Detroit Free Press from Detroit, Michigan • Page 10

i This laoralag's business fending: Tuesday, nsrch 17,1031 Dow-Jones Industrials 1002.79 17.02 Lowest prime rate (Detroit banks) Fixed-rate mortgage (20 down) 16 26-week Treasury bills 12.096 212-year certificates (highest rate) 12 Inflation rate (national) 11.7 Inflation rate (Detroit) 13.2 Michigan unemployment rate 13 National unemployment rate 7.4 Auto layoffs (indefinite only) 186,450 MUTUAL FUNDS 11A 4 OPTIONS 11 A fi SLs 11-14A DETROIT FREE PRESS 10A OTP. 14A New mileage rules not needed, official says HrX Meter average of the mileage achieved by all cars built in a model year could not be reached because customers still wanted large cars Toyota car, truck prices Their prophecies came true for a time, and boosted by average of $252 the companies in early 1979 had to boost prices on large, gas-guzzling engines to dissuade buyers and try to achieve the required fleet m.p.g. averages. But that The Japanese automaker Toyota raised prices of its cars and trucks Monday an average of $252 or 3.9 percent the third changed quickly. "Most of the manufacturers out I here are going to be forced just by I lie price of gasoline to end up with mileages ranging from 30 to 50 miles per gallon." Drew Lewis, transportation secretary In December 1978, shortly before the Iranian revolution, compact and subcompact cars accounted for about 45 percent of al increase on 1981 models.

Those actions have added an average $784 to the price of a Toyota car or truck. Toyota, the No. 1 car importer to the U.S., said the latest price hike was necessary "to offset cost pressures, including rising worldwide oil prices, that affect the production and sales. For the past year, the figure has been over 60 percent. By Free Press Staff and AP WASHINGTON Transportation secretary Drew Lewis said Monday he sees no need for further federal fuel-efficiency requirements on the automobile industry after the current timetable is reached in 1 985.

And the National Highway Traffic Safety Administration, which enforces the mileage laws among other things, is reportedly due for a 50-percent budget cut in 1982. "It's my feeling that we don't need any more (fuel-economy) regulations," Lewis told the House Appropriations transportation subcommittee. "The free market's going to take care of this. Most of the manufacturers out there are going to be forced just by the price of the gasoline to end up with mileages ranging from 30 to 50 miles per gallon." LEWIS WAS ECHOING statements from the auto industry, which say the fuel-economy standards have been rendered absolete by the public's dramatic switch to small cars as the price of gasoline has soared. "Ford agrees with Secretary Lewis that 1985 should mark the end-point for the annual fleet standards approach," said Will Scott, Ford Motor Co.

vice-president for shipping costs of its cars and trucks. Increases on individual models ranged from $200 to $515, MEANWHILE, Automotive News reported Monday that the Reagan bringing the most popular Toyota cars into close price competi tion with comparable U.S.-built models. administration wants to slash NHTSA budget for fiscal 1982 by more than half of The base sticker price of the Corolla SR5 liftback the company's best-selling car in the U.S. goes up $230 to what the agency requested. NHTSA was counting on $357 million but, 3b, U8.

1 oyota highest-priced car, the Cressida station wagon, now has a suggested retail price of $12,049, up $500 or 4.2 under the Reagan plan, would get just $170 million, the trade journal reported. A NHTSA spokesman said the agency is unaware of the Reagan proposal, and Automotive News said details have not been set because the new NHTSA administrator, Raymond Peck, has percent. Prices of some optional equipment also was increased. As an example, a Toyota spokesman said air conditioning increased $10. There was no increase in vehicle transporation charges, the buyers and taxpayers money.

THERE ARE NO pending proposals, either from the Reagan administration or Congress, to set fuel-economy standards after 1985. A bill introduced last year by Sen. Henry Jackson, requiring automakers to reach an average of 40 m.p.g. by 1990, has not been reintroduced, according to the National Highway Traffic Safety Administration. The original fuel economy requirements, set by Congress in 1975, were met with opposition from the auto industry.

