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SHED NO TEARS WITH THIS SAAB STORY
Dec 9 1999


Shed no tears as you read this Saab story. 

For this small Swedish automaker, jointly owned by General Motors
Corp. and Swedish holding company Investor AB, now boasts an assortment of high-flying performance cars to complement its lineup, and will likely take to the new millennium with a properly focused product plan that should see global sales jump substantially--maybe double in five years.
Whew! What a difference a decade makes. More on that later. First the cars.
Just months after launching the potent 9-3 Viggen (Viggen is Swedish for "thunderbolt") Saab has introduced the 9-5 Aero, another hotshot toy for auto enthusiasts. The Aero ($54,650) features a high output turbocharged, 230 horsepower 2.3-litre four-cylinder engine available with either a 5-speed
manual or 4-speed automatic transmission. The Viggen, meanwhile ($49,000), also boasts 230 horsepower (turbocharged, of course) and is now available not just as the three-door hatch that went on sale in the spring, but also as a five-door hatchback and a convertible. 

Talk about go-power. The three-door Viggen will zoom from 0-100 km/hour in 7.6 seconds, which is six-tenths of a second faster than its key rival, t he BMW 328Ci.  As for the 9-5 Aero, it's the successor to the 9000 Aero and true Saab enthusiasts will trace its roots (and that of the Viggen's) back to the former SPG cars (for special performance group) of the mid- and late-1980s. The Aero isn't quite as "in-your-face" as the Viggen, but its does have flared rocker panels, a front chin spoiler, a rear valance and a sport steering wheel. The Viggen? Oh, it was developed jointly by the SVO team and Tom Walkinshaw Racing (TWR). It's exclusive, too: less than 3,000 will be produced worldwide for model year 2000.  Anyway, the Viggen has a sport-tuned and lowered suspension (we're talking revised dampers, springs and anti-roll bars for you technophiles), 16-inch ventilated and grooved brake discs, five-spoke alloy wheels and grippy performance tires.  Visually, the most potent car in Saab's lineup is a standout. Low-slung and pointy-nosed like its namesake, the Swedish fighter jet, the Viggen has aerodynamic front and rear bumpers with integrated spoilers, color-matched sill panels and a rear deck spoiler. It's available in four colors: black, silver, yellow and li ghting blue metallic. The blue car looks simply brilliant.

There's more here than just good looks, though. And I'm not talking about how practical the three-door is, although with the rear seat folded flat the cargo bay will accommodate something about the size of...say, a golf cart. No, the Viggen, as you would expect, goes. Fast. The power comes on right away, as soon as you nudge the throttle with your right toe. Yes, there is ever so much of a bit of turbo lag (as the exhaust-gas driven pump spools up to push air into the combustion chamber). But the lag is barely noticeable and completely silent, and in hard acceleration there is just a hint of torqu e steer (which is the tendency of turbocharged cars to pull in one direction). Then off you go. The steering is very, very sharp, the brakes wonderfully strong and very comforting. They just don't seem likely ever to fade and are terribly easy to modulate. Cornering if flat, with very little body roll. Yet the ride quality is not at all punishing, though firm. What's missing? Traction control. It would, I expect, virtually eliminate torque steer, but it's not available on the Viggen. Back to the Aero, which does come with standard traction control. Not only that, Saab's engineers integrated a sport chassis on the Aero with performance-optimized suspension, upgraded brakes and 17-inch alloy wheels with low profile tires  to give this otherwise luxurious sedan a racy character. While the Viggenis the hottest car Saab has ever produce, the Aero isn't far behind. It/s a worthy challenge to the Audi S4, BMW M3 and Mercedes-Benz C43  So now Saab has quite the range of cars. 

At the top end are the Aero and the Viggen, but the lineup  also includes base and SE versions of the  9-3 (three-door, five-door and convertible), as well base and SE versions of the 9-5 and a 9-5 wagon. Slowly and carefully Saab has managed to rebuild its lineup since GM bought a 50 per cent interest a decade ago for about $600 million US. Quality has also improved dramatically in the last 24 months, and global sales have, too. Saab expects to sell 130,000 to 135,000 cars this year, up from 118,580 in 1998. Better still, Saab is expected to turn a profit this year for the first time since 1995. Now the question is, will GM take a larger stake or even full control of Saab within the next few weeks? GM has an option until Jan. 31, 2000, to buy Investor's stake and some analysts expect GM to do just that to strengthen its luxury car segment. 

