Wild in the Streets

The next time someone tells you that domestic automakers have lost their spirit, offer this photo of the Viper GTS. Dodge's 400-horsepower coupe symbolizes the excitement that's currently driving Detroit. In fact, 1994 is the payoff year for a domestic revival that has been in the works since 1989. Today's car companies, both here and in Europe, are leaner. Styling, production and manufacturing have been fully integrated, so new models are designed better, built better and ready for market faster. The value of the yen has risen steadily compared with the dollar, forcing price increases that protect profitability but chip away at Japan's market share. As new-car prices rise, the nature of ownership is changing. Leasing is becoming more common. A Lexus LS 400 sedan that cost $35,000 in 1989, for example, now retails for $51,200. But despite the price increase, a new LS 400 can be leased for less today than it could in 1989. Not surprisingly, more than half of all luxury cars are leased, thanks to low interest rates. There's a lot more happening for model year 1995, and we've been on the road noting trends, previewing new wheels and talking with industry executives. Here's what we've learned. General Motors' product program is finally firing on all cylinders. Improved Chevrolet Lumina sedans will challenge Ford Tauruses. Chevy has also launched a new Monte Carlo coupe with an aerodynamic shape designed specifically for NASCAR racing. Although a dramatic-looking Pontiac Sunfire convertible prototype toured the auto-show circuit earlier this year, insiders admit the production version, due this fall, won't be nearly as impressive. Buick's Riviera coupe and Olds-mobile's Aurora sedan share the same modern platform with a unit body that's as rigid as the one on an E-class Mercedes-Benz. The result: new levels of silence and smoothness. The Riviera (which, to our taste, has too soft a suspension) comes in a choice of two V6s, including a 225-hp supercharged version. The more stiffly suspended front-wheel-drive Aurora sport sedan retails for only $31,370. That's about $18,000 cheaper than a comparable Japanese model, even if you buy the Aurora with a four-liter, 250-hp Northstar V8 engine and luxury options such as a custom-designed Bose sound system.

Cadillac has restyled the De Ville into a rounder four-door that packs a 270-hp Northstar V8 if you opt for the Concours version. The company also plans to import an Opel-based 24-valve V6 luxury entry, the 210-hp Cadillac LSE, for sale in early 1996.

Saturn may be running out of gas. While sales continue at reasonable levels, no step-up program has been approved, so there won't be a bigger model to which Saturn owners can aspire. Plans for a convertible were dropped. Adding to the marque's woes, the Plymouth-Dodge Neon is a hot seller. At midyear, production still couldn't meet demand.

Chrysler hopes to keep its string of hits intact with two all-new midsize sedans, the Dodge Stratus and the Chrysler Cirrus. Chrysler president Bob Lutz instructed his designers and engineers to produce "a BMW at half the price." By all accounts, they've done it. Spacious interiors, state-of-the-art suspension and dramatic styling lead the list of features. Stratus and Cirrus replace the K-car trio of Plymouth Acclaim, Dodge Spirit and Chrysler LeBaron. (Choose the optional 2.5-liter V6 by Mitsubishi over the standard overhead-cam four-cylinder engine.) While there's no Eagle version, a Plymouth-badged variant is in the works. Just launched: the Dodge Avenger, a sports coupe that replaces the Daytona. Look for a Chrysler version, the Sebring, at year's end.

At Ford, the aging Tempo and Mercury Topaz have just been replaced by an all-new Ford Contour and the Mercury Mystique. Don't be deceived by their bland exteriors; these cars are serious contenders for best-in-class honors. Co-developed by Ford USA and its overseas affiliates, the two are billed as Ford's first successful "world cars." Two distinctively different engines are available: a basic twin-cam, 125-hp four, and a high-revving, 170-hp four-cam V6, as well as new five-speed manual and four-speed automatic transmissions. The handling on both is impressive. They'll be up against tough competition (Chrysler's Stratus and Cirrus and Chevy's new Cavalier), but if Ford gets its pricing right, we predict that it will have two big hits. Looking ahead: Ford plans a major 1996 redesign for the Taurus and the Mercury Sable. While Lincoln has previewed a sleek Continental show car with doors that open electronically without external handles, don't expect that feature to be on the model being introduced next spring. Do look for a new four-cam V8.

Europe Gets its Act Together

German car manufacturers have been bolstered by increased sales here. Porsche is enjoying an upswing, thanks to its sexy new 270-hp 911 Carrera ($60,000). Volkswagen's redesigned Passat sedan hit the streets this summer, along with a 172-hp V6-powered GTI. Watch out, Ford Probe. VW offers plenty of affordable punch in its lineup. The 2.8-liter V6 Jetta remains a well-kept secret. At $21,000, this pocket rocket can out-accelerate cars costing $10,000 more.

