Predictions about auto prices in the year 2,000 01/08/96 The Associated Press reported that some experts predict that auto prices will rise as high as 20% by the year 2,000. The same report also notes, however, that possible consumer reaction to such price hikes could deter them. At least that's the news from the University of Michigan's biennial "Delphi Forecast and Analysis of the North American Automotive Industry." a summary of the report was issued at the Automotive News World Congress, an annual conference of the automotive industry. Summarized by Paul Dever ##--##--## Ford Announces Rebates 01/09/96 The Associated Press reported that Ford plans large rebates for many who buy 1996 Ford vehicles, including a $2,000 rebate on Broncos. $600 rebates will go to those who purchase a Taurus, Contour, Probe, Thunderbird, Windstar, Aerostar, Ranger, and/or some other models. Summarized by Paul Dever ##--##--## Hyundai Must Recall Cars 01/12/96 The Associated Press reported that Hyundai will have to recall 90,000 Elantra's sold in South Korea from 1990-1994. The cars have a defective exhaust system. Korean Government Officials said that Elantras with 1.5 and 1.6 liter double over head camshaft engines exceeded emission legal standards for carbon monoxide and hydrocarbons. Summarized by Paul Dever ##--##--## GM, FORD, and Chrysler: 4th Quarter Earnings Down? 01/15/96 Reuters reported that analysts are predicting a 40% drop in fourth quarter earnings at GM, Ford, and Chrysler. The report said that shares in the companies dropped as investors began to worry that the manufacturers would have to offer higher incentives to attract customers, thus reducing profits. (See Ford Announces Rebates, 01/09/96). Shares of all three automakers closed down on the market. Summarized by Paul Dever ##--##--## Chrysler Raises Prices 01/15/96 The Associated Press reported Chrysler's announcement of price hikes for '96 models including minivans, Jeep Cherokees and Grand Cherokees. Grand Cherokee prices rose most sharply ($150-$300 for a retail price range of approximately $25,400-$33,500), while Cherokee prices rose $100 for a retail price range of approximately $16,300-$22,500. Minivan price hikes ranged from $40-$185 (retail range: 17,185-$30,755). Summarized by Paul Dever ##--##--## Car Interiors to Change Radically in the Future 01/16/96 NewsBytes reports that car designers predict the design of future cars will focus intensively on interiors. Designers expect cars in 2005 and beyond, to use intelligent seat and airbag systems, as well as advanced climate control and surround sound systems. Seats will evaluate passengers' size and weight and adjust themselves accordingly. They will contain less cushion and more recyclable materials, and be more comfortable. Interiors should seem roomier as the bulk of current seating dwindles. Designers also predict that seats will contain child restraining devices. Consumers should also expect more airbags and airbag systems that are capable of deploying airbags according to the positions and sizes of occupants. According to NewsBytes, Jeff Steiner of Johnson Controls differentiates car design of the past from car design of the future by noting that designers are moving away from thinking about components in isolation. They quote him as saying "We're looking at the whole ergonomic environment you are sitting in. Summarized by Paul Dever ##--##--## International Car Show In Belgium 01/18/96 The first day of the 74th Brussels International Car and Motorbike show was reported in Clarinet newsgroup "clari.biz.industry.automotive". Clarinet reported that the show will run from January 18-28. 750,000 are expected to attend. Summarized by Paul Dever ##--##--## Chrysler Reports Remarkable Profits 01/19/96 Both Reuters and the Associated Press reported that Chrysler announced its profits for the fourth quarter. Although earnings were 11% lower than last year's figures, they surprised Wall Street and and comprised the second best quarterly earnings the company has ever seen. Chrysler stock rose $1.87 in response and profit sharing employees can expect a payment averaging $3,200. Profits have been credited to minivan and full-sized pickup sales, and less spending on consumer incentives. Summarized by Paul Dever ##--##--## Mazda Cuts Back 01/22/96 The Associated Press reported that Mazda (25% of which is owned by Ford) will eliminate its Eunos sales network for luxury cars. The cutback comes in response to flagging sales and corporate losses. Summarized by Paul Dever ##--##--## Toyota Positioned to Meet Goals Set in Trade Talks 01/22/96 The Associated Press reports that 58% of Toyota's overseas sales in 1995 derived from vehicles made outside of Japan. Toyota's production abroad responds to the high price of labor and materials in Japan as well as U.S. trade demands. Summarized by Paul Dever ##--##--##