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 DAIMLERCHRYSLER AIMS TO IMPROVE ON '99 RESULTS
2 June 2000
Driven by strong new products and an increased commitment to customer service, DaimlerChrysler Canada Inc. chief executive Ed Brust is confident his company will rebound from a sub-par sales performance in 1999.
Last year while sales of new vehicle were up eight per cent to 1.49 million units in Canada, DaimlerChrysler saw its numbers drop 1.6 per cent to 264,817. By comparison, General Motors of Canada Ltd. saw its sales rise 11.3 per cent (476,922) and sales at Ford Motor Co. of Canada Ltd. were up four per cent (282,453).
"Our '99 results show we were chasing a growing market - and it grew faster than we expected," says
Brust, who came to DaimlerChrysler Canada in Feb. 1999. "But by the fourth quarter we were firing on all cylinders. We had the right product at the right price with the right advertising and we had all our dealers involved. So by the end of last year we were heading in the right direction."
For proof, Brust points to DaimlerChrysler sales in January and February which were up about 20 per cent year-to-year.
"So if you add in what's coming - the new minivan, the PT Cruiser - and we're looking for a good year," says
Brust.
A good year 2000 in a new vehicle market that Scotiabank economist Carlos Gomes says will have record sales exceeding 1.5 million. Gomes predicts sales in excess of 1.5 million for 2001, too.
In fact, he predicts that pent-up demand and a strong economy will lead Canadian new vehicles sales to grow faster than in the United States - where a robust economy led to an all-time sales high in 1999 of 17.62 million units. Through the first three months of 2000, the U.S. is tracking on achieving total sales for the year of about 19 million units.
Brust believes that DaimlerChrysler will capture a larger share of that sales pie than in the past. The PT Cruiser will help immensely because this retro-styled half car/half truck is the kind of head-turning vehicle that will attract buyers who in the past have never even considered a DaimlerChrysler product. That means he expects consumers who have traditionally been Honda, Toyota, Nissan and Mazda buyers will now put Chrysler cars and Dodge trucks on their shopping list - perhaps for the very first time.
"If we're going to grow our share (of the market), we've got to make inroads against Toyota and Honda. That's where our growth has got to come from," says Brust. "We've got to get into the minds of people who don't think of buying from a traditional Big Three company."
The PT Cruiser, which starts at about $23,500, is small yet versatile car-van combination with the looks of 1930s getaway car. It's unusual styling and practical features promise to make it a huge hit. Canada will be allocated about 12,000 Cruisers this year, out of a total of about 100,000 to be built at the one plant producing this vehicle in Toluca, Mexico.
But DaimlerChrysler Canada officials say they have already received some 12,000 direct inquiries from potential customers, and countless thousands more have contacted dealers expressing interest. Not surprisingly, the company has announced plans for a second factory in Austria to produce about 50,000 Cruisers next year.
In the meantime, one of Brust's concerns is to ensure that buyers do not find themselves paying dealers an excessive premium above the manufacturer's suggested retail price (MSRP) for this red-hot model.
"We don't want a bidding war; we want dealers at MSRP," says Brust.
Brust also expects the re-invented 2001 Dodge Caravan and Chrysler Town & Country minivans, along with the re-made 2001 lineup of Chrysler Sebring mid-size cars to provide his company with a huge boost. The new minivans were unveiled in Detroit last January and will go on sale this summer. The Sebring coupe, sedan and convertible will be unveiled at the New York Auto Show in mid-April, with an on-sale date for this fall.
In addition, DaimlerChrysler is in the midst of a $350 million program to upgrade its entire retailing network of some 550 dealers in Canada. The so-called "Five Star" initiative is a three-pronged program designed to improve dealer facilities and training, as well as improve the way dealer employees are trained and treated - with an eye to reducing the notoriously high annual staff turnover rate of more than 50 per cent in dealerships across Canada.
The company is working with dealers to ensure their facilities are competitive for their individual markets. In addition, working with dealers, DaimlerChrysler wants all personnel trained in a consistent sales and service process designed to improve customer and dealership employee loyalty. To monitor the program's success, dealer employees and customers will be surveyed regularly.
Looking ahead, Brust suggests that once DaimlerChrysler completes its acquisition of a controlling interest in Japan's Mitsubishi Motors, then it will be more clear what impact that relationship will have on new products coming to Canada.
In the past, the former Chrysler Canada sold a number of Mitsubishi products, including the Dodge Colt. Mitsubishi already has a dealer network in the United States, but not in Canada.
"There's no Mitsubishi presence here, so in Canada it's a clean sheet of paper," says Brust. |
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IS THERE A VOLVO IN YOUR NEXT TAURUS
Imagine an all-new 2003 or 2004 Ford Taurus built using the basic "platform" or underbody architecture of the current Volvo S80 luxury sedan.
It's not so out of the question. In fact, Standard & Poor's DRI/McGraw Hill, an industry research firm, made that very prediction last fall. The Volvo-based Taurus is one of the fascinating possibilities emerging out of Ford Motor Co.'s March 1999 purchase of the Swedish automaker.
Using a variety of factors, including the economics of platform sharing, the Lexington, Mass.-based forecasting firm predicted 400,000 annual sales of such a Taurus - about 50,000 more than current Taurus sales.
Naturally, Volvo and Ford officials will not comment on this kind of future product planning. However, Ford chief executive Jac Nasser has said on several occasions that his company plans to produce new vehicles using the best systems available from Ford's many and varied car lines -- including those of Volvo.
