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Newsgroups: rec.autos.driving
Subject: North American Auto News 5/8/95 (1/2)
Date: Fri, 12 May 1995 16:08:43 GMT
Organization: ECC at Ford Motor Company, Dearborn Michigan
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* ---> 05/05/95 15:34 May 8 Edition                                 00 07/03/95
This post is a service of a Ford employee, taken from our mainframe computer 
system.  Enjoy!

Kent Booker
Manufacturing Systems
Detroit, Michigan


* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
1  Japanese set to fix seat belts.  Agreement near with US, involves millions
   of vehicles.
   Detroit News | p 1E | 95:05:03

US safety regulators are expected to announce one of the biggest recalls in
history.  The announcement is expected to have eight Japanese automakers
fix the seat belt buckles and / or release buttons in over 8 million 1986-
1991 vehicles that include cars, pickup trucks, minivans, and sports
utility vehicles (SUVs).  Although most of the vehicles to be recalled are
made by Japanese carmakers, some of the vehicles are made by the US Big 3.
The Japanese automakers involved are American Suzuki Motor Corp, Daihatsu
Motor Co, Honda Motor Co, Isuzu Motors America Inc, Mazda Motor of America
Inc, Mitsubishi Motor Sales of America Inc, Nissan North America Inc, and
Subaru of America Inc.  An issue that the regulators and automakers have
yet to resolve is whether the automakers will have to notify the vehicle
owners of the safety problems.  Some companies, including Honda Motor Co,
want to fix the seat belts without having to declare that the belts are
defective, but the National Highway Traffic Safety Administration (NHTSA)
wants the automakers to tell the car owners that the belts are defective.
According to the regulators, the release buttons on the belts can crack and
jam the latch, leaving the buckles susceptible to unlatching during a
crash.  Regulators and the auto industry are debating how to repair the
belts.  The recall could cost up to US$1 billion and include over 15
million belts.  The belts were manufactured by Takata Inc, a Japanese
supplier headquartered in North America.  No deaths have been reported from
the defective product, but NHTSA has received 539 complaints involving 47
injuries.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
2  A conservative approach for new GM venture.  Spied on the street.
   Detroit News | p 1D | 95:05:03

Judging from a photograph of a heavily disguised prototype, the General
Motors Corp 1997 redesigned plastic bodied minivans "will be far more
conservative and mainstream than the current 'DustBuster' design."  The
redesigned models will be updated with steel body panels, standard dual air
bags, and an optional fourth door.  They can be purchased in either short
or long wheelbase (no dimensions given).  GM's German subsidiary, Adam Opel
AG, and Chevrolet have been engineering the redesign, and Opel will make
its own variants to sell in Europe.  According to GM suppliers, Chevrolet
will drop the Lumina minivan nameplate in favor of a Venture badge.
Includes a front three quarter photograph of the prototype.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
3  GM's new marketing chief seeks clarity amid muddle of overlapping car
   lines.  GM redefines Olds strategy.  GM shortens product cycle.
   Wall Street Journal | p A3, 5 | USA Today | p 2B | Automotive News | n
   5602 p 1 | 95:05:01 | 95:05:01 | 95:05:01

General Motors Corp will shorten its product cycle by replacing its models
every 4 or 5 years, from the current 7 or 8 years, according to Ron
Zarrella, GM's new marketing director (vice president and group executive
for North American sales, service and marketing).  Zarrella cites a GM
survey from late 1994, which indicated that 35% of people looking for new
cars weren't considering GM models.  He feels that many GM models have
failed to be updated enough to keep up with the competition.  Each
marketing division will get two new models annually, and some of GM's 77
vehicle product lines will be cut.  According to Zarrella, GM's Buick
division will make "near luxury" vehicles to target "baby boomers in their
50s," and Cadillac will try to reestablish itself as a "world standard" to
compete with BMW AG, Lexus, Jaguar, and Mercedes-Benz AG.  It appears that
Zarrella doesn't want to give Cadillac a sport utility vehicle, which the
division has been requesting.  He would also like to see GMC be set apart
from Chevrolet's "mainstream truck business."  Along with Cadillac,
Chevrolet will also try to increase its global divisions by expanding car
and light truck sales outside of North America.  Chevrolet will continue to
make high volume, entry level vehicles; Pontiac will make sporty vehicles;
Saturn will keep its small car line; and Oldsmobile will be redefined as
the "step up" for Saturn, making medium priced cars that are larger than
Saturn cars.  GM light trucks are suffering from a lack of North American
factory capacity.  Zarrella feels that light trucks could account for more
than 45% of the vehicles GM sells, up from the most recent estimate of 31%.
The industry average is 43%.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
4  Abandoned GM plant in Van Nuys may be developed.
   Los Angeles Times | p 1B | 95:05:02

