and Local Local Local Local Local Local Local Local 478.971.1379 770.274.1127 overreaching behavior by 770.274.1121 770.274.1130 770.274.1128 770.274.1122 770.274.1123 770.274.1132 Toll Free: Toll Free: Toll Free: Toll Free: Toll Free: Toll Free: Toll Free: Toll Free: the manufacturers that has 1.800.727.5912 1.800.727.4702 1.800.727.5593 1.866.399.4245 1.800.727.5611 1.800.344.9017 1.800.605.9294 1.800.727.5641 FAX prompted the enactment 478.971.8248 Customer Support by the legislatures of all Customer Service Team 50 states of franchise laws governing the relationship between dealers and their manufacturers,” McEleney CHUCK BRENDA AFTERMARKET MANAGER MARKETING MANAGER added. “No other manufacKEVIN CLIFF DAN JIM JERRY turer has forced dealers to sign such an onerous agreement. This is NOT necessary for GM’s viability, and federal funds are being used July 2009

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Soul From Page 13 illumination and floating center stack design is the key visual feature and offers enticing access to the AM/FM/ CD/MP3 audio system outfitted with SIRIUS Satellite Radio capabilities and three months complimentary service. Standard USB and auxiliary input jacks also are in the center console with full iPod® and MP3 controllability via the audio head unit and steering wheel controls achieved with an optional accessory iPod cable. Additional standard interior features that make the Soul stand out from the rest include air conditioning, tilt steering column, power door locks, power windows with driver’s side auto-down, external temperature display and digital clock in the radio, an upper storage bin, dual-level glove box, 12-volt power outlet, rear window defroster, cargo area light and a dome light with delay out. Soul is stylishly appointed with black cloth seats, adding to its comfortable interior. A 60/40 splitfolding rear seat offers multiple seating and cargo arrangements depending on driver and passenger needs. Soul+ offers additional standard features including cruise control with steering wheel-mounted controls, Bluetooth® hands-free connectivity, dual 12-volt power outlets and tweeter speakers, all enhancing creature comforts on the road. Also standard on the Soul+ is a covered upper storage bin, dual visor vanity mirrors with covers and dual map lights, while black cloth seats are adorned with Soul logo inserts, further personalizing the cabin. Advancing to the Soul! adds a leather-wrapped steering wheel and shift knob and carpeted floor mats, combined with unique sand-black cloth interior trim with houndstooth inserts for a

distinguishing Soul style. For the Soul! and Soul sport (and an option for Soul+), a standard Audio Upgrade Package enhances the sound with center speaker, subwoofer, 315-watt external amplifier and speaker lights that pulse to the beat of the music or simply add mood lighting. For those with more active lifestyles

looking for even more exhilaration, the Soul sport offers a sporttuned suspension, metal pedals, unique and bold red-black interior trim with sporty redtrimmed cloth seats and metal-finish interior accents. Unique Platform/Chassis Soul is different, right down to its all-new platform. With its own unique style, Soul features frontwheel drive, a high roofline and wide, distinctive stance. Built with a

wheelbase of 100.4 inches, an overall length of 161.6 inches, an overall width of 70.3 inches and overall height of 63.4 inches, the Soul offers a comfortable interior with roomy seating for up to five passengers. Constructed with more than 70 percent high-tensile-strength steel to enhance structural strength without adding a lot of weight, the allnew, Kia-engineered body achieves high July 2009

torsional stiffness, benefiting handling, ride quality and refinement. Additional measures to help ensure good noise vibration and harshness (NVH) reduction qualities are fitted throughout the Soul, including a thicker dash panel, an A-pillar noise-absorber pad and an optimized exhaust silencer and a vibration-damper. Soul features a fully independent, sub-frame mounted front suspension system with MacPherson struts, coil springs, gas shock absorbers and stabilizer bar designed to maximize the friction between the tires and the road, providing steering stability with responsive handling to offer passengers optimal comfort. At the rear, Soul’s suspension is sub-frame mounted with a transverse torsion beam axle with trailing arms, coil springs and gas shock absorbers for a smooth ride and minimum intrusion into the cargo space. Soul sport models features a unique sport-tuned suspension that includes firmer springs, re-tuned shock absorbers and a larger front stabilizer bar resulting in a lively, more energetic ride. Under-the-Hood Soul offers a smooth and spirited ride. Its 1.6-liter, four-cylinder engine is mated to a five-speed manual transmission, which produces 122 horsepower and 115 pound-feet of torque. For those looking for a little more power, a 2.0-liter four-cylinder engine is available with either the five-speed manual or a four-speed automatic transmission. The latter engine produces 142 horsepower with 137 poundfeet of torque, and is standard on Soul+, Soul! and Soul sport models. Fuel economy for the 1.6-liter manual comes in at an impressive 26/31 mpg (city/highway) while the 2.0-liter offers a thrifty, fuelsipping 24/30 mpg for both the automatic and manual transmissions.n Southern Automotive Journal

