Automotive News - July 1, 2019 - 25

JULY 1, 2019 * 25

New technologies called 'profit deserts'
$225 billion coming for electrification
Pete Bigelow

pbigelow@crain.com

DETROIT - Governments and investors are goading automakers to invest hundreds of millions of dollars in
new technologies that don't yet pay for
themselves - "profit deserts" is what
Mark Wakefield, co-leader of the global automotive and industrial practice
at AlixPartners, called them.
And it's going to get harder to
stomach those investments as the
industry faces lackluster demand in
key markets.
Automakers will pump approximately $225 billion into electrification
over the next four years, according to

the consulting firm's projections.
Those investments will come at the
same time that AlixPartners anticipates
a decline in overall sales and rising
costs that further erode profitability.
"It's creating near-term profit deserts for industry, while regulatory
pressure is applied to the supply
side," said Wakefield, who spoke at
an Automotive Press Association
event here last week. "You have to be
able to invest through this valley to
get to the other side and be capable
of weathering a cycle."
Electrification isn't the only major
r&d initiative. Investments in automated-driving technology are on pace to

D E A L E R S

there for this first and secreach $85 billion through
ond generation. It's a real
2025. Combined, those inchallenge."
vestments won't do anything
There already are diminto boost bottom lines in the
ishing returns on capital
near term, Wakefield said.
employed. Wakefield said
Electric vehicle sales volreturns "dropped to nearume, Wakefield says, will reGreat Recession levels" last
main low, averaging just
year - 1.5 percent in the
14,000 units sold per EV Wakefield: EVs
Americas and slightly negmodel through 2022. That's a to cost dealers
ative in China.
far cry from what automakAt the same time automakers eners expect from traditional vehicles.
"It's rare that anyone ever is betting dure a long-term wait for returns on
on this low volume," he said. "So investments, they may find challengeven as you see this increase in bat- es at the core of the industry.
tery-electric penetration, basically Light-vehicle sales, the firm projects,
that line doesn't move. There's this will shrink to 15.1 million in the U.S.
pileup of investment going into EVs in 2021 before beginning a modest
and the actual returns not being rebound and returning to today's
LEGAL NOTICE

IF YOU PURCHASED RADIATORS IN THE UNITED STATES DIRECTLY FROM ANY OF
THE ENTITIES IDENTIFIED BELOW FROM JANUARY 1, 1998 THROUGH AUGUST 14,
2018, YOUR LEGAL RIGHTS MAY BE AFFECTED BY PROPOSED SETTLEMENTS WITH
THE MITSUBA, DENSO, CALSONIC AND T.RAD DEFENDANTS
Proposed settlements totaling approximately $6.24 million
have been reached in In re Automotive Parts Antitrust Litigation,
Master File No.12-md-02311, 2:13-cv-01001, 2:17-cv-13147
(E.D. Mich.), with the MITSUBA, DENSO, Calsonic and
T.RAD Defendants (collectively, the "Settling Defendants").
What is the lawsuit about? This class action is part of
coordinated legal proceedings involving Radiators purchased
in the United States directly from a Defendant (as defined
below). These proceedings do not relate to, and have no effect
upon, cases involving any other product.
The term "Radiators" is defined in each of the settlement
agreements, but generally refers to devices that help to
prevent automotive vehicles from overheating and include
radiator fans.

75 with Ford
Joe Bob Kinsel Jr., third from left, chairman of Kinsel Ford-Lincoln in
Beaumont, Texas, and Craig Kinsel, right, president, receive a 75-year
award for Ford from Kevin McGuirk, left, and Larry Gach of Ford Motor
Co.'s Houston region.

Dealer anniversary awards

30 with Acura

Submissions
We invite news items and topquality photographs.
Photos for 25-45 years should have
only two people posed shoulder to
shoulder. Photos for 50 or more years
should have no more than six people.
Please tell us names (left to right),
titles, dealership name and city,
franchise(s) held and franchise for
which award is given.
You may email a photo in jpg format
and at high resolution (300 dpi) to
autonews@crain.com.

Hunter Hale, right, COO of Gunn
Acura in San Antonio, receives a
30-year award from Jon Ikeda,
American Honda Motor's Acura vice
president.

