European Stars And Stripes (Newspaper) - December 24, 1986, Darmstadt, Hesse                                Wednesday. December 24. 1986 the stars and stripes Page 13 my overcapacity looms As major problem . Facing Auto Market backlog. .,._ ,. I m mini ii ii Iii but it " " in Tel i \ car  i l l i a Isbilir into. A. Ivri Iii i mris from l i Insil nil Len Ilii Rall Tiitu Industry s cur i ii pit Iii ill i hire a Melusi in Iii trip Linn no i i . Anil in Nolian Market i Fri Jiuu Milimuka f. Lin urn Williim i i shop on tin i sulial an Ali in i Iii until  Lluri Siili i Imd by Mure i Lif. Ini Lens  can his a. A  it 1 pan a. Khim i 11 Mil writer 1 1 i 1 01 i . Sini Nik like a Chi shown bus r a up  mi1  Hil tins has  i Rvl it wheels llu1 i is. Until Industry incl  Liillie Iii i i in Market. Dunn Thi pan Tun years. Detroit which Nih i held i firm grasp in . I flu its. Has had us Domain penetrated i imn Uil Loi sign car Mikic re seeking 1 skill h la Rice import to Ubilas. They Are wll inn up trans Phil factories i i in Atli american will when lies tin must lucrative gift car Mirvel in the world. In All. Llic i Art now about foreign car makers doing business in this coun try. The i Iii in states and Canada Art dulled Mill steel per Dis . By the end us the decade will form the new Shell of the in Liisu. Mom will hear names now  everywhere Mada Mitsubishi find i my iia ail join Plains Al ready Cululi Lilii d i Honda and Nissan. Japanese Uii put Antic m this nation will sin it hum a turn in m 111,000 units a year i Mure Ili in -.5 Mill uni annually i u i i la Nih  i lie  s hip three carmaker.,  ,, of  rails As Low As $2 i Linoir in Korea i r me leu is. A $2.1 Horh . Nice. Lunch i Nyi d new partnerships Willi Eliesi 111 ins. Adding pres sure in a Seiditi ii Lii gun Ului will Irwin to appear i Seark As i jul. Analysts say Sui h Plains and Parl Nen Liiv i of mined with a in fining air Market will Adil up 10 an Umthun dance ii Hal i ennui million and a Mill pm cars per car or aminul id to 20 percent of pro Jacii d Domestic sales. General motor i t up. Which once spurned such lineups has lies with Loyed cars that yield cashier and the new Dodge Colt from Japan i of 1987 ipod go cult which the Chi Rusli r corp. Imports from Mitsubishi of Japan is Shonn fru in Hatch Back design. Chrysler tins strength ened its lies nth Mitsubishi and the two iritis will form a new company called Diamond slur motor and build cars in a no plunk in Illinois probably by 198r. Chevrolet Nova with japanese touch the net Clil trial Al Nova notch tick is produced by new United motor manufacturing inc., � firm in run d by Gen necessary profit margins. The japanese car makers reflecting the rising yen and heavy Plant investments will Post lower earnings this year and next possibly an operating loss in the Case of Nissan. Still the big three continue to get squeezed in profit As Well As products. Mccoid combined earnings of $9,8 Bil lion in w for pm Ford and Chrysler were whittled to a. I billion in 1985, and Are expected to decline further to $7.1 billion for 1986. Market share also is being reshaped with Detroit s slice among Domestic car makers eroding to 55 percent by 1990 from ils current 68 percent. In now desperately trying Roget in line with future capacity requirements by slash ing More Ihan 35,000 jobs and closing nearly a do in plants by the end of the decade has seen its share of Lite Market dwindle to 41 percent a far cry from the i1 indent it has enjoyed in recent limes. Also indicative is american Honda s share. Eclipsing american motors corp.  the nation s fourth largest automaker Honda has a j percent share for 1986, up from 2 percent a year ago and triple pcs i percent slice Many analysts agree thai iv87 will be critical for am which will introduce two new models to try to Stem its Stream of red Ink and sagging sales. The past year saw Industry Leader pm make some Tough decisions thai will exact heavy dolls on thousands of Ili Era motors and Toyota. The Nom which pm Calls ils no. I Model in terms of Overall product satisfaction is workers who Are losing Jobi. At old plants that will be phas a out. Encumbered by its vertical integration which Means it makes most parts itself pm cancelled or postponed numerous new Model programs and it at reduced ils much ballyhooed Salum corp. Car project. The actual size of the Saturn car was made larger however contrary to pm s vow thai one Mission of the Muli billion Dollar project would be to build a Domestic subcompact profitably. Ford which made similar moves to reverse ils heavy losses of the Early 1980s, and Chrysler whose Brush with bankruptcy is Well known Are better poised now than pm for the intense Competition in the coming years. All three arc Irving to Imp Mcmeni new manufacturing techniques and have been reasonably successful at it Juit in Lime de livery methods have been in use at Many . Plants although a recent labor strike at a pm Plant quickly shut Down most operations indicating some japanese manufacturing ideas May not necessarily mesh Well with american labor. The labor front soon May be As changed As the Industry. Labor contracts with the United Auto workers Al both pm and Ford Are set to expire in sep tember of 1987. The Law which has had its share of problems getting into the . Plants of foreign car makers May be forced to Trade higher wages for better Job Security and May even have to resort to a two tier pay system. Produced at a Plant in i Remung. Alii. This Plant also manufactures Toyota Corolla ears. All automakers will scratch deeper and claw harder for a tenth of a Point in Market share or jealously guard a hard won Market Niche. But the real Winner in this War will be the consumer. Never before has there been so wide a selection of cars not to mention the rapidly growing Light truck and minivan Market which i already has robbed sales from the car Martel. Buyer incentives in effect through most of 1986, Are end Eclid to return in i9s7 de spite efforts by car makers to curb production a Small skirmish started by Chrysler in november got pm and Ford Back Inlo the ring although in a half hearted fashion most analysis expect buyer promotions offering Cul rate financing or Cash rebates to return in a big Way soon despite he fact they Cost . Car makers almost s600 million in the third Quarter of 1986. Dur ing Hal time they offered finance rates As Low As 2.9 percent on almost anything that rolled and even some inheres a free of  helped automakers sell ii million cars in 1985 about 8.2 million of them american. The Overall figure for 1986 should be about he same although Only 7.3 million will be domestically made As imports grab record shares of inc mar Tot even with the quota restraints. The oui look for 1987 depends on whether incentives will return and to whal degree the wit of i98& made con Sumers buy earlier. Bui most analysts say the Market crowded and hot will have a Lough Lime keeping up to Speed