Subject: North American Auto News, 6/19/95

From: [email-masked] (CKB)
Date: Wed, 21 Jun 1995 18:43:38 GMT

* ---> 06/16/95 15:47 June 19 Edition              

      There are 27 items in this edition.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
1  US and Japan remain in standoff in auto dispute.
   Wall Street Journal | p A14 | 95:06:13

American and Japanese trade officials recently acknowledged their
continuing disagreement during discussions at the headquarters of the World
Trade Organization in Geneva, Switzerland.  The two sides had hoped to
avert a trade war on automobiles.  In just over 2 weeks, the US will impose
tariffs of 100% on 13 Japanese luxury cars whose imports into the US add up
to almost US$6 billion per year.  Andrew Stoler, deputy head of the US
trade mission in Geneva, said that US officials "expressed regret that
Japan's unwillingness to open its market in this sector had led the US
Trade Representative (Mickey Kantor) to announce these possible measures."
He added that the US was "in full compliance" of WTO regulations, despite
charges from the Japanese that the US action would violate the rules.
According to Kazuo Asakai, a Foreign Ministry official, if the US withdrew
its threat of punitive tariffs and stopped requesting numerical targets on
the number of Japanese dealers handling foreign vehicles and Japanese
imports of auto parts, Japan would resume discussions concerning the US
claim that Japan unfairly bars US car and auto parts exports.  If the case
is presented to the WTO by Japan, settlement procedures could take up to 18
months.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
2  California may bend ZEV rule.
   Automotive News | n 5609 p 1, 8 | 95:06:12

California Governor Pete Wilson is ordering an independent audit of battery
technology due to the slow progress toward a marketable electric vehicle.
This is the second recent sign that the state is moving to a more flexible
attitude concerning a mandate that 2% of the model year 1998 vehicles sold
in California be zero emissions vehicles (ZEV).  A California Air Resources
Board (CARB) workshop proposed in May 1995 that some hybrid EVs could
qualify as half of a ZEV.  The CARB proposal would change the guidelines of
the ZEV mandate.  The hybrid would have to exhibit the same emissions as
those needed for recharging by the powerplant to receive up to 50% of a ZEV
credit.  This means the hybrid would need to be 40 to 150 times less
polluting than an ultra low emissions vehicle and could only use the
electric motor in polluted urban areas.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
3  GM tests new van for Europe.
   Automotive News | n 5609 p 2 | 95:06:12

General Motors Corp will replace the Oldsmobile Silhouette, Pontiac Trans
Sport, and Chevrolet Lumina minivans with a new front wheel drive minivan
for the 1997 model year.  The minivan will be sold in Europe with Vauxhall
and Opel badges.  Includes an unauthorized side photograph.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
4  GM picks GMC over Cadillac for utility vehicle.
   Wall Street Journal | p A2 | 95:06:13

General Motors Corp has designated GMC as a "premium" truck seller, which
means that it intends to market a luxury sports utility vehicle through GMC
instead of Cadillac.  GM now has to decide how upscale a GMC SUV should be.
A GMC spokesman said, "We're delving into how to define the word 'premium,'
and how high is premium when we talk price category.  We're terming it a
work in progress."

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
5  Buick V6 offers textbook horse case.
   Automotive News | n 5609 p 56 | 95:06:12

Power for General Motors Corp's 3.8L V6 Series II 3800 engine increased
from 125 hp to 205 hp from 1985 to 1994 while composite fuel economy
improved from 23.1 mpg to 26.4 mpg due to the fine tuning of a lighter,
more compact powerplant compared to European and Asian engines.  The Series
II 3800 engine also employs fewer parts to produce a great amount of power
and torque.  GM modified the pistons, cylinder heads, cylinder block,
connecting rods, intake manifold, compression ratio and valvetrain to
increase the amount of air going in and out of a V6 cut from a V8 block.
The Series II 3800 engine is said to make more horsepower than many V8
engines from GM.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
6  Olds rolls out navigation aid.
   Automotive News | n 5609 p 36 | 95:06:12

