A new sense of optimism filled the Detroit auto show as the industry looked forward to a recovery from one of its worst years on record.
The overall mood is significantly more upbeat than a year earlier when General Motors (GM) and Chrysler’s very existence was in doubt as Congress sparred over providing billions of dollars in emergency loans.
“Today is a new beginning for the automotive industry,” US Transportation Secretary Ray LaHood told reporters.
PHOTO: REUTERS
“When people have an opportunity to see the kind of products that are now being manufactured and will be on display, they will realize the auto industry is manufacturing products people want to drive,” he said.
Ford, GM, Toyota and Honda kicked off the show by highlighting their focus on fuel-efficient vehicles.
Ford — which managed to stay afloat and increase its piece of the shrunken US market last year — introduced a much-anticipated update to its compact Ford Focus sedan.
“Companies have to pay attention to the three Es: economy, efficient and the environment,” chairman Bill Ford said as he touted the automaker’s new global vehicle platforms, which will radically reduce costs.
Toyota unveiled a prototype of a compact dedicated hybrid vehicle — the FT-CH — while Honda revealed a hybrid sports coupe — the CR-Z — that will hit US showrooms later this year.
GM opened its presentations by introducing a boxy, low-lying new compact sport utility vehicle, the GMC Granite, a “concept” that would be aimed at young, urban drivers if it ends up being tapped for mass market production.
The automaker also introduced several new smaller cars to be sold under its Chevrolet brand, including the Spark mini car and a sporty Aveo prototype.
Notably absent from the schedule was Chrysler, which had little to present after the turmoil of a painful divorce from Daimler, a brief takeover by private equity group Cerberus and a quick spin through bankruptcy that left the number three US automaker under the management of Italy’s Fiat.
New chief Sergio Marchionne was on hand, however, to speak with the media and give lawmakers a tour of the scaled-back Chrysler display, filled with aggressive trucks, muscle cars, shiny new sports cars and — thanks to the alliance with Fiat — Maserati, Ferrari and the Fiat 500 minicar.
A congressional delegation led by House Speaker Nancy Pelosi saw a strong emphasis on small cars and fuel efficiency at the show, with a 3,440m² exhibit of 20 different electric vehicles replete with a tree-lined test track.
There were also plenty of luxury vehicles on display despite the poor economy and a host of trucks and sport utility vehicles to tempt consumers who are less environmentally conscious.
Kia capitalized on its corner of the lower cost market with a kitchy press conference styled like an infomercial with the constant refrain “but wait, there’s more” as it described its new offerings.
“What we saw here today was vibrant, optimistic leadership to leapfrog over the competition and to keep America number one,” Pelosi said.
“Our hopes are riding on the auto industry succeeding in our country and we thank all those who are making the progress possible,” she said.
There is no doubt that this year will be a challenging year and the competition will be fierce.
Most analysts are forecasting a moderate rebound in US auto sales to between 11 million and 12.5 million vehicles this year after dropping 21 percent to 10.4 million vehicles last year. That will still be drastically below the 15 million to 17 million vehicle range posted in each of the previous 15 years and sales could be sharply hit should the economy take another bad turn.
RETHINK? The defense ministry and Navy Command Headquarters could take over the indigenous submarine project and change its production timeline, a source said Admiral Huang Shu-kuang’s (黃曙光) resignation as head of the Indigenous Submarine Program and as a member of the National Security Council could affect the production of submarines, a source said yesterday. Huang in a statement last night said he had decided to resign due to national security concerns while expressing the hope that it would put a stop to political wrangling that only undermines the advancement of the nation’s defense capabilities. Taiwan People’s Party Legislator Vivian Huang (黃珊珊) yesterday said that the admiral, her older brother, felt it was time for him to step down and that he had completed what he
Taiwan has experienced its most significant improvement in the QS World University Rankings by Subject, data provided on Sunday by international higher education analyst Quacquarelli Symonds (QS) showed. Compared with last year’s edition of the rankings, which measure academic excellence and influence, Taiwanese universities made great improvements in the H Index metric, which evaluates research productivity and its impact, with a notable 30 percent increase overall, QS said. Taiwanese universities also made notable progress in the Citations per Paper metric, which measures the impact of research, achieving a 13 percent increase. Taiwanese universities gained 10 percent in Academic Reputation, but declined 18 percent
CHINA REACTS: The patrol and reconnaissance plane ‘transited the Taiwan Strait in international airspace,’ the 7th Fleet said, while Taipei said it saw nothing unusual The US 7th Fleet yesterday said that a US Navy P-8A Poseidon flew through the Taiwan Strait, a day after US and Chinese defense heads held their first talks since November 2022 in an effort to reduce regional tensions. The patrol and reconnaissance plane “transited the Taiwan Strait in international airspace,” the 7th Fleet said in a news release. “By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations.” In a separate statement, the Ministry of National Defense said that it monitored nearby waters and airspace as the aircraft
UNDER DISCUSSION: The combatant command would integrate fast attack boat and anti-ship missile groups to defend waters closest to the coastline, a source said The military could establish a new combatant command as early as 2026, which would be tasked with defending Taiwan’s territorial waters 24 nautical miles (44.4km) from the nation’s coastline, a source familiar with the matter said yesterday. The new command, which would fall under the Naval Command Headquarters, would be led by a vice admiral and integrate existing fast attack boat and anti-ship missile groups, along with the Naval Maritime Surveillance and Reconnaissance Command, said the source, who asked to remain anonymous. It could be launched by 2026, but details are being discussed and no final timetable has been announced, the source