On that score, the S80 has plenty to offer. It is a showcase for the latest in safety and high technology features. For instance, its electronic componentry, from engine to power windows, are managed by a high-speed data transmission system called "multiplexing." By using the same electronic cables to link on-board computers, multiplexing eliminates literally hundreds of kilometres of complicated wiring.
On the safety side, the S80 has an advanced whiplash protection system and an inflatable airbag-like curtain that protects passenger heads in a crash. Ford currently does not offer similarly advanced features in its own internally developed products.
So why would Ford and Volvo share this platform? Economics. The S80 is a low volume luxury sedan built in high-cost Sweden. Spreading the S80's basics throughout Ford's far-flung global empire would reduce costs through use of better economies of scale. The benefit for Ford, meanwhile, would be to give customers a much better product at a reasonable price. And even if Ford does not use the S80 platform in the next Taurus, it is in a position to employ one or more of the S80's component systems - electronic, safety, powertrain, interior and so on.
The risk, of course, lies in diluting Volvo's value in the marketplace by spreading Volvo's unique features too broadly. And that is a major concern at a time when Volvo is being expected to increase its global sales significantly in the next few years.
Make no mistake, the pressure on Volvo is significant. Volvo is expected to sell many more vehicles -- to be the volume partner, if you will -- in Ford's Premier Automotive Group. The Group includes Jaguar, Aston Martin, Lincoln Mercury and, once the deal in finalized, Range Rover.
Last year, Volvo sold about 360,000 cars, while Jaguar was at under 60,000, Lincoln Mercury at about 180,000 and Aston Martin about 650. Premier Automotive chairman Wolfgang Reitzle has said the long-range strategy for this luxury car group is to increase world-wide sales to one million before the middle of this decade.
Volvo officials suggest that their company's share of that one million total could be in the 600,0000-range. One third of that, or 200,000 cars, will be sold in Canada and the United States, if Hans-Olav Olsson, Volvo's North American chief, has his way.
Earlier this year in Detroit he stated publicly that by 2004 his unit has a goal to sell 200,000 vehicles, up from about 134,000 last year in Canada and the U.S. combined. Of that 200,000, Volvo Canada Ken Brusca says that he would like Canada to account for between 16,000-20,000 in sales. If so, Volvo would need to about double last year's Canadian sales of under 9,000 cars.
Volvo plans to reach its sales goals with an expanded lineup and new models. This spring a completely new V70 and much improved station wagon arrives in showrooms, followed this summer by a reinvented Cross Country wagon.
According to Olsson, later this year a new S70 sedan will go on sale. The current S70 sedan will be phased out in the middle of this year. Coming this fall to Canada will be the S40 sedan and V40 wagon, designed to compete against more mainstream products like better equipped versions of the Honda Accord. The S40/V40 went on sale in the U.S. late last year.
But don't expect Volvo to launch a full-blown sport-utility vehicle. Olsson says the Cross Country covers that market nicely and a more truck-like vehicle doesn't fit into Volvo's lineup.
"The Cross Country allows us to attack the sport-utility segment, but it's not really a sport-utility. It just has many sport-utility attributes," says Olsson.
Volvo, says Olsson, has its place in the Premier group - and a Volvo truck doesn't fit into that place.
According to Premier Group chairman Reitzle, in the next few years buyers can expect Volvo to remain the rational purchase it has always been, yet growth will come by adding more emotion and progressive characteristics to Volvo products.
Jaguar, meanwhile, will remain a largely emotional brand moving more in a progressive direction with additional high-tech features. Lincoln can be expected to move from a very traditional brand to one with more attributes in the rational, emotional and progressive areas. Aston Martin will remain an emotional high-tech showcase and Mercury (not sold in Canada) remains a work in progress.
The beauty of being part of Ford's empire, says Olsson, is that Volvo no longer needs to have a wide ranging lineup of cars to survive and thrive.
"We can focus on the three distinct segments we have decided to pursue," says Olsson. |
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 S40/V40 GIVES VOLVO A CAR WHERE IT'S NOT BEEN BEFORE
26 May 2000
Volvo Canada is looking to attract a younger, less affluent group of buyers with the launch of its 2001 S40 sedan and V40 wagon this summer.
When the cars first went on sale in the U.S. last fall, the target buyer was about 30 years of age, 16 years younger than today's average Volvo owner. However, Volvo Canada president Ken Brusca says that since the cars were launched, many 40-series buyers have also come from a group he calls the "post-family buyers." That is, people in their 50s and 60s who have grown kids and want a smaller Volvo, not one with less content.
As for the younger buyers, Brusca expects them to be similar in most other ways to current Volvo owners. They will be close to an even split between men and women -- with perhaps more women than men, if anything - generally college-educated and striving for a balance in their lives between work and leisure. However, unlike most Volvo owners today, S40/V40 buyers are expected to include a high percentage of single people.
"We need to expand out appeal beyond the traditional family to grow," says Mark LaNeve, Volvo vice-president of marketing.
LaNeve says the 40-series cars are targeted at a sub-group of Generation X buyers who look a lot like today's Volvo owner.
"They're hitting a transition. They're getting serious about their a career, thinking about getting married or are recently married, and are starting to plan the major earning and family years of their lives."
Thus the advertising tag, "Somewhere between where you are and where you're going."
