The Impact of the Compacts

Wheeled into Manhattan's Coliseum last week was the largest number of foreign cars ever assembled for New York's International Auto Show. To the fourth annual show, 86 automakers from ten nations sent 311 cars. Fancy or functional, the cars were impressive--but still, there was a note of apprehension in the air.

Salesmen had plenty to talk about. For the first time since their introduction to the U.S. in 1950, West Germany's beetle-backed Porsches ($3,600 to $8,000) have undergone major restyling, now have distinct front fenders, higher bumpers. Russia's Moskvitch and Volga made their U.S. sales debuts, turned out to be solid, high-fendered old-fashioned cars, clearly designed to traverse well-rutted roads. The U.S.'s Amphicar Corp. introduced its German-made, snub-nosed Amphicar, which runs on land or water, sells for under $3,000. Other cars:

P: Sweden's Volvo P 1800, a sleek, hand-tooled sports coupe powered by a 100-h.p. engine and capable of speeds over 100 m.p.h. Price: about $3,800.

P: Britain's Triumph Herald, a crisply designed convertible that delivers up to 40 miles a gallon, cruises at 65 m.p.h., costs $2,229. Another British entry is the ingeniously designed, diminutive (wheelbase: 80 in.) Morris 850, which has a laterally mounted engine, front-wheel drive, and seats four adults. Price: $1,295.

P: Japan's Datsun Fairlady, a sporty convertible that seats four, has a four-speed stick shift. Price: $2,099.

P: France's Citroeen Prestige, a luxurious version of Citroeen's front-wheel-drive sedan. Intended to be chauffeur-driven, the Prestige has a dividing window, intercom system, deep-pile carpeting and rubbed-walnut trim, sells for $3,940. Another new Citroeen: the eight-seater station wagon, which sells for $3,395.

P: West Germany's Borgward Big Six, a luxury sedan. Price: $3,960.

The latest foreign models were reaching the U.S. at a time when the market was more competitive than ever. Only recently, since dealers at last began to receive enough U.S. compacts to meet the demand, have they begun to cut into the sale of imported cars. Foreign-car sales dropped only slightly, from some 53,000 in September to 52,000 in March, but they are getting a smaller share of the expanding U.S. market, slipped from 13.2% of all cars sold last September to 8.3% last month.

Some foreign-car dealers are beginning to be badly hurt. Says one Westchester County (N.Y.) Vauxhall dealer: "My sales have dropped 25%. since the compacts came out." Admits a Renault dealer in Los Angeles, where all foreign-car sales except Volkswagen are down 40% to 50% : "We think we've seen the best part of our business." In the Miami area, foreign-car registrations are down from 21% to 15%. In Chicago, one Opel dealer reports his business is off 75%. U.S. auto dealers are no longer eager for foreign-car franchises. Only twelve have signed since last July (v. 1,129 m tne first six months of 1959).

U.S. compacts are also sparking the spring boom in U.S. car sales. In the first ten days of April, dealers reported 160,420 cars sold, an increase of 15.4% over the same period in March. Compacts accounted for 26.1% of the sales. This month U.S. automakers will turn out 185,600 compacts, 31% of the industry's total car output--and production is still going up. Sales of Ford's new Comet--more than 15,000 in the first three weeks--have already caused two increases in production schedules.

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