Word: subcompacts
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...that "there is always a place for someone who can do things a little bit differently." In developing AMC's compact Hornet in 1969, being a little different meant designing a car that would also serve as the basis for the company's entry in the subcompact sweepstakes. Instead of designing a whole new subcompact, as GM did with its Vega and Ford with the Pinto, American Motors spent a remarkably low $5,000,000 and simply cut down the Hornet. As a result, the company produces the only subcompact with a six-cylinder engine (the others have...
...line is also the fastest in the U.S., capable of producing 100 cars an hour. The labor force-long-haired, pigtailed and bell-bottomed-is the youngest of any G.M. plant, with an average age of 24 to 25. Now Lordstown, the only U.S. plant that turns out subcompact Vegas, has the industry's worst labor problem, and so far it has cost G.M. about $40 million in lost production...
...declining sports sales. Ford, for example, now offers a "Grabber" model of its compact Maverick equipped with hood scoops, rallye stripes and a special paint job. It costs $175 more than an unadorned Maverick. Similarly, for $349 over the regular price, Chevrolet is marketing a "GT" version of the subcompact Vega with a black grille, racing steering wheel and sturdier wheel rims. Both models give the illusion of being fast sports cars, but beneath the paint they are still economy cars with little engines...
...medium-sized Matador is a strong seller. To improve its sales, American must strengthen its dealerships. So far this year 262 dealers have dropped out, reducing American's network to 2,031 showrooms. American's biggest handicap is styling problems. Consumer Reports noted that, among the new subcompact cars, the Gremlin "has the tightest rear seat, rear wheel traction is poor, and [the car] is relatively clumsy to handle...
...change will be evident on all of Detroit's new cars: the price. That will rise, from a modest increase of $99 for the subcompact Chevrolet Vega to an increase of $584 for the Cadillac Fleetwood limousine. Industry spokesmen insist that the higher prices, which will probably come to an average of just under 5%, are the result of the inflationary pressures of increased labor costs and the posted price hikes in steel...