Saab Insiders say such a move by GM would be welcome because it would end years of uncertainty within Saab. They say that during the last decade, GM and Investor have tried to figure out their roles but with only varying degrees of success, as evidenced by the haphazard way new products have come to market this decade.  In some ways, in fact, Saab's leadership has been kept in an off-and-on holding pattern for much of the last decade. Analysts have suggested that if GM becomes the sole owner, the next logical step would be to look for ways to further expand Saab's lineup and boost its presence as a top-tier European carmaker. Global sales of more than 200,000 cars a year would be a reasonable goal.
This much we do know. 

At the Frankfurt Auto Show earlier this year Saab president Robert Hendry said Saab is aiming to double the size of its model lineup, and may add a sport-utility vehicle, as part of a major sales  push during the next five years. Hendry said Saab needs a wider product line and plans to base new models on a single "platform," industry shorthand for a car's chassis, transmission and electronic components.  The arrival of a single Saab platform could coincide with the replacement of Saab's 9-3 model. That car should hit the market in 2002 or 2003. In Frankfurt, Hendry said Saab could use a stretched version of the platform, known within GM as Epsilon, for new versions of the 9-5, as well.

Seems like this Saab story really just has begun.

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ENGINE SPECIFICATIONS FOR SAAB'S LINEUP
Dec 9 1999


9-5 Aero:
2.3 High Output Turbo
Horsepower: 230 at 5,500 rpm
Peak Torque: 258 lb.-ft. at 1,900-3,800 rpm (manual)
243 lb.-ft. at 1,900-4,600 rpm (auto.)

9-5 SE:
3.0 Turbo V6
Horsepower: 200 at 5,000 rpm
Peak Torque: 229 lb.-ft. at 2,500-4,000 rpm

9-5:
2.3 Turbo
Horsepower: 170 at 5,500 rpm
Peak Torque: 207 lb.-ft. at 1,800-3,500 rpm

9-3 Viggen:
2.3 High Output Turbo
Horsepower: 230 at 5,500 rpm
Peak Torque: 258 lb.-ft. at 2,500-4,500 rpm

9-3 SE:
2.0 High Output Turbo
Horsepower: 205 at 5,500 rpm (manual)
205 at 5,750 rpm (auto.)
Peak Torque: 209 lb.-ft. at 2,200-4,800 rpm (manual)
184 lb.-ft. at 1,900-5,700 rpm (auto.)

9-3
2.0 Turbo
Horsepower: 185 at 5,500 rpm
Peak Torque: 194 lb.-ft. at 2,100-4,200 rpm (manual)
184 lb.-ft. at 1,900-5,000 rpm (auto.)

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VIGGEN COMES WITH FLIGHT SCHOOL

Buy a Saab Viggen, go to flight school. Every 9-3 Viggen buyer receives, at no charge, a certificate for the Viggen Flight Academy, a two-day intensive driver training session held at the world-class Road Atlanta complex, located near Saab Cars USA's headquarters in Norcross, Georgia.  

Designed just for 9-3 Viggen owners, the program is taught by a team of racing professionals. These Saab-savvy instructors work with small groups of owners to ensure they get the most out of their front-wheel drive performance car in everyday driving situations. A fleet of 9-3 Viggens will be used exclusively throughout the program.

SAAB PRICING

9-3 Three-door Base: $34,100
Viggen: $49,000
9-3 Five-door Base: $33,500
SE: $39,650
Viggen: $49,000
9-3 Convertible Base: $50,650
SE: $57,750
Viggen: $63,500
9-5 Sedan Base: $40,200
SE: $50,850
Aero: $54,650
9-5 Wagon $42,300

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LINCOLN LS NAMED MOTOR TREND 2000 CAR OF THE YEAR
Dec 3 1999

The Lincoln LS luxury sedan has been named Motor Trend magazine's 2000 Car of the Year.
"The LS had to beat out an international field of competitors, and that is as it should be because the LS was designed from the start to go tire to tire with the best the world's auto makers can offer," says Lincoln Mercury president and former Ford of Canada president Mark Hutchins.

