Saturday, January 10, 2009

Less glitz, more green will be on display as auto show preview opens Sunday

The 2009 North American International Auto Show will be a mix of glum and green as automakers tout vehicles powered by batteries and electricity during an event shadowed by slumping sales, financial woes and questions about the long-term viability of General Motors Corp. and Chrysler LLC.

But the industry's troubles don't diminish the importance of the nation's premier auto show, especially as automakers jockey for the best position once credit markets thaw and buyers release pent-up demand for new vehicles.

"You've got to be able to showcase your product in such a competitive market," said independent auto analyst Erich Merkle, who has worked for several auto consulting firms. "New products and product development is the lifeblood of any automaker. You have to ask yourself who is positioning themselves the best for when we come out of this recession?"

Last year's show also spotlighted fuel-efficient models, but they debuted alongside two stars of the show, the fuel-hungry Dodge Ram and Ford F-150 pickups. This year, the green theme is clear.

The show will feature vehicles that rely on electric and hybrid powertrains, along with more fuel-sipping passenger cars and crossovers. The focus shifts away from trucks for the first time in years, a reaction to last year's record-high gas prices and a resulting shift in consumer tastes, as well as government pressure to invest in green technologies.

The show, which opens Sunday with press previews before public days Jan. 17-25, will give automakers a chance to focus on new products and technologies instead of the months-long drumbeat of bad news about balance sheets, job cuts and government bailouts.

"The timing of the show couldn't be better," said senior co-chair Joe Serra, president of Serra Automotive Inc. in Grand Blanc. "The auto industry has been in the news a lot lately. News that hasn't been positive. This show allows manufacturers to tell the world their story and game plan and what the future looks like."

Judging by the lineup of products to be unveiled at Cobo Center, the future is looking away from petroleum.

Electric vehicles will have a dominant presence.

Chrysler is expected to show electric concept vehicles while Tesla Motors, a California company, will spotlight its $109,000 electric roadster. BYD Auto Co., a top Chinese auto company, will show an electric crossover vehicle and a plug-in hybrid sedan.

There also will be a host of hybrids. Toyota Motor Corp. will unveil its next-generation Prius hybrid on Monday along with a battery-powered concept vehicle, while Japanese rival Honda Motor Co. will display its re-conceived Honda Insight hybrid.

Toyota's upscale Lexus unit will show its HS 250h, the brand's first dedicated hybrid, while Fisker Automotive, an Irvine, Calif.-based start-up automaker and a joint venture between Quantum Technologies and Fisker Coachbuild, will unveil a new luxury hybrid concept, the Fisker Karma S.

Hybrids will be in the spotlight even as demand is slowing for the vehicles, which typically cost more than non-hybrid models. The top-selling hybrid vehicle last year was the Toyota Prius, with 158,884 unit sales, but sales dropped 44.7 percent in December from year-earlier levels, outpacing the 35.5 percent decline for the industry overall. Toyota has postponed the start of production of Prius hybrid cars at a new plant in Mississippi.

"When you have lower fuel prices and a sagging economy, green (vehicles) don't hold up too well," Merkle said. "People don't want to spend the extra money on a green car."

But automakers need to emphasize their green initiatives, he said, especially in light of criticism lobbed at Detroit's Big Three CEOs during congressional hearings last year on federal aid for the troubled companies.

"You have to have green technology," and show the world "that you're making progress and saving the planet," Merkle said.

Germany's BMW and Audi will show vehicles using clean diesel engines.

There will be a strong lineup of passenger cars and crossover unveilings, too.

Ford Motor Co. will show its redesigned Taurus sedan, while GM unveils its Buick LaCrosse sedan, originally set to debut at last year's Los Angeles auto show. GM also will show two new crossovers, the Cadillac SRX and Chevrolet Equinox.

And Mercedes-Benz will display its next generation E-Class sedan.

The focus will be on the products, not the celebrities and stars of years past who were shipped into Detroit to add glitz and glam, said Stephanie Brinley of the research and marketing firm AutoPacific Inc. GM, for example, has canceled its Style event, an invitation-only celebrity-studded soiree that used to be the Saturday before the show.

"It's a back-to-basics show," she said. "This is not the year for pie-in-the-sky concepts or pushing the envelope. As a result of the market being down and the economy, this is not as much playtime."

Expect a few surprises, though even those will be muted, she said.

"I don't think they'll be wild and crazy ones," Brinley said. "They will be real-world ideas."

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