Chrysler's Optimism
To bring its 1960 cars to market, Chrysler Corp. is spending more than $350 million on design and development. Last week in Miami Beach, some 400 newsmen previewed the models to come out in October. Biggest share of the spending is for Chrysler's new economy car, the Valiant, heaviest (about 2,700 lbs.) and most powerful (100 h.p.) of the Big Three's compact cars. Styled with a sports-car slope, the Valiant seats six, gets 30 miles per gallon, has a top speed of 100 m.p.h. Among its features: a new six-cylinder engine mounted at a 30DEG angle, instead of straight, to give the car a lower center of gravity, and an alternator* instead of a direct-current generator. Chief advantages over a DC generator: more electrical energy at idling and low speeds, longer battery life. Initially, the Valiant (priced at about $2,000 plus taxes, but no extras) will be offered in a four-door sedan, with two and three seat station wagon models to follow by year's end.
Chrysler President Lester Lum Colbert predicted that U.S. compact-car sales in 1960 will total 1,250,000 units, noted that by early 1960 the Valiant will have an annual production capacity of about 300,000 cars. Said Colbert: "We are ready with the right car for a big new market. The impact of this new automotive development may be so great that the volume of sales of economy cars will be determined in large part by the manufacturing capacity of the major companies."
His prediction on total car sales: 7,000,000 next year v. the expected 6,400,000 total for 1959. Chrysler set no prices on its full-sized models, which retained the low, long look, with tail fins still the distinguishing feature. For its V-8 engines, Chrysler has developed a new ram induction system which provides enough extra boost for passing at speeds from 35 to 75 m.p.h. that the use of "kickdown," or passing gears, is unnecessary. For the new Dodge Dart and Plymouth, Chrysler has developed a new six-cylinder engine which, as in the Valiant, will be mounted at a 30DEG angle.
The high cost of adding the Valiant and changing over to 1960 models will put Chrysler in the red for the third quarter, but the company expects to match the loss with fourth-quarter profits, assuming the steel strike does not cut production.
General Motors last week announced that it is holding the line on prices, showed no increases for the first time in eight years. Chevrolet has held the line on all six-cylinder models and reduced V85 by $10. Chevy's Turboglide automatic-transmission price was cut $30 and its radio $13.50. Buick, Oldsmobile and Pontiac also made cuts in optional equipment.