i amen, capa ‘Carmakers b {| By TONY VAN ALPHEN £54 C ai . Press ‘ TORONTO — Cash backs. ‘Truck bucks. Best built, best Quality is Job 1. Low-interest financing. buzzwords* rr Ah RR TOR PP fee S| TT Fra mein i Raa fill (bball i my ‘and promises are stacking up in a 7” ‘ \ hel pO ae da erving serene natives tat Cans ig Tee ——_ w i \ a . : AL Cc ON days. S "Gener Motors, Ford and Chryaler are batting woe ee f as , c NTING 8 prove or protect their market shares here y / 7 | i DE demand {s dwindling and supply is piv % r j eS CORA But the numbers show consumers aren't hungry for the: , f ges9 FOURTH AVENUE savings. have been pred y Ds Vat GAsTLEcAn 8S 444. 5969 Analysts have been licting a slide of six to eight : [2] ~ cent in sales for 1987 because of a downturn in ch arched + y Gl & [S) Bai ian _s auto market. 3 cam MOTORS Yeon, For the first two months of the year it was even worse Sg te than predicted, despite the lure of rebates as high as $1,600 and loans with interest as low as 3.9 per cent. Combined “% on sales dropped 13 per cent in January and 10 per cent in ¥ 32% February from the same periods last year. “Incentives are unlikely to help the market now because consumers want to take a break,” says Dennis DesRosiers, presien it of Toronto-based DesRosiers Automotive Res- earch. He says more people are purchasing homes, overall personal savings have dropped and motorists are hanging on to cars longer. DesRosiers says he expects the incentive war to 2 eee eee escalate for at least another year. . 0 oun, Yee NTIAC BUICK GMC L: “T believe what we're seeing now in incentives is kid's 5 yy TD. 365-2 play compared with what will end up,” he adds.” can just sit back and wait for more.” However, the Japanese importers are absorbing some ofthe Chrysler in Missi: “Ont., the pany’s biggest "The Big Three automakers offered financing well below cost of the stronger currency. dealership in the country. the bank rate last year. But General Motors Corp. sparked Although importers have shied away from the | incentive “It's great to buy a car now because of 3.9 per cent the current incentive war in the U.S. last fall with war, they would join quickly if the cut ing when the banks offer between 9.25 and 12.5 per 2.9-per-cent financing to clear out 1986 models. into their market, adds Arvid Jouppi, an . independent cent. The rebates are-certainly going to help too.” ‘That didn't spread to Canada until Chrysler offered 3.9 analyst based in Detroit. Herrington adds he’s not overly concerned about the per cent on two-year terms in November and Ford matched Last year, Nissan briefly offered 6.7-per-cent financing view by analysts that any current gains will hurt future it a day later. for three-year terms on some models and now is giving markets. SELL, SELL, SELL rebates of up to $1,000 on some cars. ‘DON'T WORRY’ TAL 2c vm ane reiaieerosue TUS-S9E NVIdOLNY — 382! ONWUNSNI 20HO9 MOA 404 BUOY © YIM, fe “eay oIquinio? LSI 8 S3SN3DI1 ONW JONVENSNI s0Boyso> ‘yoo Wy - ZZ1L ADVERTISING SALES race oaR NEWS e 20UY “WweseveesD Koupkg ‘preseOzH4 oupyeen (K0i8hy ‘ore1) ,.exeuens Cc. Bee aie. 9232 0 aH | g uae ae re | P| il Te erate vege a hd ha ig i i i Ms ‘ Mt i i if ti a mpi aH eilid i i “ rhrsh i Ful i i] nt iE Ha sere 323fe a al f rayne a! ! hil alee bi? y i el ‘il if ing A Tee tn ula ul i i he $z yup ‘Aopseupem O41 YBnosy 61 Y20W *Aopssny) is Since then, it has been one thing after another as the SHOT TAKEN a don’t worry about tomorrow. I just think about companies try to sell, sell, sell. Although other importers have not followed, Mazda has. today. a Calgary i] amy GM, the country’s No. 1 automaker, bumped up its recently taken a shot at the domestic producers’ warranty While Chrysler and GM have lagged, Ford, the No. 2 Port O'Call Inn - Calgary's Romantic Hotel power train warranties to. six years or 100,000 1 In Pp adver Mazda says its automaker, has avoided a tailspin. Its sales increased three Ford followed and Chrysler announced a seven-year or five- year warranty is better since it covers all major per cent in January and dipped about one per cent in Just $Q.Q? ws oe this od 115,000-kilometre program. In recent weeks, all three have components, not only the power train. February. been trying to entice customers with rebates ranging from Some analysts say the strategy by the automakers, Jatk Clissold, vice-president of sales and marketing for Special price until June 30th, 1967. $600 to $1,500. particularly GM, to offer incentives and boost sales won't Ford Canada, says his data from the last 10 days of February But it will be tough for any of them to gain since all offer work because it just postpones the effect of the downturn. shows that the incentives are working. Meu: -vacations are great at the Pott Oe Call. incentives, says Maryann Keller, an analyst with Furman, DesRosiers says incentives are cutting into short-term But Clissold acknowledges there is a serious problem of ber and jc To ae nraorm mover, health dub ub, Selz, Mager, Dietz and Birney in New York. profits and also taking away money that could go to overproduction in’ the industry particularly by General pool. “When everyone is doing it, the effect is diffused,” improving design and quality, which would help domestic’ Motors. Tavern, a and dining room, Many Keller