Nevada Assembly Considers Salvage Bill That Could Harm Collision Repairers The Nevada Senate passed Nevada Senate Bill 360 earlier this year, which is now being considered by the Nevada State Assembly. S.B. 360 has been amended in the Assembly and if it passes will have to go back to the Senate. The Salvaged Vehicles Act revises provisions governing the sale and title of salvage vehicles. Specifically, this bill: • Authorize s a person other than an auto wrecker, dealer of new or used motor vehicles or rebuilder to obtain an identifying card and bid to purchase a vehicle other than a nonrepairable vehicle from the operator of a salvage pool; • Imposes a fee for the issuance of such a card; • Prohibits a person who obtains such a card from purchasing from the

operator of a salvage pool more than three vehicles in any calendar year; • Increases the period within which an insurance company or its authorized agent must submit an application for a salvage title or nonrepairable vehicle certificate for a salvage vehicle; • Provides a penalty; and • Provides other matters properly relating thereto. The Automotive Service Association (ASA) opposes this bill because it is anti-consumer and not in the best interests of the collision repair industry. Bob Redding, ASA’s Washington, D.C., representative, said of S.B. 360: “This legislation is not helpful to the collision repair industry or to consumers. If it becomes law, the price of a salvage vehicle could increase, pushing

more vehicles into the salvage pool, thus fewer repairs. If passed, we will see more vehicles taken out of the marketplace, which is not good for collision repairers.” Redding goes on to discuss the risks for highways. He said, “There is a risk of vehicles being placed on the road that should not be, without significant inspection and repair. Generally, our state inspection laws are not sufficient to protect the motoring public from these types of transactions. Those in less-developed countries will have even fewer consumer protections.” To see the text of Nevada Senate Bill 360, visit ASA’s legislative Web site at www.TakingTheHill.com. To send a letter to your Nevada legislators, visit www.TakingTheHill.com and click on “View Current Alerts."n

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FX From Page 14 to-rear weight distribution for exceptional handling. Efforts were taken to reduce weight and enhance body strength, including the use of new aluminum outer door panels. The overall FX body structure weighs nearly 200 pounds less than the previous generation FX (overall total vehicle weight is increased, however, due to additional standard equipment). The new FX also utilizes Infiniti’s advanced Scratch Shield paint, a special “self-healing” clearcoat paint that repairs fine scratches, such as fingernail scratches under door handles, over a period of several days, using sunlight to heat the clearcoat, causing small scratches to fill in. Scratch Shield paint is standard for all available exterior colors. The 2009 Infiniti FX’s interior features a command center-style cockpit designed to enhance the driving experience. The available leather-appointed 10-way poweradjustable sports driver’s seat includes variable air-inflating lumber support and available manual thigh extensions. The front passenger seat offers 8-way power adjustments, and both front seats are available with a new quieter, more efficient heating and cooling functions for maximum comfort in any season. Performance has always been the hallmark of the Infiniti FX – both acceleration and braking, along with tight, responsive handling. The 2009 FX ups the standards in all areas. The new Infiniti FX50 model, which replaces the previous FX45, features a dramatic new 5.0-liter V8 engine design rated at 390 horsepower and 369 lb-ft of torque (versus the previous generation FX45’s 320 horsepower and 335 lb-ft of torque). The new engine also offers a high rev limit, a powerful engine sound from a specially tuned exhaust and improved fuel economy versus the previous 4.5liter V8. One of the keys to the new V8’s impressive performance is the adoption of Infiniti’s patented Variable Valve Event

