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Show Automakers Hope Billions in Investments Will Pay Off Jan A Zvtrina UPl Auto Writer DETROIT During the past half decade, domestic and foreign automakers have poured billions upon billions of dollars into new technology to make sure they are still around in the next decade. U.S. automakers alone have spent $52 billion since 1980, much of it just to keep pace with the Japanese, who analysts say can build a better car for about $2,000 less than the Americans. ent buyers, especially those best known as "Yuppies," "The sales gain will be in the lower end of market, where the Japanese hybrids are," he added Hybrids, as Jouppi defines them, are small cars built domestically either through joint ventures, such as NUMM1 Corp. in Frethe mont, Calif, or by foreign automakers like Honda Motor Co. or Nissan Motor Corp which have U S. assembly plants. He predicts hybrid car sales will rise from 275.00U this year to almost 450.000 units in 1986, excluding the dowhich mestically built also is built in France for the foreign market. This time O'Grady is more bullish, placing hybrid sales at 335,000 in 1985 and 560,000 in 1986 as the Excel, a subcompact from Korean car maker Hyundai Motor Co., is marketed through Mitsubishi Motors Corp. Both analysts estimate that by 1990 more than 1.3 million hybrids will be sold each year when Mazda Motor Corp. and Mitsubishi have their U S. plants on line. "The hybrids will be the fastest growing segment, faster than imports," Jouppi said, adding that other car makers like Subaru and Isuzu also may have U.S. facilities by the end of the decade. Jouppi said hybrid cars will be sold in the $7,000 to $8,000 range. There are 57 million people in this country who make less than $6 an hour, and they would like to buy something that would not make them feel poor when they buy it," he said. "But dont underestimate the true imports, which will make some inroads into the American market," O'Grady warned. Besides domestics and hybrids, y there are the imports" those models shipped fully assembled from Japan as well as from an increasing array of other nations, such as Yugoslavia and Greece, Import sales in the United States totaled 2.4 million units last year, and will increase to almost 2.8 million this year. Jouppi predicted. For 1986, levels will decline slightly to about 2.7 million units. While others feel it could go as high as 45 percent of the total market in the next few years, Jouppi believes it will run about 24 percent of the U.S. market, at least for 1986. down from the 24 7 percent market share expect- By , AMC-Renaul- t. in 1984. "Next year were looking at 8 5 million cars," Jouppi said. Other analysts are not quite that bullish, and have placed estimates at between 7 4 million and 7.7 million as marketing new cars becomes harder. Even Ford Motor Co. chairman Donald E. Petersen said sales next year will be off by about 5 percent. "The 7.7 percent and 8.8 percent sales incentives offered this year may have cost automakers some $600 million over their budgets," a Ford spokesman said Marketing costs will probably get worse next year, but advertising budgets also will grow," he said. U.S. truck sales also will be very closely watched by manufacturers and analysts because the new mini-van- s popular with private buyers comprise a large portion of purchases. Jouppi predicts 1985 domestic truck sales of about 3.9 million, up from 3.5 million last year. He expects another 3.9 million trucks to be sold next year when for the first time General Motors, Ford, and Chrysler Corp. each will have a minivan. for 1986. Whether car sales stay even or dip, the type of car that will be popular is significant. 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It will sell in the $20,000 to $30,000 price range, below Cadillacs 1987 model Allante roadster. About 25,000 units will be produced in the first year by Lamb-Sceptr- general manager Donald Hackworth said the new car, to be could be built introduced in stand-alon- e manu using a turnkey or AH mole, East G Jaguar Car Inc, the United States marketer of British-buil- t luxury car has named Richard E. Tate district sales manager in. num V12 engine, is now available with a sunroof, the only option besides color. An interior sunshade retracts when opened. g day. Buick BANKRUPTCY 3 100 27, 1965 Jaguar Selects As Regional Sales Chief facturing process, which could be reproduced and run separately at nun-U.plants. GM went to London to figure out how to build the car. A British firm called Hawtal-Whitinworked out the engineering and production systems. another British firm, supplied the manufacturing equipment, and Ogihara, a Japanese company, produced the dies. The manufacturing process is cur- - two-seat- 1987-mod- MIDVALE BULL, LOST' 2 black retrieve! s, tern., vicinity ot 7800 So. (237-200- TO