This year marks the first time since 1975 that Motor Trend has combined both import and domestic vehicles into one competition ?? pitting the LS against more than 30 international competitors. Lincoln last received the Motor Trend Car of the Year in 1990 for the Town Car, the only time, prior to this year, Lincoln had won in the first 50 years of the award. 
"We don't intend to wait that long before winning again," Hutchins said, "especially looking at our future product offerings."

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BMW 3-SERIES A `DESIGN OF THE DECADE'
Dec 3 1999

The BMW 3-series has received the top honor in design awarded by the Industrial Designers Society of America (IDSA).

The 3-Series was named a Gold award in the transportation category in a competition that included 189 entries. The jury honored 12 designs with the Gold award in the Designs of the Decade: Best in Business 1990?1999 Awards Competition. 

The Designs of the Decade competition recognizes the most compelling design/business success stories of the 1990s and honors products and strategies that have made a significant business impact.

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AUSSIES NAME S-CLASS CAR OF THE YEAR
Dec 3 1999


The Mercedes-Benz S-Class has topped a field of 30 finalists to be named Wheels magazine Car of the Year, Australia's most prestigious motoring award.
This is Mercedes' second title in the 37?year history of the award. The previous win came in 1981 for the then-new S-Class.

Other finalists included Honda S2000 sportscar, the Ford Ka and the Audi TT.

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NEW ENGINES FROM FORD/MAZDA JOINT PROGRAM
Nov 25 1999

Details are scant, but Ford Motor Co. has confirmed that next year it will begin producing a new family of high-performance, lightweight engines designed in partnership with Mazda Motor Corp.
The lineup of engines is likely to include both six and four-cylinder engines and will be used in 2001 model year cars and trucks around the world.

David Szczupak, the former Jaguar engineer who now heads Ford's powertrain engineering, says the new engines should be able to use a variety of fuels, from ethanol to natural gas to regular gasoline. More details are expected in February.

The engine project's projected cost is about $1 billion, including some $400 to upgrade Dearborn Engine Plant. In addition, the new engines will be built at three other factories around the world: Chihuahua, Mexico; Valencia, Spain; and at Mazda's engine plant in Hiroshima, Japan. Total annual production of the new engines should reach about two million units.

Ford holds a controlling 33.4 per cent interest in Mazda.

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BMW'S ROVER CONTINUES TO BE PLAGUED WITH PROBLEMS
Nov 25 1999

The Rover 75 sedan that Bayerische Motoren Werke AG (BMW) had hoped would lead a turnaround at its unprofitable Rover is not only late to market but also off to a slow sales start.
BMW acquired Rover in 1994 and has since ploughed billions into rebuilding its product lineup and manufacturing facilities. Last year alone Rover lost $1 billion US. The 75 is the first of the new vehicles developed under BMW ownership.

Analysts suggest that Rover can expect annual sales of about 40,000 units, far short of initial sales targets of 55,000-60,000 cars.

The Quandt family, which owns 45.6 percent of BMW, has repeatedly said it has not plans to sell its controlling interest, however speculation persists that investment interest from another automaker might yet be welcomed.

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RUMORS SWIRL AROUND CAMARO, FIREBIRD
Nov 25 1999

Rumors continue to swirl that General Motors Corp. is preparing to end production of its long-time pony cars, the Ste. Therese, Quebec-built Chevrolet Camaro and Pontiac Firebird.

GM officials continue to deny the rumors that both slow-selling models will be dropped from GM's lineup in 2000. In fact, a GM spokesman has said there will be special editions of both models for the 2002 model year.

However, in recent contract negotiations, Canadian Auto Workers president Buzz Hargrove said GM plans to shutter the plant by next fall. To which GM officials replied that GM's CAW contract calls for keeping the plant open until the fall of 2002.

Both models have been produced since the late 1960s, when they arrived to compete against Ford's wildly successful Mustang. 

Combined production of the two models totaled less than 65,000 through October, a drop of 16 per cent from a year ago.

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PLYMOUTH IS SCRAPPED-IS MERCURY NEXT?
Nov 25 1999

Daimler Chrysler AG plans to phase out the Plymouth nameplate across North America by the end of 2001. So are Ford's Mercury and General Motors' Oldsmobile brand next?

