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Ward's Auto World October Issue Focus

19 October 1998

Ward's Auto World October Issue Focuses On the European Resurgence of Passenger Cars

    SOUTHFIELD, Mich., Oct. 19 -- European-brand cars are on a
roll like never before in the U.S.  While sales of most other passenger cars
are anemic, Mercedes-Benz, Audi, VW, Jaguar, BMW, Porsche and Volvo are
soaring.  Total European brands were up 36% while overall light vehicle sales
were down in August; and they're up over 30% for the first half of 1998.
Mercedes-Benz sales were up 76% in August and 68% for the year so far.
    Ward's Auto World says in its October issue that these gains aren't due
just to a strong luxury car market or the introduction of European sport
utility vehicles.  They are the result of smart marketing and product
development on the part of the Europeans and the faltering brand image of
Cadillac and Lincoln, which have been steadily losing market share to European
brands in high-end cars for at least the last four years.
    Lincoln has successfully lured younger, affluent buyers back to its fold
with the hulking Navigator SUV, and Cadillac is hoping to do the same with its
new Escalade SUV.  But analysts say it will be difficult for the two U.S.
luxury brands to lure younger buyers that want to buy cars instead of trucks.
Cadillac's bland entry-level Catera sedan isn't competing well, and analysts
aren't expecting the conservatively styled Lincoln LS sedans -- due out next
year -- to do much better.
    Consumers in 1998 want drama, excess and exaggeration in their cars,
analysts say.   That is delivered by dramatically styled European cars from
the Volkswagen New Beetle to the new Audi TT coupe and Mercedes SLK roadster.
    The affluent baby boomers everybody wants to sell cars to grew up in the
'60s when the "fat cats" they were rebelling against drove Cadillacs.  GM
hasn't done enough to ditch that negative baggage and reach out in a
meaningful way to the emotions of younger buyers, says one analyst.

    Also in the October Ward's Auto World:

    *  Tracking Toyota's Tundra.  Two former GM executives are leading
Toyota's plunge into building full-size V8-powered pickup trucks in Princeton,
IN. (p. 42)
    *  A Plethora of Pickups.  Toyota is diving into full-size, pickup trucks
just as the market is starting to plateau. (p. 47)