PtACE YOUR - The Buick FLINT, Mich. (UPI) Motor Division of General Motors Corp. may not only export its new outside the United States, but sell its manufacturing process to interested overseas firms, Automotive News said Mon- KNO'.'A AREA RESIDENTS Soft FOUND-P- IT Friday Morning Buick May Add Manufacturing to Export of New Car Legal Services FOUND smoll mixed breed dog Lody". FOUND White Musky Like Puppy Coll lost or interested 1 Mexico, Bod checks, embezzlement, offenses, fcxgery, ci ecJrt So 1700 West Very lovobta Needs to find his home Contact the Humone Society ) Classic Coupe single-overhea- mixed dog, $4 3 billion, up from billion expected for all of 1985 Ford will make $2.6 billion next year, up from a projected $2 41 billion this year, and Chrysler Corp.. affected by a U.S. strike last Uctober, will make $2 2 billion compared w.th $1 83 billion projected for 1985. GM will earn $4 12 - CAN SEE YOU TODAY' 5400 Cornoge Square 4271 mole Small ed The 1986 Jaguar XJ-S- , a LEONIA, N.J. classic sports coupe with a 5. digital d fuel injected cam alumi 900 breed Block with white chest. Vn West 4160 So 1730 Toke odvontoge DIAL FOUND. Next year also could be the year the United Auto Workers union finally oigamzes the Honda plant in Marysville, Ohio, which began Accord production in 1982 "(U AW President Owen Bieber has demonstrated he can accommodate differences brought on by the Japanese," said Jouppi, who predicts the 1 million member union will be in organizing Honda For 1986, profits should rise again to about $9 15 billion, Jouppi predict- Ex-Uta- RICHARD A 1984 Cadillac Motor Car Division has presented Csrleson Cadillac of Salt Lake City with a "Complete Customer Satisfaction" award. Robert A. Carleson, prealdent of the dealership, accepted the award, one of 40 dealer to be ao awarded, for qualifying in management, sales, service, parts and body repairs that affect customer satisfaction. The award is part of the company's $1 billion program to Increase customer satisfaction. and Found BROKEN Heorted lithe girl has lost her pudov, pure white Alaskan Motamute, about 3 mo old, answers to Nickie, lost seen at 8 am Thursday morn., December 26, 991 So. 10th Eos. Coil Debbie at rt you hove seen or heord anything that would leod to her recovery Reword offered Next seal, fourth ranked American Motors Corp will be baik in the blai k to the tune of about $.0 million, mostly from its profitable Jeep operations and its lucrative parts business. Jouppi said U S Cadillac Honors S.L. Car Dealer 035 Lost subcompact models wearing name plates As far as profit is concerned, the top four domestic car makers together should earn $8 25 billion this year, down from a record $9 8 billion in port Sectloe Other analysts feel the percentage built-u- p imports sold here will rise Special Notices 202 in December ed for 1985. professional The NEWSPAPER AGENCY mokes every effort to ovoid errors in Eoch od is coi efullv checked ond proofreod, but when hundreds of ods ore processed eoch doy, mistakes do slip through. We osk, therefore, that von chedk your od the FIRST dav ft appears ond immediately report any error to the Classified Deportment by collinQ We regret that we cannot be responsible for more thon one day's Incorrect insertion if you do not coil the error to our attention Thor You. 5 salt-spra- Thomas F. OGrady, of Integrated Automotive Resources Inc., Wayne, Pa., pegged 1985 truck sales at 4.3 million, declining to 4.15 million units Special Notices percent this year and 28 4 per1986 Including hybrids, it could be as high as 40 percent within the next two years. "The domestics will give a bit in share," Jouppi said "Japan is now moving into North America, creating jobs and creating new wage structures. They are changing the U S manufacturing scene and forcing domestics to move into extremely high spending Although Korea will make inroads into the U S. market next year with the Excel, the real thrust will come between 1987 and 1989 as other firms like Daewoo, Samsung and Kia Industries align with domestic firms to ex a "This spending has not yet born fruit." independent Detroit analyst Arvid Jouppi said. "But I expect a fair amount will begin to flow through beginning now." Like Jouppi, many industry analysts are predicting 1986 will be another strong year for domestic sales and not significantly different from 1985. He believes U.S. car sales alone this year will amount to about 8 4 million units, up from about 8 million m to 25 cent SyAdiciNl Inc 040 Pwrsonals CAiL I TV 976-STAR 24 HOURS 17827 HCR0SCCR Hear pedicftan oboirt vour low uli, cm ee, finances and hortti V mta Bui orti(e9? 955? DA.11 Pursonals 040 WAVl $AtE $13 cut and vN'e included lanced Ooercrtar Cottpr Aood Hf gtits Aieo tij-fjl- Reguicriy 5 $ 25 i or- 5MUAK ruVTtaMontat United Ainino 7 A Leo-- 7 50 tan om Cheap, $A9 4 gvnitab'f Co" Wilma $42 IMt |