General Motors Corp Oldsmobile Division's Guidestar vehicle navigation
system is now on sale as a US$1,995 option in Florida, Georgia, California,
Illinois, Michigan and Indiana.  GM will offer the system, which guides
drivers turn by turn to an address, nationwide in 1996.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
7  Saturn eyes 2% price increase.
   Automotive News | n 5609 p 4 | 95:06:12

Saturn Corp will raise the price of its restyled 1996 sedan due in late
July 1995 by about 2%.  The small price increase is said to imply a feeling
of affordability and value compared to Japanese vehicles undergoing price
increases.  The new model will feature only "evolutionary" changes,
according to Saturn President Skip LeFauve.  The 2% increase equals about a
US$200 increase on the US$9,995 base sedan or a US$240 increase on the
US$11,999 uplevel sedan.  A front three quarter spy photograph shows an all
new exterior and a new roof.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
8  GM offers retrofit running lights kits.
   Orlando Sentinel | p F9 | 95:06:08

General Motors Corp's retrofit kits for daytime running lights (DRL) will
allow the light to turn on automatically when the vehicle is started.  DRLs
are used in other countries such as Canada and Sweden and are said to
decrease accidents by making the cars more visible.  When normal headlights
are turned on, the DRL system is overridden.  During model year 1995, DRLs
became standard on the Geo Metro and a few other GM cars.  The carmaker
will offer the lights as standard on its entire line of cars and light
trucks in model year 1997.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
9  Hertz adds Ranger to South and West fleets.
   Automotive News | n 5609 p 36 | 95:06:12

Hertz Corp, which is owned by Ford Motor Co, is adding pickup trucks to its
rental fleet for the first time in about 10 years.  The Ford Ranger pickup
truck will be added to fleets in the South and West US.  Pickups are being
test marketed by the Park Ridge, New Jersey, rental car company to
determine whether they should expand the Ranger to other areas.  Hertz uses
450,000 vehicles in 5,400 locations globally.  The move to pickup trucks is
in relation to consumer demand for pickups and sport utility vehicles
(SUV).  The trucks are currently available for rent in Denver and Colorado
Springs, Colorado; Atlanta, Georgia; Omaha, Nebraska; San Antonio, Midland,
Dallas, and Houston, Texas; Salt Lake City, Utah; Portland, Oregon;
Nashville, Tennessee; and Charlotte, North Carolina.  They will also be
added to fleets in Orange County and Santa Barbara, California in the near
future.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
10  Electric Ranger's price shocking.  Ford to offer Rangers powered by
    batteries to meet emission rule.
    Detroit News | p 2E | Wall Street Journal | p C13 | 95:06:13 | 95:06:14

Ford Motor Co will offer a US$30,000 electric Ranger pickup truck beginning
in 1998 in California to meet that state's mandate that 2% of all new cars
and trucks be electric in 1998.  Ford would have to sell about 3,600 EVs
under the mandate.  The Ranger EV will be sold to fleet customers, mainly
utilities, and will use 2,000 lbs of lead acid batteries.  Range between
charges will be 50 miles.  General Motors Corp may sell its Impact 2 seat
EV and Chrysler Corp plans to offer a minivan EV.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
11  Chrysler keeps A3 rating.
    Automotive News | n 5609 p 10 | 95:06:12

Moody's Investors Service is keeping Chrysler Corp's credit rating
unchanged at A3, after placing the automaker on a credit watch during a
hostile takeover bid by Kirk Kerkorian.  According to Moody's, the rating
"reflects management's persistent pursuit of longer term conservative
financial goals, including maintenance of strong balance sheet liquidity,
despite very direct pressure from certain shareholders."