BMW has moved ahead of Mercedes and is neck and neck with Lexus thanks to an impressive run of well-positioned models. The Bavarians began with a $68,100, 840Ci V8 coupe and followed with a great-handling six-cylinder M3 sports two-door for $35,800. BMW has just introduced an all-new, top-of-the-line 7-series sedan featuring a sealed-for-life, five-speed automatic transmission that senses the driver's patterns and adjusts shift points accordingly. And in 1995, BMW's Compact hatchback--a truncated, rear-wheel-drive car that's nine inches shorter than a 3-series coupe--will arrive in the States. Price: about $20,000.

Mercedes-Benz' small C-class sedans have been a hit; a Penske-Mercedes race car won the Indy 500. Mercedes may import a small car designed with input from Swatch, the Swiss watchmaker known for its funky styles. M-B's face-lifted, attractively repriced big S-class sedans are here just in time to battle BMW's new 7-series and the freshly restyled XJ6 sedan from Jaguar. Despite Ford's help, Jag remains several years away from a totally revised product line. In 1998 all-new Jags will include an aerodynamic, full-size sedan, an F-type sports car and a compact four-door reminiscent of its Sixties classic 3.8 Mark II.

The only German automaker that hasn't made a comeback in the States is Audi, which explains why it has just launched a major repositioning campaign. In addition to planning a restyled model 100 called the A6, Audi will import its all-aluminum A8 sedan (formerly the V8 Quattro) in 1996. The price will be around $50,000.

Sweden's carmakers are quietly building market share again. Saab's new 900 Turbo ($28,990) proves to be an agile, fully equipped sports coupe. Volvo's 850 front-wheel-drive wagon continues to sell well. Look for a greatly improved 960 sedan and station wagon--both with independent rear suspension--from Volvo. Safety pioneer Volvo recently previewed air bags that protect passengers from side impacts. They will be available in the 850 series starting in 1995.

Japan: The Sun also Rises

Most Japanese automakers are still hard-hit by the strong yen and by America's return to domestic marques such as Pontiac, which was selling more cars than both Toyota and Honda at midyear. Of course, there are exceptions. Toyota's Camry is doing well, but the future of its big, bland, Camry-based Avalon sedan remains uncertain. Nissan's conservatively restyled, 190-hp Maxima sedan handles extremely well thanks to its new twist-beam rear axle. Nissan's 240SX coupe is a capable car, but more horsepower would be welcomed. Honda's Accord has slipped behind the Ford Taurus in the race for top-selling sedan. Its sales should improve with a V6 engine that is due in November.

Mazda's Millenia four-door was to have been the entry-level car in an all-new luxury division named Amati. Facing tough competition from Lexus and Infiniti, Mazda shelved the division but went ahead with this particular model. The Millenia S boasts a powerful 2.3-liter, Miller-cycle V6 that develops 210 hp with the help of a supercharger called a Lysholm compressor. Mitsubishi's turbocharged Eclipse GSX is a street sleeper. With 210 hp from two liters, all-wheel drive, a sexy shape and a great stereo, the Eclipse sets the new standard for small street coupes. (This same car is sold by Jeep-Eagle dealers as the Eagle Talon--usually for less. Eagle is still struggling to convince people that it sells cars, too.) To fight falling sales, Acura plans a model between its Integra and Vigor. The new sedan will be the first Acura designed, developed and built in the United States. A subtly redesigned Lexus LS 400 bows later this month--just in time (continued on page 164)Wild in the Streets(continued from page 136) to boost falling sales.

Subaru has restyled and enlarged its popular Legacy sedans and wagons. Choose front-wheel drive (and an optional traction-control system) or full-time all-wheel drive. Its slick-handling SVX sports coupe in a new front-wheel-drive version is offered for 1995 for less than $24,000.

Fun in the Sun

Convertibles are back in a big way. Joining Chevy's Z28 Camaro (playboy's 1994 Car of the Year), Ford's Mustang and Pontiac's Firebird Formula is Saab's totally redesigned 900 and Audi's new 100 Cabriolet. What's more, BMW offers a four-cylinder 3-series ragtop priced under $30,000 and a six-cylinder model for $38,800. A convertible version of the M3, currently on sale in Europe, is rumored to be headed to the States.

At $19,975, Volkswagen's smartly restyled Golf Cabriolet is the best drop-top yet in its long series of affordable open-air 2+2's. Mitsubishi's 3000 GT features a limited-production folding hardtop, and a convertible Eclipse is on the drawing board. Also, there's a roadster revival coming from Germany. Mercedes-Benz has displayed its sleek SLK, a C-classbased two-seater that will debut in 1996. Porsche plans to introduce its Boxster sports roadster at the same time. The price: less than $40,000. Not to be outdone, BMW will build a roadster in South Carolina in mid-1996.

To celebrate the fifth anniversary of the MX-5 Miata, Mazda has introduced an M edition priced at $21,250 that is available only in Montego Blue with a tan vinyl top and a tan leather interior. But our preference is for the equally new R Package model that comes equipped with sport suspension, front and rear spoilers and a rear skirt. Under the hood of both the M and the R models is a new 128-hp, 1.8 liter dual-overhead-cam engine that gives the car more power, especially in passing situations. The R Package model is $1500 more than the Miata's base price of $16,650.

