Automakers: Page 439

Heady second quarter, profits will moderate in third

It may not get any better than this. Ford Motor Co. was the over achiever, fueled by adequate supplies of its F-150 pickup and an impressive $1,050 profit per vehicle. Ford's third quarter should be better than last year's because it is planning to build 11% more vehicles and will only have two new major new model changeovers -- the Expedition large sport/utility and the F-250 pickup, says David N.

Aug. 1, 1996

Will GM ‘Saturnize’ Saab?

Will the ultimate Saturn move-up car be a Saab?Not if you're suggesting a combination of their very different dealership networks, says Joel K. Manby, the recently named president and CEO of Saab Cars USA Inc., who was one of the marketing whiz kids behind Saturn's customer-coddling retail formula."That would be dangerous considering the extreme difference between the two divisions' brand identities,"

By Gardner, Greg • Aug. 1, 1996

Explore the Trendline➔

Artificial Intelligence

Automakers and dealers alike are increasingly seeing the use case for AI within their operations. Explore some use cases in this trendline.

By WardsAuto staff

C3P: new acronym signals big change at Ford

Changes in computer systems usually don't rate as hot news in the auto industry, but if ever there was a big story in this acronym-crazed area of automotive engineering, this one is "man bites dog." The scale is enormous, the potential rewards are huge, the risks are substantial."A few of my colleagues in the industry say we're crazy to undertake such a huge effort. It has never been done, and they

By Drew Winter • Aug. 1, 1996

GM’s big EVent: two years early, California gets its way - sort of

It's over. The arguments, the wrangling, the discussion, the regulation, the speculation. For the past few years -- really, since the 1990 California Air Resources Board (CARB) decree obliging automakers to sell electric vehicles (EVs) in California by 1998 -- there's been enough talk about EVs to test the patience of the most ardent tree huggers.But now it's over. General Motors Corp. will in a few

By Bill Visnic • Aug. 1, 1996

Making beautiful music with program management

It's rare these days to talk to anyone in the industry about systems integration and automaker-supplier relationships without a reference to program management slipping into the conversation. In fact you hear it so often it's tempting to think it's just another one of those buzzwords that infiltrate the industry lexicon every now and then.By most accounts, however, program management (PM) is more

By Tim Keenan • Aug. 1, 1996

Turin show: SUV wannabes abound

TURIN, ITALY--Mercedes-Benz AG corners the market on excitement at the 66th Turin International Motor Show with the unveiling of the production-garb SLK roadster. But the Italian design houses ring in with their expected assortment of intriguing concept vehicles and commissioned "study" designs. Per normal procedure, it really was the Italian design houses' show.Hometown Fiat SpA generated considerable

By Bill Visnic • June 1, 1996

Jack Smith urges ‘permanent’ MFN status for China

Stop the brinkmanship and let American companies get on with opening up what could become the second largest economy in the world, General Motors Corp. Chairman John F. Smith Jr. warns.Speaking recently at the Economic Club of Detroit, Mr. Smith backs President Clinton's call for unconditional Most Favored Nation status for China. But Mr. Smith would go one step further and make China's MFN status

June 1, 1996

Safety: the side-bag boom: GM plans big blowout for ‘97 model year

Even though their vehicles will meet 1997 federal side-impact standards, General Motors Corp. and Ford Motor Co. are moving aggressively forward with plans to install side air bags for the '97 model year and beyond.Surprisingly, Chrysler Corp.--the first automaker to equip its entire model lineup with front air bags--is taking a wait-and-see stance on active flank protection systems.The federal regulation

By Tim Keenan • June 1, 1996

GM getting its stamping act together

GM's massive in-house stamping operations long have been considered among its biggest trouble spots, but executives of its Metal Fabricating Div. say they are getting a handle on efficiency and quality issues. Two years into a five-year, $850 million capital spending program, they say die transfer times were reduced 68% from 1994 to 1995, and average strokes per hour, a key productivity measurement,

June 1, 1996

The cloud over Chrysler

Chrysler Corp.'s juggernaut appears to keep on rolling, like the Chicago Bulls on the way to the NBA title. First-quarter profit: $1 billion. Market share through April: 16.7%, highest since 1968. And a string of new-model styling hits.Shareholders are elated by the recent 17% dividend hike--the fifth increase in two years--followed by a 2-for-1 stock split. Life doesn't get much better.But nagging

By Gardner, Greg • June 1, 1996

Mercedes’ ‘Systems City’: New U.S. SUV program relies heavily on suppliers

First there was Toyota City. Then there was Buick City. Now there is Mercedes-Benz U.S. International Inc. (MBUSI), a grand experiment in a small rural town near Tuscaloosa, AL, that might as well be called "Systems City."The goal is to build a well-equipped $35,000 luxury sport/utility vehicle (SUV) that is worthy of the Mercedes-Benz label, yet can be considered a good value compared with top-line

By Drew Winter • June 1, 1996

Full exposure: big three’s flanks laid bare

They're nimble, small and cute, and they could represent the U.S. Big Three's most exposed flank since Japanese econoboxes of the 1970s redefined what Americans wanted in a car.They're a new niche in the burgeoning U.S. sport/utility vehicle (SUV) market, with Toyota Motor Corp.'s RAV4 in the pole position. And if Big Three product planners think RAV and other small SUVs coming soon are meant for

By Gardner, Greg • June 1, 1996

Fords shows off Expedition SUV in Kansas City

The Expedition is a 4-door, 9-passenger SUV that Ford says fits easily into a standard garage. It will replace the 2-door Bronco and give the company a heavy-duty SUV to compete with General Motors Corp.'s Tahoe/Yukon and Suburban.The Expedition is part of a $5 billion, full-size truck development effort that started with the F150.In a mild surprise. Ford also introduces the F250 pickup truck in Kansas