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
12  Chrysler cars are subject of probe after complaints.
    Wall Street Journal | p B4 | 95:06:13

NHTSA is investigating 68,000 Chrysler Corp passenger cars built between
1990 and 1991 due to complaints of faulty antilock brake systems (ABS).
This probe is similar to the one opened in 1994 concerning faulty ABS in
250,000 Chrysler minivans.  The 38 passenger car complaints included one
injury causing accident while the 837 minivan complaints include 26
accidents and 3 injuries.  Chrysler says it no longer uses the AlliedSignal
ABS system under investigation.  The AlliedSignal system was the cause of
two recalls Chrysler enacted in 1992 concerning 82,000 model year 1991
passenger cars and minivans.  In other news, NHTSA is investigating ABS in
about 140,000 Chevrolet Suburban sports utility vehicles produced in model
years 1992-1995 due to 141 complaints including 53 accidents and 15
injuries.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
13  Plymouth Breeze debuts in January.
    Automotive News | n 5609 p 3 | 95:06:12

Chrysler Corp Plymouth Division will launch the Breeze JA car in January
1996; dealers had wanted the car by fall 1995.  The Breeze will replace the
Plymouth Acclaim (no longer built) and is the sister to the Chrysler Cirrus
/ Dodge Stratus.  The Breeze will offer a price advantage over the Stratus,
which has a base price of US$13,965.  The company is offer a 6 month money
back guarantee on leases.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
14  Chrysler's shift option autostick transforms Eagle into hot rod.
    USA Today | p 4B | 95:06:13

Chrysler Corp will offer a "shift it yourself" automatic transmission
called Autostick as standard equipment on the premium 1996 US$24,000 Eagle
Vision TSi in fall 1995.  If the technology gains popularity, Chrysler
could quickly offer it on other models.  Autostick can be used as a
conventional automatic transmission or can be used as more of a manual
transmission by pushing the lever to the right to shift up one gear or to
the left to shift down one gear.  According to Chrysler engineer Art
Anderson, "It's a win-win for dual driver households.  If there's one
driver who prefers an automatic transmission vehicle, that person doesn't
give up anything.  And if the other driver prefers more of a manual
transmission driving experience, that driver can have it."  Similar systems
are used in the US on Jaguar and Porsche models as well as the Acura NSX.
However, the Eagle Vision TSi will be the only car priced under US$50,000,
to use the transmission.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
15  EU probes Spanish aid to VW unit.
    Wall Street Journal | p A8 | 95:06:14

The European Union is conducting a formal investigation of Spain's 46
billion pesetas (US$377 million) in subsidies to troubled Volkswagen AG
subsidiary SEAT SA.  Spain previously was given one week to justify its aid
for restructuring the unprofitable carmaker but the two sides could not
resolve their disagreement.  The EU could order SEAT to replay the aid
because it distorts competition.  Spain has already paid SEAT 36 billion
pesetas of the subsidies.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
16  New life for Jaguar.  Ford spends US$4.2 billion to revive luxury maker.
    Automotive News | n 5609 p 1, 53 | 95:06:12

Jaguar Cars, under ownership of Ford Motor Co, launched the redesigned 1995
XJ sedan on time and under budget.  Development took only 28 months.  Clive
Ennos, a Ford veteran who is now director of product engineering for
Jaguar, organized the company into vehicle teams shortly after he arrived
at Jaguar 4 years ago.  Ford has invested over US$4.2 billion in Jaguar,
and has given it a modernized assembly line and a three vehicle product
cycle plan.  Besides the XJ sedan, the company will debut an all new 2+2
sport coupe and convertible in fall 1996 and a new small sport sedan in
1998, all engineered under Ford 2000's restructuring program.  The new cars
will increase Jaguar production to over 100,000 units per year, almost
double its peak production of 51,939 units in 1988.  The company will need
to hire 1,000 more workers to deal with the increased production.  In 5 or
6 years, Jaguar may even offer a luxury sports utility vehicle based on the
Ford Explorer.  Article offers a front three quarter spy photograph of a
disguised prototype of the new Jaguar sports car, codenamed X100, that will
debut in 1996.