That's a question on the minds of analysts and observers who see an increasing willingness among carmakers to scrap unpopular or unprofitable models and brands.
Officials from both companies insist there is a future for Mercury and Olds, despite the loss of market share for both brands. 

Ford chief executive Jac Nasser, who had no qualms about killing the old Ford Thunderbird, has said several times this year that Ford has no plans to drop Mercury, and in fact is developing new Mercury products and a new marketing strategy to match them.

GM, meanwhile, has been steadily, if not quickly, rebuilding the Oldsmobile product lineup. Olds general manager Karen Francis, who joined GM several years ago from a Memphis-based office supply company, says her division is not only on the move, but is also profitable. She insists that the future is bright for the oldest marque in North America (dating back to 1987). And to back up here position, Francis points to the all-new Olds Aurora luxury sedan to be launched early next year.
Analysts insist that both nameplates will only survive if they receive their own distinctive products, not re-badged versions of Ford and GM vehicles.

For Mercury, which dates back to 1939, that means cutting-edge styling even for products with their roots in a Ford model. Ford design chief J Mays has said that future Mercury products will have sharp edges and make judicious use of chrome to give them a modern flavour that should appeal to younger buyers. In terms of specific future products, Mercury will likely get a tall station wagon of some sort built off the Ford Focus platform.

Olds is aiming to attract some of the same buyers--typically import oriented--as evidenced by the recently launched Alero compact. Francis says the Olds product line is nearly two-thirds of the way through a re-make that began in 1994 under former general manager John Rock. When complete, the Olds lineup will fit somewhere between Pontiac and Buick.

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GM CHAIRMAN REPORTED TO BE CONSIDERING RETIREMENT
Nov 25 1999

Published reports in The New York Times and elsewhere indicate that General Motors Corp. chairman Jack Smith is mulling retirement as early as the end of this year.

Smith, who is 61, would not be eligible for mandatory retirement for four more years and GM officials hotly deny any move is afoot for a changing of the guard at the top of the company.

Smith took his current job seven years ago as a result of a boardroom coup that saw previous chairman Robert Stempel driven from office. In that time GM, which was then near bankruptcy, has returned to profitability despite a continued erosion of market share-now stuck at less than 30 per cent in the U.S. Smith, who is seen as a skilled manager with superb finance skills, is credited with cutting billions in costs and reorganizing the company both in North America and abroad.

But there is concern on Wall Street that GM's product lineup, which is heavily weighted towards cars at a time when light trucks are the hottest segment of market, has not been positioned to take full advantage of a booming North American vehicle market. 

Lehman Bros. Inc. auto analyst Nick Lobaccaro says GM's profitability would be greater if it had more and new light trucks to offer. He also points to GM's often overlooked underfunded pension and health care liabilities (on an after-tax basis) as an issue of concern. Those liabilities equate to roughly $40 per share, says Lobaccaro.

Still, Lobaccaro, Goldman Sachs & Co. auto analyst Gary Lapidus and others think that in the near term GM stock looks strong, especially so looking ahead to a further partial distribution of stock in GM's Hughes Electronics Corp. (GMH) unit, which recently went public. Lapidus suggests that over the next 12 months such a move could unlock as much as $15 of the hidden value of GM shares. So Lapidus thinks a GM share price target of $86 is realistic.

If Smith, a 38-year GM veteran, were to leave in the next few months, before the U.S. car market begins to soften and as the benefits of the Hughes spinoff are greatest, he would clearly leave a hero for having steered GM back from the very brink to a point where the company's bottom line looks very healthy.
Certainly there is enough buzz around a potential Smith exit to warrant interest. Fueling speculation is the fact that next May John Smale, the director primarily responsible for bringing in Smith to run the company, will retire from the board.

All of which raises questions about succession. GM's vice-chairman, Harry Pearce, was considered Smith's heir apparent. However, he is still recuperating from leukemia and a bone marrow transplant, although he's back on the job. 

