N 7. ' making (Conclusion of a three-part series on the future of the auto industry). Dealers pay rates above the prime to keep cars in stock. They say financing at 22 or 23 per cent makes it tough to stay profitable. Although the nation’s car dealer population has declin- ed steadily since the end of World War I, Miller speaks almost bitterly about the devastating nmpact on even strong dealers of a record- high prime lending rate. “What really bothers me is that many, many of the dealers went out for screwy reasons,” he said. “These guys have gone out running efficient, effective businesses.” If the government's policy of keeping interest rates high hurts the auto industry, a new federal attitude in favor of deregulation promises substantial benefits. The Reagan administra- tion has seconded the in- dustry’s call for relaxed tailpipe emission standards. If Congress approves, automakers say their costs will be reduced by billions of dollars. GM even is promis- ing to reduce some sticker prices. All told, the administra- tion has identified 34 regula- tions that could be relaxed or deleted an un- precedented turnabout from two decades of adversarial spats between the industry and the government. Automakers also expect the administration’s overall economic policies to help by investment easier. controlling inflation and in- creasing individual purchas- ing power Burger at GM ts convinc- ed car sales will improve next year even if interest rates remain high, while a_ reduction in the prime rate to 14-15 per cent could make 1982 a strong sales year. The normal signposts of an end to the industry's down cvcle — Mmgh car scrappage rates, rising used car pnices, pent-up demand -- are still present although their im- pact thus far has been cancelled by the pnme rate, Burger said In product terms. aulomakers in 1982 wall substantially close the gap created when most con- sumers tured their backs on big cars carly in 1979, The 1982 model year 1s almost as notable for what's missing as for what will be avatlable There will be no Last part in the series full-sized Dodge, Chrysler, Plymouth or Pontiac. Each of those divisions once thriv- ed on big cars. The V-8 engine, once virtually the universal powerplant, will be installed in a small minority of cars. GM will have three lines of front-wheel drive, four- cylinder cars — subcompact J cars introduced in May, X car compacts that debuted in 1979 and mid-sized entries that probably won't be of- ficially announced until January. GM also will offer a new small pickup truck, a restyl- ed Camaro-Firebird, a V-6 car diesel engine, a fuel- injection system for its 2.5- liter four-cylinder engine and a new 6.1-liter truck diesel engine. It's the most intensive set of mntroductions in GM's history. Chrysler's lineup” will become more than 80 per cent front-wheel drive and four-cylinder with the addi- tion of 1982 luxury coupes based on the successful K Mr. Mileage Maker! if you want to order a photo that appeared in the NEWS, call Lisa Cameron sunday 9 a.m. - § p.m. Monday, Wednesday, § gf 54", 477 Thursday only north shore 986-6222 auto cars. Chrysler also has an. Omni-based pickup truck due out in the spring. Ford will be able to supply nearly | million fuel-efficient subcompact cars of the Escort-Lynx family, in- cluding a new four-door model, Ford also has a new mid-sized luxury car, a new V-6 gasoline engine and sta- tion wagon models for the Granada line. American Motors Corp. is less than one year away from introduction of the products on which it is staking its sur- vival, including redesigned jeep vehicles and a fuel- efficient passenger family car based on designs from its partner, the French automaker Renault. While the emphasis is on small, the Big Three will have dozens of entries in the traditional rear-wheel drive Bill Docksteader-has first 1982 Mazdas! Instant delivery! Plus same left- over 81 Mazdas — $100 less than anywhere else! Bill Docksteader’s Kingsway MAZDA! reoeathe 879-6301 news TAYLORMOTIVE IS BCAA APPROVED HOME OF THE AUTOMOTIVE SPECIALISTS | (ualified technicians in each tleld Many with 20 40) yeafs expenence ¢ AUTOMATIC TRANSMISSIONS * COMPLETE GENERAL MECHANIC AL * WHEEL . FRAME ALIGNMENT & BAL ANCING * COLLISION REPAIRS * BAKE OVEN PAINTING FREE CONSULTATION © ALL WORK GUARANTEE L TAYLORMOTIVE 174 PEMBERTON. N.V. OUR 21ST YEAR OF CUSTOMER SATISFACTION |. aes mid-sized and full-sized market. Burger said those should retain some viability. There hasn’t yet been a sign of a stampede back to big cars like the one which followed the 1975 recession. The industry expects high but stable gas prices to con- tinue favoring fuel-efficient cars. Analysts say a side-effect of the gasoline glut is that small cars no longer are sell- ing at any price. That, some 1982 RAMCHARGER SE Sport/Utility at- tempts to combine fun with practicality. 980-4581 _ Bil - Wednesday, Oct. 14, 1981 - North Shore News analysts believe, is the reason GM’s new J car sub- compacts haven't yet stirred massive Consumer interest. Mid-sized cars are the liveliest domestic car seg- ment in 1981 and will repre- sent the family car of the future when the current crop of full-sized cars finally bites the dust. An ominous note is ac- companying the 1982 cars and trucks to market. GM ‘set initial prices on its 1982 cars an average of $617 higher than 1981 models, in defiance of dealer and con- sumer complaints about high prices. “In the past,” said Keller, “people always had the abili- ty to buy a cheap car... One of the problems of the car market today is they cannot find a (new) car they can af- ford.” Either car prices must go down or disposable con- sumer imcome must go up, she said. Yet it’s widely believed the auto industry eventually will rebound. The University of Michigan predicts car sales will increase to an annual Car Rentals Oldies but Goodies tree mileage from $12.95 Monthly Rates 980-1515 708 Marine Dr. rate of 11.5 million by the summer of 1983. “Everybody I talk to looks for the balance of the decade to be a very profitable, pro- sperous period,” said Miller. © Carburetion e Exhaust system © General maintenance Let me be your personal mechanic 830 W. 1st St. Just southeast of Woolco 988-5010 Marine Or COMPLETE BODY REPAIRS & PAINTING OPEN SATURDAY 1315 COTTON ROAD (MAIN ST ) NORTH VANCOUVER aL i iow SERVING THE NORTH SHORE FOR 10 YEARS!