Chrysler Chairman Predicts Strong Auto Sales Eaton Expects 1997 To Be Virtual Carbon Copy Of ‘96

Chrysler Corp. Chairman Robert Eaton predicted Wednesday that domestic auto sales will remain strong through 1997.

“We’re into a steady and sustainable growth period,” Eaton told a news conference after the dedication of Chrysler’s new world headquarters. “1997 may not be quite this good, but we see it about the same as this year.”

Eaton’s comments came two days after Chrysler reported its May sales of cars and trucks broke the No. 3 automaker’s previous monthly record.

Chrysler started the year forecasting the auto industry would sell 15.1 million cars and light trucks in the United States; it later raised the estimate to 15.3 million.

Eaton said the automaker expects to raise it again to about 15.4 million. The industry sold 14.8 million cars and light trucks last year.

With personal income growing and no substantial inflationary pressures, there is no reason such growth cannot continue, he said.

“I know it’s not going to run forever. I don’t have any idea when we’re going to reach that point, but it is going to take something that causes inflation to go up or some kind of international incident.”

Eaton also repeated Chrysler’s position that the seat belts on its 1995 Chrysler Cirrus and Dodge Stratus cars are safe. The National Highway Traffic Safety Administration is taking Chrysler to court to force it to recall 91,000 of the cars for failing a government seat-belt safety test.

“The government decided to test in a manner which was not specified in the regulations, and in a different manner than all of the auto manufacturers tested,” Eaton said. “We simply don’t think that’s appropriate.

“There has not been one single accident, one single injury or one single complaint. This is simply a test procedure issue, one which we felt we had to take on.”

Eaton said every other automaker supports Chrysler. He called the agency’s move to take Chrysler to court Tuesday “much ado about nothing.”