& Lift (VVEL) valve control technology, which was first introduced on the highperformance 2008 Infiniti G37 Coupe. The VVEL system continuously adjusts valve event and lift amounts, enabling higher fuel efficiency with higher torque and improved emissions over conventional variable valve designs. The VVEL intake

camshafts, which feature continuously variable lift control teamed with a Continuously Variable Valve Timing Control System (CVTCS), allow for a 6,800 rpm redline and a high compression ratio of 10.9:1. Only one transmission is offered on the new FX – an all-new 7-speed transmission, the first ever offered on an Infiniti vehicle. This new transmission offers both a wide ratio of coverage and a wide lock-up area, as well as a manual shift mode, Downshift Rev Matching and Adaptive Shift Control (ASC). The standard ASC system adapts the transmission’s shift timing, depending on driving style, ensuring more responsive performance. ASC can switch between several different programs – adjusting gear hold and downshifting, July 2009

helping the FX feel more like a manual shift transmission when desired. FX50 AWD and FX35 AWD models are equipped with Infiniti’s advanced ATTESA E-TSÔ (Advanced Total Traction Engineering System for All Electronic Torque Split) all-wheel drive system, which uses an advanced torque split control strategy that automatically transfers optimum torque to the wheels according to road and driving conditions. The system provides outstanding handling due to optimum torque distribution from front to rear (50:50 up to 0:100). ATTESA E-TSÔ also provides high starting traction performance and smooth, stable acceleration, especially in snow-covered or off-road situations with a 50:50 torque split at standing start. FX offers independent suspension at all four corners, with a new double-wishbone suspension design in front, tailored for FX’s large wheels and tires, yet similar to that utilized on the Infiniti G Coupe and Sedan and Infiniti M sedan. It replaces the previous generation FX’s front struttype suspension and offers better ride and improved handling. FX’s rear suspension utilizes the multilink design from the previous generation, refined to weigh less and provide more wheel travel – again for improved ride and handling. Large diameter stabilizer bars are utilized front and rear. The suspension system also incorporates special “Dual Flow Path” (DFP) shock absorber technology with rebound springs for responsive yet comfortable ride and firm, tight handling. Secure braking performance is provided by the FX’s 4-wheel ventilated disc brakes with Brake Assist (BA) and Electronic Brake force Distribution (EBD). The FX50 system includes 4-piston front/2-piston rear (opposed piston) calipers, similar to those utilized on the new Infiniti G37 Coupe, and large brake rotors (14.0-inch front/13.8-inch rear). FX Please Turn to Page 24 Southern Automotive Journal

VW Factory From Page 7

and providing jobs doesn’t make you a good corporate neighbor. You have to become part of the community. You have to respect and protect the environment. You have to help nurture the next generation. These are the things that Volkswagen is committed to here in Tennessee and throughout America,” added Stefan Jacoby, President and CEO of Volkswagen Group of America. “The American auto industry is wherever Americans -- and especially Tennesseans -- are building cars and trucks,” said Senator Alexander (RTenn.), who, as Tennessee’s governor in the 80s, helped bring the auto industry to Tennessee for the first time. “VW’s new plant in Chattanooga means more jobs, and not just for the plant itself. VW’s investment in the Chattanooga community will serve as a jobs magnet, bringing thousands more auto-related jobs to Tennessee.” Since the beginning of the project, nearly $272 million in local contracts have been awarded by the city, state and Volkswagen; this includes more than $204 million for Volkswagen contractors and subcontractors, with another $230 million over the next 20 years. “With production on schedule, it appears Volkswagen may be timing the market just right. They’re gaining market share and there will likely be pentup demand when the recession comes

to an end. I’m anxious for the day when the first cars roll off the assembly line in 2011,” said U.S. Senator Bob Corker. “Through twists and turns, Chattanooga maintained focus, invested wisely and exercised tremendous effort and energy in recruiting a major employer to our community. Volkswagen has broken an economic barrier in Chattanooga, and today marks another milestone on a path that will take our community, our state, and our region to levels we can only begin to imagine today.” With the construction of the Chattanooga factory, Volkswagen is also assuming special responsibility for the environment. Apart from energysaving ventilation systems which compensate for fluctuations in outside temperature, the production halls will also feature efficient industrial lighting systems with reflectors. Furthermore, Volkswagen is partnering with the state and city to distribute saplings for every tree displaced by the construction of the Volkswagen plant. As part of that commitment, today VWGoA Chattanooga Operations donated 20 saplings to the city of Chattanooga at the wall raising event. Moreover, Volkswagen is making a commitment to the people in the region. At the end of March, Volkswagen already announced it would be participating in the “Partners in Education” program, contributing some $5.3 million over a five-year period. The partners are regional universities as well

