Playboy's Automotive Report

If you're an informed and gutsy shopper, now is a great time to buy a new car. Spring inventories have arrived, and despite an impressive selection of new models, a certain anxiety has stalled sales. As we went to press, the fuel crisis continued to escalate and consumer confidence was strained by fears of a recession. A punitive new tax on luxury cars priced over $30,000 also took effect in 1991. Consequently, it's a buyers' market. As dealers sit nervously atop huge, slow-moving inventories, bargains are yours for the making.

Saturn: Leading a Detroit renaissance

For General Motors, the Saturn was a big, bold step. The company built an entirely new plant in Tennessee and included Japanese-inspired production techniques. It also worked out a precedent-setting agreement with the tough United Auto Workers union, under which auto workers agreed to accept lower salaries, along with an incentive plan that provides bonuses if several quality and production criteria are met.

Priced at about $10,000, the new Saturn is aimed point-blank at existing-model Hondas. Powered by an all-new 1.9-liter, twin-cam, 124-hp four-cylinder engine, it comes in both a sports sedan and a touring sedan--equipped with rack-and-pinion steering and optional four-wheel disc brakes and ABS (antilock brake system).

Luckily, despite its six-year gestation, Saturn has stumbled into a propitious moment in history. Rapidly rising fuel prices and a growing demand among American buyers for home-grown products may mean that Saturn will hit the mark. G.M. has recruited top-notch dealers in excellent sales locations who are as motivated as Saturn's newly minted Tennessee work force.

So far, it has been slow going for the Saturn, because G.M. is not releasing any cars that are less than perfect. Saturn has only one chance to make a good first impression. Once production is up to speed, the new cars had still better be perfect. If they are, they could spark G.M.'s comeback despite internal competition from GEO. But if they are riddled with defects, G.M. (and the entire U.S. auto industry) will have blown a major opportunity.

Return of the Native

America's love affair with big cars has waxed and waned along with fluctuating gas prices. When the Middle East crisis erupted last August, it seemed the worst possible time for American car makers to claim, "Bigger is better." They did, anyway.

Was this bad marketing or simply bad timing? We think it was a little of both. Remember, it takes three to five years (sometimes longer) from the time a new model is conceived to the moment it rolls off an assembly line. Detroit couldn't have anticipated Saddam Hussein's power grab, but savvy planners should have figured on unstable oil supplies and recognized the world trend toward energy conservation.

Either way, it was a tough call. Americans still pay less for fuel than drivers in any other country. When Detroit auto makers anticipated a fuel squeeze several years ago, they down-sized their cars--and sales shrunk proportionately. As fuel prices stabilized, research indicated that "Yank tanks" could make a comeback. Sure enough, in 1988, when Cadillac stretched its pinched cars back to proportions befitting Caddies of yore, sales picked right up.

Following Cadillac's lead, Chevrolet rolled out a broad-beamed Caprice make-over two years later. One driver joked, "It's the new Hudson." Another called it a "lemon sitting on four dimes." Buick then unveiled its massive Park Avenue Ultra and Oldsmobile recently joined the fray with a return of the old 98 name plate. Buick also has a puffed-up Roadmaster in the works, and car-show appearances of a colossal 1992 Cadillac Seville, slated to arrive late this year, have excited auto enthusiasts. Ford recently launched its newest biggie, the born-again Crown Victoria, a neatly aerodynamic full-sized sedan that shares the Lincoln Town Car's powerful 4.6-liter V8.

Will Detroit's big-car gamble pay off? The buxom Caprice got a cold shoulder at first, then sales picked up as buyers got accustomed to its zaftig shape. On a long highway trip, the Caprice is a comfortable ride.

Our prediction: If gas prices stay below $2.50 per gallon, Americans will buy all the heavy cruisers. It's in our blood.

Luxury liners

Toyota's new Lexus division ended its 1990 model year selling three times as many cars as rival Infiniti and four times as many as Audi. Some months, it even outsold BMW and Mercedes-Benz. It's clear why Lexus triumphed: The $38,000 LS 400 offered "the German car Americans really wanted," a smoother, quieter, friendlier and much less expensive sedan modeled after the top European makes--the same clever marketing trick that helped Japanese companies dominate the stereo, camera and VCR industries.

The similarly priced Infiniti Q45 was more sports car than luxury sedan. It also remained nearly invisible for too long, thanks to its infamous "rocks and trees" ad campaign. But Infiniti recently announced a fresh solution to support beleaguered dealers--the pert little G20 sports sedan, a crisp handler packing a spunky twin-cam, 140-hp four-cylinder engine and ABS. (Close your eyes in a G20 and you'd think you were in a Bavarian sports model.)

