1. 8B WWW.FREEP.COM SUNDAY, JAN. 8, 2012
When Mike Jackson talks, auto
CEOs listen.
There are two reasons. First,
he’s their largest customer. As
CEO of AutoNation, Jackson sees
what’s hot and what’s not across
more than 250 dealerships in 15
states.
Second, he’s not afraid to speak
inconvenient truths.
During the 2009 bankruptcies
of General Motors and Chrysler,
Jackson, 62, became one of the
people President Barack Obama’s
auto task force asked how to re-
structure the two automakers.
In short, Jackson argued that
they were building more cars than
consumers wanted, then slashed
their own profit margins to move
bloated inventory. He urged that
all manufacturers produce fewer
vehicles and secure a high enough
price on new vehicles to cover the
cost of technology, creature com-
forts and other gadgets they put
into their products.
That’s helped boost profit mar-
gins for automakers and dealers.
But why is that good for con-
sumers? Rebates, no-interest
loans and subsidized leases may
have cut into automakers’ profits,
but they sure worked for consum-
ers.
“Here’stheironyI’veseenplay
out a million times on showroom
floors,” Jackson said. “When you
have a mismatch between what
has been produced and what the
customer wants, the only way you
fill that gap is with a lower price.
Youmakethesale,butthecustom-
er is not convinced that for what
they paid that he got value that is
sustainable.”
AutoNation has worked to sim-
plify the process of selecting and
financing a new vehicle.
Ratherthanconfusecustomers
with multiple types of loans and
add-on financial services that are
of dubious benefit, AutoNation
has tried to remove complexity
and add transparency in explain-
ing loan and lease terms.
Jackson, a Philadelphia native,
started his industry career as a
technician at a Mercedes-Benz
dealership in Cherry Hill, N.J.
“When I graduated from col-
lege, I bought an old Mercedes, a
1959 190SL. It broke down after a
month,” Jackson said. “So I got a
job in the service department at a
dealership, sweeping the floors, in
exchange for them to fix my car.”
He planned to go to law school,
but changed plans when he be-
came fascinated with the car busi-
ness. In 1974, Jackson became a
technical specialist, traveling to
Mercedes-Benz dealerships
throughout the country to help
mechanicsresolvetechnicalprob-
lems. In 1979, he teamed up with
several investors to buy the Be-
thesda, Md., dealership where he
had swept floors to pay for repairs
on his ’59 190SL.
From1997to1999,hewaspresi-
dent of Mercedes-Benz USA, the
job he held just before AutoNation
founder Wayne Huizenga hired
him to lead the Ft. Lauderdale,
Fla.-based retailer.
National retail
AutoNation CEO has industry’s ear
250 dealerships in
15 states give clout
By Greg Gardner
Free Press Business Writer
2006 PHOTO BY AMY LEANG/DETROIT FREE PRESS
AutoNation CEO Mike Jackson advised the auto task force in 2009.
Like the turbochargers it makes,
BorgWarner is revved up.
The Auburn Hills-based auto sup-
plier produces engine and transmis-
sionpartsthathelpmakecarsmoreen-
vironmentally friendly.
“Our mission is focused on improv-
ing fuel economy, lowering emissions
and at the same time improving vehi-
cle performance,” said Chairman and
CEO Tim Manganello.
It’s outpacing the industry. Accord-
ing to the company, BorgWarner sales
are growing at an annual rate of11.6%,
well ahead of industry trends. Engine-
related components account for 72%
of sales, and drivetrain-related tech-
nology generates the other 28%. The
federal government’s new Corporate
Average Fuel Economy (CAFE) stan-
dards, which are requiring automak-
ers to aggressively improve fuel effi-
ciency over the next15 years, are driv-
ing demand for nearly all of Borg-
Warner’s products. The challenge is to
downsizeengineswithoutcuttingtheir
performance and fun-to-drive appeal.
Manganello said customers are
choosing more four-cylinder turbo-
charged engines in small and midsize
vehicles that may also offer a V6 op-
tion. Other buyers are selecting V6s on
sports cars, pickup trucks and SUVs
that five years ago may have offered
only a V8 engine.
BorgWarner also makes dual-
clutch transmission modules, engine
timing systems, exhaust-gas recircu-
lation systems and actuators and ac-
tively controlled all-wheel drive cou-
plings.
Manganello predicts $2.5 billion of
net new business in 2012 through 2014,
a 9% increase over the previous three-
year period. About 80% of that would
be overseas.The company has focused
on delivering leading technology, di-
versifying its customer and geograph-
ic base and financial discipline. With
about17,500employeesin19countries,
BorgWarner serves all the major auto-
makers, but VW-Audi, with 15% of
sales, and Ford, with 8% of sales, are
its two largest customers.
“Our vision is to be the technology
leader in powertrain solutions,” Man-
ganello said.
Judges unanimously agreed to
move BorgWarner, which wasn’t nom-
inated in this category, after it placed
No. 2 in the Engineering & Technology
category and Manganello placed sec-
ond in the Executive Leadership cate-
gory.
❚ CONTACT ZLATI MEYER: 313-223-4439 OR
ZMEYER@FREEPRESS.COM
ROMAIN BLANQUART/DETROIT FREE PRESS
BorgWarner CEO Tim Manganello
Suppliers
BorgWarner
growth is
outpacing
the industry
Auburn Hills firm focuses
on engine improvements
By Zlati Meyer
Free Press Business Writer
FREE PRESS AUTOMOTIVE LEADERSHIP AWARDS
Ed Welburn has led General
Motorsdesignfromirrelevanceto
greater influence and respect
than it has enjoyed in decades.