The companies complained the m.p.g. goals an model year. General Motors, however, has said it will achieve 31 m.p.g. by then. In the current 1981 model year, U.S.

automakers are running well ahead of the fuel-economy requirement of 22 m.p.g. Chrysler, for instance, says its corporate fleet average will be 25.5 m.p.g. this model year. Thus, the auto companies say setting further standards would just create costly paperwork. A GM spokesman said post-1985 standards would be "a nuisance more than a demand on us." Relief from the elaborate process of certifying the fuel economy of new vehicles each year would also presumably save car- yet to be confirmed by the Senate.

spokesman said. Headlines governmental relations. But the publication said the biggest chunks from NHTSA's budget a total of $90 Under the government's fuel-efficiency million would eliminate NHTSA's role in enforcing the 55-mile-per-hour speed limit timetable, each- automaker must reach annually increasing corporate fleet averages, STROH BREWERY CO. will expand sales next month to and slash federal grants to states. Alabama and the Rochester, N.Y., area, giving the De culminating with 27.5 m.p.g.

in the 1985 troit-based brewer a marketing territory of 20 states and me District oi uoiumoia. GENERAL MOTORS CORP. is negotiating a joint venture witn a Mexican nrm to build heavy-duty diesel engines in Mexico, Metaiworking News says. TREASURY BILL yields fell sharply at Monday's auction. r' JSg 1 ne avera8e return on 2b-week bills fell it kiiG3 t0 12-096 from 13-427 a week earlier; mart earnings are down -wjM3 rpflirns nn A.mippU nnort in 1 9 7RH from 13.996 the week before.

Beginning Thursday, the highest rate on six-month money market certificates at banks and savings and loan associations will be 12.346. A MIXTURE OF RACE DRIVERS, gasoline and alcohol began an experimental cross-country alternative-fuel road tour Monday from City Hall in Los Angeles to Washington. Race drivers Janet Guthrie and Lyn St By STUART ELLIOTT I rio Press Marketing Writer James led off the all-woman field as four cars began the one-week drive. The cars were powered by ethanol, methanol and a gasohol mixture of methanol and gasoline mart Corp. of Troy Monday reported its net income for fiscal 1980 dropped 27.2 percent from 1979, its first decline in in a test sponsored by the Ford Motor Co.

Chrysler's luxury compact convertible, the first U.S.-built rag top six years, as sales fell a bit short of projections. Also Monday, Winkelman Stores Inc. of Detroit announced since the 1976 Cadillac Eldorado (Volkswagen's Rabbit convert THE U.S. BANKRUPTCY Court in Cleveland has approved the sale of White Motor Canadian assets. The record sales and earnings during its fourth quarter, but a 1 5.8 ible is imported), is to be introduced in about a year.

Based on the K-car, it is a version of the so-called luxury Super to be rarmington Hills, company plans to sell its Canadi percent decline in net income for the fiscal year, The local companies' results mirror those of retailers Chrysler moves this one to the top of its class an farm equipment business and its Canadian truck operations to separate joint venture firms. White is around the country, who found rising costs, recession and inflation-weary customers made 1980 a tough year in which introduced next fall. It will probably cost in the $1 3,500 range, partly because the convertible work will be done by a specialty shop instead of on the assembly line, Chrysler says. The Chrysler (prototype above) and Dodge versions are planned, but to do business. the name, price, engine choice and other details are still undecid ed.

THE DECLINE in mart's annual net income was the first since fiscal 1 974, when it fell 24 percent from fiscal 1 973. The company's failure to meet its annual sales projection was also the first in six years. mart's sales for the fiscal year ending Jan. 28 were $14.2 billion, $1 00 million less than projected. That was 1 1 .6 percent Interest rate hopes spur stocks higher than the $12.7 billion MART CORP Three months Jan.

1981 1980 operating under provisions of Chapter 11 of the U.S. Bankruptcy Code. C.H. STUART of Newark, N.J., producer of Sarah Coventry and Caroline Emmons costume jewelry, has filed for reorganization under federal bankruptcy laws. Sarah Coventry and Caroline Emmons jewelry is sold mainly by company representatives at home parties.

CAPITAL SPENDING by U.S. business will rise 12.3 percent this year but that will be only two percent after adjustment for inflation, McGraw-Hill's economists said Monday. Total capital spending will come to about $300 billion. UNIVERSITY OF MICHIGAN economists predict the nation's economy will be sluggish all this year but will surge by the spring of 1982 if President Reagan's tax and spending cuts are implemented. The economists E.

Philip Howrey, Saul H. Hymans, Joan P. Crary and U-M President Harold T. Shapiro also forecast higher auto sales by that time. eighths to 18 after report NEW YORK (AP) No! income 1131,100,000 5146,000,000 A share $103 SI 15 achieved in fiscal 1 979 and kept mart as the country's second largest retailer behind Sears, Roebuck Co.