---

From: [email-masked] (CKB)
Date: Wed, 21 Jun 1995 18:45:42 GMT

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
17  Jaguar cars.  Luxury sport ute gathers steam.  Car talk.
    Detroit News | p 1E | 95:06:14

Jaguar Cars Ltd's all new luxury compact sports utility vehicle that the
company wants to sell in late 1999 or early 2000 will likely be built in
Louisville, Kentucky, on the same line as the Ford Explorer, instead of in
Coventry, England.  Power for the all wheel drive SUV will come from a new
twincam 4.0L V8 engine mated to a new electronic 5 speed automatic
transmission.  The SUV will likely share major chassis components with the
next generation Explorer (codenamed UW152) due in 2000.  Price will be
about US$50,000 and the Jaguar will compete with the Range Rover.  Internal
Jaguar forecasts predict annual production of less than 20,000 units.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
18  Opel:  US$4.3 billion for cars, plants.
    Automotive News | n 5609 p 4 | 95:06:12

General Motors Corp's Adam Opel AG subsidiary will invest US$4.3 billion
(DM 6 billion) over the next 3 years to develop new cars and modernize two
old German factories.  This decision comes after Opel's union agreed to
work more flexible hours.  Flexible work hours could save the company US$18
million per year.  Since Opel exports much of its output, the very strong
German mark cost Opel US$214 million in 1994.  Opel's 12,000 worker
Russelsheim, Germany, factory will build the Cadillac Catera, based on the
Opel Omega, for introduction in January 1996.  Further, Saturn may use the
Opel Vectra platform for a second car, and the Opel Astra for a third,
smaller car.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
19  German union plans to embarrass BMW if UAW drive is blocked.
    Detroit News | p 3B | 95:06:14

Germany's powerful Metalworkers Federation union will embark on a campaign
to embarrass German automaker BMW AG if it blocks a United Auto Workers
membership campaign at BMW's new South Carolina assembly plant.  The German
union will begin a major publicity campaign revealing that although BMW has
union members on its board in Germany, it is fighting labor unions in the
US.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
20  Porsche AG.  Boxster to debut in Detroit?  Car talk.
    Detroit News | p 1E | 95:06:14

Porsche AG in Germany is testing development mules of the Boxster
(codenamed 986).  Spy photographs of the 2 passenger prototypes show that
the production version will look very different from the earlier concept
vehicle seen at the Detroit auto show.  According to reports, the new
Boxster will debut at the January 1996 Detroit auto show.  Porsche will
begin building the lightweight Boxster in fall 1996.  Power for the
midengine car will come from a choice of twincam 2.5L and 3.0L 6 cylinder
engines or a 16 valve 2.0L 4 cylinder engine.  All of the engines are water
cooled and come with a choice of automatic or manual transmissions.  This
entry level model will be priced over the new BMW Z3 roadster but near the
upcoming Mercedes-Benz SLK, at about US$45,000.  It reportedly will feature
luxury options such as a power operated soft top and a removable hard top.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
21  Winds of change.  Saab returns to turbocharging as buyers ignore V6.
    Automotive News | n 5609 p 8 | 95:06:12

Saab Cars USA experienced low sales of V6 powered cars so it will return to
offering turbochargers.  The company will offer an automatic transmission
in its turbocharged, 4 cylinder engine version of the 900 for model year
1996.  Regional director of Saab in the Americas, Jim Crumlish, said that
is too early to tell if the General Motors Europe V6 engine will completely
disappear from the company's lineup and added, "at some point it doesn't
make sense.  We're a ways away from that.  But it's fair to say that we
expected V6 to represent 60% of our volume.  And it's been significantly
lower."