General Motors Corp is expected to sell its Van Nuys plant, which has been
abandoned for almost 3 years, to one of four potential buyers, which are
all from Southern California.  The 100 acre site is being offered for US$30
million, but one plan would have GM sell the property at a loss to the
Valley Jobs Recovery Group (VJRC), a non profit group set up by Los Angeles
Mayor Richard Riordon.  A private brokerage appraised the GM plant at US$25
million, and if GM sells it to VJRC for US$20 million, it could count the
US$5 million loss as a charitable donation and write it off as a tax
deduction.  VJRC would then sell the land to one of the four developers.
GM could also sell the property directly to one of the developers.  The
developers all say that they will turn the site into an industrial and
retail business area that could generate 1,000 jobs.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
5  GM approves new coolant.
   Automotive News | n 5602 p 16 | 95:05:01

General Motors Corp, which once did not allow the use of propylene glycol
based engine coolants in its cars, says that it will now approve the use of
the coolant in its vehicles, without affecting warranty coverage.
Technicians have been advised to completely drain the old coolant before
using the propylene glycol, to avoid a false reading of the coolant's
freezing and boiling point levels.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
6  Ford whittles platforms.
   Automotive News | n 5602 p 1, 41 | 95:05:01

In an effort to produce more products from fewer platforms, while saving
time and money, Ford Motor Co will cut about 30% of its vehicle platforms
and engine and transmission families.  The strategy is part of Ford's 1995
global reorganization.  Currently Ford uses 22 platforms for car and light
truck vehicles and 35 architectures for engines and transmissions.  The
global plan will give Ford another 10 to 15 new products by the early
2000s.  Half of the new products will be sold in Europe and North America.
Ford 2000 calls for five global vehicle centers - one in Europe and four in
the US - that design and develop vehicles for the worldwide market.  The
strategy is expected to improve product quality and increase cycle time.
Currently Ford develops new vehicles in 37 months, and it would like to
reduce that time to 24 months.  The plan is expected to increase Ford's
growth outside of North America and Europe.  In the first quarter of 1995,
Ford accounted for 26.7% of the US market and 12% of the European market.
According to Ford Automotive Operations President Ed Hagenlocker, US
dealers can expect "more products and a wider range of products that will
come to market faster than they have previously."  He also says that Ford's
product cycle plan for the next 5 years is at least "relatively firm."  The
plans for 5 to 10 years from now show "tremendous flexibility."

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
7  Ford unveils lease backed securities in drive for quick capital access.
   The securities would allow automakers to use the money from auto leases
   upfront.
   Orlando Sentinel | p B5 | 95:05:02

Ford Motor Credit Co, a subsidiary of Ford Motor Co, is expected to issue
securities to be backed by car leases, and this is expected to set a
precedent for lease securitization for automakers.  General Motors
Acceptance Corp, a subsidiary of General Motors Corp, is developing its own
lease backed securities that will most likely resemble Ford's offer.
Chrysler's lease backed securities are expected to follow later.  If Ford's
securitization is accepted by the public, "it will open up a major new type
of asset backed security, or ABS, that could claim as much as 25% of ABS
volume in coming years."  In 1994, the ABS volume was US$75 billion.  The
securities let the automakers spend auto lease money before they receive
the cash, although that can bring up a problem when "transferring a
vehicle's title from the consumer back to the auto company and creating a
guarantee that the investor's claim on the underlying leases doesn't get
pulled into any possible bankruptcy of the automaker."

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
8  Ford recalls 112,000 cars to repair fuel tank seal.  Fire fears prompt Ford
   recalls.
   Wall Street Journal | p A4 | Chicago Tribune | p 1 | 95:05:02 | 95:05:02

Ford Motor Co has recalled 112,000 1995 Ford Crown Victorias, Lincoln Town
Cars, and Mercury Grand Marquis to repair a fuel tank seal that might be a
fire hazard.  Fifteen reports of "fuel odor seepage" have been made to
Ford, but no fires or injuries have been reported.  The fuel tank seal will
be replaced at no charge to the owners.  The owners are being notified by
their dealers.  Ford is also recalling 61,000 1994 Mustang GT coupes
because of a possible power front seat wire harness malfunction that could
lead to a potential electric fire hazard.  Ford has received eight reports
of the wire malfunction, with no injuries reported.  The repairs will be
done free of charge.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
9  Ford, VW open Portugal minivan plant.
   Automotive News | n 5602 p 4 | 95:05:01