June 1, 1996

Witness to automotive history: recollections of those who’ve lived it, close up and personal

In our continuing celebration of the U.S. automotive Centennial, WAW tracked down nearly 30 industry notables who were close-up witnesses to the industry's history. Part I of this special coverage ran in our May issue. Contributing editor Al Rothenberg conducted the following interviews.GM's Lloyd ReussLloyd Reuss, 59, served General Motors Corp. from 1957 until his retirement in 1993. He headed Buick,

By Rothenberg, Al • June 1, 1996

Baring on the killer ‘E’s

At 155 mph (250 km/in) we slide right in the E50, this newest, mightiest version of the recently released, doe-eyed E-class Mercedes. We must move out of the passing lane because the driver behind us is flashing his headlights insistently. It's the ultimate German expression of Mine's Bigger Than Yours: at 155, mph, this guy is forcing us over like we're doing, say, a measly 130 mph (208 km/h). only

By Bill Visnic • June 1, 1996

Right-hand-drive Neons head for eight countries

In a move to bolster its chances in the global market, Chrysler Corp. recently launched a right-hand-drive (RHD) version of the Neon small car. The RHD Neon is built at Belvidere, IL, and shares the assembly line with left-hand-drive (LHD) 2- and 4-door models.In the past, U.S. automakers haven't made much of an effort in RHD markets. Yet 22% of world volume--excluding North America--is right-hand

June 1, 1996

Motomachi marvel: RAV4 utilizes new Toyota production system

NAGOYA, Japan--Just when its gasping competitors think they're catching up with Toyota Motor Corp., the world's leanest automaker gets its second wind, kicks out and sets a new pace.Kaizen, the Japanese term for continuous improvement, is the guiding principle in Toyota's tireless chase to make better vehicles--and better conditions for workers.Nowhere is that philosophy more evident than at Toyota's

By David C. Smith • June 1, 1996

What affordability crisis?

For the third consecutive quarter, Comerica Bank's Auto Affordability Index has fallen. In the first three months of 1996, it takes 28.8 weeks of median family income to purchase an average-priced vehicle, compared with 30 weeks' income during the fourth quarter of 1995. Lower interest rates, rebates and consumer optimism about future employment all contribute, says Comerica Senior Economist David

June 1, 1996

Mustang’s birthing pains; Iacocca scores on his third pitch to Henry Ford II

In two occasions, Henry Ford II had sent Lee Iacocca flat to the canvas when he shouted "No! No!" upon hearing his aggressive Ford Div. general manager pitch for $75 million to fund his proposed "pony car" to compete with GM's sexy Corvair/Monza in the youth market.Corvair and our Falcon both arrived as 1960 compacts. While Chevy added the sporty Monza, Mr. Iacocca was looking at re-skinning the mundane

By Murphy, Walter T. • May 1, 1996

How GM got to the top; after a shaky start, GM took off in the 20’s and never looked back

GM Chairman John F. Smith, climbed to the head of the company from the financial side, giving him just the kind of background GM prefers in its chief executive.In contrast, GM founder William Crapo Durant was no finance man. In fact, some say that was the problem.When he merged the successful Buick Motor Car Co. with Oldsmobile and several other small, financially shaky operations to form the General

By Ferris, Deebe • May 1, 1996

The rise and fall of Billy Durant

Lt's true that the letters "D" carved into the cornices of the formidable old General Motors Building in Detroit are faded and barely visible from the street. And I suppose those who work inside the building are hardly aware of the bold deeds and master strokes of GM's founding father.But that's Detroit. Drive 60 miles (80 km) north to Flint, where it all began, and if you look hard enough you'll

By Gustin, Lawrence R. • May 1, 1996

How Jeep came to be; the day Karl Probst came to Bantam’s rescue

The man who was the father of what became universally known as the "jeep" (now a capitalized Chrysler Corp. trade mark) -- and so, by extrapolation, the father of all utility vehicles that have become Jeep offshoots worldwide -- was an engineer with a capacity for intensive work and a reluctance to be tied to anyone's organization or schedules.I knew Karl Probst well. He was something of an engineering

By Brams, Stanley H. • May 1, 1996

High-tech materials not so new: automakers have experimented with them for decades.

For those who think lightweight metals and plastics are new innovations in the auto industry, consider this: Louis Chevrolet won the Indianapolis 500 in 1921 using an engine with magnesium pistons.The world's first plastic automobile body? Ford Motor Co. developed it in 1941. It showed off a carbon-fiber car in 1977.Lots of materials have played a profound role in the way vehicles have evolved, but

By Winter, Derek • May 1, 1996

A chat with Edsel Ford II: fourth generation Ford carries on family tradition

Ford's timing proved miserable: Just as Edsel in all its garish glory was reaching the market, designers were lopping off fins and other excesses of the '50s, returning to sanity. After barely two years, the Edsel Div. was dismantled early in the 1960 model year.But that's history. Edsel II was not yet a teenager when Edsel, the car, nosedived into oblivion. Besides, who -- except for the Ford family

May 1, 1996

Supplier sequel? Some see history repeating itself

Does history repeat itself? A close look at 100 years of supplier-automaker relations reveals that ghosts of the past are reappearing, although they're taking on a different form.In the beginning, suppliers such as Henry M. Timken, Arthur Oliver Smith, Albert C. Champion and the Dodge and Fisher brothers sold parts to the early automakers that they designed and manufactured themselves. Later, the

By Tim Keenan • May 1, 1996