Jeremiah 29:11

2007 auto show goal: Turn lookers into buyers
New U.S. models aim to entice

BY JOE GUY COLLIER
FREE PRESS BUSINESS WRITER

January 1, 2007



A BMW is under wraps atop a display Friday during preparations for the 2007 North American International Auto Show at Cobo Hall. (RASHAUN RUCKER/Detroit Free Press)

North American International Auto Show
Where: Cobo Hall.

When: Media preview Jan. 7-9; industry preview Jan. 10-11; charity preview Jan. 12; public show Jan. 13-21.

Public show tickets: $12 adults, $6 senior citizens and children 7-12, children 6 and under free with parent.

Charity preview tickets: $400 (advance purchases only).

Failed alliance talks. Turnaround plans. Buyouts, bloated inventories and a Japanese automaker that just won't stop growing.

After a year of dramatic events that spanned the globe, the auto industry is preparing for next week's North American International Auto Show in Detroit in what figures to be another critical time for the U.S.-based automakers.

Much of the focus in 2006 was on cost-cutting moves, said Kevin Tynan, an analyst who follows the auto industry for New York-based Argus Research Co.

Products will be the story in 2007, Tynan said. After cutting tens of thousands of jobs and laying out plans to shutter factories, General Motors Corp. and Ford Motor Co. must show they have cars and trucks that resonate with customers, he said.

"You can only back up for so long and not get knocked out," Tynan said. "At some point, you have to move forward to win the fight. That's where product comes into play. At what point do you step forward and try to win?"

The Detroit show will be a significant marking point for the industry. This year, the show celebrates its 100th anniversary as a Detroit Auto Dealers Association-managed event.

Started as a local showcase of cars, the Detroit show has become an international event attracting more than 6,000 journalists and close to 800,000 visitors. Top executives from every major automaker will lay out their vision for the coming year through news conferences and interviews.

"You have industry leaders here," said Carl Galeana, cochair of the show. "That's what has separated the Detroit show from all the rest around the country. The leadership of the auto industry comes to Detroit whether they're from the Detroit area or not."

The show also provides a spotlight for some of the automakers' most promising new vehicles. More than 50 production or concept vehicles will be unveiled at this year's show for their North American or worldwide debut.

Last year, the rebirth of the Chevrolet Camaro and Dodge Challenger began at Cobo Hall. Toyota Motor Corp. also unveiled a dramatically redesigned Camry.

"If they have a big product, they want to do it here," Galeana said.

The 2007 show should be another year of both breaking corporate news and major vehicle introductions that provide a preview of the coming year in the auto industry.

A year ago this time, GM Chief Executive Rick Wagoner took the floor at Cobo Hall on the heels of what would be a $10.6-billion loss for 2005 and speculation that his job was in jeopardy. Ford was losing money and market share in North America while the Chrysler Group, the Auburn Hills-based unit of DaimlerChrysler AG, was winning new customers.

Heading into this year's auto show, Wagoner seems firmly in control. GM has narrowed its losses and persuaded 35,000 hourly workers to take buyouts. Talks of a global alliance with Nissan Motor Co. and Renault SA came and went. So did activist investor Kirk Kerkorian, who sold off his GM stock.

Last year, Ford announced its Way Forward turnaround plan, hired a new CEO and then announced an acceleration of the Way Forward, backed by a financing deal worth up to $25.5 billion. About 38,000 Ford hourly workers took that company's buyout p