In late April 1995, Ford Motor Co and Volkswagen AG opened a US$2.6 billion
minivan factory for the production of minivans.  The automakers expect to
produce 50,000 minivans annually in 1995, and 180,000 annually by 1997.
The production output will be split equally between the two automakers, who
expect the minivan market to increase to 500,000 units by 2000, and they
expect to account for over 30% of that segment.  The new plant, AutoEuropa,
is the first Ford / VW European partnership.  It will employ 3,000.
Because the facility is located in an economically depressed area, 30% of
the cost for the new plant was incurred by the European Union and the
country of Portugal,  The automakers have reportedly guaranteed the
Portuguese government that the factory will operate for at least 7 years
after it produces at full capacity.  VW will sell its Sharon (to be
unveiled in the summer of 1995) and a SEAT model.  Ford will sell a version
of its Galaxy in Europe.  The VW / Ford partnership was helped because of
the European recession, which resulted in reduced costs for tooling and
other production items.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
10  Ford seeks Canada buyout.
    Automotive News | n 5602 p 8 | 95:05:01

Ford Motor Co says it will buy out the remaining shares of the
approximately 1,250 shareholders of Ford Motor Co of Canada.  The plan is
to buyout the shareholders at C$150 (US$110) per share.  If the buyout goes
as planned, Ford of Canada would merge with Ford Ensite International Inc,
which is wholly owned by Ford and which has engine and aluminum casting
facilities in Windsor, Ontario.  Ford of Canada also has research and
development facilities.  The merger would "eliminate redundancies and
reduce costs," and the change will have no effect on dealers nor on labor
agreements.  After the buyout was reported, Ford Motor Co stocks increased
C$26.  The proposal would have to be approved by Ford of Canada's board of
directors, and it is likely that the deal could be completed by the third
quarter of 1995.  The buyout is part of the global Ford 2000 strategy.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
11  Paint shadow casts cloud over Chrysler, Mitsubishi.
    Automotive News | n 5602 p 4 | 95:05:01

A potential paint glitch in tens of thousands of Chrysler Corp cars
surfaces within 3 months after production and is due to moisture getting
caught between the paint and the clear coat finish, casting a shadow or
spots on the body finish.  Moisture forms when there's a "50 deg
temperature swing," such as when a vehicle leaves a warm garage and enters
a cold climate.  Dark colored 1995 Chrysler models, with the exception of
minivans, Jeeps and Canadian manufactured vehicles, are affected.  The
cause of the problem stems from a "clear coat additive that was overbaked,"
according to a Chrysler spokesperson.  Chrysler says it will buy back any
vehicle with this problem, repaint it, and sell it back used at auction; or
Chrysler will repaint the car for free, if the customer wants to keep the
car.  The article includes a list of the vehicles that are affected, the
plants where they were made, and the time they were produced.  Mitsubishi
Motors Corp has about 4,900 cars with the flawed dark color paint, but
hasn't announced what to do with those cars that are affected.  Separately,
according to the EPA, over 7,000 Chrysler vehicles will be recalled for
failing to meet federal carbon monoxide emission standards.  The cars
affected include the 1989 Plymouth Sundance, Reliance, and Horizon, and
Dodge Aries, Omni and Shadow.  All of the above mentioned cars are equipped
with 2.2L engines.  Vehicles with the 2.5L engines that are affected are
the Plymouth Acclaim; Dodge Dynasty, Spirit, and Daytona; and Chrysler
LeBaron coupe and convertible.  Chrysler says its dealers will put in a new
computer to change the air / fuel ratio for improved fuel combustion.
Includes a front three quarter photograph of the Eagle Talon.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
12  Chrysler starts courting stockholders.  Eaton mounts campaign to repel
    Kerkorian's bid.
    Detroit News | p 1, 4E | 95:05:04

Chrysler Chairman Robert J Eaton is seeking support from shareholders to
block Kirk Kerkorian's takeover bid, and build a US$7.5 billion cash
cushion.  In a one page letter to shareholders, Eaton says that the
automaker could increase its dividends or buy back more shares to build the
cushion.  The article says that Chrysler "is willing to buy out Kerkorian's
36 million shares at market price," and "several major Chrysler holders
said...they would support Chrysler if it could buy out Kerkorian's 10%
stake - as long as it doesn't pay Kerkorian a large premium."  A
spokesperson at Kerkorian's Tracinda Corp says that Kerkorian will not
accept a buyout that excludes all shareholders, but did not say what
Kerkorian's next move would be.  Kerkorian has insinuated that he will ask
shareholders to back him on his buyout offer.  Chrysler stock closed on May
3, 1995, at US$42.25, up US$0.25, and if Chrysler bought Kerkorian out at
that price, it would cost the company US$1.5 billion.  If the stock fell
after the buyout, lawsuits could arise from shareholders who didn't get the
same buyout opportunity.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
13  Chrysler may rescind tribute to Iacocca.
    USA Today | p 1B | 95:05:01

