A RECORD-BUILDING YEAR FOR
TOYOTA MAKES A MILLION
DC EARNINGS HIT A PEAK
GAS HITS DECADE HIGH
FORD, CHEVY GET 70+MPG
MERCURY, VOLVO TO GET QUASI-UTE?
HONDA, SATURN GET FOUR STARS
RENAULT FANCIES SAMSUNG
MAZDA EYES EURO OUTPUT
NEW CENTURY, NEW RECALLS
Read all about the Detroit auto show by clicking here.
TOYOTA MAKES A
MILLION Vehicles, that is. For the first time ever, Toyota built more than 1
million cars, trucks, minivans and sport-utes in North America. Japan’s
number-one brand assembled just slightly more than 1,061,000 vehicles this year
in its four plants in Canada and the U.S. Just last week, Toyota confirmed that
it will expand its nearly-new Gibson, Indiana, facility to add even more
capacity — bringing its total in Indiana to 300,000 vehicles each
DC EARNINGS HIT A PEAK DaimlerChrysler AG says it
generated $149 billion in revenue in 1999, boosting its annual gain from 1998 by
12 percent. Most of the gains were made from better sales at Mercedes-Benz and
Chrysler, with even the costly Smart project beginning to show signs of life. DC
sold 80,000 Smart cars last year, far below initial projections of 130,000
vehicles, but the new Mercedes-Benz S-Class (and its much higher profit margin)
is off to a strong start.
GAS HITS DECADE HIGH Just in time for the holiday’s
record travel, gasoline prices hit a record as well. The average price for a
gallon of unleaded was $1.273 a gallon, the highest in a decade for the holiday
season — and some 33 cents a gallon more than last year during the same time.
While the Department of Energy, which released the figures, showed that the
price of gas had only gone up about a penny since the previous week’s $1.269 a
gallon, it noted last year’s price per gallon was only 93.7 cents. Take heart,
East Coasters: on the West Coast it’s even worse, with drivers paying about a
dime more per gallon.
FORD, CHEVY GET 70+ MPG Both Ford and Chevrolet are hopping on the ultra-fuel bandwagon for the upcoming Detroit auto show. Last week, both brands announced concept vehicles that, through the miracles of lightweight construction and diesel-powered hybrid drivetrains, get more than 70 mpg. The Ford Prodigy checks in at just 2387 lb, but rivals the size of the 2000 Taurus, which weighs about 1000 pounds more. It’s expected to lend some technology to Ford’s first all-aluminum vehicle, slated for a 2002 debut (read more on the Mercury/Volvo crossover vehicle below). For its part, Chevrolet is prepping the Precept, a more radical high-fueler that has attained nearly 80 mpg in testing. Both vehicles will be unveiled during press days at the auto show, which begin Jan. 10.
For all our Detroit show coverage, click here
For more on the Prodigy and Precept, click here
MERCURY AND VOLVO TO GET QUASI-UTE? While Ford figures out the future of its Mercury division, it may be plotting a new crossover vehicle to give to Mercury and recent acquisition Volvo a toehold in the burgeoning all-activity market. Reports from various sources say Ford will split the Ford Taurus and Mercury Sable, reincarnating the Sable as an all-aluminum tall wagon built at Ford’s Chicago plant and shared with Volvo. Taurus production would be consolidated in Atlanta. The new vehicle may be based loosely on the current Volvo S80 sedan. While Ford execs stated recently that Mercury would receive no new nameplates, a Sable crossover ute would fit neatly with its existing lineup of Villager minivan, Mountaineer SUV, Grand Marquis traditional sedan, and Cougar sport coupe. Mercury sold 410,186 vehicles in 1998, down from 474,673 in 1989.
HONDA AND SATURN GET FOUR STARS
Both the Honda Accord and Saturn LS received four out of five stars in the
latest safety rankings from the National Highway Traffic Safety Administration.
The Accord and LS sedans received the rating for both front passengers in the
agency’s 35-mph barrier test. The tests, the first of the agency’s 2000
examinations, also found the Accord’s rear-seat side-impact safety worthy of
five stars. Some 58 2000 model-year vehicles will be tested, while results from
77 1999 vehicles will be carried over since the models underwent little change.
RENAULT FANCIES SAMSUNG
Acquisitive French types at Renault have signaled their intent to woo South
Korea’s Samsung Motors out of insolvency. Samsung’s main creditor took official
notice of two bids for Samsung last week, but did not single out Renault as one
of the suitors — instead, Korea’s Munhwa Ilbo newspaper did. Samsung says
it will sell off its carmaking unit, which built Nissan-based vehicles, by the
end of February.
MAZDA EYES EURO OUTPUT
Meanwhile in Hiroshima, boosted by the fortunes of Ford, Mazda is hoping to
build cars in Europe to boost its Continental presence.
The company, owned in 33.4-percent part by Ford,
is considering using excess capacity at a Ford plant to build passenger cars
beginning in 2002, says Japan’s Nihon Keizai daily, with Mazda building
10,000 units a year to begin its European effort. Mazda ranks third among
Japanese brands in Europe, with just more than one percent of the
market. The report also
suggested Mazda would buy diesels from current glow-plug guru Peugeot, buying
50,000 diesel engines from the French to put into Euro-made
NEW CENTURY, NEW RECALLS GM, Ford, Honda, and Suzuki are all bitten by the recall bug as we transition into the Age of Aquarius (which should mean exceptionally peaceful and harmonious service visits for affected owners, we think). GM is recalling 272,980 1999-2000 Saturns for seatbelt anchors, 43,204 2000-model Chevrolet Malibus for leaky gas tanks, and 30,605 1999-model Chevrolet Trackers for brake lamps. Ford is bringing back 164,731 19992-1993 Ford Thunderbird and Mercury Cougars for faulty headlight wiring, Honda some 101,159 1998-1999 CR-Vs to repair wiring problems, and Suzuki some 8,408 1999-model Suzuki Vitaras for the same brake-light problem as the Tracker.