>> hello, and welcome to the of "autoline" coming to you from the floor of orsgo coming to the showtroit. was like going to a funeral. everybody knew things were going to get bad and there was doom and gloom that permeated the show. lasteath welad to be here, but she shocked,

is yr,ou can't believe the. vibrancy at the auto show. we have four terrific interviews lined up for today's show ti with adrian hallmark, ne u james kamsicksa. next up after that, scott son om the ford motor company and then tom doll, executive vice president of subaru of america. we'll beigacfter this. >> from the north american auto show in downtown detroit, michigan, here n is john mack jn mcelroy. here we are now with adrian hallmark, the global brand director for jac jaguar.

great to have you. >> great to be here. >> what is the feeling within jaguar with the new owners? >> if you look backoue years, ford and the company put a lot into the brand, no question about that. stikma of these buyouts, the question is, how can they make it work if theyidt? the view is that as a company, we know what we need todoo be successful -- we think we do. we have the funding to do it. we have an agreement with the unions, whic i iornt t us, to sustain our factory footprint though we may build on that in the future. he a good rapport between the owner, management, that mix and a strategy for the future.

that's what counts, we are not going to share parts with tartar in the future. it's so different, w c't share anything. the freedom they are giving us to shape and develop this country is incredible. at a b responsibility we have to pay back. it's a good turnout for the books. >> jaguar has never gotten into the suv segment or cross over segment, the argument being, that wt nd rover is for. is there space for jaguar to encroach a bit on the hisric segment that land rover was always in? >> i think if you asked five people in the company, you get sixnswers, depending on which siend oside of the company they. >> let's go with the brand. >> then categorically, yes.

>> i have to believe dealers would like the sce dealers the world over. >> the way you pose the question is interesting. what we would do if we went into that direction is not do what land rover does. most consumers see the brand as totally separate, no consequence to the average jaguar or land rover buyer. there is more on the future side but that's another story. from a product story, if i'm looking at mercedes jaguar, i'm not looking at a land rover. if we can't offer the right product to compete with our competitors, we won't compete with them. someone else will. the cross over segment is the prematurpremium in the marketpl. they are not the biggest volume

in developing markets. they are strong in the u.s. there is place earlier. we don't yet have a business plan that includes a product such as that, but we are looking at it for feasibility. you can see what has been done with the concept car. you can only imagine what that car could look like. >> let's talk about the cx in a minute. getting to the cross over or suv segment, it's the ultimate off roading. jaguar doesn't have to do that. you can have an suv or cross over with a completely different personality. >> true. road based, not trail based. the common currency in the u.k., most people that drive fords are

not farmers. they tend to be luxury cars with all around capability. the clear differentiation from a multipurpose vehicle, the jaguar versus the ranger is a clear differentiation, no question. it's defined. we are working on it. i support it. i have not seen the business case, numbers -- >> a lot of work to be done yet. let's talk about the cs5. i saw it at the paris show. it's a drop-dead gorgeous car. it's a concept and what not, but what are the thoughts of maybe bringing that to production? >> on a number of levels, it's valuable to us. first of all, the lightweight structure is something we are pursuing for our core road vehicles. we want to bring lightweight

technology into the road car for the future. rigid structure, light and efficient to help with our sustainability needs. the styling of it, until you see the physical thing, you can't understand the vehicle. on the image it looks great, but physically, it takes your breath away. >> from the emotional point of view, the design language, it proves you don't have to have lots of things and wings to make something inspirational. the design will come through in something, but the third element is what was underneath it. two gas turbines which nobody expected. >> at all. not at all. >> 80,000rpm. 75-kilowatts of generation power, four electric motors with 195-horsepower each. 3.4 seconds to 60 with an

electronic drive system. >> that's terrific, adrian. thank you for stopping by to talk with us. i love hearing what is going on at jaguar. it's a historic brand. we only want to see it do better. >> same here. thanks for the opportunity. >> enjoy the show. >> talk a bit about technology trends in the interior that iac is involved in. where are the automakers asking you to go or where are you saying, look what we can divvy and pull them along? >> i'll go off direction. the interior is where your acoustic management is set. it's in the barrier type or absorption product. you have vehicles going hybrid

or electric, your sound frequency will completely changeful that doesn't mean it's not manageable, but we also have this in europe and here. managing that, you are in the vehicle, going down the road. you are talking to your system, they have their system and you are the consumer. you keep saying, john, john, john -- call john. it doesn't work. it's the simplest of the systems. oem's better have the best out there. we call it the silent solution package. what people are unaware of, in an individual isolated location, it doesn't do anything for individual management. it's what you do with the floor

carpet, mind the dash and characteristics in the headliner these days different than two or three years ago. >> do you see differences between developing nation and a mature one? what they want? >> yes. >> take the china market. there are so many folks riding in the bac backseat. they have drives, you have more leg room, spend more time in the rear compartment. that changes how you think of the interior. the innovation we bring, i'll tell you what, two years ago, i wouldn't have -- i have been doing this way too long, what will b we do to get comfort in e compartment. >> how about the green movement?