Prices in the US run from $23,475US for the S40 and $24,475US for the V40. Volvo Canada president Ken Brusca says he hopes to bring in prices starting at just under $30,000 when the cars go on sale this summer. Official Canadian prices will be announced in the middle of April.
Potential buyers interested in a first-hand look won't need to wait until summer, however. In an effort to give Canadians a sneak preview, most of Volvo's dealers will have at least one 40-series car in the showroom by the middle of April.
Offered only with an automatic transmission, the 40-series cars are powered by a four-cylinder 1.9-litre light-pressure turbo developing 160 horsepower. Standard equipment will include dual-stage front and side airbags and whiplash protection.
"The message is that this (the 40-series) is not a gutted Volvo; it's a smaller Volvo," says Brusca.
Competitors for the 40-series cars will include well-equipped versions of the Toyota Camry, Honda Accord and Nissan Maxima.
FAST FACTS
Length: 4,458 mm (176.5 in.)
Width: 1,719 mm (66.7 in.) sedan; 1,717 mm (67.6 in.) wagon
Height: 1,412 mm (55.6 in.)
Wheelbase: 2,550 mm (100.4 in.)
Standard engine: 1.9-litre four-cylinder, turbocharged (160 hp.)
Curb weight: 1,359 kg (2,998 lbs) sedan; 1,379 kg. (3,042 lbs) wagon
Drive: front-wheel
Safety: front and side airbags, whiplash protection
Base price: $30,000 estimated base. |
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 GM'S RON ZARRELLA TAKES THE WHEEL OF A FORD FOCUS
19 May 2000
NEW YORK - By pure coincidence, the president of General Motors Corp.'s North American auto operations, Ron Zarrella, and Ford Motor Co. chief executive officer Jac Nasser were driving the same model of car in April: a Ford Focus.
That Nasser would be taking the wheel of the sportiest of Focus models, a $16,695 ZX3 hatchback, shouldn't be too much of a surprise, even if he did earn $US13.85 million last year in salary, bonuses, exercised stock options and other payouts. He is the company boss and the Focus is one of Ford's hottest new products. Among other things, the Focus has been named car of the year in Canada, the U.S. and Europe.
Zarrella, on the other hand, is a more interesting case. And not because last year he took home $US3.68 million in salary and incentives. No, Zarrella was test driving a Focus to see first-hand what the competition is offering in small cars. His verdict on the Focus:
"Pretty good car."
In fact, something of the standard for small cars this year, if strong sales numbers and a closet-full of awards are any measure. It's a standard of great interest to Zarrella and many others at GM, as their plans for a new line of GM small cars go forward.
The world's largest automaker last year turned over development of its global small car platform to the International Technical Development Centre of its European Adam Opel AG subsidiary, based in Russelsheim, Germany. The "Delta" platform is expected to form the foundation of the next-generation Pontiac Sunfire and Chevrolet Cavalier, both of which are likely to remain essentially unchanged until 2004.
But that wasn't the original plan. A restyled and re-engineered Cavalier and Sunfire, based on the Delta platform, were at one time due in the 2002 model year. But reports suggest GM changed course when consumer clinics were less than enthusiastic about the updated models. Today, Zarrella confirms that the first North American product off the Delta platform will a new Saturn S-series, expected in late 2002 as a 2003 model. Other Delta-based products will include the Opel Astra car and Opel Zafira minivan.
The next Zafira, in fact, is rumoured to be a possibility for sale in North America, as part of GM's attempt to not just replace its small car offerings, but expand the number of choices offered small vehicle buyers.
The current Zafira is a "white hot" sales success in Europe and an updated version might look very nice in GM's showrooms if it can be brought here at a reasonable cost. Combined European sales of the Astra and Zafira in 1999 reached about a million units.
"We also have a small car-based SUV (sport-utility vehicle) for Saturn coming in 2001," says Zarrella. "And we're looking at a small mon-cab vehicle off the Opel Corsa platform, too.
Still, Zarrella concedes that GM lags its competitors in the small car segment. At the same time, he emphasizes that GM has emerged as a powerful player in the pickup, sport-utility and crossover vehicle markets -- the latter market, comprised of car/sport-ute hybrid vehicles, is expected to triple to 1.5 million units in North America during the next five years.
At the New York International Auto Show, GM showcased not just its new Pontiac Aztek hybrid, but also the new Oldsmobile Bravada sport-ute, two versions of the GMC Yukon Denali and an upscale new full-size pickup called the GMC C-Series. Zarrella said GM is forecasting production of 1.7 million
full-size trucks in the 2001 model year, up from 1.45 million last year and just over a million the year before that.
One of the most important products GM will bring to market this fall will be a completely new heavy-duty pickup truck, said Zarrella. Today, GM sells about 20,000 of these trucks a year, less than 10 per cent of the total North American market for heavy duty pickups. GM is hoping a redesigned heavy duty pickup with a new Duramax diesel engine supplied by Isuzu Motors, not to mention a new Allison transmission, will increase its share to 25-30 per cent in the next model year. Having a new diesel entry is particularly important.
"This is a market we haven't been competitive in for 10 years," says Zarrella. "We know there are a lot of GM and Chevy truck customers who would buy a diesel if we offered one."
Zarrella also believes that sales of pickup and sport-utilities will remain strong, despite the recent increases in fuel prices.