as vocational training institutions and local schools. “The first wall of the production facility going up is another sign that Volkswagen is a part of our community and here for the long haul,” said Congressman Zach Wamp. “It is exciting to see a next-generation and environmentally-friendly manufacturing plant being built in the heart of the Tennessee Valley Technology Corridor. At a time when unemployment is rising across the nation, it is encouraging to know this billion dollar investment will continue to create new jobs in our region.” In 2008, the Volkswagen Group produced 6.347 million vehicles worldwide, of which 66.2 percent (4.201 million vehicles) were built outside Germany. The Chattanooga factory will be the 62nd facility in the production network of the Group with its nine brands. The goal of the Volkswagen Group is to triple sales in the U.S. by 2018 under its growth strategy. This strategy is based on the five pillars of product strategy, brand strategy, dealer network, organization and local production. The new strategic orientation coincided with the relocation of the Volkswagen Group of America headquarters to Herndon, Virginia, in early 2008. In spite of the market downturn, Volkswagen grew market share in the first four months of the year by 43 percent.n

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House Subcommittee Holds Hearing on Federal Regulation of Insurance The U.S. House of Representatives Committee on Financial Services’ Subcommittee on Capital Markets, Insurance and Government Sponsored Enterprises recenlty held a hearing that addressed how the federal government should oversee the regulation of the insurance industry. Rep. Paul Kanjorski, D-Pa., subcommittee chairman, opened the hearing with a statement that reflected the growing interest in the federal regulation of insurance. Rep. Kanjorski also indicated that he planned to move quickly on federal oversight legislation for insurers. However, committee member statements clarified that there is limited consensus on how to modernize the U.S. insurance industry. Witnesses at the hearing included: • Baird Webel, specalist in Financial Economics, Congressional Research Service; • Patricia Guinn, managing director, Global Risk and Financial Services Business, Towers Perrin; • J. Robert Hunter, director of insurance, Consumer Federation of America; • Martin F. Grace, James S. Kemper professor, Department of Risk

Management and Insurance, Georgia State University; and • Scott Harrington, Alan B. Miller professor, Wharton School, University of Pennsylvania. Webel’s testimony began with a brief description of the current state of the insurance and financial industries. He then differentiated between life and property/casualty insurance and offered seven options for the federal government’s role in insurance regulation. During his testimony, Webel said, “Property/casualty companies have generally shunned federal aid, with one industry group arguing strenuously that property/casualty insurers typically do not present systemic risk and the federal government should avoid providing assistance to them.” Webel outlined seven current policy options for Congress to consider: • Do Nothing • Create a Federal Office of Insurance Information • Harmonization of State Laws Via Federal Preemption • Create a Federal Systemic Risk Regulator • Create a Federa Solvency Regulator • Establish a Federal Insurance Charter

• Reform the Complete Financial Service Regulatory System Grace, an advocate for federal regulation of insurance, also testified at the hearing. He believes that to have an effective system in current times, the federal government must regulate the insurance industry. He said, “In insurance, the focus of regulation has been on the individual company and not on the group or holding company. This needs to change, at some level, to allow for the proper accounting of systemic risk. A state regulator cannot realistically regulate an insurer for its possible systemic effects on national and international markets especially in situations where the insurer within the state is a separately organized corporation from the corporation which might induce a systemic risk issue.” Moreover, Grace explained that an Optional Federal Charter (OFC) system is outdated because it is based on a structure designed in the 1860s. “Today’s problem is not based on regulation of solvency, market conduct or insurance pricing that have been undertaken by the states. It is, instead, the problem of systemic risk which, for the most part, has not been an issue Insurance Please Turn to Page 28

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FX From Page 21 The new FX includes an array of advanced available technology systems. The Intelligent Brake Assist (IBA) system uses the laser rangefinder from the Intelligent Cruise Control’s (ICC) system and analyzes closing speeds to an obstacle ahead to help prevent or reduce damage caused by a rear-end collision. FX is the only vehicle in its class (besides the Infiniti EX) to have IBA. If a forward collision is imminent with the vehicle in front of the FX and the driver must take immediate avoidance action, the system sounds a warning to prompt driver action. When a rearend collision cannot be avoided by the FX driver’s action, the system activates

