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Chevrolet Gearing Up to Regain No. 1 Position : Autos: General Motors division is boosting production of three best-selling models. Unit’s sales are still falling behind 1993.

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From Reuters

General Motors Corp. said Thursday that its flagship Chevrolet division is powering up production of critical new models that could put it back on top of the market next year, despite skidding sales that show little evidence of a turnaround.

Chevrolet officials said production of the 1995 Lumina, Cavalier and Blazer--three of its best sellers--will put it in a position to challenge Ford Motor Co. for the top-selling nameplate.

For decades, Chevy built the best-selling cars in the United States. Ford claimed the top spot in 1988.

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“In the 1995 calendar year, we should be right in the battle to take back the title,” said Ron Sobrero, Chevrolet general sales and service manager.

He acknowledged that for the rest of 1994, however, Chevrolet will be plagued by slow output of the new models.

In June, Chevy’s sales fell 4.5% from June, 1993, to 235,064 cars and trucks, largely because virtually all 1994 Luminas had been sold and Chevy has been building very few 1995 models because of production problems.

For the first half of the year, the division’s sales rose 6.6%, compared to a 10.7% increase for the auto industry as a whole. “The new products are coming, but we have to take a lot of downtime to get them,” Sobrero said.

The vehicles have been a long time coming. For most of the 1990s, Chevrolet dealers have had to make do with a tired lineup as investment dollars went into other GM divisions, notably Saturn.

Chevy’s problems started “when (GM) decided to take that $3 (billion) or $4 billion and put it in Saturn,” said Chevrolet dealer Lou LaRiche of Plymouth, Mich. “It hurt everybody. It hurt Oldsmobile, it hurt Chevrolet, it hurt Buick--everyone.”

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But the change has forced Chevrolet to shift its focus back on its original mission: to be a seller of value-oriented, affordable cars and trucks. At first, the division was forced to slash prices to guard its market share against encroachment from the superior Saturns.

The new model lineup, with simpler designs and more efficient production methods, is allowing Chevrolet to build in more value for lower prices, industry analysts say.

The new Cavalier, for example, offers dual air bags and anti-lock brakes as standard features. It has an attractive redesigned body with added interior room. It handles better and offers a much better ride than its predecessor. The starting price for the line will be about $10,515.

“At that price, the car’s going to be tremendously successful,” said Chris Cedergren, an analyst with AutoPacific Group. “The main thing Chevrolet has going for it is that you get a hell of a lot of bang for your buck.”

Although some critics have panned the 1995 Lumina’s conservative styling, it also offers many significant improvements over its predecessor. It comes with dual air bags and a 160-horsepower engine for a base price of $15,995. Ford’s 1995 Taurus sedans will start at $17,585.

GM aims to sell more than 300,000 Luminas and similar Monte Carlo models annually. Even if the cars are not wild successes, the lower production costs will mean higher profits for GM.

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J.P. Morgan analyst David Bradley estimated a $500-a-car profit on the 1995 Lumina line, in contrast to an estimated $2,500-a-car loss on the earlier models.

Analysts also expect Chevrolet’s 1995 Blazer to compete more effectively than past models with Ford’s Explorer and Jeep’s Grand Cherokee in the compact sport utility market.

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