Can U.S. Automakers Rev Up Sales at the American International Auto Show?
Monday, January 08, 2007SUSIE GHARIB: an upbeat outlook today from the world's largest auto maker. General Motors CEO Rick Wagoner said his company is on the road to generate improved sales and profits this year. Wagoner made the comments at the North American international auto show in Detroit where companies from around the world showcase their latest models as well as concept cars. Midwest bureau chief Diane Eastabrook reports from Detroit.
DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: Celebrities like Nick Lachey posed and paraded with General Motors concept vehicles at a gala before the North American international auto show, but the real stars in Detroit this week are products like Chevy's convertible Camaro and the electric-powered Volt. Chevy's Volt is a battery powered electric car with a back-up engine. General Motors Chairman and CEO Richard Wagoner calls Volt a blueprint for GM's future.
RICHARD WAGONER, CHAIRMAN & CEO, GENERAL MOTORS: We have teams working on a production intent version of the e-flex system. Maybe it won't look exactly like the Chevy Volt that we see here, but we're working on it as if we're going to bring it into market.
EASTABROOK: The U.S. auto industry is fighting for relevance again following a year of lost profits, years of declining market share and continued cutthroat competition. Hot cars like Ford's beefed up Interceptor concept could help it regain customers lost years ago to Asian and European competitors. Ford is also trying to get a toe hold on technology. Ford is partnering with Microsoft to offer synch, a wireless technology that offers hands-free access to cell phones and other media. Derrick Kuzak, group vice president of product development, says the technology will be available in a dozen Ford models later this year.
DERRICK KUZAK, V.P. PRODUCT DEVELOPMENT, FORD MOTOR CO.: What we're trying to do here though is also anticipate customer needs and get out ahead of them. In many cases, customers don't even recognize what they want from an automobile until we give them a technology.
EASTABROOK: Building better cars and improving technology is something analysts have been encouraging U.S. auto companies to do for several years. But now that they're addressing what has been a weak spot in their business, the sweet spot of their business is coming under heavy assault. Toyota is challenging the U.S. dominated full-sized pick-up market with the Tundra.
James Press, president of Toyota Motor North America, thinks the Tundra will easily double the Japanese auto maker's share of the full-size truck market, which is currently about 5 percent.
JAMES PRESS, PRESIDENT, TOYOTA MOTORS NORTH AMERICA: Well, you know, it's a global business and there really isn't turf that belongs to one group or another. I guess what we are trying to do here is to offer trucks for Toyota customers who really want a full-sized truck.
EASTABROOK: Still, Chrysler is protecting its turf: the minivan. The segment the company pioneered 23 years ago gets a facelift this year with swivel second row seats in its Town and Country. Tom Lasorda, group president and CEO of Chrysler Group, admits the competition from Asian auto companies helped spur the improvements.
THOMAS LASORDA, PRESIDENT & CEO, CHRYSLER GROUP: We think we have to have better features, better value than anyone else and people love our minivans. We sold 11 million of them, so they're going to come back and see this and say, my God we got to have another one.
EASTABROOK: Auto analysts admit the U.S. auto industry faces another challenging year, but Global Insight's Rebecca Lindland says its troubles really aren't that unique.
REBECCA LINDLAND, AUTO ANALYST, GLOBAL INSIGHT: They do need to get their North American operations in some kind of order, but I think Toyota and Honda have the same type of struggles with their home Japanese market as well.
EASTABROOK: Lindland says there is a sense of renewed excitement in Detroit. The trick now is getting consumers to feel that excitement, too. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Detroit.
