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News Briefs

Late News from the Automotive World

Updated: January 31, 1999


"Car and Truck of Year" winners named. Once again in Detroit, a panel of journalists voted for North American Car and Truck of the Year. Volkswagen's New Beetle trounced the second- and third-place finishers (Honda Odyssey and Chrysler 300M) by far in the car category. Jurors cited the Beetle's great safety ratings and value as well as its nothing-else-like-it styling and uniquely friendly personality. On the truck side, the Jeep Grand Cherokee scored 300 points, followed by Chevrolet Silverado with 285 and similar GMC Sierra (151).


Women's magazine awards announced at Detroit show. Courtney Caldwell, publisher of American Woman Motorscene magazine, held no formal presentation this year but announced 10 awards to vehicles chosen as leaders by the publication's board. The 1999 kudos went to:
Ford Windstar - Most likely to succeed.
Jeep Grand Cherokee - Most likely to survive anything.
Porsche 911 - Most wanted (sports car).
Mercedes-Benz CLK Cabriolet - Most sex appeal.
Volkswagen New Beetle - Most likely to be remembered.
Chevrolet Silverado - Most athletic (pickup truck).
Chrysler 300M - Most likely to inspire leadership (luxury).
Mercury Cougar - Most vivacious personality (entry-level).
Toyota Prius - Most likely to change the world (environmentally friendly).
Honda Odyssey - Most versatile team player (minivan).


New manufacturers' association formed. Just days after the demise of the American Automobile Manufacturers Association, which had a history dating back to the early days of motoring, a new group was established. Nine global automakers have joined the Alliance of Automobile Manufacturers. Peter Pestillo, vice president of Ford Motor Company, will serve as chairman for the association's first year.


Dealerships are declining in number - but growing in scope. Despite all the recent hubbub about public ownership of auto dealerships, only 2 percent of them are public companies, according to the National Automobile Dealers Association. However, 40 percent of dealerships now belong to a chain of some sort, and the number of small dealerships has been declining steadily - down by 22 percent in the past four years. The total number of dealerships dropped by 200 in 1998.


Windstar scores high in safety. Ford's Windstar minivan is the first vehicle to earn a five-star rating in side-impact crash testing by the National Highway Traffic Safety Administration. Windstars also have a five-star rating (the top score) in front-impact crash testing.


Volvo fans get advanced driving training. In a pilot program, about 400 people in four cities have attended a free eight-hour program in Volvo's Advanced Driving School. Volvo uses the new S80 sedan for the program, where drivers learn to swerve, skid, and stop safely. A growing number of automakers, including BMW, have offered ride/drive programs around the country; but few are as extensive - or as safety-focused - as Volvo's. The company is considering expansion of the program.


Late Report: Tokyo meeting might refuel Nissan acquisition rumors. The two chairmen of DaimlerChrysler have met with the president of Nissan Motor, in Japan, to discuss their Nissan Diesel joint venture - and also to "explore possible cooperation projects."


Late Report: Ford buys Volvo car division. Late in January, Ford Motor Company agreed to pay $6.4 billion for Volvo's passenger car division. The Swedish automaker will retain its truck division.


Previous News Items

Will there be a Beetle convertible? At the SEMA Show in November 1998, held by the Specialty Equipment Manufacturers Association, several aftermarket firms exhibited Beetles that had been transformed into convertibles. Will the factory ever produce the rumored ragtop? "It may happen in the future," said a somewhat coy Dr. Ferdinand Piech, chairman of Volkswagen's board of management, during the company's Golf/Jetta preview. "But not in the near future."

New Beetles now are on sale in Germany. If production volume passes 800 cars per day, Piech says they might consider a second manufacturing plant, outside of Mexico.


AAMA is extinct. As of December 31, the American Automobile Manufacturers Association (AAMA) no longer exists. Dating back to 1900, it was the oldest auto trade association in the U.S. The decision to cease operations resulted from the recent merger of Chrysler Corp. and Daimler Benz AG, into DaimlerChrysler.


BMW adds Sport option to 7-Series. Well known for luxury, the largest (and costliest) member of the BMW group can now be equipped with a Sport package that includes 18-inch tires and a lowered front sport suspension.


Saab's latest crash-test dummy evaluates whiplash injury. Developed by a Swedish consortium, BioRID (Biofidelic Rear Impact Dummy) is the first test device specifically designed to help engineers evaluate the risk of neck injuries in rear-end collisions. Saab claims the world's first Active Head Restraint system.


Government guide summarizes safety features. A new Department of Transportation brochure may be obtained by calling the NHTSA Auto Safety Hotline: 1-888-327-4326. New Car Safety Features - Valuable Information to Help You Buy a Safer Car also is available through the NHTSA Web site (http://www.nhtsa.dot.gov).


Revived Impala will debut in Detroit. Enthusiasts moaned after Chevrolet abandoned the performance-oriented Impala SS sedan. An all-new Impala was seen for the first time at the North American International Auto Show, early in January.

Other notable world debuts in Detroit included the BMW X5 "Sports Activity Vehicle" and the 2000 Nissan Xterra. Models seen for the first time in North America included the Audi TT, Ford Focus, and Jaguar S-Type.


Kia names 2001 minivan. Displayed in 1998 without a badge, Kia's first minivan will be called Sedona when it reaches the U.S. in the year 2000, as a 2001 model.


Honda displays S2000 roadster in L.A. Honda's first modern roadster debuted at the Greater Los Angeles Auto Show, open to the public from January 2-10. The rear-drive two-seater will use a VTEC four-cylinder engine, rated at 240 horsepower but meeting Low Emission Vehicle (LEV) standards. A new six-speed manual gearbox will send all that strength to the tires. Honda's offering at Detroit's auto show was a new concept hybrid vehicle.


Ford/GM buyers called most loyal. According to the third annual Automotive Household Loyalty Awards, compiled by The Polk Company, Ford Motor Co. and General Motors Corp. had the most loyal owners in 1998. Ford won in seven categories, GM in two.


NHTSA to crash-test 63 vehicles. For the 1999 model year, the National Highway Traffic Safety Administration will crash-test 26 passenger cars, 18 sport-utility vehicles, 7 vans, and 12 pickup trucks for its New Car Assessment Program (NCAP). Thirty-two vehicles will be frontal crashes; 31 will be crashed from the side.


Mustang Cobra price revealed. A '99 Cobra coupe will sticker for $27,995 (including destination charge). The convertible lists for $31,995.


Wedding bells ring for Daimler-Benz and Chrysler. It's true. Chrysler Corporation is now part of the same company as Mercedes-Benz, in a global firm known as DaimlerChrysler. "Day One" was November 17. Co-chairmen Robert Eaton and Jurgen Schrempp insist that they "have created a merger of equals and a merger for growth," hoping to build upon "each other's strengths." DaimlerChrysler has 421,000 employees (137,000 in North America) and sales of 4 million vehicles annually. Corporate headquarters will be in both Stuttgart, Germany and Auburn Hills, Michigan.


Motorcycles as fine art? After a well-attended run at the Guggenheim Museum in New York, an exhibition of motorcycles has moved to Chicago. "The Art of the Motorcycle" opened in November at the Field Museum and runs until March 21, 1999. This will be the only additional opportunity to see the exhibit in America, before it moves to Tokyo, Munich, and Bilbao, Spain. In Chicago, the group of 72 motorcycles includes everything from an 1885 Daimler-Einspur to a 1922 Megola Sport, and from a '48 Indian (with hand gearshift) to a modern BMW R1200. For information, call the museum at (312) 922-9410.


Honda focuses even more on emissions. Close to two-thirds of 1999 Honda vehicles sold in the U.S. will be low-emission models. Honda's new Odyssey minivan meets California's LEV standard, as do nearly all Civics. Several Accord models meet ultra-low emission vehicle (ULEV) standards.


Costs worry auto fleet managers. A survey by Fleet Management magazine reveals that operators of business fleets are most concerned about escalating repair costs of vehicles, and by rising vehicle prices and absorption of retired vehicles into the used-car market. Their concerns would appear to mirror those of consumers. Government fleet operators listed alternative fuels as their foremost concern.


Car prices still going up. Despite a number of 1999 price cuts, the general upward trend has not yet ebbed. According to the National Automobile Dealers Association, the average new vehicle sold for $23,380 in August (up 5 percent from the 1997 figure).


Saab announces 9-5 wagon. After launching a 9-5 sedan for 1998, to replace its old 9000 series, Saab now has a station-wagon version on tap. Despite sharing various components with the sedan, it's said to have been planned and styled as a wagon from the start. The Swedish company claims that "it drives like a premium sports sedan." Both a turbocharged four-cylinder engine and a 3.0-liter V-6 will be available.


Fleet buyers prefer Fords. A survey by Fleet Management, an industry newsletter, revealed that Fords are the primary make used by 43 percent of business fleets. Chevrolet runs second at 25 percent; Dodge follows with 18 percent of the total. More than half of government fleets used Fords, according to the survey. None of the surveyed companies indicated that an import brand was its primary choice.


Child-safety booklets available. As part of its "Quest for Safety" program, Nissan offers an 8-page booklet titled, The What to Expect Guide to Car Seat Safety. To get a free copy, call 1-800-955-4500. For another booklet, Kids on Board: How to Enjoy the Carpool, call 1-800-647-7261.