"If you add $300-$400 in (fuel-related) operating costs, the buyer who's going to spend $30,000-$40,000 on a sport-utility isn't going to be concerned," he says, adding that 80 per cent of GM's research and development budget is spent on improving the efficient operation of vehicles.
As for future retail trends, Zarrella foresees a day when consumers will be able to order a vehicle on-line, directly from the manufacturer. The Web-based ordering process would allow buyers to custom-order a new vehicle, for delivery in 15 days or less. Eventually he sees a day when such Web-based services as Autoweb.com, Autobytel.ca, Autonet.ca, Autobynet.net and Megawheels.com no longer exist.
"When the consumer can buy a car directly on-line, that's when all the intermediate players go away," says Zarrella.
Meanwhile, Zarrella concedes that sales of the new mid-size Saturn S-series sedans and wagons have been slower than expected. To date, the plant where the L-series cars are built has been stopped once to address quality issues, a second time to reduce inventory in response to slow sales.
"We had a lot of feedback from customers that they were walking away from Saturn because of the limited product line," he says. "The obvious next step was a mid-size sedan and I think ultimately that'll prove to be right." |
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 ACURA SHOWS NEW MADE-IN-CANADA ACTIVITY VEHICLE
19 May 2000
NEW YORK -- Acura is moving into the sport utility market with a mid-size entry that boasts more power than any of its direct rivals.
The all-new MDX luxury sport-ute, to be built at a Honda of Canada plant in Alliston, Ontario, will go on sale this fall as a 2001 model. The seven-passenger, all-wheel drive vehicle boasts an all-aluminum 240 horsepower VTEC V-6 engine and should sell in the high $40,000 range.
"The Acura MDX redefines what a luxury SUV can be," said Acura vice-president Tom Elliott in unveiling the vehicle at the New York International Auto Show. "We may have come late to the party, but we are pretty happy with what we've brought."
The MDX will compete with the Lexus RX300. Like the RX300, it rides on a car platform and offers the ride qualities of a sedan with the versatility of a sport-ute.
The new Acura's most novel feature? Second- and third-row seats that split and fold flat into the floor. The seating flexibility allows the MDX to accommodate anywhere from one to seven passengers and a wide variety of cargo -- including a six foot ladder.
However, like its luxurious rivals it comes with a long list of standard features:
* dual front and side-impact air bags with passenger size and position sensors to determine deployment and speed;
* four-wheel fully independent suspension;
* 17-inch, all-season radial tires mounted on alloy wheels; heated seats/mirrors;
* leather interior with wood trim;
* power sunroof;
* fully automatic four-wheel drive;
* five speed electronically controlled automatic transmission;
* climate controls.
To tackle the Canadian elements, Acura will offer what it calls a "Defeat Winter" system that includes a comprehensive list of winter features: heated front seats, heated side mirrors, front and jet-type rear windshield washer nozzles, a large 4.5-litre washer fluid reservoir with low-fluid warning light, sealed lower doorsills and a storage bin in the rear cargo compartment for winter-related items.
Versions sold in the United States will offer an optional navigation system that leaves "electronic bread crumbs" on the screen to retrace your path when
off-roading in unmapped areas. It is expected to come to Canada.
In terms of styling, the MDX has similar cues to the recently launched CL coupe. Up front is Acura's signature pentagon grille and the wide stance conveys a sense of stability. |
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 SUBARU TO OFFER POWER BOOST IN THE FALL
19 May 2000
Subaru Canada will offer a six-cylinder version of its popular Outback model, boosting horsepower from the current 170 to 212.
The more powerful 2001 Outback to go on sale this fall will be called the Outback H6-3.0 VDC model. Clearly the new aluminum six-cylinder engine, with its double overhead camshafts and four valves per cylinder, is an answer to critics who have long said the Outback needs more power.
Interestingly, Subaru of America also plans to introduce a second special edition version called d the Outback H6-3.0 L.L.Bean Edition in the United States. Subaru Canada officials remain unsure whether to offer the LL Bean model. LL Bean, a retailer of outdoor clothes, does not have outlets in Canada, though products are available by catalogue and on the Internet.
Subaru officials say Outbacks with the 3.0-litre horizontally opposed six-cylinder engine will be the flagship of the Subaru model line for 2001. Aside from the more powerful engine, Subaru will also introduce what it calls "Variable Torque Distribution all-wheel drive." Subaru says it is the most advanced all-wheel-drive system Subaru has ever offered in North America.
The VTD system splits the power 45 percent front/55 per cent rear under most conditions. The slight rear bias enhances the performance driving feel. In addition, VTD responds to road and driving conditions to direct more power to the wheels that need it most.
Subaru's system is generally considered superior to the many rival systems that function primarily as front- or rear-wheel drive vehicles. Why? In the latter, torque goes to generally non-driven wheels only when they slip on slick roads. When this happens, the dramatic torque shift can often upset vehicle dynamics. By contrast, this does not happen with a all-time, 45/55 per cent torque split.
In addition, a new four-wheel electronic traction control system (TCS) adds an extra margin of driving safety without impeding All-Wheel Drive operation. The VDC stability system helps keep the car going where the driver is steering it by detecting and correcting understeer (front-wheel drift) or oversteer (rear-wheel drift). The system uses split-second braking on individual wheels to make corrections, and can also reduce engine power to restore stability.