GM president Rick Wagoner is also considered a possible candidate for the top job, but at 46 he is relatively young. And there's no denying that while Wagoner has been one of the company's most senior managers, primarily responsible for new products, GM's market share has continued to slide. 
What seems most unlikely is that GM will bring in an outsider to run the company. Smale is on record saying that a company only turns to an outside leader when it's in trouble. And GM officials argue that the company, on the contrary, is in a strong growth mode, with great plans for doubling market share to 10 per cent in Asia, more profits expected from automotive operations worldwide and a competitive and independent Delphi delivering greater returns and cutting costs. GM officials also say they have a blueprint for dramatically increased revenues related to Internet initiatives.

What seems clear is that the auto industry and its observers are a group that enjoys rumours and "what-if" scenarios. Therefore, speculation surrounding Smith's departure will only end completely when he actually does announce a retirement date. 

NEW MODELS FOR THE YEAR 2000
Oct 29 1999

Variety? You, the new car buyer, wants variety? You’ve got it.
Just consider what the automakers have to offer in the way of new 2000 models. And not just in cars, but trucks and hybrid-type, car/truck vehicles, too.

For those who closely watch their budget numbers, there are new entry models such as the Ford Focus (sedan, wagon, hatchback) and Toyota Echo (two- and four-door sedan). There are sports cars as varied as the Porsche Boxster S, the Audi TT Quattro, Honda S2000, Jaguar XKR and Toyota’s Celica GT-S. There are station wagons from Saab, Subaru and Saturn, luxury sedans from Mercedes-Benz, Audi, Infiniti, Lincoln, Jaguar and BMW, new trucks and sport-utilities from Nissan, General Motors, Ford, Mercedes and Toyota, and... Oh, there’s a lot of ground to cover. We’ll do our best. And to start it all off, here’s a look at four key models that do a good job of representing what’s going on out there in the wildly unpredictable new vehicle marketplace. 

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TOYOTA ECHO/FORD FOCUS  
Oct 29 1999

Toyota has said good-bye to the Tercel and Ford has kissed off the Contour, Mercury Mystique and Ford Escort. In their place from the Toyota side is a model that Toyota says redefines the small car for the new millennium–the Echo. Funny, that’s very much like what Ford is saying about the Focus, which in its three versions replaces three whole models.
Powered by a spanking new 1.5-litre four-cylinder engine (108 horsepower), the lightweight Echo (928 kilograms/2,045 pounds) is amazingly roomy inside yet offers light and nimble handling. Strengths include a distinct exterior design, wide door openings, comfortably high seating positions and even rear doors with windows that open all the way.

The cabin has all kinds of storage spaces and there’s a rear seat that splits and folds flat, opening up what is already a big trunk. At the rear is back-saving a low liftover.

Toyota hopes to grab a whole bunch of new and young buyers with the Echo and
Ford hopes for the same from the Focus, which has already been named 1999 European Car of the Year.
A major strength is the styling, with its sharp creases and hard angles. There’s also plenty of room inside and in the trunk, but the biggest plus from this entry-level model comes under the heading of “ride and handling.”

Of the two four-cylinder engine choices, the pick is the dual overhead cam Zetec (130 horsepower) over the 110 hp. base four-banger. It not only sounds good, but has plenty of zip for passing. This engine in the hatchback with the five-speed manual will put a grin on the face of anyone who likes to drive.

Oh, and do note that for the very first time Toyota is offering 24-hour roadside assistance on all its models. Ford already has done so for years, like most other manufactures.

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PORSCHE BOXSTER S
Oct 29 1999

It’s been a little over two years since Porsche introduced the Boxster, a wonderful two-seat sports car that many believed would be even better with a bit more horsepower–something above the standard 201 hp.

Well, guess what? Due in just a few weeks is a 250-hp. version called the Boxster S. What was before a very handy roadster now promises to be called a four-wheel catapult. Always well balanced, this mid-engine gem comes with a six-speed manual gearbox that carves up the power in just the right ways.
According to the factory, the Boxster S is at least half a second quicker to 100 km/h than the basic Boxster. A bunch of suspension tweaks also make it a better handler.

How can the casual observer tell the difference between the Boxster and Boxster S? Note the latter’s centre front airscoop, the “Boxster S” logo on the rear decklid, the cross-drilled brake discs with red calipers and the twin exhaust tips (versus the single tailpipe on the Boxster).

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Here’s a quick run through other important automotive changes for 2000:
Acura’s 3.2 TL is just a year from its introduction date, and already there’s a major change: a five-speed automatic with revised gear ratios for more off-the-line zip.

