European Stars And Stripes (Newspaper) - October 12, 1987, Darmstadt, Hesse                                Chrysler. And it is in Hinl segment analysis predict that Detroit s cars will in Ihn most vulnerable in competitors who have proved themselves to to aggressive and Quality conscious do spill a downturn this year it is Nusu via arc sales Aro expected to grow the fastest to the Noel decade luxury cars arc roughly declined As those Selling for $20,000 and up even the europeans despite flashier images and the cachet of names such As Jaguar Audi Bow and Mercedes Benz Are expected to be vulnerable because they have historically captured Many Drivers of japanese cars who Havo upgraded to something classier tha domestics have much More to Loso at first Cedergren said later Bow and Mercedes will incl Iho Pinch Loo " Honda s Early experience Wilh Acura suggests thai both of Broil and the europeans have plenty la worry about surveys of buyers of Acura s legend Coupe showed thai about-11 percent had previously owned japanese cars 33 percent had Domestic cars and 2 a cd 7,tk� 1i.mk a too 7, we definitely see it As a threat said Peler Crosa general sales and service manager for the Cadillac division of general motors Long the Leader in luxury car sales. The Competition is Only going to gel  however promising Iho Outlook for them the japanese companies Are Well  thai they have a Host of problems to overcome not Mir East of which is creating an image of luxury irom scratch. The More expensive the car experts say. The More important if is that the car make a stale men i about the accomplishment and social standing of Iho Driver a car thai no one has Ever heard of does t say much of anything. Moreover executives Al the amorian and european manufacturers say the japanese will have to learn to Deal Wilh More demanding customers by providing More personalized Scrol include a 4-door. 8-Cylinder Sedan that will pro tally go Tor around $30,000, end what the company Calls a Noar luxury Sedan Al around $20,000, Nissan and Toyota Bolh Are largely adopting i i sales and marketing strategy being used by Hoidn Wilh Acura. Toyota Wilh its new lexus Namcy Lintn. And Nissan Wilh infiniti Are developing distinct Brand Ide lilies for their luxury lines to separate them in the consumer s mind from their traditional models. Just As. Honda did by calling its operation Aquia even though their established names have High recognition they also continue to carry Tho co tue a of i hair Low end heritage an association that a would be luxury car maker cannot afford. Nol wanting to Cut itself of completely however from the positive image of Quality and reliability that Honda fees ils name has earned the company clearly identifies Acura in its advertising As a now division of american  Nissan and Toyota Are expected to use similar strategies we re rut going to shy away from c1" heritage bul we re not Ijoma to make in our focal Point either said Bruce of Nisson in another key Way however the Sybl will to More clean the japanese companies have each opted to establish new dealer franchises Tinl will sell the cars in locations separate irom regular Toyota. Honda and Nissan dealerships. There Are already 192 Acura dealers across me country most drawn from Tho ranks of Honda dealers. Toyota and Nissan have begun taking applications from their dealers to sell their new lines the strategy allows the companies nol Only to develop distinct identities bul also to sign on Only the dealers they feel can Best serve a More demanding and knowledgeable group of customers Honda proudly Points out that its Acura dealers ranked to. 1 earlier this year among All dealers in the customer satisfaction Index developed by j 0 Power the research firm Selling up an entirety new distribution network is an expensive and somewhat risky proposition Lor the dealers who sign on. Buying a Tot and building Ino necessary facilities can eos $5 minion or More depending on the location and the dealer must Pul up thai Cost. Some dealers Are reluctant to get involved Lor fear that the luxury lines will Lake business from the existing operations. They also worry thai sates volume will not be Sulf enl to turn e profit. Still Many japanese car dealers Appeal willing to make the investment in Hopes that the new franchises w u do As Well As their existing ones which have made a Good number of them millionaires Over the past decade. It s a Chance to get m on the ground  said Bruce. October 12, 1987 the stars and stripes Pault 15