Tue, January 13, 2009
DETROIT, Michigan – The glint of a host of greener cars failed to lift the pall hanging over the Detroit auto show Sunday, as the industry faced tanking sales and General Motors and Chrysler fought for their very survival.
In a town once known for its gasoline-guzzling trucks and sport utility vehicles, automakers from across the globe tried to one-up each other's fuel efficiency and commitment to environmental sustainability.
There was even a tree-lined track, set up around artificial lakes and waterfalls in the basement of the convention center, so people could test-drive a host of zero-emission prototypes by GM, Ford, Toyota, Honda, Mitsubishi and Tesla.
GM promised to bring a mini car, the Spark, to the US market by 2011, and unveiled a prototype of a Cadillac extended range, plug-in hybrid amid a moving fashion show of its latest offerings, which it said "underscores GM's ongoing commitment to emotionally compelling design, leading fuel efficiency and advanced technology."
Chrysler unveiled three plug-in, gas-electric, hybrid prototypes -- a sedan, a Jeep and a sports car -- which it said "clearly demonstrates that we are well on our way to bringing electric vehicles to our consumers' garages."
Ford entered the electric fray with a promise to bring a suit of electric vehicles to market by 2012 and introduced two new, production-ready hybrids which it says get better fuel economy than Toyota's popular Prius.
Refusing to be upstaged, Toyota said Saturday it will launch a two-seater electric car by 2012, and introduced a new dedicated hybrid for its luxury Lexus brand on Sunday. It will unveil a revamped version of its Prius hybrid on Monday.
China's BYD Auto will be showing the first mass-produced plug-in hybrid, which went on sale last month in China and is slated to hit Europe in 2010.
And Honda unveiled its reintroduced, dedicated hybrid, the Insight hatchback, which goes on sale in the United States in April.
But with industry sales forecast to collapse worldwide amid a financial crisis and deepening recession in several key countries, financial issues were the focus of most questions during the press preview.
General Motors and Chrysler, which recently obtained eight billion dollars in loans from the US government, must present plans by February 17 detailing how they will achieve long-term viability.
Both are hoping to obtain more money from the government to help them survive the next year, when US sales are expected to fall to between 10.5 and 12 million vehicles from recent averages of about 16 million.
General Motors plans to "dramatically accelerate and expand the restructuring that we've been driving in North America, and around the globe, for the past several years," said chief executive officer Rick Wagoner.
"That's a big job, to be sure, but there's even more than restructuring that we can and will do starting here this morning," he added.
Chrysler chief Bob Nardelli admitted that 2009 will be "very challenging," but insisted that the company will be able to get through the downturn and repay the loans.
Ford, which had initially asked for a government loan but then said it had sufficient resources to get through the downturn, said Sunday it was "in good shape in the financing of our plan."
European automakers were also cautious about the global outlook.
Daimler chief Dieter Zetsche said the German automaker was preparing for a "very difficult year," but that it is "strong and powerful to go through a crisis."
Some 58 new models -- including 44 worldwide debuts -- will be introduced as the manufacturers vie for the attention of nearly 7,000 journalists from over 60 countries at press previews which conclude Tuesday.
The North American International Auto opens to the public on January 17 and some 700,000 people are expected to attend by the time it closes on January 25.
(Agencies)
