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Junkyard Gem: 1989 Plymouth Colt E Hatchback

By the late 1960s, it had became clear to the suits at Detroit's Big Three that their companies needed to start selling subcompacts at home or risk losing large hunks of market share to the likes of Volkswagen and Toyota. Ford and GM developed the Pinto and Vega, but the much smaller Chrysler Corporation couldn't afford such an investment. Instead, the Chrysler Europe-built Hillman Avenger and Simca 1100 crossed the Atlantic and were given Plymouth Cricket and Simca 1204 badges, respectively, while ships full of Mitsubishi Colt Galants with Dodge badges headed east out of Japan. Those were Dodge Colts, sales of which began here in the 1971 model year. The Cricket and 1204 faded into well-deserved obscurity, but American car shoppers loved the Hemi-powered Colt. The Plymouth Division eventually got Colts of its own, and that's what we've got for today's Junkyard Gem. The US-market Colt jumped to the front-wheel-drive Mitsubishi Mirage for the 1979 model year, and that's when North American Plymouth dealerships (which had already been selling the Mitsubishi Lancer Celeste as the Arrow) got their own Mirages to sell. For 1979 through 1982, the Plymouth-badged Colt twin was known as the Champ, after which Chrysler decided that distinction just confused everybody. Then both Dodge and Plymouth (plus, starting in 1989, Eagle) offered near-identical Colts until just before the 1994 introduction of the Michigan-designed Neon. 1989 was the first model year for the more rounded sixth-generation Colt. By the time this car appeared in a showroom, Mitsubishi had been selling Mirages here for six years; this meant that American cars shoppers could choose among four mechanically-identical versions of the same car: the Dodge Colt, the Plymouth Colt, the Eagle Summit, and the Mitsubishi Mirage. All four versions had similar pricing, so it really came down to which badge you liked best and/or which company was offering the best rebates and financing deals at any given moment. The cheapest 1989 Plymouth Colt three-door hatch listed at $6,678 (about $16,340 in 2022 dollars), while the Dodge version cost… exactly the same amount. If you insisted on a sedan, however, you had to get the Summit or Mirage, because the Colt was available only in hatchback form for 1989. Meanwhile, Chrysler had been selling the Simca-derived Dodge Omni/Plymouth Horizon in the United States since the 1978 model year, with sales continuing all the way through 1990.

Nissan CEO Makoto Uchida rules out closer capital ties with Renault

YOKOHAMA — Nissan is committed to its automaking alliance with Renault but will not look to deepen its capital ties with the French automaker any time soon, its new CEO said on Monday. On his first day in the new position, chief executive Makoto Uchida also pledged to repair profitability at Japan's No. 2 automaker and said setting realistic targets would be key toward that goal, as it tries to make a clean break from the leadership of former chairman Carlos Ghosn. "Closer capital ties with Renault are not a focus in the short term," he told reporters. Uchida became CEO of Nissan on Dec. 1, as the car maker tries to recover from a profit slump and draw a line under a year of turmoil after the Ghosn scandal. The ousted chairman is fighting financial misconduct charges in Japan. One of the new CEO's big tasks is to salvage ties with Renault, which have deteriorated since Ghosn's ouster as chairman of both companies. Renault holds a 43.4% stake in Nissan after it saved the Japanese automaker from financial ruin two decades ago, and has pushed for the two companies to merge. In rejecting a notion of a merger with Renault, Uchida, 53, echoes his predecessor Hiroto Saikawa, who stepped down in September. He added that the alliance must re-think how it can serve all of its three members, which also includes Mitsubishi Motors. "The alliance has to benefit each of its partners in terms of revenue and profit," he said. "We need to re-evaluate what has worked and what hasn't worked in the alliance in the past few years." The CEO called for Nissan to set "challenging but achievable" targets, adding that this and the launch of more new car models and vehicle technologies would be key to its financial recovery. Nissan is bracing for its lowest annual profit in 11 years and has slashed its dividend by 65%. Its struggles come at a time when car companies desperately need scale to keep up with sweeping technological changes like electric vehicles and ride-hailing. "Somewhere along the way we created a culture of setting targets which could not be achieved," Uchida said, adding that this had resulted in a focus on short-term results. "Years of this had led Nissan to its current "difficult situation," he said, using heavy vehicle discounting in the U.S. market as an example of how aggressive sales targets to grow market share had deteriorated the company's brand.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade