Word: volkswagen
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...minimal clean-air requirements cannot legally attract more polluting industry, the EPA last fall announced a Solomonic compromise: it would permit new factories and power plants in a "nonattainment" area if their pollution was offset by curbs on existing emissions. It is under such an arrangement that Volkswagen is building its first U.S. assembly plant-in New Stanton, Pa. Yet the imaginative offset policy has touched off howls from industry, and the Carter Administration wants another year to study its effects. In a surprising reversal, the House voted to ignore the pleas-thus affirming the EPA policy-while the Senate...
Spearheading the import drive are the Japanese automakers. Toyota's models are the biggest sellers, Datsun's second and Honda's third. Volkswagen, once the undisputed leader in auto imports, now ranks fourth-even though sales were up 80% in May over a year earlier. Part of the reason for the imports' jolting success is that they are generally small compacts, lean on fuel and relatively comfortable to drive. One senior Detroit auto executive wondered last week "how the foreigners can produce that much value for the money." Some industry analysts think that foreign-car sales...
...Powells, with their daughter Emily, 10, moved into a $115,000 house in the same neighborhood. Jody at least sees more of his family than he used to during the campaign, when he would be gone for long stretches. Now, when he tools off in his battered 1966 Volkswagen before 8 a.m., they figure he will be gone only 14 hours...
Recapturing Volkswagen's former lead in the U.S. import market may be a more difficult proposition. The Rabbit faces plenty of subcompact competition-not only from other imports but also from new small cars to be brought out soon by Chrysler and American Motors. Some, ironically, will be powered by VW engines. One selling point for the Rabbits that will be made in Volkswagen's Pennsylvania plant: about 20% will be equipped with lightweight, fuel-stingy diesel engines, the first large-scale introduction of diesels to the American market...
...Volkswagen late last week suddenly gained a potent new rival. In a surprise move, Sweden's two automakers-Volvo and Saab-Scania-announced their decision to unite in a new company, to be called Volvo-Saab-Scania. By any measure, the triple-hyphenated outfit will be a giant: with sales of $5.8 billion, it will rank as Europe's fourth largest automaker (after Daimler-Benz, Renault and Volkswagen), turn out a line of vehicles ranging from compacts to huge Scania rigs, and employ nearly 104,000 workers...