Less is more at Detroit show

• Source: Global Times
• [00:48 January 12 2010]
• Comments

A Green Vehicles' Triac is displayed at the North American International Auto Show Monday  in Detroit, Michigan. The Triac is a 100 percent electric vehicle, has a top speed of 80 miles per hour, and a 100-mile range. Over 700 vehicles, including 60 new models, are being exhibited at the auto show, which is open to the public January 16-24. Photo: AFP

A diminished Detroit auto show was expected to shed its traditional theatrics Monday  as the Motor City's badly battered carmakers work to make more out of less.

Much of the glitz and glam will be gone from the press preview days as carmakers cut back their marketing budgets in the wake of a collapse in sales to levels not seen since 1983.

But the overall mood is significantly more upbeat than a year earlier when the very existence of General Motors and Chrysler was in doubt as Congress sparred over providing billions in emergency loans.

While the restructuring was extremely painful, it has left Detroit in a much stronger position, GM vice chairman Bob Lutz said Sunday, adding that a Cadillac version of GM's highly anticipated battery-powered Chevy Volt will hit the market sometime in 2013 or later.

"It is kind of the phoenix rises from the ashes because this is the first time when we can deploy the full power of GM without the burden of all that horrible legacy cost and the crushing debt load that's all gone now."

On display are a strong emphasis on small cars and fuel efficiency from major carmak-ers, with a 37,000-square-foot display of 20 different electric vehicles that can be tested on an indoor track.

There will also be plenty of luxury vehicles on display despite the poor economy and a host of trucks and sport utility vehicles to tempt consumers who aren't as environmentally conscious.

"Despite the poor shape of the domestic auto industry, we do see some signs of hope from the Big Three," said Patrick Olsen, editor in chief of Cars.com.

There is no doubt that 2010 will be a challenging year.

Most analysts are forecasting a moderate rebound in US auto sales to between 11 and 12.5 million vehicles this year after dropping 21 percent to 10.4 million vehicles in 2009.

But that will still be drastically below the range in the past 15 years and sales could be sharply hit should the economy take another bad turn.

"It's still a market suffering and trying to recover," said Karl Brauer, editor in chief of the edmunds.com website.

"Everybody's thinking we've hit bottom but nobody expects to get out" quickly, he said.

Agencies