Acura introduces passenger-sensitive airbag. The 1999 Acura 3.5 RL sedan gets a new system that automatically adjusts the deployment of the front passenger-side airbag, according to the severity of the crash. In addition, seven sensors monitor the size and position of the occupant, adjusting deployment accordingly.


GM starts to shrink. As promised by chairman Jack Smith (see September issue), General Motors is cutting back on its list of models. First to go: the Buick Riviera, restyled for 1995. Next to face extinction was another old name, the Oldsmobile 88. Oldsmobile's Cutlass may also disappear, after the '99 model year. Analysts suggest that the Chevrolet Prizm might also be marked for deletion, and possibly the Chevrolet Camaro and/or Pontiac Firebird. Since 1992, GM has dropped from 105 to 77 models, and more will get the axe. Of 23 new vehicles expected in the next three years, Smith has vowed that "nearly half will be innovative concepts."


Which colors attract buyers? According to PPG Industries, a leading paint supplier, green, white, and red are the most popular car colors. Europeans prefer black-to-silver, blue, and red.


GM offers competitive test drives. General Motors has been offering consumers an opportunity to drive its products, and those of rival makes, on special test tracks in selected regions. In Orange County, California, early in October, the event featured 50 GM brands and 23 competitive brands.


Save the unbelted? To the dismay of many safety advocates, the National Highway Traffic Administration (NHTSA) is considering revision of the rules, to require that airbags protect unbelted occupants. This could result in abandoning the de-powered airbags installed on most '99 cars.


Ford unveils redesigned Mustang. After five years on the market in its prior form, another new version of Ford's "ponycar" went into production in November 1998. On sale by December, the reworked coupe is more muscular than before, its available V-8 engine gaining no less than 35 horsepower (rated at 260). The V-6 engine jumps from 150 to 190 horsepower. For the first time, all-speed traction control is an option. Ford advises that the new Mustang's appearance is based on the pyramid, called "the most stable geometric form," borrowing from the original 1965 model as well as the company's recent "New Edge" design theme.


Don't disconnect airbags, ophthalmologists warn. Despite the fact that "airbags may cause eye injuries in low-speed impact," the American Academy of Ophthalmology encourages people to keep their airbags connected. The association believes that risk is outweighed by the number of lives saved in high-speed impacts. "The airbag is more likely to prevent than cause serious ocular injury," said Dr. Dante Pieramici, one of 17 expert physicians surveyed by NHTSA.


Dealer group seeks to improve media's impression of auto retailing. Automotive Retailing Today, an industry-wide coalition of dealer associations and automakers, was unveiled during the Management Briefing Seminars in August. The group plans to hold special seminars for journalists, to give a "candid" look at the modern car-buying experience.


Infiniti issues a price. List price of the reworked Infiniti G20 sedan is $20,995, with manual shift. A touring model goes for $22,495.


Infants at risk. A new survey reveals that while nearly all parents with infants have heard about airbag risks, 11 percent regularly carry an infant in the front seat. That puts as many as 175,000 babies at risk, according to the Air Bag & Seat Belt Safety Campaign. "Infants should never, ever ride in the front seat of a vehicle with a passenger air bag," said executive director Janet Dewey. The survey also found that drivers who don't wear seatbelts are 50 percent more likely to restrain babies improperly.


Vigilantes on the road? A new service to report bad drivers claims to have begun by contacting law-enforcement officials. For a $1.95 charge, motorists can call a 900-number to report the license-plate number and location of dangerous drivers. Using its database, the firm says it can track repeated offenders, making information available on the Internet. Foremost offenses thus far: lack of turn signal, weaving, and tailgating.


Want to learn about ABS? ITT Automotive offers free copies of NHTSA's leaflet on proper use of anti-lock brakes. Call 1-800-694-5200 to request a copy.


Mitsubishi prices 1999 Galant. The redesigned Galant sedan starts at $16,990 for the DE model (plus destination charge), ranging upward to $24,350 for the new performance-oriented GTZ with its 195-horsepower V-6 engine.


Car sales matter. Close to 20 percent of retail sales come from new car and truck dealerships, according to the National Automobile Dealers Association. Five percent of the nation's workforce is employed at dealerships, with an annual payroll of $37.4 billion.


Toyota launches coupe. New for 1999, the Camry Solara coupe stickers for $18,638 in SE trim with a four-cylinder engine and manual shift. Picking an SLE V-6 ups the ante to $24,988. Six-cylinder models went on sale in August; four-cylinders in late September.


Ford SUV will be LEV. Scheduled to begin production in the year 2000, Ford's eagerly-awaited compact "lifestyle" sport-utility vehicle will meet low-emission-vehicle standards.


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