Meanwhile, Audi is on a new-product binge. There’s a red-hot version of the A4 called the S4 (250 hp. twin turbo), as well as the new TT Quattro roadster, a V8-powered A6 (300 hp.), and a substantial makeover for the flagship A8 that includes a stiffer chassis, revised suspension and a 310-hp V8 engine.

The folks from Munich, BMW, just introduced the new 3-series coupes, along with upgrades to the Z3 roadster. There is, though, the new and completely sensational M5 super sports sedan to consider at a healthy 400 hp. Next year look for the awesome Z8 roadster.

General Motors’ Buick Avenue. Over at Cadillac a facelifted Catera and a completely new DeVille highlight the changes at this luxury division. Chevrolet, meanwhile, has all-new Impalas and Monte Carlos coming to showrooms, while the Cavalier has a freshened look.

We’ve already had the 2000 Chrysler Neon for some months, but coming in the spring from is the much-anticipated PT Cruiser. The latter looks a bit like a 1930s delivery van, only more versatile, comfortable and driver-friendly. Under that body you’ll find the platform of a Neon. Look for a 2001 version of the Neon R/T sometime in the middle of next year.

The Korean automaker Daewoo is slowly and carefully building its dealership network in Canada, the better to sell its lineup of Lanos, Leganza and Nubira models. Don’t ask me what any of those names mean. Ford, of course, has the new Focus, but there is also a substantially upgraded Taurus sedan for 2000. The latter is loaded with new safety features. The other big entries, and no pun intended, are the Excursion sport-utility vehicle and F-series Crew Cab pickup. Coming next year is the Explorer Sport Trac.

Honda
has a stunning new sports car called the S2000 to brag about and coming later this year is the hybrid drive Insight, which promises to take fuel economy to new heights and emissions to new lows.
Over at Hyundai the entry-level Accent has been re-done to look more sleek. Nissan’s luxury division, Infiniti, is launching a powerful (227 hp.) new version of the I30 sedan. Starting next year Infiniti has plans for lots of additional new products, too.

Jaguar
has already launched the S-Type and sales have proven it a leaping success. But there is also a supercharged version of the XK8 sports coupe called the XKR due for showrooms in October. Horsepower for the latter is a whopping 370.

Lexus
has just minor upgrades to its lineup, but parent Toyota has a flurry of new products that we’ll soon get to. Lincoln, meanwhile, has already put the LS sedan on sale to rave reviews. Look in the future for the Blackwood hybrid truck.

In the summer Mazda launched the MPV minivan, along with a 10th anniversary edition of the Miata sports car. Next month at the Tokyo Motor Show Mazda will take the wraps off a new, rotary-powered version of the since-departed RX7 sports car. It will retain the “RX,” but not the “7.”
           

Mercedes-Benz
? The new product deluge from this automaker seemingly never stops. There is a new CLK430 convertible, a new CL500 coupe due early next year, the S-Class sedans introduced earlier this year and a major facelift for the E-Class. Oh, did I mention the “M” version of the ML430 sport-utility vehicle? It’s coming.

Nissan
launched the new Maxima sedan in the summer and there are also new trucks. Among them the Frontier Crew Cab, Xterra sport-utility vehicle and a facelifted Pathfinder.

Coming early next year as a 2001 model is an all-new Oldsmobile Aurora to replace not only the current model but the Eighty Eight, too. Another division of GM, Pontiac is boasting about the new Bonneville and the facelifted Sunfire.

Saab
has already brought the 9-5 wagon to market, while a powerful 9-5 Aero is due soon. A high-performance 9-3 Viggen will also be available in limited numbers.

Saturn
is now able to boast it has a large sedan and wagon, the LS, in its lineup, while Subaru has all-new Legacy and Outback models. Suzuki has new power for its Esteem model.

Toyota
not only has the new Echo, but there’s also a seventh-generation Celica, too. And the Avalon receives a facelift. On the truck side, the Tundra full-size pickup has its debut. Coming soon: the MR Spyder sports car.

Volkswagen
already has a fully revamped lineup, but some models come with new powertrain variations. Volvo will launch the new S40 sedan and V40 wagon in the United States, but we in Canada will wait at least another year.

 

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