Southern Automotive Journal

the FX’s brakes to decelerate the vehicle, thereby helping to reduce damage resulting from the collision. IBA can apply up to 0.5g braking force (1.0g is considered close to the maximum possible braking force). Also available on the FX is a Distance Control Assist (DCA) system. Designed for low-speed, heavy traffic situations, DCA uses the Intelligent Cruise Control sensors to measure distance to the car ahead. The DCA allows one-foot driving in heavy traffic – the driver depresses the accelerator to move forward, but when the car ahead slows, DCA “pushes back” on the accelerator pedal and automatically applies the brakes, even to a stop. The driver then depresses the accelerator to get moving again. DCA will only

July 2009

apply a predetermined amount of brake force. If the closing distance to a vehicle ahead of the FX decreases too rapidly, a warning will sound, alerting the driver to further depress the brakes. The available Intelligent Cruise Control (Full Speed Range) system combines the brakes, throttle sensor and laser rangefinder with the cruise control system to automatically maintain a set distance between the FX and a vehicle in front of it. The system assists the driver with acceleration and deceleration in the low speed range (between 0 and 25 mph), such as when driving in congested traffic and stops the FX if traffic requires. Available on all 2009 FXs is the advanced Infiniti Lane Departure Prevention (LDP) system, which takes Infiniti’s existing Lane Departure Warning system (introduced on the previous generation FX) one step further. LDP utilizes the FX’s Vehicle Dynamic Control system to apply slight brake pressure to the wheels opposite the side of the lane departure direction to help prevent the vehicle from inadvertently traveling out of its intended lane. The Infiniti FX’s Around View Monitor system, first introduced on the new Infiniti EX35, utilizes four small superwideangle cameras – mounted on the front, side and rear of the FX – to project an all-around view of potential objects on every side of the vehicle, helping reduce blind spots when parking. The system uses advanced image processing to provide a unique “Birds-Eye View” of the vehicle, making it easy for the driver to position the FX for parallel parking by simultaneously confirming the exact placement of the front and rear of the vehicle.n

SCRS 2009 Affiliate Leadership Conference to be Held in September With three previous years of rave reviews, the Society of Collision Repair Specialists (SCRS) is pleased to announce the dates of their fourth annual Affiliate Leadership Conference, taking place at the I-CAR World Headquarters in Hoffman Estates, Illinois. Based on feedback and increasing participation of the SCRS’ affiliate associations, the once one-day event has expanded to a two-day series, and is scheduled to run from 10:00 a.m. to 5:00 p.m. on Wednesday, September 16th and 8:00 a.m. to 12:00 p.m. on Thursday, September 17th, 2009. Past Affiliate Leadership Conferences have provided a roundtable-style atmosphere for SCRS’ affiliate associations to discuss the endeavors, challenges and successes made on behalf of their members on the local

level; while simultaneously affording the opportunity to learn from their peers’ activities in other states across the nation. “The initiatives, efforts and perspectives of our affiliate associations have long been the foundation for the work of our organization,” says Aaron Schulenburg, SCRS Executive Director. “The Affiliate Leadership Conference not only embraces those core grass-roots level initiatives by placing them center stage in the event, but we believe those initiatives can be the driver in developing logical and relevant solutions to the issues facing our industry. Growing the conference to include a conclusive work product at the end that is fed by the collective insight of our affiliates will hopefully deliver tangible results back to those 34 affiliates in attendance, and more importantly, to the thousands of individual businesses who continue

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to support these associations in hopes of workable solutions to trying issues.” While the agenda and details of the meeting have not been finalized, the format of the meeting in 2009 will bring much of the same value as previous years, with some exciting new additions to the conference model that will challenge the experience and knowledge brought by the participants to examine a key issue within the industry while looking at model solutions. For information about the upcoming Affiliate Leadership Conference, please contact Executive Director Aaron Schulenburg at (302) 423-3537 or via email at aaron@scrs.com. You may also contact the SCRS administration office at (877) 841-0660 or via email at info@ scrs.com. E-mail address: info@scrs.com • Website:http://www.scrs.com.n

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Southern Automotive Journal

Hayes Chrysler Dodge Jeep Growing Its Aftermarket Collision Parts Business Opens an Additional Distribution Center in Macon Hayes Chrysler Dodge Jeep has been growing its aftermarket collision parts business. March sales were the highest ever followed by another record breaking month in April. This success is in no small part due to the expertise brought to the table by 19-year aftermarket-parts veteran Keli Smith. Joining Hayes Chrysler Dodge Jeep in June of 2008, Smith had worked for Pamona, Calif.-based Keystone Automotive Industries since graduating high school. During those nearly two decades, he developed a solid customer base and business relationships with scores of repair shops in southern Georgia. “I’m hiring you for your aftermarket experience,” Smith remembers being told when he signed on to Hayes. He has more than pulled his weight since joining the Hayes team. Working out of his Macon Office just south of Macon in Byron, Smith continues to service his well-established customer network from Griffin to the Florida state line. His first four months were occupied getting familiar with the Hayes system and moving just aftermarket parts. He took classes in OE parts to get up to speed with that aspect of the business and now handles it all. “I don’t sell to shops that were already being serviced by other Hayes parts people,” He explained. “I concentrate on other shops that I have serviced in the past.” The strategy works.He has made a large contribution to the overall success the aftermarket division of Hayes has recently experienced. When Smith joined Hayes, an outside contractor made the South Georgia

Southern Automotive Journal

deliveries. It was inefficient and customer service was lagging. Shortly after Smith was hired, Hayes hired its own drivers and dedicated a fleet of new trucks to the region. Currently five delivery trucks operate out of a nearby warehouse and service routes throughout lower Georgia. Jerry Busbee and Earl Dorsey handle the outside sales duties, while Smith mans the phones. Smith predicts business will continue to increase. With two days left in May, sales were again on track to set another monthly record.n

Keli Smith services customers from Griffin to the Florida state line.

From Left to Right: Dwayne Brown, Charles English, Bob Fowler, Cathy Evans, Dan Harris, Jerry Busbee, Keli Smith, Larry Anglin, Earl Dorsey

July 2009

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Insurance From Page 23 with the insurance industry. Further, systemic risk is of national scope rather than state,” he said. Hunter, also at the hearing, reiterated the Consumer Federation of America’s (CFA’s) support for the repeal of the McCarran-Ferguson Act. He did outline points for Congress to consider in defense of continued state regulation. He said: • “While the CFA supports a greater federal insurance role, we vigorously oppose an optional federal charter, since such a system cannot control sys-

Southern Automotive Journal

temic risk, has failed miserably in protecting banking consumers and sets up pressures that can only lead to reduced consumer protections through regulatory arbitrage. • “We believe that consumer protection is best accomplished at a government regulatory level close to the people, and we therefore believe that the states should continue to handle consumer protection regulation at this time.” Bob Redding, the Automotive Service Association’s Washington, D.C., representative, said after the hearing, “There are members of Congress who want to help us with the federal regula-

July 2009

tion of insurance and the repeal of the McCarran-Ferguson Act, but collision repairers will have to communicate with their representatives to let them know they support these issues. We encourage collision repairers to join ASA to help advocates for insurance reform succeed.” ASA’s collision members will be on Capitol Hill this summer, asking members of Congress to support the federal regulation of property and casualty insurance and the repeal of McCarran-Ferguson. To participate in ASA’s Capitol Hill Fly-In, visit ASA’s legislative Web site, www.TakingtheHill. com.n

NADA Commends President’s Support for National Fuel Economy Program The following statement from the chairman of the National Automobile Dealers Association, John McEleney, is in response to the White House announcement of a new national fuel economy and greenhouse gas program: “NADA commends President Obama for making the right decision to embrace a federal fueleconomy standard over an unworkable patchwork of state-based laws. NADA is also pleased that the Environmental Protection Agency and National Highway Traffic Safety Administration will use a system based on a vehicles’ ‘attributes,’ such as size and engine type. This will help dealers to have a mix of cars and trucks available on their lots that meet the needs of their customers. “Dealers are also heartened by the President’s intent to have the EPA and NHTSA coordinate their regulatory efforts. Implementation of this next step, however, could turn out to be challenging because these agencies have two very different goals under federal law. NADA is looking forward to hearing more details of how EPA and NHTSA will reconcile their differences and how their program will actually work. “Dealers have long supported fuel economy improvements that are feasible and affordable. NADA will work with both EPA and NHTSA to ensure they fully consider how changes in the nation’s fuel-economy standard will impact jobs, vehicle safety, consumer demand and vehicle affordability. At issue is not whether manufacturers are capable of building cars and trucks that comply, but more importantly, whether the motoring public will want to buy them.”n July 2009

Southern Automotive Journal

Pressured To Perform: GM’s HCCI Engine Technology Delivers Greater Efficiency Without A Spark

General Motors’ initiatives for developing new, fuel-saving technologies have led its engineers to put the squeeze on gasoline – literally. GM’s continuing development of homogenous charge compression ignition (HCCI) is pushing this promising, fuel-saving and emissions-reducing engine technology closer to production reality. An HCCI engine, when combined with other advanced technologies, provides up to 15 percent greater fuel economy than a comparable, non-HCCI engine by radically altering the combustion process. “HCCI delivers enhanced fuel savings without sacrificing the performance consumers have come to expect,” said Prof. Dr. Uwe Grebe, executive director for GM Powertrain Advanced Engineering. “It is a great example of how GM is developing advanced engine technology for consumers that squeezes more miles per gallon of gas and reduces emissions.” In general terms, the heat and pressure within an HCCI engine’s cylinders are used to ignite the air/fuel mixture without the aid of a traditional spark-generated flame – roughly analogous to the combustion process of a diesel engine. Heat is a necessary enabler for the HCCI process, so traditional spark ignition is used when the engine is cold to generate heat within the cylinders and instigate “auto-ignition” of the mixture. More than a laboratory experiment, HCCI has been successfully demonstrated in prototype models in North America and Europe. Last spring, GM took the technology on the road, putting journalists and others in an HCCIequipped Saturn Aura for real-world drives in Los Angeles, Washington, D.C., and New York. The vehicle featured the breakthrough of auto-ignition (HCCI) from idle to 60 mph, which significantly advances the benefits of HCCI and the viability for production. The increase in the HCCI operating range of the prototype vehicle is the result of a patented mixed-mode calibration that includes pre-reacting fuel and exhaust gas in the cylinder to bolster the pressure and heat needed for auto-ignition. 30

Southern Automotive Journal

The advantages and challenges of HCCI HCCI’s efficiency comes from reduced pumping losses, burning fuel

faster at lower temperatures and reducing the heat energy lost during the combustion process. Consequently, less carbon dioxide is released because the engine’s operation in HCCI mode is more

efficient. During HCCI mode, the engine approaches the efficiency of a diesel, but unlike a diesel, it requires only a conventional exhaust system. Diesel engines require more elaborate and more expensive exhaust “aftertreatment” to reduce emissions. The success of HCCI development, to date, is tempered by challenges that must be overcome before it hits the primetime of production. Control of the combustion process over the wide range of operating conditions experienced in everyday driving is the greatest challenge, because unlike a conventional-ignition engine, HCCI’s combustion is not controlled by precisely timed spark events. Ensuring auto ignition at extreme te mperatures and in the thinner air of high altitudes are the tallest hurdles to overcome. “GM’s global HCCI team is working to refine the technology in the wide range of driving conditions experienced around the globe,” said Dr. Grebe. “By combining HCCI with other advanced gasoline engine and control technologies, we can deliver a good fuel savings value for consumers.” n

Volume 13 Issue No. 7 Southern Automotive Journal P.O. Box 675097 Marietta, Ga 30006-0009 (770) 321-9920 E-Mail jtucker@sajonline.net

Jim Tucker Publisher Michele Tucker Editor

Contributors Dennis Martin Ami Vonesh Joyce Ethridge Russ Heaps

Southern Automotive Journal (ISSN: 1092-6321) is published monthly by Southern Automotive Journal Inc. P.O. Box 675097, Marietta, Ga 30006-0009.SAJ accepts no responsibility for the opinions, views statements of the authors or for claims made by advertisers. Views expressed by writers are not necessarily those of the publication. Subscription: $12.00 per year. No representation is made as to the accuracy or the completeness of the information provided by this publication. Entire contents copyright 2009. All rights reserved. July 2009

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