>> no question about it. everybody knows there has been a lot of unfortunate casualties in the interior space. petro chemical with the oil spike, the interior guy goes with it. what do we have to do? it comes back to my comments about focus and so forth getting you back to reconstituted materials, hemp and products that are in there. you have to zoom back and rededicate the resources. where a lot of people don't recognize, the globalization has so many positive things that go with it. let's say you are in it. we finish an acquisition in the next couple of days, build plants there. bangladesh is north. all sorts of natural products that never would have seen manageable are right around the corner. it works for us. >> talk about what we may see in

intoointeriors. directionally, what will we see within the next five years or this decade? >> what you see today. you are not saturated at the a level, b level c level type of things. where leather is on e today, it will be on a tomorrow. weight's a big issue for it. it's one thing to say you can do this. anybody can throw the kitchen sink at things, but how are you going to do it? from the statistics i know, the second largest contributor to wait in a vehicle is resin based components. >> is that right? >> it is. interiors, resin based versus trying to be everything in the grocery store. >> if that's where it's going and we manage that, we have to

take weight out. statistics, for the fuel consumption in a car, 75% of it comes back to wait. if we can find a way to help 6 to 8% improvement in weight, you are going to make a massive improvement as it relates to fuel efficiency. people shouldn't think for a second that the interior's guy can't make an impact on fuel efficiency. we know how important that is. >> here's a question for our viewers hern you tell us about n the dark car carpet? i have never heard of that. >> you need to come see us. glow in the dark, black light, whatever you want to call it, but it's an innovation we have that's ready to go to market. if you go into your trunk, you

drop your keys, it's in the upper left hand corner, but the keys are in the back, so we have developed a glow in the dark type. >> i have to see that. one more question before we let you go, what recycled materials are you looking at to use in an automobile? >> we use all sorts of recycle willed materials. the technical names i will never get to. pop bottles to you name it, we are recycling it in one fashion or another and turning it into car parts. >> i have to see that glow in the dark carpet. i have never heard of that. thanks so much for your time. we appreciate it. >> thank you. >> what's ford's approach to doing interiors?

do you have the interior guys working side by side with the exterior? if you decided to pull them apart? how are you working that? >> it's interesting that you ask that. recently, we have established a unique studio for the ford products. it's in part to signal to ourselves that we are going to put more focus on interiors and begin the journey of lifting them from the good entir interie have to the best in the world. we have reclaimed the design center that was once filled with office cubicles and reestablished a purpose conceived in the design studio. >> it seems to me that this ebbs and flows over the decade. in the past, they have said, the interior doesn't look like anything in the exterior.

it's like, no, the interior guys get the attention and glory. the interior guys are starved, so they get broken off. how to you make sure the interior goes with the styling? >> you have identified the debate. we have looked at best practices and the companies that we intend to admire most are set up this way. at ford, i think we have a tightly knitted leadership team. it's only about a hundred paces from where i sit in the interior side of the courtyard. we are confident that it fits in the beautiful exterior. >> does interior design come under my ford touch? >> we have partners in the

electronic engineering group that you collaborate with. my job is more in the job you physically touch and interact with. you have to provide with the real e estate of touch screens. we work closely to get the airg no, ma'amics -- ergonomics right. >> one thing ford is getting right -- others are too -- maybe i should step back to say one of the criticisms i have in some cars is you can see they didn't talk to each other. yet, some automakers get it all together. how are you working to make sure you have something that look home genus? >> we have color harmony to all of the things you rattled off.