Company officials say the H6-3.0 will compete with the Audi A4 Avant Quattro 2.8, the Volkswagen Passat 4Motion wagon, and the Volvo V70 XC Cross Country. |
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 PT CRUISER MANIA
19 May 2000
So you've been doing a Rip Van Winkle, snoring away in a cave these last few months, and you've missed the hype and mania about the Chrysler PT Cruiser. Did the riot about this retro-style gem echo off the walls and wake you up?
Whatever. Soon enough your world will be spinning with images of the Cruiser's sinuous, sexy curves, the kind of shapely lines that as one writer put it, "flat-out stop traffic like Marilyn in a halter top."
It's true. The Cruiser resonates as an event in itself, a phenomenon. You thought VW's New Beetle was a show-stopper a couple of years ago? Just wait. The PT buzz (PT stands for Personal Transportation) is already amazing and it's just barely rolling into showrooms.
"You either love it or hate it," says David Healy, an auto analyst at Burnham Securities.
My first minutes tooling around the outskirts of Toronto -- some place called "Mississauga," which I think roughly translates from the original Canadian into "industrial park" - made it clear this "segment buster" of a car is mostly about romance at first blush.
"Hey, what is that, man? I gotta have one," yelled some guy at a stoplight, towering above me in giant four-by-four pickup.
So, it seems, does the rest of the world. Priced from $23,200 to $27,400, this tall, five-seat hatchback with the removable seats and the cabin room of a minivan, this "gangster" car all wrapped in bulging fenders, flared sills, wide wings, bullet-shaped taillamps and deliciously brilliant chrome door handles, is the kind of grand slam carmakers dream about, but rarely hit. How far over the fence has this one gone, really?
The Toluca, Mexico plant where the Cruiser is built can churn out 185,000 a year, and DaimlerChrysler, Chrysler's parent company, has a potential buyer's list with 250,000 names on it. The company is so confident of a sell-out, a second plant in Graz, Austria is already being readied to produce another 40,000-50,000 more for Europe only. If this keeps up, a third production line at Belvidere, Ill. could end up doing Cruisers, as well. There's little question the 12,000 destined for Canada this year will be snapped up like cold drinks at a summer barbecue.
All this for an Art Deco-like piece of rolling sculpture that DaimlerChrysler Canada president Ed Brust says was by no means a sure-fire player in the minds of its creators.
"Walt Battle, the program manager for the PT Cruiser, told me there were a lot of people on his team who were not sure it would really work," says Brust. "They new it would be a love-hate thing, but they weren't sure it would turn out like this - where you have a product that you can't build enough of them. They thought they might have trouble selling 50,000 a year."
Hah! My question is, how could these designers, engineers, product planners and marketing types -- these experts of the car business -- NOT see this coming? The buzz has been building from the moment the Cruiser was unveiled in January 1999 at Detroit's North American International Auto Show. For the last 14 months, the PT Cruiser web site has been averaging 12,000 hits a day. How did they NOT get it?
Nextrend auto analyst Wes Brown said months ago that the Cruiser would be a complete sell-out. "This is going to be the hottest vehicle we'll see this year."
The genius isn't just in looks that, as the New York Times noted, were pulled out of a Dick Tracy comic strip. No, there's more here than a "WOW!" attitude and a bulldog stance. There's also plenty of functionality.
It's a car, it's a truck, it's a minivan and it's affordable. The latter largely because the Cruiser started life based on the Neon subcompact, but has since been reinvented with all-new sheetmetal, it's own new powertrain (including a new five-speed manual transmission operated through a cue ball shifter) and lots of other details.
Speaking of which, the Cruiser comes with a multi-level rear parcel shelf that doubles as a
built-in picnic table for tailgate parties. Commuters stuck in traffic can ply the Net via their laptops neatly stowed on the back of a front seatback that folds down flat. Through the lift-up rear door, one a six-footer can stand underneath, you can either load a kitchen appliance or shove in an
8-foot ladder, then completely close the door. Talk about sensible. You can even fit three bicycles in the back when the rear seats have been pulled out and rolled away on their own wheels.
"It's the exterior of the Chrysler PT Cruiser that gets the obvious first notice and gawks on the road. However, the element that closes the deal in the minds of those who see it is the incredible functionality that comes from it's innovative interior," says Larry Lyons, Chrysler vice-president of small car platform engineering.
Right. Coffee drinkers note there are four cupholders, with the front pair boasting a patented connecting letter slot and a rear one that can also store either three CDs or two cassettes. There's also a washable, pop-out coin holder, rear floor air ducts to keep feet warm in winter, combination armrests/door pulls that are easy to grip, and a collection of flexible storage bins and map pockets to hold "stuff."
The cabin itself has the passenger-friendly roominess of a London Taxi. Heck, there's enough head room for cowboys in their Stetsons. The seating is high-up for good visibility, yet the step-in is just like a car for easy entry and exit. And the rear doors open wider than most regular passenger cars. All that's very nice, but your eyes grab the barrel gauges ringed in chrome. Love holding on to that big steering wheel, too.
What's it like to drive, anyway? Plug in the "gawk" factor and it's a huge kick. Take it out and you've got a pleasant, if not exciting experience. The fuel-thrifty, 150-horsepower four-banger is just fine for waltzing in traffic, though a fully-loaded PT might prove a bit limp on steep inclines. There's less body roll in cornering than I expected, especially given the truck-like rear twist beam suspension supported by coil springs.
Overall, the body feels stiff and tight, meaning interior noise is kept to a minimum - important for a vehicle with such a wide-open interior. As for parking, it's a snap because the Cruiser is five inches or 12.7 cm. shorter than the Neon (though 300 pounds/136 kilos heavier).