The G20 represents good value at $18,000, though to be really competitive, it should have an air bag. But the littlest Infiniti's biggest rival remains parent company Nissan's own Maxima, a somewhat larger and sleeker six-cylinder sedan that costs about the same as a G20.

Upping the ante, Lexus will roll out its SC 400 later this year. This smoothly aerodynamic V8-engined sports coupe has all the stance and power of a BMW 850i at one half the Beemer flagship's $75,000 price. With such a superior new entry to come, we expect Lexus to continue to outsell Infiniti.

Another luxury contender, Acura's Legend, has been restyled, re-engineered and marginally upsized for 1991. Both the sedan and the coupe are more powerful, with 200-hp, 3.2-liter V6 engines mounted lengthwise (instead of transversely like the old models') for improved weight distribution and handling (and perhaps for a future all-wheel-drive conversion).

The new Legend coupe's styling is more aggressive than the sedan's and it has stiffer suspension, befitting a sportier model. To ensure that its long doors seal correctly, the coupe boasts motorized door closers, similar to the power-operated trunk lids on many luxury sedans. Both models offer plenty of luxury in packages starting at about $27,000.

Saab recently turbocharged its super-smooth, balance-shaft-equipped, 16-valve, 2.3-liter four-cylinder engine. We test-drove this 200-hp 9000 Turbo on German autobahns. It's a very quick, fuel-efficient alternative for luxury-car buyers who don't want to see themselves coming and going. For 1991, Saab sells both the 9000 Turbo, a $33,000 racy five-door hatchback, and the more luxurious, softer-riding 9000CD Turbo four-door. Both cars offer the longest warranty of any foreign make: six years or 80,000 miles.

Volvo's steady sales volume slipped a little in 1990 because of the impact of the Japanese luxury name plates. But the Swedes are set in 1991 to roll out their own Lexus/Infiniti fighter, the 960, an even bigger sedan boasting a 201-hp, three-liter, twin-cam V6 engine. Until then, the $33,000 940 offers everything its future sibling will except the six-cylinder engine.

Unfortunately, Volvo's award-winning advertising campaign promoting safety was seriously undermined by a deceptive TV commercial in which the roof of a seemingly indestructible Volvo sedan was reinforced in order to withstand repeated crushing runs by a monster truck. Said a rival German car maker, "We're sorry for Volvo, but this incident hurts every car maker's reputation. It may be a while before the public believes any demonstration in an automobile advertisement."

Each of these car makers is anticipating lower volume in 1991, thanks to the new luxury-tax ruling (buyers pay a ten percent premium on the amount any car's price exceeds $30,000). Japanese entries, especially the Legend, hold the high cards because of lower luxury taxes and, in most cases, no gas-guzzler tax penalties.

Vans vs. wagons

For years, the big station wagon was America's family hauler of choice. Due to an anticipated oil crisis in 1983, Chrysler's fuel-efficient, smaller but still spacious minivans became an overnight sensation. Competitors rushed to copy them. Early imitations from Ford (Aerostar), Toyota (Van) and Nissan (Axxess) were small, trucklike and lacked the family amenities and passenger-car feel that Chrysler had built in from the beginning.

As a result, the minivan became Chrysler's volume and profit leader. At last count, it had sold more than 2,500,000 units. Recent styling changes have improved the vehicle's looks and appointments even more. And ABS and optional all-wheel drive are welcome additions.

A second-generation effort from Toyota, the revolutionary Previa (with its pancake-shaped engine to maximize space), and Mazda's sleek MPV are contenders. But Chrysler's minivans are still demonstrably better in power, drivability, spaciousness and ease of access than their competition--particularly the three G.M. spaceship clones from Chevrolet (Lumina APV), Pontiac (Trans Sport) and Oldsmobile (Silhouette).

Chrysler will likely retain its mini-van-sales crown, but it will be under increasing pressure. Ford and Nissan have teamed up on a minivan project; Mitsubishi is planning an entry.

As family needs change, station wagons are staging a comeback. Honda recently introduced an Accord wagon, capitalizing on that model's popularity as America's largest-selling single name (continued on page 165)Automotive Report(continued from page 122)plate. Oldsmobile's new Custom Cruiser features a fresh version of the famed Sixties Vista Cruiser see-through roof. Buick sells a similar model and Ford and Chevy will follow suit on the big Crown Victoria and Caprice platforms. Mercedes-Benz offers a pricey (about $58,000) but sure-footed wagon, with optional four-speed automatic and all-wheel drive. It may once again supplement its gasoline power plant with an efficient turbodiesel.