Along the way, the 61-year-old
designer helped create distinctive
new looks for Buick, Chevrolet
and Cadillac and forged GM’s de-
sign operations around the world
into a cohesive team for the first
time in the automaker’s history.
”He has truly taken GM design
from lackluster back to glory,” re-
tired GM Vice Chairman Bob Lutz
said. Lutz made restoring GM de-
signtogreatnesshisprioritywhen
he joined the company in 2001. He
called the job search that led to
Welburn becoming GM design
chief in 2003 “the crowning
achievement” of his career.
Designs created under Wel-
burn’s leadership have re-estab-
lished Buick’s prestige, launched
Chevrolet’s global expansion and
netted awards for everything
from luxury cars to midsize se-
dans and sport coupes.
Welburn’s biggest challenge at
GM may have been clearing a
space within the organization
where the designers could create
beautiful vehicles unimpeded by a
stodgy and risk-averse organiza-
tion.
Heestablisheddesignasalead-
ing voice in GM product develop-
ment, reinstating a hierarchy that
dates to the legendary Harley
Earl, who started GM on the road
todecadesofglobaldesignpreem-
inence.
Born in Philadelphia and edu-
cated at Howard University in
Washington, D.C., Welburn knew
what he wanted to do at an early
age.Hisfatherandunclesowneda
body shop, where Ed developed an
appreciation for automotive de-
sign. He and his dad would spend
hours drawing cars of vintage de-
sign, with Welburn tracing over
thesketcheshisfatherhaddoneof
1930s Duesenbergs and similar
classics.
Self-promotion is as much a
tool of many automotive design-
ers as their computers and clay
models,butthesoft-spo-
ken Welburn projects a
rare humility. He al-
wayspromotestheteam
more than himself.
“When I joined GM I
just wanted to design
cars. I didn’t know I
would be in charge of
designing cars,” he said
in a recent interview.
Welburn gets as
close to boasting as his
nature allows when he
talks about how design-
ers and studios within
the organization have
grown. He’s particular-
ly proud of how GM de-
sign created a coherent
global look for Chevro-
let, and the fact that stu-
dios in Asia understand
it and are as capable of
creating authentic
Chevrolet designs as
the team at GM’s design
studios in Warren.
“He’s an excellent coach and
mentor to the legions of young de-
signerswhichwillhaveevenmore
of an impact on the company down
the road than the fantastic work
he’s leading now,” Lutz said.
Welburn travels tirelessly to
GM studios around the world, but
it was a point of pride with him to
fly commercial long before GM
grounded its corporate jets.
EMILE WAMSTEKER FOR CHEVROLET
GM Vice President for Global Design Ed Welburn and the original Chevy Corvette.
Design
New looks, new influence
SOFT-SPOKEN CHIEF WELBURN RESTORES GM UNIT TO PROMINENCE
By Mark Phelan
Free Press Auto Critic
The following judges evaluat-
ed the nominees for the Detroit
Free Press Automotive Leadership
Awards. They were divided into
three groups, and each group
was responsible for selecting
winners in multiple categories.
TEAM ONE
Tom Walsh is the Free Press
business columnist.
John McElroy is a veteran
automotive journalist, president
of Blue Sky Productions, host of
Autoline Daily and blogger for
AOL Autoblog.
Kim Korth is CEO and president
of Supreme Industries and Su-
preme Indiana, and she is found-
er and president of International
Resource Network.
Michael Omotoso is senior
manager of global powertrain at
J.D. Power & Associates. Before
joining J.D. Power, he was a
senior market analyst at TI
Automotive.
Mary Petrovich is a former CEO
and chairman of AxleTech In-
ternational. She is senior adviser
to the Carlyle Group’s industrial
and transportation group.
William M. Perkins is the
owner of Taylor Chevrolet in
Taylor and Merollis Chevrolet in
Eastpointe. He also is chairman of
the 2012 North American In-
ternational Auto Show.
TEAM TWO
Sarah A. Webster is a former
Detroit Free Press business and
automotive editor who is now
the editor in chief of Manufactur-
ing Engineering magazine, a
publication of the Society of
Manufacturing Engineers.
Bud Liebler is a former senior
vice president of communications
at Chrysler, president of the
Liebler Group and owner of the
Whitney, the iconic Detroit
restaurant and mansion.
Dale Phillips is an adjunct
professor at Central Michigan
University who worked for
General Motors for more than 35
years.
Debbie Dingell is chairwoman
of the manufacturing initiative of
the American Automotive Policy
Council, a member of the Wayne
State University Board of Gover-
nors, former General Motors
executive and wife of U.S. Rep.
John Dingell, D-Mich.
Jean Halliday is a veteran
automotive journalist and former
Detroit bureau chief for Ad-
vertising Age and AdWeek
magazines.
Michael Bernacchi is a market-
ing professor at the University of
Detroit Mercy.
TEAM THREE
Mark Phelan is the Free Press
auto critic.
Anne Doyle is a leadership and
communications strategist with
three decades of news media,
business and political credentials
to support her consulting work
with executives, visionary organi-
zations and emerging leaders.
She is the author of “Powering
Up: How America’s Women
Achievers Become Leaders.”
Imre Molnar is dean of the
College for Creative Studies and
former design director for Patago-
nia, the international outdoor
clothing retailer.
Keith Cooley is president and
CEO of Principia, a crisis-manage-
ment consulting business.
Richard Ruzzin is a former GM
designer who at various times
influenced the styling of vehicles
sold under the Chevrolet, Cadil-
lac, Opel and Saab brands.
Jim Seavitt is owner of Village
Ford in Dearborn. He also served
as president of the Detroit Auto
Dealers Association for 2010-11.
A look at the judges