Sales in the fourth quarter, which also end The stock market took off in ing lower earnings. Allied Stores rose one-half to 24 $4,382,700,000 $4,025,600,000 Year Jan, 28 ate trading Monday, pushing Net income $260,500,000 $358,000,000 A share $2.07 $2 84 bales 414,204,400,000 112,731.100,000 the Dow Jones industrial average above the 1,000 level ed Jan. 28, were $4.4 billion, up 8.9 percent from $4 billion the previous year or the first time in more than mart net income for fiscal 1980 was $260.5 million two months. The sharp increase, which ($2.07 a share), down 27.2 percent from $358 million ($2.84 a share) in fiscal 1979. Net income for the fourth quarter was $131 million ($1.03 a share), down 10.2 percent from $146 million ($1.15 a share) in the year-ago quarter.

points as Joseph Granville, a market analyst who has developed a wide following among traders, advised his clients to sell. Granville, who reaffirmed his advice to sell all stocks as recently as last Friday, was unavailable for comment Monday. DILLINGHAM, WHICH announced plans for a partial liquidation, was up six to 30 '2. Chrysler rose one-half to 5 following reports of strong sales in early March. mart dipped one- came in the final two hours of trading, came amid increasing hopes that interest rates will continue to decline.

with higher earnings. The NYSE composite average was up 0.87 to 77. 1 9. Standard Poor's average of 400 industrial issues was up 1.77 to 152.63 and composite average of 500 stocks rose 1.57 to 134.68. At the American Stock Exchange, the market value index was up 3.05 to 347.46.

In the over-the-counter market, the NASDAQ composite index rose 1.27 to 203.44. Bernard M. Fauber, mart chairman and chief executive with E.F. Hutton Co. Chase Manhattan Bank iind the First National Bank Chicago cut their prime lending rates for corporate customers to 17.5 percent from 18 percent, matching a made last week by Chemical Bank.

VOLUME ON the Big Board was high at 49.94 million shares, but down sharply from Friday's 68.29 million. Analysts said that relatively low volume early in the session, when stock prices were down slightly, encouraged some traders to buy stocks later. The last time the Dow closed above 1,000, when it set a four-year high on Jan. 6, was followed by a sharp decline the next day of 23.80 The Dow Jones average of Auto inventories shrink officer, acknowledged in a statement that 1980 "fell somewhat short of our expectations." Profits and operating results were adversely affected by inflation, he said, noting that 30 industrial stocks closed at ,002.79, up 17.02 for the expenses were 23.9 percent of sales, up from 22.5 percent in fiscal 1979. With the help of cash rebates and incentive programs, the ive major U.S.

automakers slashed their stocks of unsold new day, as advances outnumbered declines on the New York Stock Exchange by a 2- mart is generally encouraged by the "many signs of cars to a 59-day supply at the end of February, Ward's Automotive Reports said Monday. to-1 margin. improvement" it sees for fiscal 1981, Fauber said. Changes in merchandising, promotion and operations should ensure that 1981's results "will be a marked improvement over 1980," he Ward said dealer inventories were down sharply from a 79-day supply at the end of January and a 68-day supply at the "THERE IS a widespread said. end of February 1980.

A new car inventory large enough to last 60 days normally conviction that interest rates are heading downward," said Newton Zinder, an analyst MART also announced Monday the retirement of Ervin Wardlow, vice-chairman of international operations and is preferred. Ward's said General Motors which has been offering domestic merchandise subsidiaries, effective April 1. Ward- rebates of $500 to $700 on about half its cars since mid- "frl! hV ow, 59, was replaced Jan. 1 as president and chief operating February, cut its dealer inventories to a 56-day supply from a 72-day supply at the end of January and a 60-day supply at the Import curb foe officer, after eight years in the post. At the time, Fauber denied Wardlow's replacement was due to declines in the company's profits and sales growth.

end of February a year ago. Ford Motor Co. dealers had enough cars to last 63 days at the Wardlow, who has worked for mart 42 years, will also resign his position as a member of the board of directors, the gets key U.S. post company said. mart has no immediate plans to fill his vice-chairman position, a spokesperson said.

