LEGISLATION … ensuring the tax status of open-end leases has passed the Senate and was slated for consideration in early June by the Joint Conference Committee (House Ways and Means and Senate Finance Committees). D.C. observers expect that the dollar figure connected with the business and luxury car bill will be in the neighborhood of $19,000. AALA is working hard to make sure that any new mixed-use property rules are workable and equitable. Senate focus has been that tax laws are subsidizing personal use through tax underwriting, whereas the House has focused on accurate reporting.

DOMESTIC TRUCK SALES … climbed in the first four months of this year to an all-time industry high. If sales continue at that same rate, the ’84 total will exceed the 4,108,000 mark set in ’78.

Light-truck sales were especially strong, reaching 1,253l987 at the end of April, a 45.7 percent increase of last year’s comparable period. And compact trucks cut a bigger slice – 43.1 percent – of the light-truck pie than before, with 540,219 units. In the first third of last year, compact sales accounted for 35.7 percent. Domestics netted 66.3 percent of those compact sales, with imports garnering 32.2 percent.

Ford and Chevy were neck-and-neck in terms of YTD total truck sales, with 381,621 and 373,912 units respectively. Chrysler truck sales rose dramatically over last April’s YTD figures, due especially to the “sold-out” status of their new minivans; Chrysler’s share of the domestic van market increased from 13 to 17 percent over last year’s January-April sales. Ford van sales increased by 19 percent and represented 37 percent of the van market; Chevy van sales increased 23 percent, garnering 36 percent of the market; and GMC van sales increased 12 percent, accounting for 10 percent of the market. Combined, domestic van sales represented a 19 percent increase over last year’s comparable period.

GM CHASTISES RENTAL FIRMS … during Chevy’s ’85 long-lead in Detroit. Berger, Chevy’s general manager and GM vice president, focused on daily rental operators who took advantage of GM’s early ’84 incentive program to order “hot” cars, such as Camaros, took delivery, and then immediately resold the “new” cars for profits. While opposed to anti-incentive legislation, Berger said GM will not tolerate unfair competition with dealers. Not coincidentally, GM divisions began announcing their ’85 fleet incentive programs, with provisos to prevent such practices. (See this month’s Industry News section for details.)

NISSAN WILL ASSEMBLE SENTRAS … at their $660 million Smyrna, TN, plant beginning next April. Nissan sold 215,000 of the two-door notchbacks in the U.S. last year; initial Smyrna Sentra capacity will be 100,000. The Sentra assembled in Smyrna will have 40 to 50 percent domestic content, with engines produced in Japan. Nissan’s fleet operation is hoping that the additional availability of domestically assembled models will lead to great fleet acceptance; traditionally, fleet buyers have steered away from imports because of availability, ordering, and specing difficulties.

AMC OFFERS 10.9 PERCENT LOANS … on ’84 Encores and Fuegos in dealer stock, in contrast to bank-loan rates recently averaging 13.5 percent. AMC is not offering the low-interest financing to fleets, as Nissan did earlier with their 8.8 percent financing. Still, the program is the first of its kind offered by a domestic manufacturer in a year and a half.

AMC ’84 domestic car sales started off strong last fall but tapered off in step with the recent softening of the subcompact segment; their penetration into that segment, however, has increased to 9.5 percent a year ago. General Manager Guptill is estimating 203,000 Alliance. Encore, and Eagle sales in the ’84 model year.

SHORT TAKES … Mitsubishi is now offering a five-year/50,000-mile warranty, similar to the program Nissan recently introduced … Because of lagging sales, Dodge will drop its Rampage pickup for the ’85 model year; Plymouth discontinued their sister nameplate. Scamp, last year … A federal appeals court overruled the Reagan administration, requiring tires to be graded on tread longevity. The ruling was another setback for the Reagan administration’s rollback campaign on auto consumer and safety laws; the court used strong language, accusing the administration of “flouting” the law and acting “arbitrarily and capriciously” last year when it suspended tread-life grading rules … Jartran, the Miami-based truck rental firm, will reap the benefits of a new agreement with Chrysler, allowing the companies to buy parts at a discount directly from 1,400 Chrysler wholesale locations. Jartran expects to save approximately $1.4 million annually on parts purchase for their 6,000 Dodge trucks … Chevy’s new software package for the base car distribution network is calculated to trim an entire week off the order/delivery process this fall … Al Raymond, former top Gelco exec is now a senior vice president of Dart and Kraft Financial Corp., running the Minneapolis Vehicle Management Group for Bill Fleming … Ron Trapani, recently with Leaseway Fleet Management, has accepted a management post with Adjuster’s Auto Rental in Cleveland … Western Vehicle Leasing Association (WVLA) has voted to change its name to National Vehicle Leasing Association (NVLA) to properly reflect its expanding base … Buick-Olds-Pontiac fleet management is on a high from the exciting reaction among industry leaders over the ’85 N-body (dubbed Sommerset, Calais, and Grand AM, respectively), which has a chassis between the J- and A-cars.