Custom framing
To request a custom framing of your
milestone announcement, contact
Lauren Melesio at 212-210-0707 or
lmelesio@crain.com.

DEALERSHIP BUY/SELL
Summit/Home Run
BUYER: Summit Automotive
SELLER: Home Run Auto Group
OLD NAME: Beaver Dam Ford in
Beaver Dam, Wis.
NEW NAME: Summit Ford
MORE: Von Briesen & Roper
advised the buyer in this
transaction.

Prime/Gallery
BUYER: Prime Motor Group
SELLER: Gallery Automotive Group
MORE: Gallery sold six stores to
Prime in the Boston area: BMW
Gallery Norwood, South Shore
BMW, Honda Gallery, Mazda
Gallery, South Shore Mini and
Volkswagen Gallery. The stores are
now called BMW of Norwood, South
Shore BMW, Prime Honda - Boston,

You may submit information about
a dealership acquisition on our
website at autonews.com/
buysellsubmit.
South Shore Mini, Prime
Mazda - Norwood, and Volkswagen
of Norwood. Haig Partners advised
the seller. Gallery Automotive
Group is a subsidiary of Marubeni
America Corp.

Hoar/Racine
BUYER: Brian Hoar
SELLER: Michael and Doug Racine
OLD NAME: Willie Racine's Jeep in
South Burlington, Va.
NEW NAME: Goss Jeep
MORE: Nancy Phillips Associates
advised the buyer and the seller in
this transaction.

levels in 2025. Meanwhile, the
breakeven point will continue a rise
from 10 million vehicles in 2010 to 15
million this year, the firm says.
There are some signs consumer acceptance of EVs is rising: In a May survey of more than 1,000 customers
across the globe, 17 percent told the
consulting firm they'd pay a $10,000
premium for a battery-electric vehicle.
But dealers will join the ranks of the
disappointed as EVs grow in popularity, he said. EVs require less service, and
dealers stand to lose $1,300 per vehicle
in service-and-parts revenue over the
first five years of a vehicle's life.
"This doesn't become a big deal in
the near term," Wakefield said.
"Eventually, it's a big deal." a

Direct Purchaser Plaintiff ("Plaintiff") alleges that
Defendants conspired to raise, fix, maintain, and stabilize
prices, rig bids, and allocate the supply of Radiators sold in the
United States, in violation of federal antitrust laws. Plaintiff
further alleges that as a result of the conspiracy, it and other
direct purchasers of Radiators were injured by paying more
than they would have paid in the absence of the alleged
illegal conduct.
Plaintiff has reached settlements with the MITSUBA
Defendants, DENSO Defendants, Calsonic Defendants and
T.RAD Defendants totaling $6,240,956. Under the terms
of the proposed settlements, MITSUBA will pay a total of
$2,060,956, DENSO will pay a total of $100,000, Calsonic
will pay a total of $1,980,000, and T.RAD will pay a total
of $2,100,000 (the four settlement funds are collectively
referred to as the "Radiators Settlement Fund"), and each of
the Settling Defendants has agreed to provide cooperation
to assist Plaintiff with the prosecution of claims against any
remaining Defendants.
Who is included? The Court has preliminarily approved,
and has provisionally certified the MITSUBA, DENSO,
Calsonic and T.RAD Settlement Classes. You are a member
of one or more of these Settlement Classes if you purchased
Radiators in the United States directly from any of the following
entities (or depending on the specific settlement agreements,
their parents, subsidiaries, affiliates or joint ventures, each a
"Defendant") during the period from January 1, 1998 through
August 14, 2018: MITSUBA Corporation; American Mitsuba
Corporation; DENSO Corporation; DENSO International
America, Inc.; DENSO Products & Services Americas,
Inc. (f/k/a DENSO Sales California, Inc.); Calsonic Kansei
Corporation; CalsonicKansei North America, Inc.; T.RAD Co.,
Ltd.; T.RAD North America, Inc.; Japan Climate Systems Co.,
Ltd.; Sanden Corporation; Valeo S.A.
A Notice of Proposed Settlements and Claim Form (the
"Notice") was mailed to potential MITSUBA, DENSO,
Calsonic and T.RAD Settlement Class members on or
about June 27, 2019. The Notice describes the litigation and
options available to Settlement Class members with respect
to the MITSUBA, DENSO, Calsonic and T.RAD settlements
in more detail. If you did not receive the Notice you may
obtain a copy on the internet at www.AutoPartsAntitrust
Litigation.com/Radiators, or by calling or writing to any of the
following Settlement Class Counsel:
Gregory P. Hansel
PRETI, FLAHERTY, BELIVEAU & PACHIOS LLP
One City Center, P.O. Box 9546
Portland, ME 04112-9546
Telephone: (207) 791-3000
Joseph C. Kohn
KOHN, SWIFT & GRAF, P.C.
1600 Market Street, Suite 2500
Philadelphia, PA 19103
Telephone: (215) 238-1700
Steven A. Kanner
FREED KANNER LONDON & MILLEN LLC

