Detroit Free Press from Detroit, Michigan on June 23, 1987 · Page 34

Shop talk: If you’re so smart . . Which movie star used a rearing cobra figure as an ornament on the front of his Isotta-Fraschini car? Answer below Audi of America Inc. will raise prices on all models sold in the United States an average 3.9 percent, or $830, beginning July 20. DETROIT FREE PRESSTUESDAY, JUNE 23, 1987 6C Call with auto news: 222-8784 Helen Fogel labor notes Higher GM10 prices in forecast f.y.i. UAW talks will involve more than autoworkers Although auto contract talks will capture most of the public attention, the UAW will be bargaining simultaneously this summer for two other important and growing segments of the union. While UAW leaders will discuss contract renewal with Ford Motor Co. and General Motors Corp., where contracts expire Sept. 14, 22,000 state employes will be negotiating their first contract renewal as UAW members and close to 5,000 Blue Cross & Blue Shield workers from UAW locals in Detroit, Southfield, Flint and Lansing will be bargaining their first master agreement. In the past, the UAW’s Blue Cross & Blue Shield members from the different local unions bargained their contracts separately. So talks geared to conclude this fall will replace four local agreements with one agreement for all. In both cases, local bargaining officials will be assisted by the UAW’s Technical, Office and Professional Department led by Vice-President Stephen Yokich. UAW Local 6000, which represents s’ate employes, had its first meeting with state bargainers June 1, although the agreement does not expire until Dec. 1. Yokich and local President Thomas Mutchler will lead the negotiations for the union. The UAW signed its first agreement for state employes in 1985 and concluded talks on an economic reopener to that agreement in November last year. In a recent statement, Yokich and Mutchler said they were confident they would achieve a new master agreement that addresses the interests of state employes “in many key areas.” Selene McCoy, president of UAW Local 1781, which represents about 1,100 workers at the Blues’ Southfield office, has been elected chairman of the bargaining committee. Other members come from 2,800-member Detroit Local 2500 and Locals 1811 and 2145, which represent a smaller group of Blues workers outstate. V2L Yokich United Press International General Motors Corp. plans to price its new front-drive intermediate cars as much as $ 1 ,400 higher than the rear-drive cars they will replace, Motor Industry Week reported Monday. Prices of 1988-model Buick, Oldsmobile and Pontiac coupes may be raised between $600 and $800 over current models, while prices on the sedan versions, to debut after 1988, may be raised at least $1,000 to $1,400, the industry publication quoted “well-placed GM insiders” as saying. GM spokesman Harold Jackson called the story speculative, saying the pricing process has not yet been established. “We have every intention of pricing these cars to be competitive in the marketplace,” he said. When GM introduced its front-drive replacements for its rear-drive large cars beginning in the 1986-model year, prices went up between $1,200 and $1,400. However a GM spokesman said that more standard equipment, such as air-conditioning, was added to the cars. GM’s current midsize coupes the Buick Regal, Oldsmobile Cutlass Supreme and Pontiac Grand Prix currently sell between $11,500 and $12,400, the publica- ‘ r – -j Chrysler Credit offering financing to AMC dealers AP A prototype of the 1 988 Buick Regal, part of the GM1 0 line of midsize cars. tion said. GM WILL BEGIN selling its new line of front-drive intermediates, known as its GM10 line, this fall. The Buick Regal will debut first, followed by the Oldsmobile Cutlass Supreme. The new version of the Pontiac Grand Prix will debut in March 1988. Analysts said the price increases may mean GM will have a tough time regaining any part of its eroding market share. In 1986 it had a 4 1 percent slice of the overall U.S. market including imports, compared with 42.6 percent in 1985 and 44.3 percent in 1984. Automotive analyst Maryann Keller of Furman Selz Mager Dietz & Birney in New York, said the price increases could cause GM to place buyer incentives on the new cars almost immediately just as it had to do with the introduction of its Chevrolet Beretta and Corsica compacts this year. Analysts say the GM10 models will face Ford’s successful Taurus and Sable sedans, which have attracted car buyers previously loyal to other brands. Other analysts point out that the GM10 cars will be coupes initially and not compete directly with the Taurus and Sable, which are available only in sedans or station wagons. They point out that the new GM cars would still be priced below Ford’s Thunderbird or Mercury Cougar, their nearest competitors. 