Buyer's guide to the new cars. (evaluation)

Full Text: COPYRIGHT The Kiplinger Washington Editors Inc. 1984

So many of the new cars rolling off assembly lines these days reflect the carmakers' vision of what young, upwardly mobile professional Americans want that you could easily conclude that the 1985 model year belongs to the yumpies. That means the accent is on well-appointed performance cars with a European flair.

For American manufacturers, that marketing imperative has prompted the introduction of several new models that closely resemble the options-loaded, high-tech vehicles that European companies, such as Mercedes-Benz and BMW, have sold successfully in the U.S. for years.

For the Japanese, visions of higher profit margins on pricier, peppier cars have inspired an upgrading of their mix to include more luxury machines. "Like everybody else, we see a significant future market for upscale performance cars that can compete against the Europeans," says Curt H. Bartsch, product planning director for Nissan.

All this scrambling to board the yumpie bandwagon hasn't escaped the attention of the European carmakers themselves. Volkswagen and Volvo, for instance, have added new models to their lineups. But for the most part, the Europeans are meeting American and Japanese competition with more engine refinements and more sophistical electronics. Saab is offering a new four-cylinder, 16-valve turbocharged engine that promises better operating efficiency. Other European manufacturers have added turbocharged engines to their lines.

Despite all the emphasis on pleasing potential yumpie buyers--or perhaps because of it--the '85s as a group offer the widest selection of cars in years. Chrysler, Ford, General Motors, Nissan and Toyota are each selling at least one new midsize sedan. Mitsubishi, Subaru and Isuzu are all bringing classy new sedans to the U.S. market. Most carry suggested retail prices that are several hundred to several thousand dollars less than the European models they are frankly aping. Many offer comfort comparable to their Continental counterparts and tighter steering and stiffer suspensions than the traditional American soft-ride standard.

Other highlights of the '85 cars:

* In general, dashboards are easier to read, controls are more accessible, seats are more comfortable and interior space is better designed.

* Automotive safety makes a big advance with the introduction of antilock brakes by Ford and Mercedes-Benz. Similar to those used on jetliners, the new brake systems allow you top stop a car quickly in rain or snow or even on ice without skidding. Computerized electronics monitor and just the braking action for all four wheels to bring the car to a safe and controllable stop. Mercedes-Benz has made the system standard on the 300 SD, 380 SE, 380 SL, 500 SEL and 500 SEC models. Antilock brakes are available on the 190-series cars for an additional $1,285. Ford will offer a system as a standard item on certain Lincoln Continental and Mark VII models. The quest for quality

On reason imported cars have tended to enjoy a reputation for higher quality than American models may lie in the opportunity foreign manufacturers have to iron out the bugs in their own marketplaces before shipping cars here. In some cases, chiefly the pricey European models, the reason for the quality edge is easier to explain: You pay for it.

For the past several years however, American cars have seemed to be gaining on the imports, and the '85s continue the trend. The main reason, suggests automotive analyst Arvid Jouppi, is the determination of the auto companies to live up to their advertising claims, even when it means holding cars off the market if they aren't quite ready. Says Jouppi, "When you have the president of GM delaying a 1985 car [the Buick Electra, Cadillac DeVille and Oldsmobile Ninety-eight] until all the quality bugs have been worked out, I think there is a fair parity between advertising and reality." As they say in the investment markets, past record is no guarantee of future performance. Nevertheless, there is objective evidence that at least a few American cars are impressing their owners. J.D. Power & Associates conducts an annual survey of car-customer satisfaction in the first 12 to 14 months of ownership. The survey reflects customer satisfaction with the car itself but stresses satisfaction with the service the car receives. One hundred is the industry average. In the latest survey, covering '83 model cars, 16 makes scored average and above-average ratings. Seven of those makes were European, five were Japanese and four were American. The top 16 ranking are: Mercedes-Benz 161 Subaru 141 Honda 134 Lincoln 131 Toyota 129 Jaguar 125 BMW 119 Audi 119 Porsche 117 Mercury 115 Mitsubishi 112 Nissan 103 Cadillac 102 Saab 102 Volvo 101 Oldsmobile 100 Prices: Discounts ahead?