says. “At the end, everyone is where they were producers against importers down the road. “As long as there is over capacity, there will probably Ports restaurant. before. tl id ii © Convenient location five minutes from Inter- “This is a classic case of avoidance management by (the be incentives to sel] the cars and in most cases our company ne Soa Vig Me Cienire, . mane ote Aeiekw oy onl H ar? z i tal ie ii na i i : Tee ED it He Hate ‘ie Hi i ; Eel ta til oh ial hone el fe (evap sone ve wou pevodieod) “s0ys 8) yew pepseye: © se.mep ou upenos ae ‘TANLLNGS UN NVUASNI 3OHO9 4) ‘And it's doubtful the importers, who now hold more parent companies in) Detroit,” he says. “They don't want to will have to respond,” Clissold ‘says. than 80 per cent of the Canadian market, will lose any seriously deal with their p And after this Pointing to ads that emphasize value and quality over business to the Big Three because of strong loyalty, is over in two years or so, the Japanese will have perfected rebates, he noted Ford would prefer to “break the fire sale particularly with Japanese cars, analysts say. their product even more while the domestics will be no noise” of incentives and sell the features of a car. Surveys from the Canadian Automobile Association further ahead.” But Jouppi says the domestic producers will have a show owner loyalty to Japanese imports like Toyota and Still, some sales people such as Robert Herrington of tough time getting out of incentive packages if they linger coreg on eno Honda is in the 81- to 89-per-cent range. Domestic producers Chrysler Canada think the incentives will work despite his much longer. e get between 63 and 75 per cent. company’s drop in sales of 18 per cent in January and 15 per ‘And Keller, who has been critical of GM management in Ss eciehe ed NE. Clee roe Figures also show while the cost of Japanese cars have cent in February from the same periods a year earlier. the past, expects a lot of “experimentation” in incentives, INFORMATION: (403) 291-4600 jumped by about 20 per cent in the last year due to the “I expect the market will be good for the rest of the adding: “] think the market will need this kind of help all increasing value of the yen, it hasn't hurt market share. year,” said Herrington, general sales manager for Ontario year.” 10604805 Ay DIqUNjoD LSTL 877S-S9E ROA 40},0WOY © YIM. (BzDjg Px}Oe}80D 32008 0} pue punyoy 4 OW 40 Perrier é Tax trap set for rich TORONTO (CP) — The processed. to claim large deductions for caught by Project Intercept Department of National Rev- The net effect of the ruling small'cash outlays, he said. in 1985 were for investments enue has set a trap for was that even if Revenue One of the most popular in nursing homes, oil and gas high-income earners who Canada suspected evasion, it tax shelters involves a Bra- drilling, off-shore film proj- claim business losses and had to hand back huge Te: gilian research and develop- ects, fitness centres, hotel large tax refunds and it ex- funds to wealthy tax abusers, ment scheme, said Rogers. chains, stock market losses pects to collect almost $200 Then, the department had to Most of the large claims and yachts, he added. million that might otherwise build its evasion case and try have been lost from the 1985 to get the money back. — EFFICIEN I WAY TO FIND i WEEDED OUT tax year, says a senior gov- ernment official. But under Project Inter- Look Under Project Intercept, cept. suspicious tax returns THE SKILLED WORKERS Revenue Canada last year set. are weeded out for special Wh i aside 7,500 tax returns in scrutiny and are processed ['] Ss P which large business losses only when claims are estab- é . YOU NEED? were claimed, and examined lished as legitimate. Listening! ! : é each return before deciding Rogers said Revenue Can- -_— which ones warranted ada expects Project Inter- further investigation, said cept to be just as successful Selkirk cow * undertoking @ self-study to evaluate it's , —_-— ertor ti the st-secondat lucation Harry Rogers, deputy minis- in catching criti in 1866 Lesa pigiey ia meating @ post-secondary ational ! ter of taxation. returns, which are now ” 4 ssed. " have a beet or bouquet about Selkirk Colige we would d e ‘We are trying to prevent ginning to be proces Meee neve: trom you. Plan to attend the open forum in your wealthy people from using Those being targeted community i abusive tax shelters,” Rogers under Project Intercept often DATE: March 26, 1987 Y; Hi rf Ht be said in a recent interview. pay necoutlanlt Sauce. chel TIME: 7 p.m our Canada Employment Centre’s vis Revenue Canada reso Cr, PLACE: Castlegar Campus . to the intercept tactic be- income taxes by investing in . personalized employment service can nal 35 : ? cause a court ruling from the tax shelters that allow them Hyow ere unable ie vend you are lnytied to eal SSS: aia ® z fH : $2758 19608 was handicapping the Tecoma nme oie rst : save you time and money because we partment’s al lity to cat —_—o ‘or furtl intormation contact Denise not! at = g 8} tat evaders, he said. The rul- ur Action Ad Phone "CASTLEGAR CAMPUS have skilled workers in a wide variety Bhi 29882 ag8Re% ze ing required Revenue Can Number is 365-2212 “ox 1200, Caniogar, 8. VIN 301 of occupations. 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