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February 4, 2002: Import recalls

Hyundai, Nissan, and BMW all issued recalls recently. About 116,000 2000 and 2001 Sentras (1.8 engines) may stall due to sensor failure. Hyundai produced over 86,000 Sonatas witih airbag warning lights that may light up without cause. 43,000 Tiburons built from 1996 to 2000 have seat belts that may not work smoothly. 2000 and 2001 Accents may have high idle speeds in cold weather. 1,900 2001 XG300s have improperly made computers. Finally, BMW is replacing over a thousand 2002 5 series vehicles because tire mounting at the factory could cut the outer widewalls (standard suspension only). No accidents have been reported in any of these problems.

February 4, 2002: Ford Explorer ruled defective

The Barstow Superior Court (of Nevada) ruled 10 to 2 that the 1994 Explorer was defective due to a high center of gravity and faulty suspension. This case does not involve tire failure.

February 4, 2002: Chrysler sales detail

The good news (increases, January 2001-January 2002):

Now the bad news. First, of course, is the total loss of Plymouth sales, which in January 2000 - after Plymouth's phaseout had already begun - 5,200 cars were sold. Thus, while the Neon ostensibly increased in sales, if you count the Plymouth Neon, sales shrank.

Overall, cars are down 8%, trucks 9%, minivans are steady, and SUVs are down 19%.

February 4, 2002: 2002 Chrysler awards, so far

February 4, 2002: New ad spots

The branded campaign airs February 1-7. The new incentive program, announced this past Wednesday, includes up to $2,500 cash on most 2002 cars, trucks and minivans purchased through February 28. The seven-year/100,000-mile powertrain protection plan on all Chrysler Group vehicles remains in effect until March 31. The combination of incentives and powertrain warranty is called the Chrysler Advantage, Jeep Promise, and Dodge Edge. The three campaigns were developed by PentaMark Worldwide (an in-house ad agency).

The new 30-second TV spots are uniquely themed:

February 4, 2002: New ad spots

The branded campaign airs February 1-7. The new incentive program, announced this past Wednesday, includes up to $2,500 cash on most 2002 cars, trucks and minivans purchased through February 28. The seven-year/100,000-mile powertrain protection plan on all Chrysler Group vehicles remains in effect until March 31. The combination of incentives and powertrain warranty is called the Chrysler Advantage, Jeep Promise, and Dodge Edge. The three campaigns were developed by PentaMark Worldwide (an in-house ad agency).

The new 30-second TV spots are uniquely themed:

February 3, 2002: Sales drop continues in January

Sales of the Big Three were down 12 percent, while import sales rose 6.5 percent in January, thanks partly to the incentives of December. GM sales dropped 13 percent, Ford 13 percent, and Chrysler 9 percent. In terms of passenger cars alone, Toyota was the top seller, with GM plummeting by a third - 34 percent - Ford dropping by 22 percent. (Light truck sales continued to climb for both GM and Ford). PT Cruiser sales, meanwhile, plunged as well, prompting Chrysler to actually tell people via advertising about its low price - it is still not covered by incentives, and we hope it stays that way. (We also hope they mention how quiet, pleasant, and roomy the interior is, and maybe even counter the power issue by pointing out its acceleration).

February 3, 2002: Chrysler liquidation sale continues

Detroit News notes that DCX is selling yet more of Chrysler, concentrating on parts plants. Up for sale are the Huntsville electronics plant, which makes radios, instrument clusters, and other electronics; Dayton Thermal, which makes heating and cooling parts; and McGraw Glass, in Detroit, which makes, well, glass. About 6,000 employees are in these plants, currently on the auction block, but there are 25 plants in all scheduled to be sold. We applaud DCX's forward thinking - there's no better way to expand a company than by shutting down all its parts and assembly plants. The full story, with some interesting details we can't get into - especially not without plagiarizing Detroit News' fine work - is at this link.

January 31, 2002: More auto industry cutbacks

The Detroit Free Press reported that Chrysler is about to cut the salaries of 3,200 contract workers by 7 percent. Ford, GM, and Visteon have already made similar moves (using the same 7 percent cut). GM will also eliminate several hundred temporary positions sooon. The former Big Three employ over 20,000 contract workers in levels from bottom rung to professional.


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