LONGER WARRANTIES ON NEW CARS keep causing problems for auto makers . . . most models are guaranteed against parts failures for five years or 50,000 miles, whichever comes first. Six years ago, it was three months or 3,000 miles. The extended warranties have boosted manufacturers' costs sharply, angered some dealers, and drawn attention of the FTC. The agency is looking into requirements of car makers that buyers have periodic checkups to keep warranties in force. Total industry cost of warranties, which doubled to $700 million last year from the 1962 figure, is expected to rise by $200 million this year. Some dealers complain that auto makers don't reimburse them enough for repairs made under warranties. The dealers also bristle at making repairs on cars bought from competing dealers.
KINNEY NATIONAL SERVICE, INC. WILL PURCHASE 6,000 American Motors cars during the next three months for its expanding car rental system. In a joint statement, AM president, William V. Luneburg, and Kinney president, Steven J. Ross said the purchase calls for twice as many cars as American provided last spring when it became the major supplier of autos to Kinney. Kinney's short term rental fleet will consist solely of 1967 models and will be top-of-the-line models.
A BILL, PROVIDING FOR A FINE UP TO $200 for persons convicted of tampering with mileage on odometers to defraud purchasers, has been introduced into the Texas Legislature. The bill outlaws the use of any "speedometer resetting machine", and describes it further as any device which is designed to change the mileage on a motor vehicle speedometer.
ALL 1968 GM CARS WILL BE EQUIPPED with two features to help prevent theft of the vehicle. One is a buzzer which will sound when the driver leaves the car with key still in the ignition. The second is a system of vehicle identification numbers on the instrument panel, engine and transmission. GM also plans an increased use of key-lock combinations to make illegal entry into cars more difficult. The buzzer device is activated when the driver's door is opened, with key left in the ignition. Instrument panel numbers will be visible through the windshield, allowing police and theft investigators to identify the vehicle without having to enter the car.
STUDS OK IN 56 STATES . . . Legislation approving use of studded tires in Indiana and Iowa raises to 36 the number of states permitting the use of studded tires.
POSI-TRAC SAFETY TIRE CORP, of Michigan, headed by former Chrysler president, William C. Newburg, and Posi-Trac Rail, Inc., Houston, have agreed to a merger. "This move," according to Newburg, "foresees a government edit requiring that 1969 model cars be equipped with a means, when tires fail at high speeds, for retaining a deflated tire on the wheel and bringing the vehicle to a stop without skidding or swerving, and without need for more than normal-condition driving skills."
THE BUREAU OF STANDARDS, under an agreement between the Commerce Department and the Transportation Department, will conduct a quality test of brake lining, tires and seat belts. The Bureau will provide "research assistance" to the National Traffic Safety Agency in developing mandatory standards for better tires, seat belts, shoulder harnesses and braking systems.
BUDGET RENT-A-CAR OPENS 47 new offices throughout the world in their current expansion drive . . . now has 450 offices though-out the United States, Canada, Hawaii, Mexico, Puerto Rico, Antwerp, Brussels, Geneva, Zurich, Barcelona, Dusseldorf and the United Kingdom, with a fleet of 11,000 vehicles and a reported gross revenue of $35 million.
THE RUBBER MANUFACTURERS ASSOCIATION has called for a national inspection standard which would remove from the road all tires with less than 2/32nds of an inch of tread depth. The Association issued its call in conjunction with publication of a revised tire inspection guide which lists six tire conditions suggested as cause for rejection by state highway inspection agencies and policing authorities. Of the 20 states and the District of Columbia which require motor vehicle inspection, 17 require tire inspection, and only 5 of these specify a 2/32nds inch tread depth minimum, while 12 merely prohibit use of "unsafe" tires, without adequate definition as to what "unsafe" means. The five states requiring 2/32nds of an inch are New York, New Hampshire, Massachusetts, Vermont and Pennsylvania.
AMERICAN MOTORS IS PLANNING TWO ENTRIES INTO THE SPORTS CAR FIELD. The Javelin, reportedly designed along the lines of Ford Motor's Mustang, should debut late in 1967, although AMC officials won't confirm an introduction date. The second model may be called AMX II after the experimental model shown last year. It is expected that plans for this model will be released after the Javelin Is brought out.
AUTO DRIVEAWAY COMPANY ANNOUNCED THE OPENING of two new offices, bringing the total number of offices operated to 32 throughout the United States and Canada. The new offices are located in Las Vegas, Nev. headed by John Carpenter, and Phoenix, Ariz., managed by Richard Trimble.
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