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
22  Ferrari SpA.  Testarossa successor due in 1997.  Car talk.
    Detroit News | p 1E | 95:06:14

The Ferrari 556TR, the successor the 512TR (Testarossa), will debut in
Europe in late 1996 and in the US by spring 1997.  Codenamed F133, the 2
seat coupe will use the 456GT's tube chassis and will employ composite body
panels.  The 60 valve 575 hp 5.0L V12 engine will be placed in the front,
instead of the rear, on the US$250,000 rear wheel drive TR.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
23  New cab, engine breathe new life into Toyota T100.  Sales in 1995 surpass
    1994 already.
    Automotive News | n 5609 p 3, 59 | 95:06:12

Since Toyota Motor Corp debuted an extended cab and a more powerful V6
engine for its T100 midsize pickup truck, sales have increased to 15,594
units through May 1995, compared to that same number for all of 1994.  The
company previously expected 36,000 T100 sales in the US when the enhanced
model arrived but has increased that projection to 40,000 units.  Toyota
could sell 50,000 units in 1995 if its partner, Hino Motors Ltd, frees up
factory time.  Bryan Bergsteinsson, vice president of the truck series team
at Toyota Motor Sales USA Inc, said, "We're hoping eventually to get into
the 100,000 range, but that would require a plant" in the US.  "As long as
it's built in Japan, sales will be minuscule."  Buyers who previously
purchased a domestic truck view the T100 as more of a family hauler than a
work truck, said one Toyota dealer.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
24  Toyota hikes import prices.
    Automotive News | n 5609 p 1-2 | 95:06:12

Toyota Division is increasing the sticker price on some 1995 Japanese built
models by an average of 1.8% or US$354.  Across Toyota's entire product
line, the sales weight average increase is 0.5% or US$101.  North American
built Corolla, Camry, Avalon and Tacoma models will see their prices
unchanged.  Toyota will increase prices on the Supra, Previa, 4Runner, Land
Cruiser, T100, Celica, Paseo and Tercel.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
25  Next Nissan Quest gets modest nose, tail job.  Spied on the street.
    Detroit News | p 1E | 95:06:14

A front three quarter spy photograph of the 1996 Nissan Quest shows a
redesigned nose, new air intakes, parking lamps and bumper fascia.  The
taillights and rear bumper underwent a mild revision.  Further, a new wheel
design is under evaluation.  The mildly updated cabin features a passenger
air bag.  The Mercury Villager twin will also receive the styling and
mechanical changes.  The Nissan Motor Co Ltd and Ford Motor Co joint
venture is planning to conduct a major redesign of the compact vans for
model year 1999.  The JV wants to continue to build the minivans in Ohio
for at least the next decade.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
26  Briefing.  Nissan to redesign Altima.  Car talk.
    Detroit News | p 1E  | 95:06:14

Nissan Motor Co Ltd will conduct a major redesign of the compact Altima
(codenamed ZQ) in model year 1998.  Separately, Toyota Motor Corp will
debut the next generation Camry (codenamed 414T) in early 1997, and
Mitsubishi Motors Corp is expected to debut an all new Galant (codenamed
F62) in model year 1999.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
27  Power study counters Kia's quality claims.
    Automotive News | n 5609 p 6 | 95:06:12

Kia Motors Corp finished last in the JD Power and Associates Initial
Quality Study with 295 problems per 100 cars in its first year of business
in the US.  The top line was Nissan's Infiniti, which had 55 problems per
100 cars.  When Kia arrived in the US, it promised "Japanese built quality
at a Korean built price."  Kia said the Power's rating does not represent
actual vehicle quality.  The Sephia, the only Kia vehicle in the 1995
survey, exhibited two recurring problems:  an adhesive chrome strip near
the bumpers peeled at the corners and the glove box rattled.  The 1995 1/2
Sephia will eliminate both those problems because a passenger air bag will
be added to the driver air bag, which will change the glove box design, and
the bumper will no longer feature a chrome strip.