On the average, introductory prices on American cars are 3.2% ($184 per car) higher than last year for AMC/ Renault, 2.3% ($292) for GM models, 1.3% ($153) for Ford products and 1.2% ($125) for Chrysler cars. Despite the dollar's strength, prices on European and Japanese imports have moved up somewhat less than 3%.

It's possible those increases, which are less than the inflation rate, will be the only ones this year. "We see a softer market in 1985 and, under those circumstances, it would be inappropriate for the manufacturers to raise their prices," says John Hammond, an analyst for Data Resources, Inc. "In fact, by the end of 1985 we may see a return of some discount promotions to keep sales up."

The best buys this year may be the small, fuel-efficient American cars, particularly those from Ford and GM. Under pressure to meet the federal 27.5-miles-per-gallon corporate average fuel economy standard, both manufacturers must sell a lot of high-mileage cars. As a result, their fuel-efficient models will have to be priced to attract buyers.

Ford has already reduced or held the line on the suggested retail prices of almost all its small cars. On the other hand, you will be paying premium prices for the big cars: While Mustang's most fuel-sparing model dropped $850, the big LTD Crown Victoria went up $671.

That sort of pricing scheme means you should be prepared to bargain hard. As a rule of thumb, consider a fair markup to be $100 to $150 over the dealer cost on subcompacts, $150 to $200 on intermediates, $200 to $250 on full-size cars and $250 to $350 for luxury cars.

The self-imposed quotas on Japanese exports to the U.S. creates the need for even tougher bargaining. Judged by their suggested retail prices, Japanese cars should occupy the low-cost end of the market. But because the quotas have reduced supply in the face of high demand, dealers are jacking up the price. It is not unusual for a car dealer to ask $10,000 or more for, say, an $8,000 Toyota. And an unwary shopper might even pay more than sticker price for the Honda Accord sedan model that is built in the U.S. and therefore not subject to the quotas. Rating the sedans

No single kind of car can possibly satisfy the needs of every car buyer. But the sedan, with its ability to carry four or more adults comfortably and a fair amount of luggage, appears to be the choice of most American households. The best sedans should provide roomy interior space; small exterior size; good luggage capacity; good fuel economy; adequate acceleration; a quiet, even ride; ease of entry and exit; good handling; and crashworthiness.

The Automobile Club of Southern California has determined each manufacturer's best sedan and ranked it according to the characteristics that are list above. On the basis of 100 possible points, these were the top scores accumulated by the best of the 1984 sedans. (The Oldsmobile Ninety-eight Regency is a 1985 model.) Again, past record is no guarantee of future performance. Volvo 760 GLE Turbodiesel 85 Mercedes-Benz 300D Turbodiesel 83 Toyota Camry-LE 2.0L 81 Nissan Stanza 2.0L 79 Plymouth Reliant 2.2L 79 Renault Sport Wagon 2.2L 79 Dodge 600 ES 2.2L Turbo 76 Mitsubishi Tredia-L 2.0L 76 Audi 5000S 2.2L Turbo 74 Chevrolet Celebrity 2.8L 73 Honda Civic 1.5L 74 Peugeot 505-STI Turbodiesel 74 Chrysler New Yorker 2.2 Turbo 73 Saab Turbo 2.0L 73 Pontiac 6000 STE 2.8L 72 Mazda 626 2.0L 71 Oldsmobile Ninety-eight 3.8L Regency 71 Subaru DL 1.6L 69 Buick Century 3.0L 68 Isuzu-Mark 1.8L 68 Volkswagen Rabbit 1.7L 68 Jaguar XJ6 4.2L 63 Lincoln Continental Mark VII 5.0L 63 Cadillac Seville 4.1L 60 The newest of the new

If you were to sift and sort your way through the '85 models looking for each major manufacturer's most significant offerings, you'd probably wind up with the five cars pictured on pages 30 and 31. Here's a car-by-car look at the most likely stars in this year's lineup. DODGE LANCER CHRYSLER LeBARON GTS

In an almost conservative, typically Chrysler way, the upscale LeBaron and racy Lancer capture much of the fell of sporty imported sedans. Practically identical, the two cars differ mainly in grille and rear-end treatment and price: The Chrysler sells for a couple of hundred dollars more than the Dodge.

