Chicago, January 4:

With US giants like GM and Ford struggling, this weekend’s Detroit auto show is expected to highlight the increasing dominance of Asian firms — including the first-ever appearance by a Chinese automaker.

Nearly 40 new vehicles will be introduced at the th-ree-day North American International Auto Show, one of the most important annual event, with journalists from around the world. Geely will become the first Chinese carmaker ever to exhibit at the Detroit showcase, in preparation for the launch of a five-passenger sedan in 2008.

The show comes with Toyota expected to overtake General Motors in global sales volume this year, boosted by a new hybrid-electric version of its popular Camry, already the best-selling vehicle in the US. “There’s certainly going to be more cross-overs shown, more hybrids, and small cars,” said Rebecca Lindland, an auto analyst with Global Insight, an economics and consulting firm, in Lexington, Massachusetts, “The new Toyota Camry hybrid is coming out and that’s going to be huge.”

GM and Ford are hoping to regain some of their lost market-share with new models, but analysts say it remains unclear if high petrol prices will continue to bite into sales of large sports-utility vehicles.

“The next two years are going to be a real watershed for them,” said Dana Johnson, chief economist at Comerica Bank, “They absolutely must demonstrate they can stabilise their market share, because cost-cutting is not enough.” The two firms posted massive losses in 2005 as consumers shied away from SUVs, which had been the most profitable vehicles and responded by sh-utting factories and laying off thousands of workers.

US automakers are also being challenged for dominance of the domestic manufacturing sector as foreign firms shift more of their production to the United States, still the world’s largest automotive market. In 2005, South Korea’s Hyundai opened its first plant in Alabama while Toyota launched a new truck factory in Texas. “This is going to be the year we’re going to see the Koreans surge forward,” said Peter Morici, a business professor at the University of Maryland, “Hyundai is ready to make an assault on Chevy and Pontiac because they have more attractive offerings with a better warranty.”

At the same time, he said, European automakers are facing their own problems. “This is the year you’re going to seem some real pain at Mercedes because the quality isn’t there and they’re being overtaken by BMW,” he said.

Among the new vehicles introduced will be 12 ‘concept’ cars that will only go into production if they receive a good response from the media and public. Lindland said many of those vehicles will be targeted at the youth market in order to capitalise on the latest trend of ‘pimping out’ a car with the latest in youth-orientated, high-tech gadgets.

One example is a Nissan roadster that includes a fully integrated Xbox car-racing video game that allows the driver to play with the car’s own steering wheel and pedals — while watching on a flip-down LCD screen.