1 4J I I mm . – Mazda nians U I A nai ls at hit Ihu k trivia answer Rudolph Valentino. Source: “Driving Passion: The Psychology of the Car” United Press International Mazda Motor Manufacturing (USA) Corp. said Monday it plans to increase to 70 percent the amount of domestically built parts in the cars it will assemble at its new plant in Flat Rock. “Ever since our decision to build a U.S. manufacturing facility, it has been our stated goal to attain at least 50 percent local content by the time production begins,” a Mazda spokesman said in an update report. “We are on target toward reaching that goal and now our efforts are channeled into pushing local content toward 70 percent,” the statement said. Mazda said it is moving ahead with increasing the domestic-part content of its cars because of the rapid appreciation of the Japanese yen. The continued rise in the yen, when compared to the U.S. dollar, has forced all Japanese carmakers to raise prices by about 20 percent within the last year. MAZDA HAS about 45 parts suppliers lined up. About 23 of them are U.S. suppliers with no Japanese affiliations. Twenty are involved in a U.S.-Japan joint venture and the remaining two are Canadian companies, Mazda spokesman Jim Gill said. The 2.7-million-square-foot plant southwest of Detroit is to begin production with two shifts by the third quarter of 1988 and have the capacity to build about 240,000 vehicles annually. Gill said the plant’s value is now at $500 million, up $100 million from the original amount announced two years ago. “It is primarily because of the yen’s appreciation,” he said. The update said the plant will employ about 3,100 production workers and about 400 involved in administration and finance. Mazda has hired about 1,300 workers who are trained at its plant in Hofu, Japan. Chrysler Corp.’s captive finance subsidiary said it has begun offering retail and lease financing to dealers of American Motors Corp., the No. 3 automaker’s intended merger partner. Chrysler Credit, the car-financing arm of Chrysler Financial Corp., began contacting and distributing contracts to AMC dealers June 12. The financing is available to all 1,600 AMC dealers in the United States and Canada, a Chrysler Financial spokesman said. Chrysler hopes the move will boost AMC sales in advance of their merger, expected by mid-August. Chrysler Vice-Chairman Bennett Bidwell was quoted in a trade journal report Monday as saying that Chrysler will eliminate AMC’s field operation and serve AMC dealers through Chrysler’s 28 zone offices. Bidwell also said in the Automotive News interview that Jeep would be a part of the divisional name when AMC becomes a Chrysler division. CHRYSLER on Monday denied another trade journal report that it might move production of the LeBaron GTS and the Dodge Lancer cars from its Sterling Heights assembly plant to another facility. “Those cars will be built at Sterling Heights assembly in the 1988 model year,” which begins in September, said Chrysler spokesman Doug Nicoll. He declined to say if they would be built there in later model years. Metalworking News reported Monday that LeBaron GTS and Lancer might be moved to expand production of the popular Dodge Shadow and Plymouth Sundance subcompact cars, which are also built at Sterling Heights. DAIHATSU Motor Co. Ltd. has selected its first 10 U.S. dealers to begin selling the Japanese automaker’s Charade model, the company said. Daihatsu is an 80-year-old com pany that received its first alloca tion under the Japanese government’s voluntary 2.3 million annual quota on auto exports to the United States this year. Daihatsu’s allocation is 11,498 cars for this year. Charade initially will be sold, starting in December, in Arizona, California, Colorado, Hawaii, Nevada, New Mexico, Oklahoma, Texas and Utah. THE SOVIET Union’s AZLK auto factory has plans to export the first Russian car to the United States by 1991, Automotive News reported Monday. The front-drive compact, known as the Moskvich 2141 in the USSR, would be renamed for the U.S. market, AZLK President V.P. Kolomnikov said. A model destined for Western Europe will debut at the Brussels Auto Show in January. The export plans reflect a new Soviet policy that allows the country’s seven major carmakers to pursue their own export deals. A new engine would also have to be built for the U.S. version, West German carmaker Volkswagen AG may help AZLK (Lenin Komoso-mol Motor Works) develop it under a co-operative agreement. BRAZIL’S automotive industry may grind to a virtual halt within a week unless a dispute over government taxes on cars is resolved, industry spokesmen said Monday. Distributors decided last Tuesday to stop buying cars or trucks to protest high government taxes that add 138 percent to the cost of vehicles. MAZDA is considering buying nickel-zinc-coated steel from U.S. steelmakers to supply its plant in Flat Rock, Metalworking News reported Monday. The publication said Mazda’s U.S. subsidiary will use three Japanese suppliers initially to supply steel for body panels, but it might switch to U.S. sources after the first couple of years of production. NASDAQ national market Sales as Clrn, .10 ‘ A&W Bd ABS JO ACCCp AOC AEL ‘ AEP AIFS AIM TO ALCCm AME ASK AST ATI ATN AW A AarnBr AarnRI Abtngs AbeLinc AcaJot Acadln Acetrtn t Aceptln ACMAT AcmeSt ActARI ActAuSI Actvsn Actmd l Acusn AdacLb Adage Adapt AdisniV 90 Adia s .10 Admac AdobS i AdvCir AdvRos AdCpt AdvGen AdvMag AdvSem AdvTel AdvoSy Aeoutrn Aegon .47r AerSvc AeroS pt AerSvsl AtlBcp Atlhifi AgcyR i t ill mi – 75 20 1 4 2V4 – 74 23Vi …. 101 I4″i …. 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