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Summit Notebook

Exclusive outtakes from industry leaders

November 3rd, 2009

AUDIO - Mornings with Ron: A Reuters Autos Summit tradition

Posted by: Patrick Fitzgibbons

A few years ago, there was a book out called “Tuesdays with Morrie.” At Reuters, though, we spend our Tuesday mornings during Auto Summits with Ron.

It wouldn’t be a Reuters Autos Summit without our yearly visit from United Auto Workers head Ron Gettelfinger … at the crack of dawn.

Gettelfinger is not one to loaf around and show up at our summit at a leisurely hour of, say, sometime after the sun rises. Oh no. Gettelfinger was scheduled to kick off our Tuesday slate of guests at 7:00 am. But by now we know better.

In fact, when coming into the building this morning sometime after 6:00 am, Gettelfinger was already in the lobby of the Detroit Chamber of Commerce building doing a radio call-in program on his cell phone.

The sun would rise shortly thereafter.

But despite the hour, Gettelfinger is always an interesting person to interview, as he has his eye on all parts of the autos industry. And he didn’t disappoint this year, either.

After a year like this has been, there is a tendency to want to sit back a little and let all of the seismic events sink in. But Gettelfinger sees the real challenges to the autos industry to be down the road.

 (Click here to hear Ron Gettelfinger’s comments)

New technologies, new hiring patterns and new financings will all be the order of the day for the next 10 years. So while this has been a rough-and-tumble year, the fun hasn’t ended yet, he suspects.

The Reuters Autos Summit runs through Thursday in Detroit and Paris and features a global slate of guests from the big manufacturers, dealers and suppliers.

November 3rd, 2009

AUDIO - Commercial real estate: The auto industry’s next big (bad) thing

Posted by: Patrick Fitzgibbons

The U.S. auto industry has had one heck of a year.

Sales have fallen off, credit has been pretty much nonexistant and two of the major U.S. automakers were bankrupt. Other that all that, things were fine.

But Bill Diehl, chief executive of advisory firm BBK, said at the first day of this year’s Reuters Autos Summit, that one of the main concerns for 2010 (if it’s not THE main concern) is the industry’s overall exposure to commercial real estate.

We have been hearing about the problems with commercial real estate in many other sectors of the U.S. economy and Diehl gave the strongest statement so far about the auto side.

(To hear Diehl\’s comments, please click here)

The Reuters Autos Summit continues through Thursday in Detroit and Paris.

November 3rd, 2009

Diehl: Ford & UAW need to “work at it” a little more…

Posted by: Ruben Ramirez

William Diehl, chief executive of advisory firm BBK says Ford and the United Auto Workers union need to work a little harder to come to some sort of agreement that puts the automaker on a more level playing field with its rivals. Click here to listen to what he had to say at the 2009 Reuters Autos Summit.

Diehl on Ford-UAW contract talks from Reuters TV on Vimeo.

November 2nd, 2009

AUDIO - The ‘new normal’ for the U.S. auto industry

Posted by: Patrick Fitzgibbons

A few years ago, one of the guests at our annual Reuters Autos Summit — Tom Stallkamp from Ripplewood — pretty much stopped everyone dead in their tracks by predicting that auto sales in the United States was likely to fall to an obscenely low level of 14.5 million.

Those were the days.

Of course, Stallkamp was making that prediction at a time when U.S. car manufacturers were selling in the neighborhood of 16 to 17 million a year. If the number hits 14.5 million in 2010, people will be wild with enthusiasm as most now expect something in a range of 10 to 11 million.

That would be about flat to a little higher than sales this year.

On the first day of Reuters annual sojourn to Detroit for the Reuters Autos Summit, defining what the “new normal” is going to be for everything about the auto industry is much on everyone’s mind. What will happen with the big manufacturers, the dealerships, the suppliers.

It’s a lot to assess all at once.

Bob Carter, head of Toyota’s U.S. operations kicked things off for the summit by talking about what he sees for the coming year.

The Reuters Autos Summit runs through Thursday in Detroit and Paris. For an audio clip of Carter’s comments, please click this link (Toyota’s Bob Carter at the Reuters Autos Summit).

May 20th, 2009

Yahoo cedes search game to Google, for now

Posted by: Eddie Chan

(Updated with more quotes)

If you’re losing the game, time to change the playing field. Yahoo is counting on exactly that.

Ari Balogh, Yahoo’s chief technology officer and product development czar, would be among the first to admit that Google reigns supreme in the search space.

“Search the way we know it, with 10 blue links, Google has clearly won that game. Saying anything other than that is just not stating the fact,” he told the Reuters Global Technology Summit.

But Balogh says that doesn’t mean Yahoo is giving up. Inviting comparisons to the automobile industry, now infamous for bankruptcy, ballooning debt and clunky design, Balogh says innovation in search is only just beginning, and it’s too early to declare a winner yet. Ford and its Model T was once the pre-eminent mass-consumer vehicle, but today the once mighty Detroit giant — the only one of the surviving Big Three that doesn’t appear to be flirting with corporate failure — has to fend off the likes of Toyota and Hyundai.

What’s important to understand though is this really is like the auto industry in 1910….At that time, in 1915 or 1920, it sure looked like it was going to be Ford.

Because of the rapid innovation that’s going on, because if you look at that search page, it is an anachronism. When has advertising ever been so ugly in the last 10, 15 years? When has the onus of sorting through a pile of stuff, that much of a pile of stuff, ever fallen on people to do themselves?

There is a long way to go.

So what will the next generation of search tools look like? Balogh says:

There will always be a search kind of like the 10 blue links, but how important that’s going to be in the 3.0, 4.0 versions of where the Web’s going really remains to be seen.

I believe search is going to be far richer. Search is going to be about getting that relevance in that intent flow — whatever it is you’re trying to do. And there’s a whole other round or two to go in the search game and that’s where we intend on playing.

Where else is Yahoo lacking? In social networking, Balogh says. But Yahoo is now ramping up both its look and its usability, focusing on helping users connect with news, with other people, and otherwise get things done.

That will entail remodeling its front page continuously, launching new features from fantasy sport applications to programs that aid movie selections, and making them useable on both the cellphone and the computer. The first features will be trotted out in the summer, Balogh says.

“We’re going for the long play here.”

February 23rd, 2009

AUDIO - For the automakers — No Chapter 11, please

Posted by: Patrick Fitzgibbons

The plans are in.

Now comes the waiting, which, as Tom Petty can tell you, is the hardest part.

Now that General Motors Corp and Chrysler LLC have filed their plans of reorganization to the U.S. government and have started what looks like a long and not-painless process to make themselves smaller, more profitable and better suited to the current U.S. demand for new cars.

For Bill Diehl, chief executive of manufacturing consulting firm BBK, one thing that he would not favor would be a Chapter 11 bankruptcy filing by one of the two troubled automakers.

Diehl, speaking at the annual Reuters Manufacturing and Transportation Summit, said it is unclear to him how the automakers would get through what would be a particularly tricky process of trying to reorganize themselves under Chapter 11.

The Reuters Summit program is in its fifth year, and in 2009 will include top-level executives from  industries and sectors including everything from Infrastructure; to Mining; to Investing in India, China, Japan and Russia; to Food and Beverages.