The post was created at the time of Wardlow's appointment. end of February, down from 92 days at the end of January and 74 days a year ago. Ford's rebates, which began the same day as GM's, currently amount to 10 percent off its sticker prices. Chrysler inventory dropped to a 66-day supply by the end of February, down from an 85-day supply at the beginning of the month and a huge 106-day supply a year aeo. New York Times mart operates more than 2,400 stores in the United WASHINGTON William A.

Niskanen, who was dis David Stockman William M. Agee States and Canada, under the mart, Kresge and Jupiter names. Results for 1 980 also include data for Furr's Cafeterias missed as chief economist of the Ford Motor Co. because he Chrysler has offered varying rebates currently about six percent of the total price of most of its cars since December. nc, which mart acquired last May.

American Motors Corp. ended February with a 58-day Agee wasn't interested, AS FOR WINKELMAN, it reported sales for its fiscal year opposed the firm's advocacy of automobile import restrictions, has been chosen by the Reagan administration for one of the vacancies on the Council of Economic Advisers, administration officials reported Monday. Niskanen, 48, will be responsible for a variety of Issues, including trade, labor policy, regulation and subsidies. An official announcement is expected later this week. The job pays $52,750 a year and is subject to Senate confirmation.

ending Jan. 31, at a record $92.1 million, up two percent from $90.3 million in fiscal 1979. Sales fur the fourth quarter, also supply of cars to dealers, compared to an 88-day supply at the start of the month and a 1 04-day backlog at the end of February 1980. AMC is offering 10 percent price reductions on its cars and offered these reductions throughout February. Volkswagen of America cut its new car backlog to 59 days so Stockman got the job ending Jan.

31, were a record $31.2 million; up 9.9 percent from $28.4 million. David Stockman, powerful director of management and Net income for the year was $2.3 million ($1.52 a share), budget for the Reagan administration, reportedly boosted at the end of February from 79 days at the start of the month and 68 days at the same time last year. he third seat on the council remains unfilled. Niskanen will join the council's chairman, Murray L. William M.

Agee, chairman of Southfield-based Bendix down 15.8 percent from $2.8 million ($1.81 a share) in 1979. 'ourth quarter net income was WINKELMAN STORES INC, Three months Jan. 31 1981 19! Weidenbaum, in opposing several cabinet officers who have been arguing In the administration for restrictions on ex for the job, but Agee wasn't interested. During the Republican National Convention in July, the New York Times reports, Stockman wanted Agee for the job Buy American bonus record $1.3 million (83 cents a Nel income ports of Japanese cars to this country. A share 5843,922 55 cents 528,380,642 hare), up 51 percent from ales which, Mockman believed, was going to be tremendously The president of HBE Corp.

of St. Louis has promised to pay 1,271,698 B3 cents $31,183,928 Year Jan. 31 1,52 492,091,255 $843,922 (55 cents a share) in his employes $300 if they buy a new American-manufactured NISKANEN, REACHED by telephone at the University of Net income A share the year-ago quarter. mportant, "almost a deputy president." As Agee tells it: "I had a party at my house for Congress $2,768,111 51.81 590,258,582 car or truck. California at Los Angeles where he teaches in the Graduate ales Encouraged by Winkel- Fred S.

Kummmer, president of the St. Louis-based corpo man Jack Kemp during the convention. Just as Dave was about ready to leave he said, 'If the governor man's fourth quarter results, School of Management, refused to confirm or deny that he had been offered the job, but he did discuss his views and his experience. ration, said he was making the offer to those of the company's ,750 employes who purchase a new car or truck in the next six the company anticipates "additional improvement for the balance of the (1981 fiscal) year," Stanley J. Winkelman, chairman, and Anthony J.

Vinci, president, said in a months. (Reagan) is elected, there's an appointment for referring to OMB. I said, 'No, I'm a private-enterprise man. But that's the job for Agee was right. The job went to Stockman, a Michigan "It is in our mutual interest for America to have a healthy He said he still believes restricting car imports would be a bad policy.

In the past, he has said increases in imports from Japan accounted for only a small fraction, about one-eighth, automotive industry," Kummer said in a memo to employes. Winkelman operates 86 women's clothing stores in Michi- of the decline in domestic car sales. It purely selfish. I like all businesses to know that it in an, Ohio and Illinois, under the names Winkelman's, Today congressman, who has become the administration's chief spokesman on budget-cutting matters. Niskanen was with Ford from 1975 to 1980.

our own self interest to do something about this problem." and Thai's..