Car Market

DETROIT -- General Motors Corp.'s share of the American car market fell to the lowest level in 23 years in September, dropping below 30 percent for the second consecutive month.That was a discouraging way for the world's largest automaker, which once commanded more than half of the U.S. market, to wrap up the '93 model year.It also emphasized how devastating a strike could be as GM begins bargaining in earnest with the United Auto Workers today. Even GM's take-charge board of directors was backing away from any mandate to negotiate a drastically different, less-costly contract than Ford Motor Co. and Chrysler Corp.

Genovation Cars Inc., a Rockville-based company, wants to do what many in the auto industry have failed to do — build a fully electric, battery-powered vehicle that the public embraces. On Thursday, company executives were at the Glenn L. Martin Wind Tunnel on the University of Maryland, College Park campus to show off the aerodynamic properties of the G2, as the car is called, and talk up their project. Genovation has won a $135,000 product development grant from the Maryland Industrial Partnerships, a university program.

For years consumers have been experiencing vertigo at the eyeball-popping sticker prices on automobiles in new car dealers' showrooms. Since 1989, new car prices have been rising well ahead of personal incomes, putting that dream machine out of reach of many prospective buyers.To avert a crippling slump in production, carmakers resorted to all sorts of novel schemes to keep sales up, including leasing. But now there are signs that the huge investment automakers have sunk into leasing arrangements may permanently alter the economics of the car business.

AUBURN HILLS, Mich. -- The Chrysler Group is set to announce a restructuring plan today aimed at securing its place in the crowded American car market - and within DaimlerChrysler AG. The plan is expected to include the elimination of about 11,000 blue- and white-collar jobs, along with the closing of one and possibly two assembly plants - in Delaware and Missouri - people with direct knowledge of the plan said this week. Chrysler may shut smaller plants elsewhere and announce other cost-cutting measures to meet its stated goal of reducing costs by about $1,000 a vehicle.

Genovation Cars Inc., a Rockville-based company, wants to do what many in the auto industry have failed to do — build a fully electric, battery-powered vehicle that the public embraces. On Thursday, company executives were at the Glenn L. Martin Wind Tunnel on the University of Maryland, College Park campus to show off the aerodynamic properties of the G2, as the car is called, and talk up their project. Genovation has won a $135,000 product development grant from the Maryland Industrial Partnerships, a university program.

Maryland motorists continued their buying spree last month, but most of the wheeling and dealing was done on the used car lot.According to figures released yesterday by the Motor Vehicle Administration, sales of previously owned vehicles jumped 16.8 percent when compared with January of 1996.At the same time, new-car sales were off 9.2 percent."Used cars are the buzz-words in our industry right now," said Robert C. Russel, president of R&H Motor Cars Ltd. in Owings Mills and chairman of the Maryland New Car and Truck Dealers Association.

Looking at the luxury car market these days, you get the impression that Cadillac is out on a limb and that foreign luxury carmakers are slowly sawing it off.General Motors' luxury car division always has attracted older car buyers, but industry officials say future growth lies in attracting young, affluent buyers, baby boomers who are moving into their peak earning years.This is territory that European and Japanese car companies now dominate.But in 1992, Cadillac plans a big change. The division hopes to grab a share of that market segment with the redesigned Seville and Eldorado.

When Guy Shannon wanted to sell his old Volvo, he didn't try the newspapers or the Internet. He turned first to the side of the road. Shannon put a "For Sale" sign in the window of his 1987 Volvo 240 DL and parked it with a group of others for sale close to the corner of Seneca and Shaker drives near a northbound entrance to U.S. 29 in Columbia. It's a destination that locals are finding offers a quick sale. The side-of-the-road strip is becoming a de facto used-car lot, known by sellers and buyers.

Sales of new cars and trucks dropped sharply last month as declining gasoline prices took much of the get-up-and-go out of the compact segment of the market, according to figures released yesterday by the Motor Vehicle Administration.Overall, new-vehicle sales in Maryland were off 17.6 percent from a strong February 1997, which was the best February for dealers since the state resumed its publication of registration figures in 1991."Small car sales were definitely off last month," said Jerome H. Fader, president of Heritage Automotive Group of Owings Mills.

The minivan, a vehicle that nearly killed off the station wagon while saving Chrysler Corp. from extinction, is now struggling to hold its own.Minivan sales may drop slightly this year, but they are going to be very close to the 1.2 million units sold in each of the past five years, said Ralph Sarotte, general manager of minivan operations with DaimlerChrysler Corp., which accounts for nearly one of every two vans sold nationally.Sarotte said that minivans hold about 8 percent of the U.S. passenger vehicle market, down from a peak of 9 percent four years ago.But the van's share of the fast-growing light-truck market is showing signs of slippage.

