Week of December 6, 1999

For more on the sales figures, click here

NISSAN TO CUT BACK IN NORTH AMERICA Nissan's operations in North America will be reshaped over the next several months as the Japanese automaker implements its broad plan to become profitable once again. As part of its contribution to the restructuring goals, Nissan North America will eliminate roughly 1,000 jobs. The company now has about 10,000 employees in the U.S. Nissan offered no estimates of how much it expects to save from the changes by the time the cutbacks are complete in March 2001, but worldwide, the restructuring put together by the Carlos Ghosn, the Renault executive put in charge of the turnaround effort, is expected to reduce Nissan's fixed costs by almost $2 billion annually.

For more on the Nissan cuts, click here

IS THE SUV AFFAIR COOLING? Rising gas prices since last winter may be putting some distance between Americans and their beloved sport-utility vehicles, Reuters reports. The vehicles, which have captured nearly 20 percent of the U.S. market, have seen a four-percent drop in sales since August, when gasoline prices began a rise to the highest levels in nearly four years. Reuters adds the SUV sales drop contrasts sharply against last year’s 25-percent increase in SUV sales, when gas prices were at historic lows. Gas prices have risen, the news service says, from an average of 96 cents a gallon last winter to today’s $1.27 a gallon.

HONDA DENIES GM STAKE Once again, Honda is insisting that it’s not the subject of takeover or equity-stake rumors. This time, the supposed partner is General Motors; reports in several international papers last week held that GM would purchase some 100,000 fuel-efficient engines from Honda for use in North American products, and would cooperate further, possibly purchasing an equity stake in Japan’s third-largest carmaker. GM is said to be interested in "broad business links" with more Asian manufacturers as it seeks to boost its market share in the region from 4 percent to 10 percent. A Honda spokesman again reiterated that the company is not interested in alliances.

GM STAKE IN SUBARU, TOO? While pundits placed it in bed with Honda, GM was also busy declining comment that it would take a 20 to 25-percent share in Subaru. GM officials agreed that they had held talks with Subaru in October, but would not comment on the shareholding rumor put out by Japanese media. Giving some credence to Subaru’s search for a new partner, Nissan announced that it would sell its 4.1-percent stake in Fuji Heavy Industries, parent company of Subaru. Currently, GM has a 10-percent stake in Suzuki and owns 49 percent of Isuzu.

RENAULT TO REVAMP DEALERS Still working on the fine details of its partnership with Nissan, France’s Renault SA may overhaul its European dealer network as a result of its new alliance, the London Financial Times reported last week. Nissan COO Carlos Ghosn told the paper in an interview that Renault would partly integrate its dealerships with those of Nissan, and would seek out purchasing savings from the combination.

CADDY STS TO PACE LE MANS Cadillac is getting deeper into Le Mans: the brand says that a specially equipped STS sedan will pace the 24-hour race next June. The hopped-up STS, called the Cunningham edition, will commemorate the 50^th anniversary of the cars entered by racer Briggs Cunningham. The cars will include a 320-hp version of the 300-hp Northstar V-8, an updated version of Stabilitrak, High-intensity discharge headlamps with Night Vision, 18-inch wheels and 40-series tires, and larger brakes.

THE SCARLET SIGN? Rebecca Escobar, of Wilkesboro, N.C. is guilty of the drunk-driving accident that killed 52-year-old Faye Schnablegger — but she doesn’t think she should have to wear a sign indicating it. Escobar, who drove into Schnablegger’s car on Jan. 27, killing the other driver, pleaded guilty to felony death by vehicle in June, and was sentenced by a Wilmington judge to wear a sign that reads "I am a convicted drunk driver and as a result I took a life." Escobar, when asked if her punishment fits the crime, told wire services, "No, I don’t."