All this adds up to a car that's more than a car. In fact, for fuel economy purposes, the U.S. National Highway Traffic Safety Administration (NHTSA) classifies the PT as a truck - a fact that should help DaimlerChrysler save $US10 million on fines associated with exceeding truck fleet average fuel economy requirements. On the other hand, the U.S. Environmental Protection Agency classifies it as a car, which means it meets stricter auto emissions regulations.
So the authorities are confused, buyers are smitten and Chrysler has a new "halo" car that will cast a friendly shadow on everything else in the showroom. What a story.
SELLING THE CRUISER
Susan Thomson, Chrysler's advertising boss, says the PT Cruiser is a vehicle that appeals to buyers of all shapes, sizes, ages, sexes, lifestyles, interests, and incomes. That makes it tough to create and target advertising to a particular group.
Thus, to get the message out to everyone, DaimlerChrysler will roll out a $72.5 million campaign that includes print, movie, TV advertising, not to mention a host of other one-on-one type programs in shopping malls and other places where people in large numbers gather. |
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WHAT THE PT CRUISER IS WORTH THE DAIMLERCHRYSLER
19 May 2000
After reporting a drop in earnings for the first quarter, news which sent DaimlerChrysler's stock downward, a winner like the PT Cruiser will look good on the company's bottom line.
Auto analysts on Wall Street estimate the PT Cruiser was developed for about $US600 million, a sharp piece of investment management in an industry where new cars generally cost $US1 billion or more to develop. Each Cruiser clear as much as $US2,500 for DaimlerChrysler once full production is in swing. The good news for DaimlerChrysler shareholders: a full year's product could translate into $US465 million in earnings.
ON QUALITY
To ensure quality, DaimlerChrysler's Toluca plant verifies parts, processes and fit and finish every step of the way, say company officials. Everything from stamping and body, to paint and final assembly is monitored closely.
According to DaimlerChrysler, some of quality assurance processes include:
* Measuring dimensional accuracy of eight full bodies per day by determining millimeter variances in the x, y and z axis of 2,000 points on the body using 5,493 charts;
* visual management through quality alert systems, which are designed to bring abnormal conditions to light immediately. The system provides visual and audible signals for each station for tooling, production, maintenance and material flow;
* the addition of 55 robots in the dimensional and integrity welding areas, including two framing stations;
* daily weld and sealing audits, performed by ultrasonic weld detection;
* daily body, paint and assembly audits for internal and exterior evaluation;
* 100 per cent electrical and mechanical systems audits;
* 100 per cent water tests;
* daily customer satisfaction audit (CSA); and
* 100 per cent road test evaluation on the Toluca proving grounds. |
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 NISSAN TO BUILD A BIG PICKUP FOR
2003
22 September 2000
NEW YORK - If Nissan Motor Co. builds a full-size pickup, will buyers come?
Nissan chief operating officer Carlos Ghosn believes so.
"I have given the green light to initiate a full-size light truck in the United States (and Canada)," Ghosn said. "It will be equipped with a
V-8 engine."
To which officials from General Motors Corp. and Ford Motor Co. replied: "good luck." Full-size trucks are the bread and butter of GM, Ford and the Dodge division of DaimlerChrysler AG. Buyers are loyal and the marketplace is already crowded with good pickups and sport-utility vehicles of all shapes and sizes.
"That's a very tough market to get into because of the enormous loyalty factor," said GM's president of North American operations, Ron
Zarrella.
Jac Nasser, Ford's chief executive officer, said new entries from Nissan or anyone else likely wouldn't hurt Ford's truck sales.
"In most cases, they're late" to the market, Nasser said. "We think they're playing a game we're very strong in."
Ghosn, however, insisted that a big pickup is vital to Nissan's long-term success in truck-crazy North America. Nissan's entry, like that of other automakers, will be spun off into a variety of other sport-utility vehicles, too. All of which will be part of a huge new product barrage from Nissan planned for the early part of this decade.
Ghosn said that Nissan will in fact launch 22 totally new products over the next three years, including 10 for the Canadian and U.S. market.
"Twenty-two all-new products, not counting variations or derivatives, are in the development pipeline worldwide now," Ghosn said. "Ten of them, including the new big truck, are destined for the United States."
Among the new offerings will be a new Sentra compact car and a new Frontier crew cab with a larger pair of rear doors. He said Nissan will also double capacity for its hot-selling Xterra compact sport utility
vehicle to 100,000 vehicles per year.
Without question the most elegant new model coming from Nissan is the next-generation version of Infiniti's flagship model, the rear-wheel drive Q45. It's scheduled to go on sale in April next year, priced in the $70,000 range. The new Q45 will have a 4.5 litre V-8 engine rated at 340 horsepower. Infiniti officials said the new model will lead Infiniti back to its roots as a performance luxury brand.
Coming a year after the Q45 will be a rear-wheel drive, entry-level XVL sedan. Originally shown as a concept at the Tokyo Motor Show last October, the XVL is expected to sell in the low $40,000s.
Ghosn is the Renault SA executive brought in last year after the French automaker took a controlling stake in the Japanese automaker. Addressing reporters, he insisted that plans already in place to turn around the struggling automaker are on track according to the Nissan Revival Plan announced last October in Tokyo.