Chrysler engineers like to boast that both automobiles were built to "outperform the Mercedes and BMW cars at about half the price" and to compete head on with the Audi 5000S Turbo, Pontiac 6000 STE and Mazda 626. In fact, although the Chryslers may not be in quite the same league with the high-priced German cars, enough attention was paid to their performance, comfort and praticality to make both the LeBaron and the Lancer very attractive alternatives.

Changing Times auto editor Ed Henry drove the cars. His report: Thanks to an optional 2.2-liter turbocharged engine, the two Chrysler cars are quick and have lots of pick-up from a standing start. Both cars handle well; the steering provides a good feel of the road without the noticeable torque steer common to front-wheel-drive vehicles. However, the difficult manual shifter and high interior engine noise were not at all in keeping with the rest of the car.

The ride is definitely more European than say, the new front-wheel-drive Buick Somerset Regal, Oldsmobile Calais or Pontiac Grand Am. Three suspension systems are available--the standard road-touring package and two sport-handling suspensions. Gas-pressurized front struts and rear shocks provide a tunnable" ride, and a large-diameter antiroll bar adds stability.

Despite their sleek aerodynamic look, the two cars provide more interior space than some sedans selling for more than twice the price. MERCURY MERKUR XR4Ti

If any of the new sporty sedans can lay claim to a European heritage, it's Mercury's Merkur (pronounced mare-coor). The car is being built for Ford by an independent German coachwork company. The Merkur is actually a derivative of the Sierra XR4i, which is manufactured by Ford of Germany. The transformation from a European to a U.S. car required more than 850 new parts, including bumper components that add some three inches to the car, and an entirely new and strengthened floor. In 1985 only about 20,000 of the $16,361 car are expected to reach these shores. If the car catches on, there will undoubtedly be created the kind of seller's market that exists for Japanese and European cars.

Ford hopes the car will appeal to potential sports sedan buyers, including BMW 318i enthusiasts.

Henry's report: Of all the cars, the Merkur is most distinctly German, even down to the smell of the optional leather upholstery. Billed as "a five-passenger, high-performance sports sedan" powered by a highly refined, smooth-running turbocharged 2.3-liter engine, the rear-wheel-drive Merkur is capable of keeping the fast company of cars like the powerful Chevrolet Camaro Z-28 and Toyota Celica Supra. If you buy the Merkur with an automatic, you'll get 17% less horsepower than you would with a manual because the 2.3-liter engine had to be "detuned" to fit the three-speed transmission.

Inside the Merkur you get more passenger and luggage space than in a BMW 318i. All controls are well within the driver's reach and the dashboard is highly readable. BUICK SOMERSET REGAL OLDSMOBILE CALAIS PONTIAC GRAND AM

Of all the so-called European lookalikes, General Motors N-Cars--Buick's Somerset Regal, Oldsmobile's Calais and Pontiac's Grand Am--are the most American in the group. Their size puts them between the smaller "J" series (Pontiac Sunbird, for example) and the larger "A" series (Pontiac 6000) and fills some of the gap left by the discontinued Pontiac Phoenix and Oldsmobile Omega, both X-cars.

Compared with BMW's five series cars, the N-cars are shorter and provide considerably more passenger room. But the Calais and the Grand Am offer slightly less luggage space.

Henry's report: Perhaps because the N-cars have borrowed so much of the looks from GM's alphabet-soup collection of front-wheel-drive cars, they lack a true European flair. Nevertheless, the cars strike an attractive profile all their own. They are sporty, stylish cars designed for those who want personal luxury.

Interior design, especially in the Grand Am, the most continential of the three, is a working example of form following function in a pleasing and attractive way. The dashboard abounds with explicit and clearly readable graphics. And the conveniently located controls make for easy vehicle operation. For two-door models, the cars are both spacious and comfortable, with the abruptly squared-off back allowing additional headroom for rear-seat passengers. (GM plans to introduce four-door models, possibly in 1986.)