doing a world class job instead of a mediocre job. we have enough examples of how things are done incorrectly, and we can identify those companies including some of our own products where we have done a good job. it comes back to best practices and how to understand them. >> can you tell us how things excite you in the interior? we had jim from aic. he was talking about glow in the dark carpeting. >> we have seen recently am bent lighting, and the application of those sorts of things. i am driving the new edge. we appreciate the blind spot

indication in the mirrors. there is a huge opportunity to make cars safer to drive and more interesting to drive. we are exploring those options, trying to be intelligent about how we select those things so they are truly value added. they improve the driving experience. >> thinking of the edge, i love the interior of that car, especially the i.p. how the i.p. matches up with the front page. i don't know what it is about it, but my eye loves that look. >> i'm glad to hear that. i love it too. it's very thoughtful interior, not overly busy, but plenty of attractive things to feast your eyes on, and thoughtfulness in space and accomodation and so forth. i'm enjoying it as well. >> well scott, thanks for coming

up. >> always nice to see you. happy new year. >> happy new year, yes. >> what are some of the thoughts of where you might go productwise? >> that's a good question. we are talking about which way we can potentially take this thing. we have not really decided yet whether we want to take it to the next level in terms of size. we have a nice situation going on the way that it is now. we want to make sure that whatever we do, it's going to be sustainable, an investment that we can make and get a good return on the investment. we don't want to go to a larger sized vehicle and then not get the volume we need to make the numbers disoing doing. >> how is subaru doing in the u.s. market? >> fantastic. setting records in china,

australia, canada, not doing as well in the japanese market, but nobody is. they'll set a record in terms of unit volume and also in overall profitability, which is a great thing. >> that is a great thing, especially coming from the mouth of a cfo. that's even better. >> i like the cash flow even better. >> what's next? where do you take subaru from the american market? >> next year we have a new launch coming with our model coming out in august of this year. that's our next big product launch. we want to get out into the market. with that, we have another opportunity to grow the market. we think the out back segments that we compete in, if you think of the vehicles we compete

against, we are at the bottom of the segment. we have a long way to go in terms of what we think we can get out of sale sales. there is no reason we can't sell 100,000 out backs and 100,000 foresters. >> what will it take to do that? >> not much more than we are doing now, continuing momentum and marketing. >> you think the marketing will do it? >> everything we have going. it's award winning advertising, dealer commitment and dealer involvement is there. we are excited about the potential we have for the brand. we are getting traffic we have never seen before. it's very exciting for us. >> three years ago i talked to you, and you cracked the code. you said it was in the pricing. you pretty much priced cars to the actual transaction price. what has kept the momentum

going? >> when you look at the price points we hit in the market, we have been able to do this without going incentives. if you check the data for the lowest percentage in the industry, we try to create a discipline for pricing. we have to have a low interest rate program in the market. i'm not saying we won't have that. we need competitive leasing programs, but we shouldn't have to go to the price back. the cars are priced the way they are and hold their value. >> i had no idea. >> we are number one in resale value in the entire industry. you can find that with crash test value, insurance and safety. we have it all. >> i heard the reason they have such resale value, even hangs on to them and pass them down.

>> once they get into the car, they love it and how it handles and drives. they want to keep it in the family. it goes from the husband to the wife to the kids. >> to the dog. >> we are one of the longest in the industry, 7.2 years is the average time a customer holds their car. we like to turn the owner base over to get more sales. >> what am i missing here? what do you want to talk about that you are doing at subaru? >> we are fortunate, john -- part of my job, sometimes i feel like more of a psychologist than anything. it's about creating the mindset and the positive feeling. you can tell at the show this year. it's more positive than the last couple of years. the tax cuts that happened have got the country off to a good

start. people know they'll keep more money in their pock, so it's creating a better market in the industry. if some of the pundits are right, and i think they are, this could be a million to 1.2 million units more than 2005. if we can carry our share of that, we'll be okay. >> no one else has made that connection of tieing the tax cuts into the big boost of december sales. >> i think that's helped with the psychology of people. it goes by how people feel and what their sentiment is and how confident they are. this has helped to create more confidence that settle things down. we'll see what happens in two more years. >> tom doll, thanks for stopping by.

i keep saying, subaru is the hottest car in the business. people have missed the business story of how well subaru has done. >> i'm glad i have been part of it. it's been fun. >> thanks for stopping by. >> good to see you. take care now. >> i hope you enjoyed this special edition of "autoline" coming to you from the floor of the 2011 american international auto show in detroit. we gave you a snippet of what is going on here. you can find many more interviews and a lot of information about what went on at the show on our website. check it out. that brings us to the end of today's show. for all of us here at "autoline," thanks for watching. we'll see you here next,zc$0ñ