The North American International Auto Show Could Drive Up Ailing Auto Sales
Monday, January 14, 2008SUSIE GHARIB: Detroit is in the spotlight this week, as the North American international auto show rolls into town. With this expected to be one of the toughest years in over a decade for car and truck sales, Diane Eastabrook looks at the new models that makers and dealers hope will ignite sales. DIANE EASTABROOK, NIGHTLY BUSINESS REPORT CORRESPONDENT: At the North American international auto show, it's the year of the pickup truck. Ford set off fireworks to launch its redesigned F-150, while Chrysler turned Detroit streets into the wild west to roll out its latest Dodge Ram. With gasoline prices rising and the nation's economy slowing, this might not seem like the ideal time to launch new pickups. But Chrysler President and Vice Chairman Jim Press disagrees.
JIM PRESS, PRESIDENT & VICE CHAIRMAN, CHRYSLER: The full size truck market is the biggest single market in the United States auto industry. So wouldn't you rather be going into a tough market with the best product, the newest product than with somebody that was trying to sell something that was from last year?
EASTABROOK: The Detroit auto show is the coming out party for the automotive world's newest products. But JD Power and Associates' economist Jeffrey Schuster complains that this show has been short on green vehicles like hybrids and long on gas guzzlers.
JEFFREY SCHUSTER, ECONOMIST, J.D. POWER & ASSOCIATES: When you boil it all down, we've had sports cars, pick-up trucks and technology that is not out, so not a lot really for the marketplace in 2008 yet.
EASTABROOK: But analysts say some products like crossovers look promising. Toyota hopes its new Venza will appeal to baby boomers and young families. Toyota marketing Vice President Randy Pflughaupt says the Venza will be more fuel efficient than a sport utility.
RANDY PFLUGHAUPT, MARKETING V.P., TOYOTA MOTORS: Both a six-cylinder and a four-cylinder engine will be available, so MPG will be a prominent feature for this vehicle going forward.
EASTABROOK: The head of one of the nation's largest car and truck retailers thinks Ford has a hit crossover. Autonation Chairman and CEO Mike Jackson likes the wagon-like Flex.
MIKE JACKSON, CHAIRMAN & CEO, AUTONATION: It's again another whole iteration on how to do crossover vehicles. It's very innovative, very different and it's going to be very interesting to see how that does in the marketplace. I think it'll do well.
EASTABROOK: Analysts think luxury vehicles will also sell well and this year a new entrant joins the segment. Hyundai's Genesis is taking on European and Japanese luxury sedans. Hyundai's product planning director Wayne Killen thinks the company's reputation for affordability will be a selling point.
WAYNE KILLEN, PRODUCT PLANNING DIR., HYUNDAI: I think in times like these, people are evaluating their choices. They are looking at what can they get for their dollar, the performance, the technology and that's really where Genesis steps in well.
EASTABROOK: General Motors is adding more heft to its luxury Cadillac division. The new CTSV will sport a V-8 550 horsepower engine. GM Chairman and CEO Richard Wagoner admits the sedan's launch doesn't come at the best time, but he's confident it will sell.
RICHARD WAGONER, CHAIRMAN & CEO, GM: Even today if you read the news, the politicians from both sides talking about the importance of stimulus package, the Fed talking about hey, we really do have to watch what is going on and make sure we keep rates at a level which reflects the difficulties in the economy. I think that is good news.
EASTABROOK: Most of the products rolled out at this show won't actually roll into dealer showrooms until late summer or early fall. Experts say how well these vehicles sell will depend largely on how well the U.S. economy is performing and how manufacturers price them. Diane Eastabrook, NIGHTLY BUSINESS REPORT, Detroit.
GHARIB: We'll have more from Diane Eastabrook at the North American international auto show in Detroit. Tomorrow, she brings us the industry's vision of the future.