The cars provide a fairly taut ride, nit unlike that of other GM front-wheel-drive cars. And the firm bucket seats provide ample comfort for long trips. Handling and response are crisp. The cars are powered by the standard 2.5-liter L4 fuel-injected engine or the optional 3.0-liter V-6, which delivers at least 30% more horsepower. NISSAN MAXIMA

What the people at Nissan have come up with in the new Maxima may not strike you at first glance as the "most dramatic transition" in that car's eight-year history, as the company bills it. This four-door sedan looks every bit the derivative of last year's version. But the subtle aerodynamic exterior changes hide the dramatic changeover from a rear- to a front-wheel-drive car. In the transformation the company harnessed the same powerful V-6 engine that puts the 300ZX through its paces. The Maxima's V-6 doesn't quite achieve the same horsepower because of the new air intake and exhaust system for the transverse engine.

In moving to front-wheel drive, the Maxima loses about one inch in overall length and three inches in wheelbase. But the passenger compartment was increased five cubic feet and luggage space four.

Auto editor Henry drove the new Maxima and filed this report: Front headroom is adequate, but rear headroom leaves a little to be desired because of the space lost in cars equipped with an electrically operated retractable sunroof.

At high speeds the new Maxima is a very quiet car. Nissan engineers have worked on the steering to eliminate the understeer that could have resulted from going to front-wheel drive. Ride and handling have been improved, and there are driver-adjustable shock absorbers that allow you to tailor the suspension to the surface of the road while you are driving. For aerodynamics the car has flush headlights, and for safety it has conerning lights for turns. TOYOTA CRESSIDA

The new Cressida hasn't switched to front-wheel drive like the Maxima. In fact, the 1985 version of this four-door sedan is similar in looks to its 1984 predecessor, except for a slightly more raked hood, flush headlights flush windows and changes in the interior construction that increase size almost 5% to 90 cubic feet.

The sleek aerodynamic look of the Cressida might not fully measure up to the ideal of a European sedan. However, the performance of the car puts it firmly into that category. For a five-passenger car, the Cressida provides excellent acceleration, easy manual shifting, and a comfortable but steady ride and handling.

The extra six inches in length and four in wheelbase make the Cressida larger than the Maxima. Inside, the car is roomier--90 cubic feet versus 87 for the Maxima. And thanks to a slight upward bevel in the interior roofline, the Cressida provides considerably more comfort for tall backseat riders.

Equipped with air-conditioning, cruise control, AM-FM stereo radio, variable-assist power steering, rear-window defogger and a five-speed manual transmission, the $15,690 Cressida is priced about $1,500 more than the Maxima and nearly $7,000 less than the top-of-the-line Volvo--not bad were it not for the fact that dealers in many cities add another $2,000 as "additional dealer mark-up." That takes the car out of the price range of most Japanese cars. What else is new?

Both Mitsubishi and Subaru offer new sedans with more interior space than the two manufacturers previously offered in the U.S. The new aerodynamic Mitsubishi Galant, for example, has nine cubic feet more interior space than the company's next smaller model, the Tredia. The Subaru has ten cubic feet more passenger space than its predecessor.

Similarly, the cars offer more luxurious options. for example, the front-wheel-drive Galant comes with an optional electronically controlled suspension and a full range of power options for the windows, door locks and exterior mirrors. There is also an optional sliding glass sunroof with inner sunshade.

The replacement for the Volkswagen Rabbit, the Golf, contains ten cubic feet more passenger space than its predecessor. In fact, it's bigger all around--five inches longer overall, two inches wider and nearly three inches longer in the wheelbase. Both the 1985 Golf and the 1985 Jetta are sleeker than their predecessors; the Jetta resembles the Audi sedans.

Products: Dodge Lancer (Automobile) - Evaluation
Chrysler LeBaron (Automobile) - Evaluation
Merkur XR4Ti (Automobile) - Evaluation
Buick Somerset (Automobile) - Evaluation
Oldsmobile Cutlass (Automobile) - Evaluation
Pontiac Grand Am (Automobile) - Evaluation
Nissan Maxima (Automobile) - Evaluation
Toyota Cressida (Automobile) - Evaluation