PURCHASING NEWS

Pool Vehicles

2003 Final Order
Due Dates
AND 2004 MY
Startup Dates

2004 Model Year
Fleet Programs

Issue 316– August 11, 2003

EnviroFleet; ARI's Environmental Fleet Technology Newsletter

GM's OnStar for 2004

For additional information go to
http://www.OnStar.com

GM Announces Early Order Commercial Credit

General Motors has announced the "Early Order Commercial Credit" customer cash program on all 2004 Impala, Malibu, Malibu Classic, Century, Regal, Grand Am, Grand Prix, Silverado and Sierra models.

Eligible models must be ordered on or after July 25, 2003 and on or before January 2, 2004 with option (VX5) and the Early Order Option (R7R). Ordered fleet units must be delivered by March 31, 2004.

Eligible out-of-stock models must be delivered on or after July 25, 2003 and on or before January 2, 2004. Out-of-stock vehicles claiming this incentive are not eligible for retail incentives.

Competitive Assistance Program (CAP) customers are not eligible for Early Order Commercial Credits.

2004 Model	Early Order Credit
Grand Am	$1000
Malibu	$1000
Malibu Classic	$1000
Grand Prix	$1000
Century	$1500
Regal	$1500
Impala	$1500
Silverado	$1000
Sierra	$1000

2004 Lincoln Town Car Array Lineup and Badging Changes

2004 Lincoln Town Car

The Lincoln Town Car has undergone several changes to its arrays and nomenclature for the 2004 Model Year. The Cartier Series has been eliminated and the total number of arrays has been reduced from six to three. The remaining arrays were renamed.

The new series for the Town Car includes Signature, Ultimate and Ultimate L. Each new array is described below along with applicable order codes:

Signature (100A)

The 2003 Executive (100A) has been renamed Signature for the 2004 MY. This is the entry level Town Car with limited options.
Extended Rear Park Assist had been made standard.

Ultimate (300A)

Ultimate does not directly replace the Cartier, but rather combines the move-up content and options of the 2003 Signature, Signature Premium, Cartier and Cartier Premium.
Rain Sensing Wipers have been deleted.

Ultimate L (500A)

Ultimate L directly replaces the Cartier L name and retains similar content.
Fog Lamps have been deleted, some previously standard equipment has been made optional and the pricing has been reduced.

Executive (900A, 910A, 930A)

The Executive name is now reserved for Limo/Livery vehicles only.

All-New 2004 Chevrolet Malibu Pricing Announced

2004 Malibu LT

Chevrolet has released pricing for the all-new 2004 Malibu sedan, which is scheduled to go into fleet production on August 11, 2003. The manufacturerís suggested retail price for the base model is $18,995, including a destination and delivery charge of $625.

Malibu is available in three trim levels including a standard model, LS and LT package. The LS and LT trim levels include a standard V6 engine. The MSRP for the Malibu LS is $20,995 and the MSRP for the Malibu LT is $23,495. The MSRP for a fully equipped Malibu LT with all of the available options is $25,575.

The Malibu Maxx extended sedan pricing will be announced at a later date.

The all-new Malibu includes standard features such as an Ecotec 2.2-liter 4-cylinder engine, Hydra-Matic 4-speed automatic transmission, front dual-stage air bags, air conditioning, power driver seat height adjuster, power windows, power door locks, tilt/telescoping steering column, power outside rearview mirrors and a compact disc player.

Available options include a 3.5-liter V6, head-curtain side air bags, factory installed remote vehicle starter system, anti-lock brakes, traction control, power adjustable pedals, cruise control, compact disc player with six speakers, six-disc in-dash compact disc changer, OnStar and XM Radio.

Malibu also offers a personalized fit package that allows the driver to customize the seat, steering wheel and pedals for maximum comfort. In addition, the five-passenger sedan offers a 60/40 folding rear seat and a fold flat front passenger seat.

The new 2004 Malibu provides improved fuel economy for both engines. The Ecotec 4-cylinder powered Malibu is rated at 24 mpg city and 34 mpg highway. The 3500 V6 powered Malibu is rated at 23 mpg city and 32 mpg highway.

