2008 01 08_downturn_ending

HYUNDAIAIMS UP

FIRST LOOK BEFORE AUTO SHOW

DAVID DEWHURST

2009 Hyundai Genesis.

Genesistargetsluxurymarket

KC M Y

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Lutz: Chevy Volt ontrack for 2010 3E

ETuesday, Jan. 8, 2008 Business dept.: 313-222-8765, business@freepress.com www.freep.com Detroit Free Press

The global automotive in-dustry is nearing the end of amassive restructuring periodand now will become more fo-cused on growth, profits andenvironmentally friendly ve-hicles, according to the annu-al Auto Executive Survey byKPMG LLC, to be released to-day.

This year’s survey, basedon interviews late last yearwith 113 senior executives atvehicle manufacturers andsuppliers worldwide, foundexecutives much more confi-dent than in the recent pastabout the outlook for the nearterm.

“Many executives in oursurvey are seeing the light atthe end of the tunnel,” saidDaron Gifford, national auto-motive industry leader forKPMG, an international au-dit, tax and advisory firm.

While not everyone is up-beat, he said the results areclear: “Optimism is on therise.”

While many of the execu-tives surveyed said profitswould remain volatile and un-predictable, 26% anticipatedthat global automotive profitswould rise in the next fiveyears, with just 14% predict-ing a decline.

That is much more opti-mistic than two years ago,when only 16% expected a risein profits, and 19% pre-

Downturnnearing anend, autoreport saysExecs set to lookat growth, profits

By SARAH A. WEBSTER

FREE PRESS BUSINESS WRITER

Of more than 100 automotive executives surveyed by KPMG around the world, most thought the future looked brighter than last year. When asked for their view of industry profits, here is how they replied:

Profitability expectations

Note: Percentages were rounded

Sources: KPMG LLC KOFI MYLER/Detroit Free Press

20072006

26%

26%14%

37% 23%38%16%

19%Will be

volatile and unpredictable

Will generally decline

Will basically be flat

Will generally rise

See AUTO, 2E

Chrysler LLC executives,while touting increased salesoutside North America in 2007on Monday, seemed to down-play recent speculation aboutpotential international part-ners for the Auburn Hills auto-maker.

While its sales in the UnitedStates were down 3% last year,Chrysler saw its sales jump15% outside North America in2007 compared with the previ-ous year, the company an-nounced Monday.

Boosted by double-digitgrowth in expanding markets,such as the Middle East andNorth Africa, Chrysler says itset company records for over-seas sales, selling 238,218 vehi-cles last year.

Worldwide Chrysler salesslipped less than 1% last year,the company said. Chryslersaw sales increase 6% in Cana-da and hold flat in Mexico.

Chrysler is the least globalof Detroit’s automakers. Gen-eral Motors Corp. sold about 5million vehicles overseas lastyear, compared with 3.8 mil-lion in the United States. FordMotor Co., in 2006, sold more

DaimlerChrysler

2007 Jeep Compass. Chrysler says growth in expanding markets, suchas North Africa, helped it set company records for overseas sales.

Chrysler’s overseassales increase 15% U.S. results slip3%; no links set

By TIM HIGGINS

FREE PRESS BUSINESS WRITER

See CHRYSLER, 3E

As it wrestles with a tightcredit market, Delphi Corp. hasturned to a few of its creditorsand shareholders to help thecompany secure a loan that iscritical to its exit from Chapter11 protection.

The Troy-based auto suppli-

er has asked a judge to allowmembers of committees thatrepresent shareholders and un-secured creditors in Delphi’sbankruptcy case to take part ina multibillion-dollar loan thecompany is trying to assemble.

Those committees include atleast two investment firms, acommercial bank and a union.

Although it’s not unheard of,the move is unusual, said RickKruger, an insolvency attorneyat Southfield-based Jaffe RaittHeuer & Weiss.

It is also another example ofthe tight credit market forcingDelphi to make unconventionalmoves in its more than two-yearbankruptcy case.

Delphi last year lowered theloan that it seeks by $2 billion to$6.8 billion, which led the com-pany to eliminate cash payoutsto unsecured creditors.

In a regulatory filing on Mon-day, the company said it wouldfurther reduce that loan be-cause it generated more cashbetween July and December

than expected as of Septemberwhen the company filed its ini-tial plan.

Delphi didn’t disclose howmuch that reduction would be.

Delphi is expected to beginformally seeking investors forexit loans this week, sourcessaid.

A hearing on Delphi’s re-quest to borrow from creditorsand shareholders is slated forThursday. That hearing comes

See DELPHI, 3E

TIGHT CREDIT MARKET MANEUVER

Delphi asks for aid to get Chapter 11 exit loanFirm seeks OK forcreditors to help

By JEWEL GOPWANI

FREE PRESS BUSINESS WRITER

Hyundai GenesisAvailable: Summer 2008Price: Starting below $30,000Engines: 3.3-liter V6; 3.8-liter V6;4.6-liter V8 (all-new for Hyundai).Transmission: 6-speed automaticwith Shiftronic manual control.Features: Soft-touch instrumentpanel with wood-grain accents,Bluetooth hands-free mobile phoneinterface, USB/iPod auxiliary in-puts, Lexicon audio system andsmart cruise control.

By JOE GUY COLLIER

FREE PRESS BUSINESS WRITER

Hyundai

Interior of the 2009 Hyundai Genesis, whichwas made to compete with luxury brands.

See HYUNDAI, 3E

Hyundai Motor Co. released today photos anddetails of the production version of the Genesis, arear-wheel drive sedan the South Korean auto-maker hopes will move the brand upscale.

Hyundai is tagging the Genesis, scheduled tobe shown next week at the North American In-ternational Auto Show in Detroit, as its new flag-ship vehicle with a starting price below $30,000.Hyundai will offer 3.3-liter and 3.8-liter V6 ver-sions and a new 4.6-liter V8 with an estimated369-horsepower engine.

The Genesis, expected to go on sale this sum-mer, pushes Hyundai into new territory, saidJohn Krafcik, vice president of product develop-ment and strategic planning for Hyundai MotorAmerica.

“This car is a very important statement of ourengineering capability,” Krafcik said. “I think it’sgoing to demonstrate to a lot of people really theextraordinary engineering prowess that we’vegot through our worldwide engineering cen-ters.”

Hyundai developed the Genesis against

Auto showdetailsWhat: NorthAmerican In-ternational AutoShowWhere: CoboCenter, DetroitWhen: Media previews:Sunday-Jan. 15Industry days:Jan. 16-17Charity preview:Jan. 18Public days: Jan.19-27Hours: 9 a.m.-10p.m. Jan. 19-26;9 a.m.–7 p.m.Jan. 27More informa-tion: 248-643-0250 orwww.naias.com