US carmakers hit on home ground

The S-type: led a surge in Jaguar's US sales

Jaguar rubbed further salt into the wounds of the ailing US car makers by revealing record sales in their home market.

The UK-based arm of Ford recorded a 25% boost in sales last year to 43,728 cars, the day after fellow upmarket brands Rolls Royce and Bentley also revealed brisk US trade.

Detroit highlights

Tuesday

Ford: Announces upgraded SUVs

Jaguar: US sales up 25% in 2000

Monday

Bentley: NA* sales +28% in 2000

DaimlerChrysler: Unveils Dodge Viper convertible

General Motors: Cuts vehicle output a further 6%

Honda: Predicts US sales of 1.2m in 2001 (+3.5%)

Nissan: Unveils pick-up truck and Z sports car

Rolls Royce: NA* sales +4% in 2000

Volvo: Reveals plans for small SUV

VW: World sales topped 5m (+3.9%) in 2000

*NA = North America

The announcement, at America's flagship motor show in Detroit, followed a report revealing that the market share of America's big three car makers had fallen below two thirds in the US.

The firms, Ford, General Motors and the US-German combine DaimlerChrysler, have within the last month announced output cuts in response to a contracting American car market.

Sales in the US are widely expected to fall within the 16-16.5 million range this year, compared with 17.4 million in 2000.

Major foreign car makers such as Honda and Volkswagen, which owns Rolls Royce cars and Bentley, are expecting to increase US sales in 2001 despite the weaker overall demand.

'Love affair'

Jaguar credited its sales growth in the US on a "love affair" with the S-type, launched in 1998.

The launch of the X-type later this year will help the firm's total sales top 100,000 this year, managing director Jonathan Browning said at the North American International Auto Show.

Jaguar's parent company Ford on Monday forecast lower sales, and first quarter earnings lower than the $2.1bn achieved last year.

On Tuesday, Ford unveiled a series of safety measures for its sports utility vehicles (SUVs), including a tyre pressure monitoring system.

Tyres fitted as standard to Ford's flagship Explorer vehicle were involved in a recall ordered by Bridgestone/Firestone following 148 motoring deaths.

Volkswagen revival

Also on Tuesday, Volkswagen boosted its assault on the US market by announcing a cut in price, and boost in engine size, for its Eurovan from March.

While VW shifted 2,700 of the vehicles in the US last year, the firm believes that slicing $5,100 off the retail price, and upping the motor from a 140 horsepower unit to a 210 horsepower design, will boost the van's appeal to American motorists.

VW also used the motor show to unveil a prototype of a 21st century Microbus, inspired by the vehicle which, with the Beetle, earned the company global prominence in the 1960s.