Autos: Import Revival

Since Detroit’s compact cars first began pouring into U.S. streets two years ago, they have been knocking off their imported rivals as if they were so many Los Angeles pedestrians. Total U.S. sales of imported cars skidded from a record 614,000 in pre-compact 1959 to an anticipated 375,000 this year, and import dealers have been run out of business in droves. But last week there were signs that the compacts had done their worst. In September the foreign invaders took nearly 9% of the U.S. auto market—their highest share in 20 months.

Bolstered by the knowledge that their customers of record 1959 will soon be back in the market for new cars,* foreign car importers confidently assert that their slide has ended, predict that their 1962 sales will bounce back up to 400,000. But many of the 30-odd foreign makes that flourished in the U.S. in 1959 have been all but driven from the field. Only about a dozen foreign manufacturers, with lean, battle-hardened sales organizations, are expected to make money next year in the U.S. market.

The survivors have learned some hard lessons. The most costly: never collide head-on with the U.S. compacts in price and size. Violating this rule all but finished the British Sunbeam Rapier and Austin, cut Hillman’s U.S. sales by 76%. With the solitary exception of France’s $2,250 middle-sized Peugeot—which is holding its own because of its reputation for high-quality workmanship—the successful imports are those that sell below the $1,800 bottom price of Detroit’s compacts or those specifically designed for the luxury and sports-car markets.

High & Low. The British, who hope to increase their sales 25% in 1962, are particularly mindful of the lesson. Five of the eight English automakers selling in the U.S. will soon introduce new models that do not directly challenge Detroit. British Motor Corp., noting that 75% of its U.S. sales are sports cars, is coming out with two revised versions of its low-cost Austin-Healey Sprite ($1,868). It has also converted its tiny Austin 850 into the 90-m.p.h. Austin-Cooper mini-sports sedan boasting twin carburetors, disc brakes, and sure-footed front-wheel drive. Rootes is pushing its prestigious, $4,295 Humber (30% of its buyers are doctors, who like its luxurious interior and unpretentious exterior).

Continental manufacturers, too, are now shooting for the extreme ends of the U.S. market. Sweden’s Volvo has introduced the P 1800, a powerful sports coupe selling for $3,995. France’s Renault, whose sales have dropped 50% below 1959’s 90,000 cars, has chopped prices on its economy Dauphine by more than $200, so that its models now range from a $1,395 version to a de luxe job at $1,595.

Free Grease. Renault, running second to Volkswagen in the U.S. market, has had to learn a lesson all its own. Its hastily put-together dealer body shrank from 800 to 600 under the compact attack. “We expanded too fast,” concedes Renault’s hard-running new U.S. boss, 35-year-old Vincent Grob. Switching away from chichi vive-la-France advertising, Grob is now concentrating on rebuilding Renault’s service reputation, has tried to dramatize this by inviting Renault owners to come into their dealer for free grease jobs and consultation with factory mechanics. Renault’s share of the import market jumped to 14.1% in September from a January low of 6.88%.

Of all the imports, only Volkswagen apparently has little to learn (or fear) from Detroit. The unpretentious beetle has always stressed service and kept its price ($1,595) well below Detroit’s lowest. This year VW is sailing along with sales 10% ahead of last year, and expects to wind up 1961 with 170,000 cars sold. The closest VW came to a panic was during a slow period last summer, when some of its dealers could offer immediate delivery, but now things are back to a comfortable six to eight-week wait. Next year, says Carl Hahn, general manager for the U.S., VW will boost its dealerships from 650 to 700 —and sell 200,000 cars. No one in the import car business is willing to bet that Hahn will not succeed.

*A recent National Automobile Dealers Association survey indicated that 51% of the owners of imported cars bought another import the second time around.