Civilized Off-Roaders

Sports utility vehicles are hotter than ever, with sales of more than 1.3 million predicted in 1994. Chevy's new S10 Blazer and GMC's new Jimmy have just been launched; new and bigger Tahoe and Yukon SUVs from the same manufacturers will follow next spring.

Ford is building special editions to widen the Explorer's already broad appeal. Unfortunately, a V8 version is still years away. The Jeep Cherokee and Grand Cherokee continue to set sales records. West Coasters will see the Korean-built Kia Sportage--another cleverly packaged, well-equipped, small-size SUV--late this year.

Luxury-car makers are betting on upscale SUVs, too. BMW has acquired Britain's Rover, setting itself up for the possibility of a sports utility with a BMW badge. Land Rover North America tripled its sales after introducing the Discovery, a $29,000 SUV targeted at young, active families and at singles who want to traverse the urban jungle in style. Also, a new Range Rover will bow this fall. Even Lexus is considering a sports utility. Recently seen at European auto shows, Toyota's compact RAV4 mini sports utility could challenge Suzuki's Samurai in the $12,000 to $14,000 range, opening a whole new market for Generation Xers; as yet, there has been no decision on whether it will be marketed here. And by 1997, Mercedes-Benz will offer a circa-$35,000 SUV to be built at a new plant in Alabama.

War of the Minivans

It's been ten years since Chrysler introduced the minivan. Today, it's the company's principal source of income--generating an average of $6100 profit per vehicle on sales of about 570,000 last year. So far, Japan's efforts to unseat Chrysler have failed. The jointly developed Nissan Quest and Mercury Villager are hits, though volume is limited by plant capacity. Honda plans to introduce a minivan next January, but it will be built in Japan, where assembly line width limitations may curtail its popularity here. GM's doorstop-shaped minivans flopped. A recent face-lift hasn't helped much.

Ford's long-wheelbased, front-wheel-drive 1995 Windstar is the first minivan to contest Chrysler's hammerlock on the category. Chrysler's 1996 minivan will be launched in January 1995 at the Detroit Auto Show. We've learned that it has sliding doors on both sides and that Ford was too far along in production to match this feature. The Windstar will give Chrysler's minivans a battle, but we predict Lee lacocca's best legacy will retain its leadership role.

When Cost is no Object

Makers of exotic cars have been busy. Ferrari launched its $225,000-plus, 187-mph 456 GT 2+2, and the 380-hp, 40-valve F 355 GT earlier this fall. Italian carmaker Bugatti (a revival of the historic name) will soon launch its EB110 two-seater. Its price: $335,000 (exclusive of taxes), which buys you a six-speed supercar that will hit 60 mph in 3.4 seconds and top out at more than 200 mph. All that power comes from a 12-cylinder, 60-valve, quad-turbo engine nestled into the midsection of a carbon-fiber composite chassis. The interior is just as exotic, with handcrafted leather seats and doors that open vertically. Bugatti also purchased Britain's Lotus from General Motors late last year. The 1997 model Lotus Esprit 2+2 will be V8 powered. There are no plans to revive the short-lived Elan roadster, but Lotus is reportedly developing a lightweight two-seater to compete with upcoming cars from Porsche, Mercedes-Benz and BMW.

Lamborghini celebrated its 30th anniversary just as Chrysler sold its stake in the company to Megatech, an Indonesian consortium. It's the same group that bought another exotic-car manufacturing company, Vector, in 1993. The $198,000 1995 Vector Avtech SC may have a Lamborghini V12 engine. Bolstered with new financing, Lamborghini USA is adding dealers and planning an ambitious new product program that will include the world's fastest off-road vehicle. The company will also supplement its $239,000 all-wheel-drive Diablo VT with a limited-edition (25) 492-hp Diablo SE. If you have to ask the price, you can't afford it. So, we'll tell you: It's $255,000.

Just Down the Road

The advent of sophisticated computers has opened up a wealth of technology designed to increase driving pleasure, safety and longevity. Antilock brakes are almost universally available now. Electronic traction control systems enable rear- and front-wheel-drive cars to match the performance of four-wheel-drive models on wet or snowy roads.

Robert Bosch has announced an intuitive steering system that will appear on top-line German makes. Using steering and wheel sensors, the system senses where the driver wants to go and progressively applies brakes in individual wheels to ensure that the correct direction is maintained. Look for it by 1996.

On-board navigation systems are already being used in Germany. Oldsmobile is testing a system here that could be an option in 1995. Today's best and most sophisticated sound installations are designed by the leading audio companies in conjunction with car manufacturers. This way, the audio systems are designed from the vehicle's inception--something even the best car-stereo installers can't match. And chlorofluorocarbon-free, environmentally safe air-conditioning systems, water-based paint processes and recyclability of most parts prove that the auto industry is taking its environmental responsibility seriously.

As 1995 and even a few 1996 models appear in showrooms, one thing is certain: These cars are better built, more reliable and more fun to drive than ever before.