Toyota Announces Prices for 2004 Camry, Avalon And CorollaS

Toyota Motor Sales U.S.A., Inc., has announced manufacturer's suggested retail prices (MSRP) for the 2004 Camry mid-size sedan, Avalon full-size sedan and Corolla S compact sedan models. Camry and Avalon will be available at dealerships beginning mid-August. The 2004 Corolla S is available now.

Camry will receive a new 3.3-liter V6 engine for the sportier SE model, which will increase horsepower by 15 to 225 hp and boost torque by 20 lb.-ft, to 240. The Camry SE will carry an MSRP of $23,315, an increase of $50, or 0.2 percent. The Camry LE and XLE models remain unchanged from the previous model year with no price increase for 2004. Camry four-cylinder models range in price from $19,045 for the LE with a manual transmission to $22,295 for the XLE automatic. Models with the 3.0-liter V6 range in price from $22,260 for the LE to $25,405 for the premium XLE.

Toyota Avalon pricing will start at $26,045 for the XL with bucket seats and $26,865 for bench seat models, each receiving an increase of $100, or 0.4 percent. Pricing on the Avalon premium XLS model remains unchanged - carrying an MSRP of $30,505 for models with bucket seats and $30,405 for those equipped with a bench seat.

The sporty Corolla S model will receive a price increase of $100, or 0.7 percent. This adjustment will be effective with September production.

First 2004 F-150 Rolls off Assembly Line Using New Flexible Manufacturing System

2004 F-150

The first all-new 2004 Ford F-150, a yellow SuperCab FX4, rolled off Ford's Kansas City Assembly Plant line on July 29, 2003. With the launch of the new model, Ford also introduced new flexible production technology at its second assembly plant in North America.

The new system allows Kansas City Assembly to build up to eight different models off two platforms. "Kansas City Assembly now has the ability to change the mix, volume and options of products in response to consumer demand and market segmentation ñ all with minimal investment and changeover loss," said Dave Savchetz, Kansas City Assembly's plant manager.

Over the next decade, Ford expects to save up to $2 billion because its flexible system costs 10 to 15 percent less than traditional systems, with an added 50 percent savings in changeover costs. By mid-decade in North America, about half of Ford's body shops, trim and final assembly operations will be flexible. That number rises to 75 percent by the end of the decade.

Ford's new system standardizes the assembly process, which improves productivity through reduced changeover downtime. Standardization helps improve quality through increased repeatability, Ford said.

The new body shop will be able to handle two distinct platforms while producing four different derivatives off each platform. The lines can be configured to accommodate front-wheel-drive, rear-wheel-drive, unitized-body and body-on-frame vehicles.

The same type of standardization found in the new body shops is also being used in final assembly. Final assembly operations have a standard sequence, with standardized workstations that can be changed or modified quickly to accommodate new vehicle options or features.

Kansas City Assembly Plant began operations in 1957 with production of the Ford Country Squire Station Wagon. It now builds the F-150 Regular Cab, SuperCab and SuperCrew models in five versions: XL, STX, XLT, FX4 and Lariat plus the Ford Escape and the Mazda Tribute sport utility vehicles.

GM Removes Express and Savana Cargo Van A/C Credit

GM recently published a notice regarding a change to the 2004 Express and Savana ‡ ton cargo van. The air conditioning credit (R7X) of $750 will not be available on these models for the 2004 Model Year, GM said.

In the 2003 Model Year, this credit was included if a *G13403 model with the (LU3) Vortec 4300 V6 engine was ordered. While the credit is no longer available, GM has compensated by reducing the base price of the vehicle.

Chrysler Group Applies Flexibility and Reduces Capital Expense in Preparation for the Launch of the All-New 2004 Dodge Durango

The Chrysler Group will reduce initial capital expenditures by 30 percent in preparation for the launch of the all-new 2004 Dodge Durango due to flexible manufacturing strategies and re-use of existing tooling.

Craig Corrington, Chrysler Group Vice President of Assembly, Stamping and Component Operations, discussed pre-launch activities at Newark Assembly as an example of the company's flexible manufacturing strategy. "The conversion of Newark Assembly Plant for the all-new Dodge Durango is indicative of the company's new direction for manufacturing," said Corrington. "By applying flexible manufacturing principles in an existing facility with tooling from current Durango production, we are able to reduce our initial capital expenditures by 30 percent."