Lee Iacocca may have lost his chance to have his name appear on the
automaker's new headquarters, due to his part in the Kirk Kerkorian
takeover bid.  Chrysler Corp was going to name its new 15 story office
building in Auburn Hills, Michigan after Iacocca; but because of his
support of Kerkorian's US$20.8 billion takeover bid, his name is looking
less attractive to Chrysler.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
14  Lamborghini plans to increase investments in Mexico.
    El Norte | p 6H | COMLINE | MEX n 7 | 95:04:22 | 95:04:28

Automoviles Lamborghini Latinoamerica says it will increase its investments
in Mexico from US$7 million to US$20 million.  The investment increase
hinges on the Secretariat of Commerce allowing Lamborghini to become an
auto assembler.  Lamborghini says it will take its investment to Brazil if
the Mexican government does not respond to Lamborghini by the end of the
second quarter of 1995.  Lamborghini says that in about 2 months it will
have about 10 completed units of its Countach, a model it wants to assemble
in Mexico, using up to 60% of domestic content, which would lower the cost
of the car.  Currently, the car sells in the US for US$200,000, but would
cost about US$75,000 if produced in Mexico (article does not indicate where
the car is currently produced).  Lamborghini plans to invest US$13 million
for a new plant to manufacture its Diablo and Vector models.

(abstract in English, article in Spanish)
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
15  Argentina plans program to rev its auto sales.
    Wall Street Journal | p B10 | 95:05:01

In an effort to stimulate auto sales, the Argentine government is expected
to announce a plan to give car owners a discount on new vehicles when they
junk their old ones.  A discount of 20%, shared equally between the
government and the automaker of the exchanged vehicle, is the expected
average figure; but some key issues concerning the age of the car, the cost
shared by the automakers, and the amount of certificates that a person
could use or receive have yet to be resolved.  Argentina is in the midst of
an economic recession.  Sevel Argentina SA and Ciadea SA, Argentina's two
biggest automakers, had to cut back production early in 1995, and Sevel
expects a 20% decrease in sales, from 500,000 in 1994 to 400,000 in 1995.



From kevina  Mon May 15 18:02:24 1995
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From: usfmc6db@IBMMAIL.COM (CKB)
Newsgroups: rec.autos.driving
Subject: North American Auto News 5/8/95 (2/2)
Date: Fri, 12 May 1995 16:10:50 GMT
Organization: ECC at Ford Motor Company, Dearborn Michigan
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* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
16  Land Rover.  Baby sport ute still under wraps.  Car talk.
    Detroit News | p 1D | 95:05:03

Land Rover Ltd's new "baby" sport utility vehicle, Project CB40, will
function as an off roader and a "people mover."  It will cost between
US$30,000 and US$40,000 and will be marketed mainly in North America in the
fall of 1997.  The US version will be powered by a DOHC 2.5L V6 engine that
produces 165 hp, and the engine is linked to an electronic 4 speed
automatic transmission.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
17  Saab-Scania to recall total of 26,467 cars for range of problems.
    Wall Street Journal | p A4 | 95:05:01

Due to a range of problems on its 900 and 9000 models, Saab-Scania AB is
recalling 26,467 of these vehicles.  Of the recalled vehicles, 12,091
1992-1994 Saab 9000s need to be inspected by the dealers for possible
corrosion on the antilock braking system's (ABS) pressure switch terminal
connection.  Owners of these vehicles will be notified in June 1995.  Also,
8,993 1994 - 1995 Saab 900 5 door and coupe models with manual
transmissions will  be recalled to repair a pair of faulty washers in the
gearbox that causes slack in the shift linkage, which could make the
reverse gear inoperable.  Over 5,000 early production 1995 900 models
equipped with 2.3L 4 cylinder engines could have a problem that can result
in engine idle fluctuation.  Dealers will update engine management system
control modules in July 1995.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
18  Bit players in Seoul.  Importers gain foothold in Korean market, auto
    show.
    Automotive News | n 5602 p 3, 45 | 95:05:01

