| Show Small cars receive new life life Freeman The Washington Post John Mathews of Universal Toyota in San Antonio has witnessed the day that auto industry executives in Detroit said would never come We are seeing people who arc driving trading them in on Corollas said Mathews who manages a dealership in a state where big trucks and sport- sport utility vehicles rule the roads The last 30 days have been unlike anything Ive I've ever seen in the automotive industry Even in hurricane-addled hurricane Alabama people pouring in from Louisiana and Mississippi are popping into Treadwell Honda in Mobile looking for replacements for destroyed cars Harold Wesley a salesman in the midst of fielding calls last week said he cant can't keep Civics on the lot lot- new or used As As soon as the new ones get here they are sold Wesley said the manufacturer manufacturer manufacturer manu manu- is allocating dealers a afew afew afew few at a time to be fair Treadwell's last shipment of 12 sold in three days he said Nationally Toyota Motor Corp officials say the Corolla one of the Japanese company's smallest and most fuel effi passenger cars had 87 Small Cars Cont on Page 9 Small Cars Cont Cant from front days' days supply of inventory at atthe atthe atthe the end of last week In the industry inventory of 50 to 60 days' days supply is seen as adequate Honda Motor Co officials are struggling to keep up with demand for the Civic of which there is nine days' days supply Inventories are as low or lower than they've ever been for the Civic said Sage Marie a Honda spokesman basically being bought right off the truck Even in truck-dominated truck Texas people who have been buying trucks for years are rushing to get out of them While small car sales are helping to lift the Japanese automakers Detroit's General Motors Corp and Ford Motor Co are sinking under the weight of large utility sport-utility vehicles once the industry's cash cows The two automakers have reported substantial slides in profits in their North American America operations this year year and their bonds have junk status on Wall Street The interest in small cars has caught the two automakers ers unprepared said Dave Healy an auto industry analyst analyst analyst ana ana- lyst at Burnham Securities Inc in New York For the Big Three Healy said investment followed profit margins As long as the segment was doing well they poured money into that and neglected small cars Healy said At that time you could have made a avery avery avery very good case that it was giving the public what it wants Healy and other analysts are predicting bleak results for Detroit automakers when they report sales results for September on Monday Healy said large utility sport-utility vehicles will be especially hit hard-hit after climbing in the summer due to employee pricing for everyone discount pricing sales Were looking at 20 30 40 percent yearly declines Healy said The spike in gasoline prices and the summer incentives have crushed sales now Brad Boeckmann vice president of Galpin Motors Inc based in North Hills Calif the biggest Ford retail dealer in the nation said Fords Ford's family price employee discounts has propped up sales of large at the dealership When the family pricing goes away obviously Ford and the dealers are going to need to do something to get peoples people's attention again Dealers say inventory of used s is building up Raj Sundaram president of Automotive Lease Guide which tracks vehicle resale values said s remain under pressure Can anybody anybody anybody any any- body answer the million- million dollar when question is this going to turn around and end he said Nobody seems to know GM and Ford are getting some benefit from greater interest in small cars George Pip Pipas as Fords Ford's US U.S. sales analysis manger said inventories are tight for the Focus passenger car He said sales of the Focus have grown 10 percent in the past 90 days compared with a year ago Pipas said the sm small car segment isone of the hottest in the industry To meet demand he said the Focus car plant in Wayne Mich has had fewer production shutdowns than in past years As faras faras far faras as we can see Wayne is going to be running Pipas said But the sales pace may outstrip our production for the foreseeable future Over the years Detroit's investment in new cars has taken a back seat to developing developing developing devel devel- more and more truck and models Last year GM introduced the small Chevrolet Cob Cobalt It but consumers consumers consumers con con- sumers were cool to the car early on Ford hasn't significantly significantly significantly cantly updated the Focus in inthe inthe inthe the past six years Both companies have new or redesigned models headed for showrooms in coming months AG is also concentrating on bringing out smaller that get better fuel economy an area of sales growth in the industry Paul Ballew GM's chief market analyst said the level of consumer interest in small cars is being over over- played He said Japanese automakers are benefiting most because of their experience experience experience in the segment particularly particularly particularly par par- in their home mar mar- ket Meanwhile Ballew said GM was having a solid small-car small month and he said GM will continue running running running run run- ning its LOrdstown Ohio plant where the Cobalt is assembled at a very aggressive clip I Ballew said GM OM wi will l continue continue continue con con- to watch the car market market market mar mar- ket before making additional addition addition- al plans to bring out more small cars for American buyers Honda and Toyota are moving forward This month Honda launched the latest Civic that includes a are re remodeled hybrid and high- high performance models In recent years Toyota launched the Scion brand a brandaline brandaline brandaline line of small cars that Toyota is marketing to younger buyers Scion has a tight 72 days' days supply I 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