European Stars and Stripes (Newspaper) - August 13, 1989, Darmstadt, Hesse Page 18 the stars and stripes business news Dollar zooms after report on retail sales the Dollar which appeared to be languishing Early in the week shot significantly higher Fri Day in what proved to be one of the Best Days of the summer for . in Europe. With support from a stronger than . Retail sales report late in the Day the Dollar jumped More than 4 i pfennig to Trade in the neighbourhood of 1.938 Marks ate Friday in Europe. The Dollar was also trading at $1.583 British Pound a marked improvement from the $1.62 it Cost to buy one Pound thurs Day. The military Exchange rate for West Germany was set Abby Randy Mcclaln 1.91 Marks based on a Friday afternoon Price fixing in Frankfurt. That amounts to a one Day gain of 5 pfennig when compared with the military rate available just Aday earlier. The higher rate will apply to Community ban transactions through monday afternoon. The release of the retail sales report was accompanied by a . Commerce department announcement that might have driven the buc lower had not the retail figures come to the res prices dropped by 0.4 percent in july a much More drastic decline than analysts had expected and the largest one month dip in three years. But retail sales were up 0.9 percent on the month largely on the strength of a re bound in july Auto sales and the Dollar responded. The two statistics illustrate the Tightrope that the . Federal Reserve Board has been walk ing in the last several months. The wholesale numbers which generally fore Shadow the prices Consumers will pay a few months Down Hie Road argue that the . Econ omy is slowing Down and that inflation is not a retail statistics though suggest consumer demand is on the Rise and that could spark renewed concern Over inflation. The fed s dilemma is such that if it lower interest Rales too quickly it might rekindle the embers of inflation that Are obviously still Smol Dering stateside. On the other hand if the fed holds steady on interest rates some economists argue that recession will Fox an economist with Midland Montagu of London discounts the recession idea. He said Friday s double barrelled economic report paints the Best possible picture for the .Economy. The decline in wholesale prices shows that inflation is becoming less a threat and the Strong retail sales report shows the underlying Economy in the gaining just the right amount of vigor Fox foreign Exchange dealers must agree with Fox despite heavy intervention by the West German Bundesbank the . Federal re serve and other european Central Banks through out Friday the Dollar continued to climb. The High note for the Buck was Welcome news after events earlier in the week provided no hint that the Dollar was on the verge of a midweek currency traders studied a Feder Al Reserve report on the state of the nation Economy for fresh news but came away pretty much Buck bounced around in a narrow Range Between 1.89 and 1.90 Marks for four Days be fore shooting up at week s end. Fox said he sees the Buck remaining Strong this key figure to look at in the Days ahead will be the next report on the . Trade deficit which is due thursday. A narrowing of the Defi Cit and Fox said one is expected could boost the Buck some More. Hub Bibb he i Phil Mimi my Mhz his rebates making new cars Good buys for gis in Europe b Randy Mcclain financial writer Frankfurt West Germany anaemic sales inthe United states have Detroit s big three car manufacturers reeling this summer but in Europe in the Market for a new car have Ria. Son to on american made cars As High As 51,500 Are making the dying Days of 1989 s automotive year one of the Best times in recent years to buy a new car. We had rebates last year but not the variety an not the magnitude of what you re seeing today said Jeffrey r. Gardner general operating manager for Mil itary car sales. Today is probably the Best time to buy a new car sales based near Frankfurt oversees the Sale of Chrysler general motors and three other makes of american cars and motorcycles at cafes exchanges. The rebates ranging from $500 on the pm Cutlass Ira to $1,500 on Chrysler s Omni and horizon sub compacts arc not As Large in All cases As the hefty rebates being offered to buyers in the United Stales but buyers arc l walking away empty handed Home the Well publicized Auto Industry slump dubbed a recession in most quarters has resulted in year to Date Domestic car and truck sales falling by about 4 percent compared with 1988. Among the big three car sales Are Down 14.8 Pyrc Cal Al Chrysler 8.9 percent at pm and 2.4 percent at Friday retail sales figures released by the . Commerce department though showed that the Siz Able rebates being offered stateside May finally be starting to have an Impact on sales. Car sales were reported up by 2.7 percent in july Over june. In Europe Gardner and other overseas car salesmen said military sales Are off slightly from a Banner year in 1988, but they arc l As weak As those in the of Detroit s big three pm and Ford arc doing Betler on military installations so far this Yea than icy did in 1988, but Chrysler which leads in sales is about 17 percent behind its sales for last year according to cafes. Pm. Which beefed up its sales Force and distribution