Don't fall for it

A Canadian-based promotion for a "new Volvo or cash prize equivalent" has been branded a "scam" by Volvo in New Zealand. A firm called National Audit Centre is mailing a sweepstake to householders asking for $40 to process their entries. Those who miss out on the main prize can win minor cash prizes.

Volvo's distributor in New Zealand, Scandinavian Motors, has already fielded calls from people who want to be in to win. "We emphatically do not endorse the scheme and have no association with it," says John Snaith, Volvo's main man here. "We are alarmed that the Volvo brand is being used this way."

Holden on top

Holden sold more than 800 new vehicles last month, its best February for five years and almost double February 1999 sales. So far this year, the VT Commodore is the bestselling car on the market, leading the Ford Falcon by 200 units and the Toyota Corolla by 219. Exports of Holdens from Australia are expected to increase in the Middle East and South America now that the parent company, General Motors, and Fiat are working together.

Executives said after the share swap deal that it would help to strengthen both companies' positions in Europe and South America. Left-hand-drive Commodores are being sold as Chevrolet models in other countries. GM now owns 20 per cent of Fiat and Fiat has 5.1 per cent of GM.

Class of its own

The Mercedes-Benz C-Class is expected to go on sale in New Zealand towards the end of the year. From all reports it looks like a scaled-down model of the flagship S-Class. But the hatchback C-Class isn't expected until later next year. The hatchback is aimed at the Audi A3. Things will get even more competitive in the executive small-car market when BMW launches its new 3-Series compact, which is far more advanced than the present model. Options include a full-length glass sunroof similar to that on the Porsche 911 Targa.

Atlantic crossing

Rolls-Royce is air-freighting its Corniche convertible to buyers in Florida and California, where two-thirds of this year's production will go. It seems the wealthy weren't prepared to wait for the cars to cross the Atlantic by ship. The carmaker's researchers say that Corniche buyers are the richest Rolls owners of all.

Sticking with it

Chrysler's decision to stick with the present Jeep Cherokee model for another year or two might be considered fortuitous now that BMW has sold Land-Rover and Range Rover to Ford. Chrysler had planned to replace the 17-year-old Cherokee next year with a model aimed at the Land-Rover Discovery, Toyota Prado and Nissan Pathfinder. But Cherokee sales are still strong, even though the vehicle - while certainly rugged and robust - is outdated. Chrysler's marketing people are talking-up Jeep, saying it remains true to its origins, while Land-Rover has been a BMW and is now a Ford.

Rover staff cuts

Cars bearing the name of Rover - the poor man's Rolls-Royce back in the 1950s and 60s - will end within the next few years. The plant at Longbridge in Britain will be scaled down and used to make sporty MG compacts intended to appeal to young families, as MG did itself in the 50s. Staff cuts at the plant, which employs 9000 of Rover's 30,000 people, could be even more severe than industry analysts indicated soon after BMW pulled the plug.