By MARK VAN DE KAMP
NEWS-PRESS BUSINESS EDITOR

From big sport utility vehicles to speedy sports cars, a surge of new vehicles from around the globe will hit the U.S. market this year.

Look for more new models than ever. Domestic automakers will roll out 40 new or updated models in 2004, giving them a determined shot at competing with imports. Wall Street analysts expect foreign makers will add at least another dozen new models.

This is happening because Americans have kept buying vehicles in large numbers thanks to low interest rates and high incentives. Yet, many vehicles are not very fuel-efficient.

The average 2003 model was rated at 20.8 mpg. Americans looking to buy a 2004 model can choose one that gets as much as 60 mpg or one that gets only 9 mpg.

Vehicle sales are big business: Santa Barbara County sees about $700 million in automotive sales a year, and new vehicles are generating high interest, local dealers say.

	MIKE ELIASON/NEWS-PRESS With many discounts and incentives, auto shopping may get more challenging.

The used-car market also is brisk. Consumers are used to automakers offering bigger discounts, but some have raised suggested retail prices to make up the difference.

Discounts can go into the thousands on one vehicle. Factoring in every discount, the average price paid by consumers for new cars and trucks in December was $26,077, according to www.edmonds.com.

"It's the most exciting time I've ever seen in the car business," said Richard Graham, owner of Graham Chevrolet-Cadillac-Saab in Santa Barbara. His company added the Saab line last year.

"Consumers are getting excellent value," Mr. Graham said. "It's also the most challenging because we have guys at school constantly learning new technologies and new tools for our service department."

Santa Barbara Nissan has a new vehicle in every product line for 2004, said Dino Palmieri, new car manager.

"Nissan has redesigned the lines and is going after some of the market that Ford, GM and Dodge have in the V-8 market," Mr. Palmieri said.

The dealership is anticipating a strong sales year, owner Doug Connor said. His biggest business is selling used cars; Santa Barbara Nissan sells between 90 to 120 new and used vehicles each month, Mr. Palmieri said.

"All the manufacturers are very competitive, and with all the new models coming out this year, if anything, values for consumers are better now than ever," Mr. Connor said.

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