Monday, Sep. 21, 1970
Debut for Subcompacts
Foreign autos now account for one out of every seven new-car sales in the U.S. To fight the inroads of the imports, Detroit's two largest automakers last week put their much remarked mini-car models on sale. Both General Motors and Ford waited until the last minute to set sticker prices for the new lines. The biggest surprise was the price of Chevrolet's Vega 2300, which turned out to be about $150 higher than that of a comparable Ford Pinto and about $190 higher than that of the cheapest Volkswagen.
The basic list price of the Vega 2300 is $1,950, which (with federal excise tax and dealer preparation) comes out to $2,091 for a two-door sedan, $2,197 for a "hatchback" coupe, and $2,329 for a station wagon. Frequently requested options--such as automatic transmission ($111), deluxe interior ($125.95) and power steering ($95)--can rapidly raise the Vega's price to more than $2,500. The Pinto, which comes in only one model, a two-door sedan, is priced at $1,944, including federal excise tax and dealer preparation charges. Volkswagen's 60-h.p. basic beetle sells for $1,899.
The main reason for the Vega's unexpectedly high cost is weight; it is 383 Ibs. heavier than a VW, 177 Ibs. heavier than the Pinto and 300 Ibs. heavier than G.M. originally intended. As the car evolved, its designers made myriad little changes intended to improve the car's appearance, road performance or safety. At 170 in., the Vega is 7 in. longer than the Pinto and has a 90-h.p. engine compared with Pinto's 75-h.p. power plant.
"The secret for beating Volkswagen is quality," says Chevrolet General Manager John Z. DeLorean. Pinto and Vega offer newer styling and better handling characteristics than the Volkswagen. The cheaper Pinto reflects Ford's conviction that VW must also be met head-on in terms of price.
Foreign automen insist that they will withstand the challenge. G.M. and Ford each hope to sell 400,000 of their minicars during the new model year. Volkswagen predicts that its sales will rise by 12% to 600,000, and Japan's Toyota and Datsun expect to sell a combined total of 250,000 cars to U.S. customers. Unless the market for subcompacts expands faster than most analysts anticipate, somebody is likely to be disappointed.
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