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By STAFF: Carol J. Loomis, David Kirkpatrick, Nancy J. Perry, H. John Steinbreder, Eleanor Johnson Tracy, Daniel P. Wiener

(FORTUNE Magazine) – The first Brazilian-made car to hit the U.S. market, the Volkswagen Fox, a subcompact, carries a bargain price of $5,690, making it competitive with South Korea's Hyundai and the Japanese Subaru Justy. Offering amenities like a two-year unlimited mileage warranty covering everything but the tires, VW hopes its frisky Fox will snare some 50,000 U.S. drivers this year and as many as 80,000 next. -- Paramount's Top Gun shot the competition dead at the box office last year. Now it is setting new records as a videocassette. Not only will its price -- $26.95 -- be the lowest ever for a major release, but it will also be the first to carry advertising: a commercial for Diet Pepsi.