ROANOKE TIMES

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, September 3, 1995                   TAG: 9509010007
SECTION: BUSINESS                    PAGE: F-2   EDITION: METRO 
SOURCE: MATT NAUMAN KNIGHT-RIDDER NEWSPAPERS
DATELINE: CHARLOTTE, N.C.                                LENGTH: Long


FORD MAKES BOLD MOVES TO KEEP TAURUS NO. 1

Since 1992, the Ford Taurus has been the best-selling car in the United States.

Becoming No. 1 required Ford to make the Taurus attractive to rental-car companies and other fleet customers. More than half of all Tauruses go to fleets. Regular buyers often could use incentives or other marketing programs to get a good deal on a Taurus. It also was a major benefactor of the leasing boom.

Plus, the Taurus benefited from the fact that it was a domestic car in the huge midsize family sedan segment at a time when vehicles from General Motors and Chrysler weren't competitive.

Still, selling 3.3 million cars requires more than being in the right place at the right time with the right deal. It requires having the right car.

And, for the past decade, Ford has had that car. Introduced in 1985 as a 1986 model, the Taurus was a shocker for its so-called jellybean styling. With its sleeker shape and the absence of a big chrome grille, it was a bold departure from the big, boxy American sedans of the '70s and early '80s.

When Honda's Accord grabbed the sales crown in the United States from 1989 to 1991 - the first import to do so - it was a symbolic statement about the U.S. auto industry. It fell to Taurus to take back the crown. It did, in 1992, complete with lots of flag-waving and back-patting. It has retained sales leadership, rather quietly, ever since.

Now, Ford is asking the Taurus to be its Joe Montana. At the peak of its popularity, Ford has given the car major surgery. The 1996 model, which arrives publicly Sept. 28 but began shipping to dealers in mid-July, has two simple assignments. First, it needs to remain the best-selling car in the nation. Second, it needs to convince younger, wealthier buyers to leave their Camrys and Accords behind.

Ford has made some major changes to the 1996 Taurus. A quick glance tells you this isn't the same Taurus you rented the last time you flew to Chicago. A moment spent in the cabin reveals substantive changes.

``I think they're certainly going in the right direction,'' said Christopher Cedergren, senior vice president of the AutoPacific Group Inc., a Santa Ana, Calif.-based automotive consulting firm. ``It's both product and perception that will drive the vehicle's success. Ford will really have to work to change the product's image.''

Until now, the Taurus has seemed less sophisticated than its rivals Camry and Accord. The new Taurus with its devotion to oval - the headlights, front end and even the control panel carry this theme - and general lack of straight lines and rough edges seems destined to be more pleasing to import buyers.

It's a market Ford wants more of. ``That's where all the competition is,'' said Ross Roberts, Ford's general manager. Midsize sedans such as the Taurus, Accord and Camry comprise a quarter of all passenger-car sales.

Bobbie Kohler Gaunt, Ford's marketing chief, uses phrases like ``quantum leap,'' ``pushes the boundaries,'' ``bold and daring'' and ``changed the game'' when she discusses the new Taurus.

What matters most to customers in this market are a car's style, its quality, drive dynamics, special features, interior roominess and packaging, its safety and security features and value.

The Taurus, she said, meets or beats its competitors in all these areas.

The design features integrated headlights and fog lamps, smooth side panels, sculpted hood and increased glass. A few other cars have moved in this direction, but the new Taurus certainly takes a bolder step than its best-known rivals.

Ford insists the new Taurus will be a quality car. In the past, it has scored well in J.D. Power's Initial Quality Study, but it isn't a finisher in the top 10.On the road, the car benefits from several improvements. Steering and handling are much better. Power comes from two 3.0-liter V-6 engines with essentially similar fuel-economy figures. The base GL model uses an improved 145-horsepower engine that carries-over from the past Taurus. The up-level LX gets a new 200-horsepower dual-cam Duratec V-6 that's lighter and more powerful.

Although the exterior design means a smaller trunk and less head room, the new Taurus has plenty of room. Back-seat leg room isn't a problem, and the trunk doesn't seem noticeably smaller.

Ford refers to things like its patented seat-back/armrest/cup, coin and cassette holder as a surprise and delight feature. This unit serves as a seat-back when six people are traveling, folds down to serve as an armrest and flips open to create a cup holders and storage bin in front of the driver. A rear-seat that splits and folds down is another special touch.

On the new Taurus, dual air bags and anti-lock brakes are standard. The car meets 1997 federal side-impact standards.

As far as pricing, the new Taurus fits nicely between the Accord and Camry, which are about $700 to $1,000 more expensive, and the Chevrolet Lumina, which is almost $3,000 cheaper.

Ford expects about 60 percent of buyers will purchase the GL model with one option package. This $19,390 car includes air conditioning, cruise control, a cassette deck, power doors and intermittent wipers.

Chances are that you'll tire of hearing about the new Taurus rather than miss its introduction.

Ford will spend $110 million to advertise the new Taurus. During the first week of October, the car will be advertised during every prime-time show and during NFL games. The first 16 pages of magazines such as Time, Newsweek and People will be filled with Taurus print ads.

Roberts didn't make a sales prediction other than to say that the Taurus will maintain its No. 1 spot.

Plant capacity with overtime in Atlanta and Chicago is about 600,000 units, but that includes the essentially similar Mercury Sable models as well as station wagons.

Cedergren thinks that if the economy stays healthy and car demand doesn't soften, the Taurus could set a sales record in 1996 of more than a half-million units.



 by CNB