2201 Waukegan Road, Suite 130
Bannockburn, IL 60015
Telephone: (224) 632-4500
Eugene A. Spector
SPECTOR ROSEMAN & KODROFF, P.C.
Two Commerce Square
2001 Market Street, Suite 3420
Philadelphia, PA 19103
Telephone: (215) 496-0300
What do the settlements provide? MITSUBA, DENSO,
Calsonic and T.RAD have agreed to pay a total of $6,240,956
to settle the Class Members' claims against them. As part of
the settlements all of the Settling Defendants have agreed to
provide cooperation in the prosecution of claims against any
remaining Defendants.
Your rights may be affected. If you are a member of any
of the MITSUBA, DENSO, Calsonic or T.RAD Settlement
Classes you will automatically remain a member of those
Settlement Classes unless you elect to be excluded. If you
wish to remain in a Settlement Class, you do not need to take
any action at this time and your interests will be represented
by the Class Representative and by Settlement Class
Counsel. In order to share in the proceeds of any of the
MITSUBA, DENSO, Calsonic and/or T.RAD settlements,
however, you must complete and timely submit a copy of
the Claim Form that was mailed to potential Settlement
Class members along with the Notice. Any Claim Form
submitted electronically must be submitted on or before
October 18, 2019. Any Claim Form submitted via mail
must be postmarked on or before October 18, 2019.
If you wish to exclude yourself from any or all of the
MITSUBA, DENSO, Calsonic or T.RAD Settlement Classes,
you must send a request for exclusion, in writing, by certified
mail, return receipt requested, postmarked no later than
August 16, 2019, in accordance with the procedures set forth
in the Notice. If you validly exclude yourself from any or all
of the MITSUBA, DENSO, Calsonic or T.RAD Settlement
Classes, you will not be bound by any decision concerning that
settlement class and you can pursue individually any claims
you may have against that Defendant (at your own expense),
but you will not be eligible to share in the settlement proceeds
attributable to that Defendant.
If you remain a member of the MITSUBA, DENSO,
Calsonic and/or T.RAD Settlement Classes, you have the right
to object to that proposed settlement, or to the proposed plan of
distribution of the Radiators Settlement Fund, or to Settlement
Class Counsel's requests for an award of attorneys' fees and
litigation costs and expenses, and an incentive payment to the
Class Representative, by following the procedures set forth
in the Notice. Your objection must be filed no later than
August 16, 2019.
The Court has scheduled a hearing on October 3, 2019,
to consider whether to approve: the proposed settlements;
the proposed plan of distribution of settlement funds; and
Settlement Class Counsel's requests for an award of attorneys'
fees and litigation costs and expenses, and an incentive payment
to the Class Representative. The hearing may be continued
without further notice to you.
If you believe you are a member of any or all of the
MITSUBA, DENSO, Calsonic or T.RAD Settlement Classes,
you are urged to obtain a copy of the Notice, which explains
your rights regarding the settlements and related matters.
If you have questions concerning this litigation, you may
contact any of the Settlement Class Counsel identified above.
Do not contact the Clerk of the Court or the Judge.
Dated: July 1, 2019
BY ORDER OF:
The United States District Court for the Eastern District of
Michigan, Southern Division

http://www.AutoPartsAntitrustLitigation.com/Radiators http://www.autonews.com/buysellsubmit http://www.autonews.com/buysellsubmit http://www.AutoPartsAntitrustLitigation.com/Radiators http://www.AutoPartsAntitrustLitigation.com/Radiators

Automotive News - July 1, 2019

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