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Posted on Tue, Sep 28, 2010 : 12:52 p.m.

David Cole stepping down as chairman of Ann Arbor's Center for Automotive Research

By Nathan Bomey

David Cole, who is widely considered a national expert on the automotive industry, is stepping down as chairman of the Ann Arbor-based Center for Automotive Research, the nonprofit announced this afternoon.

Jay Baron, CAR's CEO and president, will become chairman. Cole is receiving the title of emeritus chairman.

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David Cole is stepping down as chairman of the Center for Automotive Research.

File photo | AnnArbor.com

Cole, whose quotability and industry knowledge made him indispensable to industry leaders and journalists, said by phone this afternoon that he planned to stay involved with CAR, albeit tangentially.

"I’m just getting older and older and, my wife is saying as we’re driving right now, wiser and wiser. Right," Cole said.

Cole, an engineer who holds a doctorate from the University of Michigan, helped launch CAR in 2003 after previously directing the U-M Transportation Research Institute's Office for the Study of Automotive Transportation. CAR conducts automotive industry studies on behalf of various corporate and academic clients.

"I'm more externally involved. I run around and give talks and things like that," he said. "My role is to really help people to understand where the industry is going."

He said he had no plans to retire. "As long as the auto industry is interesting, I'm going to stay in the middle of it," he said.

Cole said he plans to dedicate his attention to several initiatives:

--Helping a group of universities, domestic automakers, governmental groups and others create Auto Harvest, which he described as an "intellectual property portal for the exchange of IP in and out of the auto industry." Cole said the initiative had been underway for a few years and relies on Compuware's Covisint software platform.

--Launching a new educational group called This Is Auto to educate the public about manufacturing. "It's particularly focused on getting kids interested in manufacturing and think about the industry for future careers," Cole said.

--Other boards he serves on, including the Michigan Economic Development Corp.'s executive committee.

Cole said he was "deeply concerned" about the auto industry's ability to cultivate and attract talented young workers for high-tech jobs.

Cole said he believes the auto industry is transitioning into a period that points toward sustained profitability, which he attributes to substantial reductions in legacy costs and labor contracts the automakers achieved during the industry's crisis.

"That fact that they're profitable at still a depression-level of sales for the industry is pretty impressive," he said.

During the auto industry's collapse in late 2008 and early 2009, CAR and Cole were thrust into the spotlight as Washington debated whether to bail out the industry. President Barack Obama's automotive task force asked Cole and other representatives from CAR and U-M's Transportation Research Institute to provide input on how to handle the crisis.

At the time Cole argued vehemently that bankruptcy filings by General Motors and Chrysler would be disastrous for the U.S. economy and called politicians "ignorant" for suggesting bankruptcy as a solution. He argued in favor of a U.S.-financed "bridge loan" that would allow the companies to restructure, saying at the time that bankruptcy for GM and Chrysler would "kill Michigan."

Ultimately, GM and Chrysler got federal financing for their bankruptcy filings, soothing Cole's fears that they would run out of cash and liquidate.

Asked today to reassess those comments, Cole said he still believes that a bridge loan would have been a more effective solution.

"There had to be a massive restructuring," Cole said. "I think the government could have provided a bridge loan without bankruptcy, which would have preserved some equity for the shareholders and debt holders. It worked out OK for the industry over the long term but it really punished the shareholders and the debt holders."

Baron said in a statement that CAR would "continue to serve the industry with leading edge research and analysis and collaborative forums."

“Dave Cole has played a critical role since CAR’s creation," Baron said. "We will continue to build upon the success we have achieved to date.”

Contact AnnArbor.com's Nathan Bomey at (734) 623-2587 or nathanbomey@annarbor.com. You can also follow him on Twitter or subscribe to AnnArbor.com's newsletters.

Comments

Somewhat Concerned

Tue, Sep 28, 2010 : 6:24 p.m.

glimmertwin's point is a good point. Despite Cole's expertise and despite all that he contributed to the success of the industry, he was and is a cheerleader for the industry that funded his center. That might be unavoidable. After all, even UM's president is conflicted: she has made over $200K serving on the board of Johnson & Johnson, a company that does business with UM in an industry on which Coleman makes public comments. It seems to be the nature of the beast.

glimmertwin

Tue, Sep 28, 2010 : 2:50 p.m.

>> Nathan Bomey Thanks for the info. I just feel, based on interviews that I have seen, that sometimes he seemed to give the nod to the mfrs when he, perhaps, should have been a little tougher on them. Regardless of what he may have said, I know how he may have been, perhaps inadvertently, been used somewhat by the big 3. Thanks for the info.

InsideTheHall

Tue, Sep 28, 2010 : 2:47 p.m.

Dave Cole deserves to be in the Automotive Hall of Fame for his work over the years.

Nathan Bomey

Tue, Sep 28, 2010 : 2:23 p.m.

@Glimmertwin, I asked Cole in December 2008 whether he was bothered by skepticism of CAR's credibility. He acknowledged that CAR accepted funding in exchange for conducting studies for automakers but said that 83 percent of the group's revenue came directly from conferences it organized and government funding. He said: "If people don't like what you say, they always attack your credibility. But that's nothing new. By and large it's true in any field: If you know something, you're attacked because you know something." http://www.mlive.com/businessreview/annarbor/index.ssf/2008/12/cars_david_cole_automaker_bank.html

glimmertwin

Tue, Sep 28, 2010 : 1:55 p.m.

This non-profit is funded, at least in part, by the auto makers. I often had issues believing him when he voiced up on issues on television related to autos. Not all the time, but some times I feel this outfit is nothing more than a PR arm for the manufacturers. Good luck to him in the future. But in my mind, I prefer information from those with nothing to gain.

Adams

Tue, Sep 28, 2010 : 12:40 p.m.

Dave, Your leadership and presence at CAR will be greatly missed. I remember fondly of your consistent involvement with the promotion of the industry's educational programs, never forgetting to mention the importance of educating the 'future' engineers and industry leaders. I wish you the very best of luck with your new ventures.