THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Thursday, July 13, 1995 TAG: 9507130360
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY MIKE MCKESSON, ASSOCIATED PRESS
DATELINE: DETROIT LENGTH: Medium: 84 lines
The ``No. 1'' used to describe General Motors Corp.'s dominance in the automotive industry may have to be modified when 1995 vehicle sales are tallied.
GM will still lead the nation in combined sales of cars and trucks, but if a five-month trend continues, it may rank No. 2 for trucks. Each month since February, more U.S. truck shoppers have bought Fords.
From January through June, Ford dealers sold about 74,000 more new pickups, vans, sport-utility vehicles and commercial trucks than GM dealers.
Growing numbers of new-car buyers are shifting their allegiance to trucks, especially sport-utility vehicles like Ford's market-leading Explorer.
Add to that the fact that full-size pickup trucks traditionally have been the nation's best-selling vehicles and you have a situation that can produce fat profits for a company that builds trucks.
GM's main problem is that it's running out of the capability to build enough trucks and some key parts to keep up with demand.
``Ford right now is in a situation where they can just produce more trucks, overall,'' said analyst Christopher Cedergren of AutoPacific Group Inc. in Thousand Oaks, Calif. ``In addition, I think Ford's just been more aggressive on the marketing front.''
General Motors is working to remedy its capacity problem, but some major adjustments won't kick in until next year or later.
GM added third shifts at truck plants in Moraine, Ohio, and Pontiac, Mich., and increased production at Janesville, Wis. It will reopen its plant in Wentzville, Mo., later this year to build full-size vans.
``We'll be doing everything we can do to maintain our leadership in truck production,'' said Sherrie Childers, a spokeswoman for GM's North American Truck Group.
Those steps might not be enough to derail Ford this year, but a change at Ford could. Its F-series full-size pickups, the nation's best-selling vehicles, are getting a major redesign for the 1996 model year. That means new tooling must be installed, tested and tweaked. Assembly workers must learn to build the new trucks. Suppliers must perfect the production of different parts.
If Ford stumbles at this launch of the new generation of pickups, it could lose enough production to fall behind GM in 1995 truck sales.
The pressure of pulling off a smooth launch will fall on the 2,000 or so workers at Ford's Norfolk Assembly Plant, which will be the lead plant in rolling out the new trucks.
The company is spending $290 million on a new body shop at the Campostella-area plant, which will add capacity to the 653 trucks-per-day produced there now.
In the long run, it doesn't seem likely that GM will stay the No. 2 truck maker, even if it ends up there in 1995. Next year, its Arlington, Texas, plant will stop making large rear-wheel drive cars - the Chevrolet Caprice, Buick Roadmaster and Cadillac Fleetwood - and build trucks for the 1997 model year. The plant's capacity reportedly will be 250,000 trucks a year.
A new minivan also should help GM.
GM's long-nosed Chevrolet Lumina, Oldsmobile Silhouette and Pontiac Trans Sport models have failed to generate much excitement among minivan buyers, and Chrysler and Ford have combined to control that market segment.
GM sold fewer than 100,000 minivans last year, while Chrysler alone sold more than 500,000.
But for the 1997 model year, GM will build an all-new minivan to challenge Chrysler's benchmark vehicles and Ford's Windstar.
With the new minivan, GM ``should be able to double that volume,'' Cedergren said. ``They're going to be much more successful in the compact van market.'' ILLUSTRATION: [Color Photo]
RICHARD DUNSTON/Staff file
Ford's Norfolk Assembly Plant will play a key role in determining
whether the automaker maintains its 1995 lead over GM in truck
sales.
TRUCK SHOWDOWN
AP Graphic
[For a copy of the graphic, see microfilm for this date.]
SOURCE: Company reports
by CNB