Truck stoppers

For nine years, the largest selling "car" in America has been a Ford pickup truck. More recently, enticed by low-priced Japanese offerings, good old boys (and girls) have been buying pickups in droves. With the average price of a new car climbing over $16,000, the little haulers, at considerably less, are real bargains and their macho image is a bonus. Inevitably, manufacturers offer upgraded stereos, luxurious interiors and more power.

Last year's hot truck, Chevy's speedy black 7.4-liter, 255-hp 454 SS, has been topped in 1991 by G.M.'s ground-pounding Syclone. The all-wheel-drive Syclone packs a turbocharged 280-hp V6 linked to a Corvette four-speed automatic. Blazing 4.9-second 0-to-60 times mean that this torrid machine can out-drag a Corvette ZR-1. Thanks to its sport suspension and ABS, the $26,000 Syclone also handles like a sports car.

Foreign brides update

Ford descended on Jaguar with a vengeance, balancing more efficient production and painting techniques with a healthy respect for the Old World principles that make a Jaguar a Jaguar. It scrapped an in-house design for a new F-type sports car, but rumors persist that the roadster may be built by Tom Walkinshaw's JaguarSport, the specialists who build Jaguar's endurance racers. Under Ford's guidance, Jaguar is hurriedly designing a smaller sedan to rival the 5 Series BMW--reminiscent of the Jaguar 3.4 sport saloons of the Sixties. A baby Jag four-door will help Ford ensure that this expensive but savvy take-over pays off.

Saab and G.M. have been slow to consummate their marriage. Early rumors about importing Opel's dramatically styled Calibra sports coupe as a Saab have been squelched. From our point of view, a rebadged Calibra would have been a neat styling shot in the arm for Saab. Bob Sinclair, Saab's U.S. chairman, sadly admits, "G.M. of Europe never bothered to design the Calibra for the U.S. market. It would take too long and cost a fortune to adapt it now."

Renault and Volvo joined forces basically to sell trucks. Don't look for Renaults in the U.S. soon. (There are still plenty of disgruntled Fuego and Dauphine owners around.) Station wagons are half of Volvo's unit volume, but competitive minivans have taken a swipe at their sales. To rush an entry into the van wars, Volvo could adapt Renault's stylish Espace minivan.

Rumors of a Fiat--Chrysler merger were dashed as we went to press. That's a pity. Both giants sell more than 90 percent of their output on home turf. When European trade barriers drop in 1992, Fiat will face an onslaught of competitively priced, high-quality Japanese machines. One former U.S. Fiat dealer commented wryly, "Once the Italians see what the Japanese can offer, unsold Fiat Pandas and Tipos will pile up over there like discarded tin cans."

Chrysler would like to sell more cars overseas. If Fiat ever plans to be a contender here again, it will need dealers, and Chrysler has plenty of them. Insiders say the public posturing is just each company's way of jostling for an advantage. We think the two giants should find a way to mate. Fiat could help sell Chrysler's minivans, convertibles, jeeps and sports utilities in Europe, using existing brand names. Chrysler could raid the Fiat range for badly needed new small cars for the U.S. They'd be sold here as Chrysler products; Fiat's name plate isn't exactly an asset, but its ability to design and build fuel-efficient, high-volume little cars is.

Mitsubishi (Chrysler's present partner) could be the loser if Iacocca and Agnelli tie the knot. At presstime, despite his public hue and cry over Japanese auto makers, Iacocca was re-embracing Mitsu like a long-lost lover. Only time will tell.

Volkswagen: gearing up for expansion

Despite a catchy ad campaign that has many people chuckling, Volkswagen's speedy Corrado coupes and roomy Passat sedans are well-kept secrets here. Back home, it's just the reverse. The Germans love the Corrado's stubby, boy-racer stance and they've ordered so many Passats that there's an eight-month waiting list.

Because of its strong internalional strategy, VW has remained a world player. Factories in Spain, Brazil and Mexico churn out thousands of low-cost Seats (sounds like Fiats) and Volkswagens. And VW was one of the first companies to open a Chinese subsidiary in Beijing. Wisely, it even began expansion efforts in the former East Germany long before reunification.

Now, capitalizing on pent-up demand and a large experienced labor force in Saxony, VW installs four-cylinder engines in the last of the Trabants, builds the same engines nearby in Chemnitz (and supplies them to Wartburg) and is assembling Polos in a new plant in Mosel. And it just purchased a controlling interest in Czechoslovakia's Skoda.

