GM AND TOYOTA'S JOINT VENTURE ... finalized on February 14 calling for a total investment of $300 million. A sizeable portion of GM's share will come in the form of their Fremont, CA plant, which will be producing the Toyota designed Chevrolet at the rate of 200,000 a year by late '84. The announcement of the joint venture, however, stirred immediate controversy. The venture links two companies which already control 25 percent of the world's sales, a fact which will draw close scrutiny from the FTC. Possible anti-trust lawsuits aren't the only hurdle. A new labor agreement must also be negotiated, and Toyota's chairman said laid-off UAW workers will not be given hiring priority. Japanese worker contracts are also traditionally more flexible than U.S. equivalents.
LESS HOME-PLANT IDENTITY ... is also in the works at General Motors. GM President James McDonald termed the new moves "coordinated decentralization and coordinated centralization." Divisions will become more specialized, with each offering a special look. At the same time, some manufacturing operations will merge, and there will be more competition between internal and external suppliers.
SAVINGS AND LOANS AS LESSORS? ... Back in December of '82, the Federal Home Loan Board proposed a far-reaching regulation, permitting S&Ls to invest in personal property leases. Potentially, S&Ls will be able to become fleet lessors as well as consumer lessors and to provide related services - without the "net, full-payout" leasing restrictions place on other federal financial institutions. Given their substantially lower costs of funds, S&Ls could become formidable competitors.
DIESEL PASSENGER CAR SALES ... took a 37.6 percent drop in calendar year 1982 while market penetration plummeted to just 3.99 percent. Total sales of 318,648 units were posted in 1982, compared to calendar year 1981's total of 510,679 units and a market penetration of 5.99 percent. A bright spot in the total sales picture of 1981, sales went flat as buyers reacted to lower or stable gasoline prices and the higher price tags placed on diesel engine options. While the smaller manufacturers posted gains, the major diesel suppliers (GM and Volkswagen) took the brunt of the losses.
NAFA OFFERS A NEW SERVICE ... to members and affiliates. A new NAFA Maintenance Hotline News bulletin, containing condensations of the most current and important manufacturers' service bulletins, is sent to all members and affiliates. If more information is required, the manufacturer's service number is included so a copy may be ordered from local dealers or the local zone office. In addition, answers to some of the questions asked by callers to NAFA's new Maintenance Hotline are included in the Hotline News.
REAGAN'S CABINET MEMBERS ... have rejected a plea by U.S. Trade Representative William Brock to pressure the Japanese government into a 25 percent reduction in auto imports and an extension of quotas for two more years. Government sources indicate that the Administration will ask for a simple, one-year extension of voluntary import quotas.
WHITHER THE X-BODY? ... is the current question throughout the auto industry. Prevailing industry rumors say the X-Body will be phased out by 1985, the Pontiac Phoenix and Olds Omega being the first to go. The Chevy Citation may get a reprieve since its sales outstripped the other X-bodies in 1982. The X-Body will be replaced, most likely, by the N-Body, a two door variant, which will be available in 1985, and a four door is expected for 1986.
SHORT TAKES ... M.J. McDonald, Chrysler-Plymouth's Chicago Zone Manager, announced that Elmhurst Chrysler-Plymouth was the zone sales leader in 1982. In addition, Elmhurst C-P qualified for membership in Chrysler-Plymouth's prestigious Pacemaker Club for the tenth consecutive year ... Volkswagen and Renault have concluded an agreement to design and build a new fuel-efficient four speed automatic transmission. The unit should find its way into "world cars" in 1985 ... Mitsubishi has announced new lower prices for three of its mini trucks. The low-price leader "Mighty Max" has been reduced to $5749, the Turbo Diesel has been reduced to $7879 for the two wheel drive version and $9839 for the four wheel drive ... Isuzu announced that it now has placed dealerships in each of the 50 states. There are now 300 Isuzu dealerships; 30 states having dealers who sell and service cars and trucks and the remainder having dealers who sell trucks only, but service all Isuzu products.