The Seoul Motor Show, which begins on May 3, 1995, and runs for 1 week, is
a sign that the Korean government might not be discouraging imports,
according to David Jerome, vice president of GM Korea.  The Korean
government has blocked imports in the past by "threatening to audit the
taxes of imported car buyers and requiring a special 'O' license plate for
non Korean vehicles."  Korea no longer uses these tactics, but Korean car
buyers might still be afraid of the negative image of buying imported
vehicles, even though imported vehicle sales have increased over 50%
through March 1995, from the same period in 1994.  Importers are upset at
the amount of space they have been given at the show, which is about 10% of
the space given the Korean automakers.  The Korea Automobile Manufacturers
Association says that the show was originally planned as a domestic only
event, but the plan was revised to include a pilot for an international
show it hopes to have in 1997.  Hyundai Motor Co Ltd will display its
HCD-III concept sport utility vehicle (SUV), a wagon version of its
Elantra, a step up version of its Sonata, and its FGV-I, which is a hybrid
electric vehicle.  Kia Motors Corp will introduce its new G-car, a 2.0L
engined midsized sedan, and its KMX-3; and it will show the KEV-4, a hybrid
concept car that runs off an 800cc gasoline engine and 50 kilowatt electric
motor.  Daewoo Motor Co will show its Bucrane sedan concept car, and
Ssangyong Motor will introduce its Istan commercial van, codeveloped with
Mercedes-Benz AG.  General Motors Corp will show its Blazer, Camaro,
Corvette, and Cadillac STS, which it hopes to start selling in Korea in
1995; and it will show its special edition Cadillac Concours, which
includes rear adjustable seats, reading lamp, rear audio controls, and
writing desk.  Ford Motor Co will show the Ford Mustang, Explorer, and
Windstar, as well as the Mercury Sable (currently sold in Korea through
Kia), and the Lincoln Town Car.  Chrysler Corp will display its Caravan,
LHS, Stratus, and Viper.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
19  Honda advances plan for bigger minivan for US.
    Automotive News | n 5602 p 10 | 95:05:01

Honda Motor Co is considering a "full sized" minivan to complement its new
Odyssey.  The minivan would be equipped with a V6 engine, and "be larger
than the Accord based Odyssey."  According to Tomoyuki Sugiyama, an
executive chief engineer for product planning of the Accord and its
derivatives, the full sized minivan would be made at a new or renovated US
plant.  Honda has yet to approve the project.  The new minivan could
feasibly be ready in 3 years, according to Sugiyama, and some suppliers
believe that it could be ready by 1998.  There is only speculation as to
where the new plant would be, what platform the new minivan would use, and
what manufacturing processes would be used.  Includes a front three quarter
photograph of the Honda Odyssey EX.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
20  Suzuki introduces new Esteem into jam packed sedan segment.
    Automotive News | n 5602 p 18 | 95:05:01

In early May 1995, American Suzuki Motor Corp will unveil its first
subcompact 4 door sedan - the Esteem.  The Esteem GL, the base model, is
priced at US$11,399, and the step up GLX model is US$12,699.  An optional
package would increase the GLX price to US$14,399 and would include air
conditioning, antilock brakes, and cruise control.  For an automatic
transmission, US$1,000 will be added to all models.  The Esteem is expected
to compete with the Geo Prizm, Honda Civic, Toyota Corolla, and Nissan
Sentra.  It features a "snub nosed" hoodline and a short rear deck and,
according to Suzuki, it has the largest interior volume in its class (97.5
cu ft).  It is powered by a 1.6L 16V 4 cylinder engine that produces 98 hp
and 96 lb-ft of torque and gets an estimated 31 mpg in the city and 36 mpg
on the highway.  It has front and rear independent suspension with
MacPherson struts and rack and pinion steering.  The GL comes with standard
dual air bags, intermittent windshield wipers, a standard trip meter, power
steering, rear window defogger, and tinted glass.  The GLX comes with those
standard features, plus power windows, door locks, and mirrors; split
folding rear seats; a stereo cassette player; and colored keyed bumpers.
Includes side and rear three quarter photographs.


From kevina  Wed Jun 21 19:29:01 1995
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Newsgroups: rec.autos.driving
Subject: North American Auto News, 6/19/95
Date: Wed, 21 Jun 1995 18:43:38 GMT
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* ---> 06/16/95 15:47 June 19 Edition              

      There are 27 items in this edition.

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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.

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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.

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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.

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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."

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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.

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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.

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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.

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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.

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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.

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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.

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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."

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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.

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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.

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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.

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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.

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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.



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Subject: North American Auto News, 6/21/95 (2/2)
Date: Wed, 21 Jun 1995 18:45:42 GMT
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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.

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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.

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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.

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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.

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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."

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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.

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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.

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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.

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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.

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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.

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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.