As a niche player, VW must continue to find market loopholes here. After sampling an early European version, we're looking forward to the spacious new Caravelle minivan, due late this year. If VW spruces up the Caravelle with more Chrysler-style amenities (plusher trim, decent switchgear, handy coin and cup holders, etc.), it may just have another winner on its hands.

Wheels to watch

Acura's brilliant NSX, Playboy's 1991 Car of the Year, is playing to packed showrooms. Speculators bought up early dealer contracts and are asking from $5000 to $35,000 over sticker price for the sleek, mid-engined winner. A few greedy dealers even organized bidding wars among customers for early NSXs, a shortsighted sales strategy. Acura will import 3000 NSXs for the 1991 model year, three times the volume Ferrari sells here and at half the price of a 348ts.

Our advice? If you must have an NSX, wait six to nine months till the feeding frenzy dies down. When supply of the red-hot new $60,000-to-$65,000 two-seater catches up with the demand, you'll be able to buy one for the regular retail price (or even less).

Mercedes-Benz is excited about its BMW M-5 rival, the startlingly quick 500E. With help from colleagues at Porsche, the Benz boys stuffed their 500SL's 332-hp V8 into a mid-sized 300 Series sedan, tweaked the chassis for better handling, enlarged the brakes and altered the fenders to cover fatter rubber. "This is the first Mercedes that really handles like a Porsche," said Paul Hemsler, Porsche's engineering chief.

Although the new autobahn stormer is somewhat out of character for Mercedes, Benz insiders promise more exciting sports models for the future. Mercedes and new partner Porsche can build only 12 500Es per day, so even at an estimated $65,000, the superb-handling, 155-mph sedan will be in short supply when sales start this fall.

Cruising the Frankfurt--Darmstadt autobahn in a preview 500E, we were passed by a thinly disguised big sedan that disappeared over the horizon. We saw it long enough to know it was the long-awaited Mercedes-Benz S Class--a behemoth that sports a 400-plus-hp V12 and a price tag in excess of $100,000. Have the Stuttgarters lost their minds? A bigger, longer, thirstier limousine (though it will be available with in-line V6 and V8 power plants, too) seems the wrong car for the times.

Mercedes' head of passenger-car development, Dr. Wolfgang Peter, insists that his firm is "not out to topple Rolls-Royce," but Mercedes-Benz' marketers are determined to offer the best-engineered sedan in the world. The new S Class, which was five and a half years in the making exceeds every competitive performance standard except fuel economy.

Mitsubishi drives upmarket with its Acura-fighting Diamante LS. Think of it as a thinly disguised 3000 GT sports coupe with four doors. There's a powerful 202-hp DOHC V6 coupled with a four-speed automatic featuring a computerized shifting feedback system. Diamante is presently a front-driver with a Euro-handling package and the same multilink electronic-control suspension system of the 3000 GT. Mitsubishi sells for an all-wheel-drive twin-turbo 300-hp version in Japan. Marketing that car here in the future would give Mitsubishi an even greater edge over its European competition. Mitsubishi is gunning for Acura's Legend--but at less than $30,000, it may steal a few BMW customers, as well.

Looking for a cheap sports car? For about $9000, Hyundai's cute little Scoupe offers head-turning styling (especially in yellow), nippy acceleration and handling that won't embarrass an enthusiast on a budget.

The redesigned, small (but high-tech and performance-packed) BMW 325i's will be here this summer. We had a sneak preview and we're very impressed: The new "3s" are wedge-shaped, slightly smaller interpretations of the sleek 5 Series--with impeccable road manners, thanks to new multilink rear suspension and a powerful, 189-hp, four-valve DOHC six-cylinder engine. Best of all, the new 3 Series offers that fabulous German sport-sedan feeling--as though the car had been hewn out of solid rock. The Japanese may clobber the Germans on price, but they haven't managed to copy this sensation--yet.

Finally, for those of you who aren't counting pennies, we recently sped from Nice to Paris in Porsche's $95,000 reborn whale-tailed 911 Turbo. Thanks to a newly designed coil-spring suspension (the venerable torsion bars are gone) and an improved limited-slip differential, the old 911 Turbo's tendency to swap ends under hard acceleration in a curve has been virtually eliminated. This incredibly quick (0 to 60 in 4.8 seconds, top speed of 168 mph) Turbo makes a not-too-subtle statement that's easily understood by any valet car hiker: "Park me right in front."

"'Once the Italians see what the Japanese can offer, unsold Fiats will pile up like discarded tin cans.

Playboy's Wheels for the '90s