For U.S. automakers, it's out with the old and in with the new, which has been a bonus for car buyers but isn't guaranteed to be as good a deal for investors. This summer's aggressive discount pricing by the Big Three automakers has jump-started a dismal 2005, and some analysts say it might position the industry for a comeback next year, though that belief isn't universal. Inventory is being reduced in a rush started by General Motors Corp.'s program to give all buyers its employee discount, which produced a 47 percent sales gain in June for its best month in 19 years.

When Guy Shannon wanted to sell his old Volvo, he didn't try the newspapers or the Internet. He turned first to the side of the road. Shannon put a "For Sale" sign in the window of his 1987 Volvo 240 DL and parked it with a group of others for sale close to the corner of Seneca and Shaker drives near a northbound entrance to U.S. 29 in Columbia. It's a destination that locals are finding offers a quick sale. The side-of-the-road strip is becoming a de facto used-car lot, known by sellers and buyers.

A glut of used cars on the market is creating great buys for consumers and good times for dealers, but headaches for those in the auto leasing business, according to industry sources. "This is a terrific time to buy a used car," said Paul Taylor, chief economist with the National Automobile Dealers Association. He said an abundance of vehicles on the market has resulted in big bargains on used-car lots. Raymond C. Nichols, chairman and chief executive of Bel Air-based BSC America Inc., a holding company that operates auto auctions in Maryland and other parts of the country, agreed.

Patrick Maphis was nearing 50 and was quite content with his 9-year-old Mazda pickup. "I have enjoyed cars all my life, but I began losing interest in them," the Abingdon resident said. Then Chrysler's PT Cruiser came along. "It floored me," Maphis said. "It touched something deep-rooted in me. It rekindled my interest in hot rods." Maphis ordered the car Feb. 5 without test driving it. He could hardly wait until his Cruiser was delivered May 22. That experience is being repeated over and over again around the country, even around the world.

TOYAMA, Japan -- Just outside the port of Toyama-Fushiki is a day parking lot whose owners have grown tired of shooing away would-be buyers of automobiles. So they posted a sign in Russian that reads, "This is a Parking Lot. These Cars are Not for Sale."Errant buyers can be a regular nuisance when Russian ships call at Japanese ports. In Toyama-Fushiki, when the Russian ship visits once a week, dozens of Russian passengers and sailors fan out across town, their pockets stuffed with U.S. $100 bills.

The minivan, a vehicle that nearly killed off the station wagon while saving Chrysler Corp. from extinction, is now struggling to hold its own.Minivan sales may drop slightly this year, but they are going to be very close to the 1.2 million units sold in each of the past five years, said Ralph Sarotte, general manager of minivan operations with DaimlerChrysler Corp., which accounts for nearly one of every two vans sold nationally.Sarotte said that minivans hold about 8 percent of the U.S. passenger vehicle market, down from a peak of 9 percent four years ago.But the van's share of the fast-growing light-truck market is showing signs of slippage.

THE THREAT of a Japanese-dominated automobile market is not just an American phenomenon. Allegations of unfair trade practices -- for example, when the Japanese sell minivans at below production cost to grab market share -- are not restricted to the United States. Neither is the specter of domestic auto workers being laid off because of Japanese imports.Last month, European nations debated the future of the car industry. The starting point was a report drafted by Carole Tongue, a member of the European Parliament whose district includes a British Ford automobile factory.

While $8,000 Ford Escorts are collecting dust on dealer lots, new car buyers are waiting in line to buy $50,000 Lexus luxury cars.In one of the quirks of what some say is the worst car market in 10 years, some makes of luxury cars are selling better than ever."

MOSCOW -- Perhaps nothing reflects the changing Russian market as much as the car magazine Behind the Wheel, published since April 1928.Once a combination instruction manual and Communist propaganda pamphlet, it has become a glossy, full-color tTC consumer guide, printed in Italy.Russian and foreign cars are evaluated on the basis of test drives. "We are independent," says Vladimir Arusha, the deputy editor."I am very proud we don't belong to any bank or any enterprise producing cars. We live on what we earn and can say what we want."

Sales of new cars and trucks dropped sharply last month as declining gasoline prices took much of the get-up-and-go out of the compact segment of the market, according to figures released yesterday by the Motor Vehicle Administration.Overall, new-vehicle sales in Maryland were off 17.6 percent from a strong February 1997, which was the best February for dealers since the state resumed its publication of registration figures in 1991."Small car sales were definitely off last month," said Jerome H. Fader, president of Heritage Automotive Group of Owings Mills.