network in Europe in acc Cal months and Ford which ironically has offered the smallest customer rebates of any . Manufacturer in the military Market have increased sales by a combined 35 percent said Safe spokesman capt. Was Davis. Ford sold 1,339 cars Balw can january and May compared with 1,193 for the same period in 1988, Davis said. Pm sold 767 cars in the first five month this year compared with 437 automobiles sold during the same months in 1988, Davis cafes spokesman said january through May data Are the most up to Date he can in All we arc not unhappy said Manfred Tom bar Ger manager of government police and special Sale for Ford motor co. In Cologne West Germany. Ameri can military sales arc part of Tombor Ger s said he believes Ford s sales Gams re Fleck his company s Quality products and his customer penchant for bargain Hunting. Ford is not leading the Way with european rebates but it docs have Money Back offers on everything from pickup trucks to As sorted sport is offering rebates of $300 on 1989 Model Ranger pickups and $400 on the Ford Tempo Mer Cury Topaz and Bronco ii sport vehicles Tombor Ger said. Those rebates generally Are Between $350 and$450 lower than rebates announced by Ford in the states for the same the Acostar minivan though Fords rebate offer for Scricc members is $100 higher than the $300rebate that was offered on the Van in the United slates through the end of car dealers including those who Trade in foreign made cars Are also offering sizable re balls Ashe summer car buying season winds Down. It s All a matter of keeping up with the Competition said David Brown group marketing manager for the Auto Exchange a company that handles off base military sales of Nissan Honda and Mazda in West Germany. At this time of year the educated consumer i looking for rebates. It s a buyers Market Brown said. Rebates through the Aulo Exchange include $1,30010$1,500 off various models of the Honda Accord $1,600 off two door Nissan Jentras and a $3,500 re Bate on the Mazda rx-7 sports car he said. Some . Car makers try to gear rebates in the Mili tary Market directly to service members buying habits. Cars that sell Well Over Here get lower rebates than inthe states and cars that Don t sell quickly Are Likely to have bigger rebates. Auto rebate Days Here s a look at some of the new car rebates being uttered this summer at cafes Auto showrooms across Europe. In some cases the rebates Are As Good or better than deals available in the United states. Europe of. Chrysler Somnis and horizon $1,500 of. $1,500 Oil Mastro safari Man Loans $1,500 off no rebate Ford Tempo $400 Oil $750 Oil Mercury Topaz $400 Oil $750 Oil. Low rate financing can Genar Rily be tubal hated tour ebola packages. Interest win vary with term of loin. -. Source cafes car Datert we put incentives on cars that need the mos help said William Vorhis. General manager of pm military sales for overseas Automo ivc sales corp., affiliate of military car sales. Among the highest general motors rebates in effect at military exchanges is a $1,500 offer on Astro and safari minivans. For whale Var reason the minivan does t sell Well in this marketplace Vorhis said. In the uni cd sales the minivans sell Well without the added incentive of any Rubalc. Conversely. The Camaro and firebird sports cars which carry $500 a cables domestically arc sold Wilh Oul rebates on military installations in s just demographics Vorhis said. The Mili tary is filled with fairly Young Fellows who like the image those cars project. We sold half our Stock for the summer in the last 45 Days. The Camaro and firebird just Fly out the but rebates offered to Are not Al ways tied directly to their buying habits. In some cases rebates Are offered on Strong Selling vehicles overseas because of the emotional unfair Ness of not offering Money Back to gis that would be available if they bought the same car in the United Stales Vorhis cases in Point arc the Omni and horizon sub compacts manufactured by Omni and horizon Are notoriously weak Sellers in the sales but with a Price tag in the $8,000-to-$8,500 Range before rebate they Are among the most popular new cars for budget conscious . The cars sell at least twice As Well in Europe As they do in the United states said Austin Blair sales sup port manager for Chrysler products in Frankfurt. Infant subcompact make up roughly 65 percent of All Chrysler products delivered in West Germany for Sal eat the cafes exchanges. Nevertheless the Omni and horizon Are sold with 1,500 re balls attached in Europe the same offer As in the uni cd slate Sand that Money Back offer has made the subcompact a tasty bile this year for scr Blair said the rebates Are part of a worldwide slashed prices marketing approach by Chrysler that has helped Speed the Sale or other cars As Well. In what could have been a soft sales year in the Wake of record 1988 military sales Chrysler has managed to draw almost neck and neck with last year s results for the first five months of 1989, Chrysler has sold2,454 cars compared to 2,971 the previous year according to latest sales report shows we re Down on in country deliveries in West Germany Between 1.5 and 2percent," Blair said. Had we not had these rebates in 1989, we certainly would t have sold or delivered a Many _