According to Corrington, efforts at the Newark Assembly Plant demonstrate the Chrysler Group's ongoing changes to further improve productivity and flexibility in its manufacturing operations. The facility recently underwent a conversion to re-tool existing equipment and processes, enabling both the current and new Durango to be built simultaneously on the same production lines.

Unconventional applications of flexibility have helped Chrysler Group's Twinsburg Stamping facility, located in Ohio, prepare for the upcoming launch of the Durango. The plant will be responsible for the production of major body components on the vehicle.

The Twinsburg facility is implementing a flexible system called Common Systems Architecture (CSA) - a new model for the company's stamping and body panel assembly operations. CSA significantly reduces the limitations of tooling changes that may be required over the manufacturing life of a vehicle. Under this concept, robotics and other equipment can be reprogrammed for model year changes, thereby eliminating or reducing production downtime.

CSA also provides a higher degree of precision in component production, ensuring that parts are produced according to specification the first time and at the quality levels that customers expect, Chrysler Group said.

At this time, CSA is only being utilized for production of Durango; however, Corrington said the applications will be far reaching. "We plan to apply this best-practice experience in flexibility across our manufacturing organization."

Production for the all-new 2004 Dodge Durango is expected to begin later this year.

General Motors Builds 500,000 XM-equipped vehicles

General Motors announced that the 500,000^thXM Satellite Radio equipped vehicle will roll off the production line in mid-August. GM has been rapidly increasing availability and volume of XM-equipped vehicles since service introduction on two Cadillac models in November 2001.

"Just 21 months ago GM launched a brand new and extremely exciting audio entertainment product, and today it is available on over 40 GM models," says Gary Cowger, president GM North America. "This successful launch represents one of the fastest technology rollouts in GM history, and over the next six months we expect to double our XM volume to one million vehicles."

GM said it will continue expanding XM availability as standard vehicle packaging in many 2004 models. The automaker reports that nearly all vehicle owners are very satisfied with their XM service and that the majority of vehicle owners would consider purchasing another vehicle equipped with XM.

XM offers 101 digital channels including 70 music channels, more than 35 of them commercial-free; and 31 channels of premier sports, talk, comedy, kids and entertainment programming. For more information, please visit XM's web site: http://www.xmradio.com.

2004 GENERAL MOTORS XM SATELLITE RADIO AVAILABILITY

BUICK

LeSabre
Rendezvous
Rainier

CADILLAC

DeVille
Seville
Escalade
Escalade EXT
Escalade ESV
SRX
XLR
CTS

CHEVROLET

Cavalier
Avalanche
Impala
Monte Carlo
Silverado
Tahoe
Suburban
Malibu
Malibu Maxx
TrailBlazer
TrailBlazer EXT
Colorado
Venture

GMC

Denali
Denali XL
Sierra
Yukon
Yukon XL
Envoy
Envoy XL
Envoy XUV
Canyon

OLDSMOBILE

Alero

PONTIAC

Aztek
Bonneville
Sunfire
Grand Am
Grand Prix
Vibe
Montana

SATURN

ION
VUE

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Purchasing News Home

Pool Vehicle Inventory

CARS
Year	Make	Cyl	Model	Dr	Location	Invoice	Ref #
03	Pontiac	6	Grand Am SE Sedan	4	Kingwood, TX	$15,029	56060

TRUCKS
Year	Make	Cyl	Model	Location	Invoice	Ref #
03	Chevrolet	8	Suburban 1500 4x2	Carlsbad, CA	$30,208	96657
03	Chevrolet	6	Venture Value Van	Flourtown, PA	$19,170	Multiple
03	Chevrolet	6	Venture Value Van	Mechanicsburg, PA	$19,170	08358A
03	Chevy	8	G3500 Express Passenger Van	Huntington Beach, CA	$25,836	Multiple
03	Ford	6	Explorer 4DR 4x4 XLT	Ivel, KY	$24,965	914158
03	Ford	8	F150 Regular Cab 4x4	Guyman, OK	$25,121	770309
03	Ford	8	F-150 Supercab 4x4	Mount Laurel, NJ	$21,281	03262
When a "stock purchase" is desired, you may consider using a vehicle from the ARI "pool" to save money and time. Call your ARI representative for details!

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