Ghosn said he is pleased with the progress Nissan is making at cutting supplier costs by eight per cent this year and he's heartened by the focus within the company on the core business of
automaking.
"Our primary target is clear," Ghosn said. "We must show a net profit in this fiscal year. We are on track to hit our targets."
Ghosn also said there is no question Nissan will remain a full-line automaker, despite being weighed down by an enormous debt load.
"We will be competitive in all segments of the U.S. (And Canadian) market," Ghosn said.
Offering an update on the Revival Plan, Ghosn said he is confident Nissan will be able to cut purchasing costs overall by 20 per cent by April 2003. He also noted that Nissan is moving quickly to dispose of non-core assets. Already, Nissan has sold its four per cent stake in Fuji Heavy Industries to General Motors. In addition, officials in North America have been given more authority to create products for their specific markets, a sharp contrast from the centralized decision-making structure of the past.
Nissan also expects to improve its profit margin to 4.5 per cent in 2000 and plans to cut its 1.5 trillion yen debt by 50 per cent by 2002. By achieving these goals, Nissan will re-establish a level of fiscal credibility destroyed in the wake of a string of losses for every year in the '90s save one.
"Our primary target is clear; we must show a net profit in this fiscal year," Ghosn said. "We are on track to hit our targets."
Moreover, he said that Nissan has implemented a promotion system for senior management based on achievement and ability, rather than mere seniority, as the tradition in many Japanese companies. As an incentive to drive the changes, Nissan has also implemented a revolutionary 15 billion yen stock option plan for managers.
"As a result, our headquarters is more of an asset than a liability," Ghosn said.
Nonetheless, Ghosn said that Nissan will not improve its Japanese market share, now at 16-17 per cent and down from 35 per cent nearly three decades ago.
"If you just recognized that Nissan's Japanese market share is down, I'd say your about 26 years late...This will not be fixed in a few months. We've stabilized the market share; profitability and growth will be an offshoot of that," he said.
Ghosn added that while he won't make predictions concerning where Nissan's stock price will be a year from now, he did sound an optimistic note.
"If you buy Nissan shares today and you invite me to come back next year (to speak at the New York show), I will not be embarrassed," he said. |
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 TOYOTA EXPANDS
LINEUP OF TRUCKS AND ACTIVITY VEHICLES
22 September 2000
NEW YORK - Toyota has no intention of being on the outside looking in as the new vehicle shifts from cars to light trucks and a host of activity vehicles that cross the line between cars and sport-utility vehicles.
Need proof? At the New York International Auto Show Toyota explained plans to expand it lineup of
sport-utes and car-based activity vehicles. The newest member will be the Highlander, a 220-horsepower hybrid based on the Camry and expected to sell in the $26,000-$33,000 range when it goes on sale next spring. Projected sales in North America should be in the 80,000 range, say Toyota officials.
Together with the compact RAV4, redesigned for this fall, the jumbo-sized, eight-passenger Sequoia that's based on the Tundra pickup, and a re-styled 4Runner, the Highlander will give Toyota four entries in the highly competitive activity vehicle segment.
Add in the Lexus RX300, an upscale cousin of the slightly longer Highlander also based on a Camry platform, not to mention the Lexus LX470, and Toyota's full range of this type of vehicle numbers six. And in the U.S., the Toyota Land Cruiser makes seven.
All will vie for the some 3.5 million sport-ute buyers who emerged last year in Canada and the United States. The Highlander, in particular, is aimed at the market of car-based activity vehicles that is expected to grow triple within five years to some 1.6 million units in Canada and the U.S.
"Our goal is to be on the shopping list of everyone looking for a vehicle in this growing segment," says Toyota Canada vice-president Tony Wearing.
The Highlander is slightly longer, wider and larger inside than the 4Runner, but their driving characteristics should prove to be very different. Available in Canada only with full-time four-wheel drive, the Highlander, say Toyota officials, has been designed to feel and handle like a car. By contrast, the 4Runner remains very much a truck built on a truck platform with high ground clearance for serious
off-roading.
The first Highlanders will be imported from Japan, however it will eventually be built at either the Cambridge, Ontario plant where the RX300 will be built, or at Toyota's truck plant in Indiana.
Meanwhile, the 2001 RAV4 is longer, wider and taller than its predecessor. Not surprisingly, it's roomier inside. Under the hood is a new 148-horsepower four-cylinder engine which represents a boost of 21 hp. over the vehicle currently on sale. Wrapped around the whole four-door package is styling which is much cleaner, less cartoon-like than the novel and daring original RAV4. Two? and
four-wheel-drive are expected to be offered.
While many other import carmakers have moved tentatively into the sport-ute and light truck marketplace, Toyota has embraced it with gusto. That appears to be a smart move, with sales of these vehicles selling like gangbusters despite higher gasoline prices.
Wes Brown of California-based industry consultant Nextrend says the whole
sport-ute marketplace is growing, but car-based models are proving to be particularly popular with an increasing number of buyers.
"The growth that we have seen over the past five years in sport utilities has been people ... buying because of the fashion statement, and because it's cool," Brown said.
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 GM GIVES FIRST PEEK AT NEW SPORT-UTE LINEUP
12 May 2000
NEW YORK - In the words of Kay Jarboe, assistant product manager for the Oldsmobile
Bravada, "The 2002 Bravada is no longer the ugly stepchild of GM's current generation of
mid-size utilities."
Which means General Motors Corp. plans to give the Bravada every chance to become the flagship of its core lineup of
sport-utes - a lineup that includes the current Bravada (U.S. only), GMC Jimmy and Chevrolet Blazer.
Thus, the 2002 Bravada, which had its world debut last week at the New York Auto Show, will arrive in the marketplace at about the same time its Chevy and GMC cousins hit showrooms -- if not sooner. That should give the all-wheel-drive Bravada the kind of running start it has never before had.
"The Bravada always came out after the Jimmy and Blazer, and both those vehicles would steal some of its thunder," said Michael
Robinet, a Detroit-based analyst with automotive researcher CSM Worldwide.
Truth is, the Bravada isn't currently available in Canada at all, although the new model will be. And even in the United States, it's been either a third-string player of a pure bench warmer in a game filled with well-established
sport-utes such as the Ford Explorer, Jeep Grand Cherokee, Toyota 4Runner and Nissan Pathfinder. An interesting mystery is why Oldsmobile started selling the Bravada in 1991, only to drop it in 1994, then bring it back in 1996.
But that's the past. Crystal clear now is GM's commitment to regaining ground in the highly profitable mid-size
sport-ute marketplace. Today GM holds less than 18 per cent of that market, down from almost 29 per cent in 1990. Not only has GM's piece been shrinking, it's done so during a decade when
sport-ute sales have jumped to almost two million units in Canada and the U.S., from about 650,000 in 1990.
SHARES MECHANICAL PARTS
The reinvented 2002 Bravada, along with what will be called the Chevrolet 2002 TrailBlazer and the 2002 GMC Envoy, will continue to share basic mechanical parts, as they do now. But the new trucks will be completely new from skin to cabin, from chassis to engine.
The timing is right. All three are due for an update, having last been given a mid-level overhaul in 1995. Indeed, the last major overhaul for these trucks was a decade ago.
But next spring when the new trucks go on sale, all three will be 25.4 centimetres or 10 inches longer, 12.7 cm. or five inches wider, and under the hood providing power will be a brand new, state-of-the art 4.2-litre in-line six-cylinder engine rated at 250 horsepower.
The engine is particularly interesting because it's the first of a line of engines planned for GM's global fleet of cars and trucks. The inline six develops 60 more horsepower but is slightly smaller than the current 4.3-litre V6 in the
Bravada, Blazer and Jimmy. To improve fuel economy and reduce emissions while at the same time boosting power, the new engine will employ a high-tech variable valve timing system - a first for GM trucks.
Of course powertrain aficionados (a rare breed, and you know who you are) will be aware that the inline six-cylinder is an engine design almost as old as the auto industry. But inline sixes have largely fallen out of favour because V6 engines are more compact and easier to squeeze into the engine bay of a front-wheel drive car. GM, in fact, hasn't built an in-line six since the mid-1980s.
Yet GM engineers argue that the smoothness of an inline six is unmatched by V6 and V8 configurations. Moreover, because the inline six has a single row of cylinders -- compared to the twin banks of V6 and V8 engines -- it needs just one set of pollution controls. That represents a major const savings over V6 and V8 engines that require a matching pair of pollution controls, one for each cylinder bank.
"When we began evaluating engine possibilities for the new mid-size sport-utilities, we determined that the inline six configuration was the best solution because of its inherent balance and smooth operation," said Ron
Kociba, GM Powertrain chief engineer. "This was our opportunity to look at what was just right for the vehicle."
Also deemed "right" was the decision to go with a proper truck chassis that includes a stiff frame, new five-link air suspension, rack-and-pinion steering and four-wheel vented disc brakes with standard anti-lock.
The new frame has side rails formed by water under high pressure -- a process called hydroforming - that was first used in the current Chevy Corvette. Hydroforming increases rigidity and frame strength because it reduces welding and the number of separate frame pieces. Rival
sport-utes such as the Grand Cherokee and Lexus RX300 are built on car-like structure. GM engineers argue that the frame design of their new
sport-utes does a superior job of absorbing road vibrations, while also holding up better in a crash.
STYLING
In looks, the 2002 Bravada closely resembles the 2001 Olds Aurora and Intrigue sedans.
"Our goal is to stay consistent with the Oldsmobile brand," said Phil Zak, Oldsmobile design manager. "If there's a 2002 Bravada on one side of the garage and an aurora next to it, the driver will feel the same orientation in the cockpit of either vehicle."
The new exterior look is smooth and rounded, with sculpted shoulders, six-spoke, 17-inch aluminum wheels and a front grille and jewelled headlamps completely in character with other current Olds cars. Inside, the standard fare will include plenty of wood trim, dual stage front airbags, side airbags, dual zone climate control and a powerful audio system.
Prices won't be set for more than a year, but expect them to start in the low- to mid-$40,000s for the Bravada and the mid- to high-$30,000s for the Trailerblazer and Envoy.
CHECK THE SPECS
Engine: Vortec 4200 I6 (4.2-litre) - all-aluminum construction, four valves per cylinder, dual overhead cams
Transmission: 4L60 Hydra-matic automatic transmission.
Horsepower: 250
Torque: 250 ft.-lbs. at 2,000 rpm..
Wheelbase: 2,870 mm./113 in.
Overall length: 4,834 mm./190 in.
Overall width: 1,829 mm./72 in.
Steering: rack and pinion.
Brakes: four-wheel vented disc w/ABS
Tires: Michelin P255/60R17 Cross Terrain.
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