Welcome to the 1994 model year.
Don’t blink.
It has been ages since the traditional start of the new model year, Oct. 1, meant anything. Sales and marketing pressures compel automakers to release new products as soon as they-and their advertising messages-are ready.
But rarely, if ever, have manufacturers talked so publicly about future products. The conventional wisdom in the auto business is that if you give people too good of a glimpse of what’s ahead, they won’t buy what you’re selling now. Yet, much attention is focused on 1995 models.
Chrysler started selling the ’95 Neon in January at its Dodge and Plymouth dealers. The compact car was unveiled months ago at the Frankfurt auto show and exposed to the world’s motoring press via satellite.
Oldsmobile’s ’95 Aurora luxury sedan arrives in March. Olds has been dangling this car for more than a year as a proof-positive to its dealers and buyers that the division would survive despite a tremendous sales slump.
Even Ford, which has been doing quite well with five of America’s favorite 10 vehicles in its showrooms, has been talking about its upcoming Ford Contour/Mercury Mystique models. Those cars, due as spring replacements for the Tempo/Topaz, are based on the Mondeo on sale in Europe.
Why all the excitement about 1995 models when the 1994 model year has just begun?
Part of it is semantics. Chrysler believes that it has something new and different with its Neon, and calling it a ’95 model accentuates that. And, as long as the car meets all 1995 safety and emission regulations, it can be designated as a ’95 model.
Part of it is momentum. Ford and Chrysler have been successful. Their new cars and trucks have been well-received, by critics and buyers. And focusing on these just-ahead models keeps the snowball of positive publicity rolling. Oldsmobile, which needs a hot car, has tried to build momentum for the Aurora long before the first potential buyer has a chance to kick a tire.
All the talk about 1995 cars almost camouflages the reality of the 1994 model year. There are lots of new models, ranging from an all-new Honda Accord for Baby Boomer families to a new Cadillac DeVille for their parents. Young drivers have a chance to test a new Mustang for the first time since the young drivers of 1979 listened to Rod Stewart’s “Do Ya Think I’m Sexy?” Stewart’s still on the charts, and Ford hopes the Mustang gets back in the top 10.
Here are some other things to consider:
Prices
With few exceptions, 1994 cars cost more than 1993 cars did. How much more depends on how you figure it.
Automotive News, an industry weekly, figured the average increase on Japanese cars was more than seven times as high as the average increase for Big 3 models-$630 versus $85. However, this was on comparably equipped models where the price of equipment made standard on the new model (such as air bags or air conditioning) is excluded from the price increase.
When you consider sticker-to-sticker increases, with no adjustment for year-to-year equipment changes, average Japanese prices rose $912 versus $701 for the domestic makers.
To capitalize on the rising value of the yen, GM-and to a lesser extent, Ford-are pushing value pricing. These cars come with a fixed set of options at a fixed price that’s a lot less than if the options had been added on individually. In California, buyers can choose from 46 value-priced GM cars.
Leasing
As car prices rise, the leasing boom continues. Analysts attribute the growth in leasing to those higher prices as well as tax-law changes, aggressive marketing and other factors.
About one in four new cars sold for personal use this year-including half of all luxury models-will be leased, according to CNW Marketing-Research.
Safety
The Insurance Institute for Highway Safety estimates that 17.7 million air bags will be installed on new 1994 cars, up 122 percent increase from 1993 models.
Buyers will find that about 90 percent of all 1994 cars have a driver-side air bag. And 63 percent have driver’s and passenger’s bags.
Anti-lock brakes and traction-control also are getting more attention from buyers. Manufacturers are emphasizing crash protection, from guard beams in doors to rollover systems in convertibles. Safety has even become a buzzword among truck buyers. Ford and Chrysler are putting air bags in big pickups this year, and Chrysler says its ’94 mini-vans meet 1998 federal passenger car safety standards.
