US automakers get backseat at Detroit show

Detroit, January 9:

US automakers were on the defensive at the Detroit Auto Show as Asian rival Honda captured the prestigious car and truck of the year awards and disgruntled auto workers protested outside.

In a year when Ford is planning to announce major layoffs and plant closures, and analysts are speculating that General Motors could declare bankruptcy, domestic automakers offered vague financial forecasts to journalists at one of the most important auto shows of the year.

GM chairman Rick Wagoner would say only that his company would return to profitability ‘as soon as we can.’ Ford chairman Bill Ford told reporters he hoped to “stabilise our market share this year.” Those weak assurances meant little to the hundreds of auto workers who braved bitter winds yesterday to remind the executives inside the Detroit auto show that their restructuring plans have a human cost.

“We can’t buy what we build with a 60 per cent pay cut,” said Michele Carriere, who works for auto parts supplier Delphi, which is also threatening to default on its pension obligations as a means to emerge from bankruptcy protection. “It’s not going to stop with Delphi. It’s going to go to GM and to Ford and it’s already happened with some companies like the airlines.”

While GM and Ford tried to focus attention on a slew of new vehicles being presented, Toyota forecast 2006 US sales would surpass the 2.3 million vehicles it sold last year.

Analysts are expecting Toyota to overtake top-ranking GM in global sales volume this year, and it ought to get a big boost from the introduction of a hybrid version of its popular Camry this week, already the best-selling vehicle in the US.

Honda meanwhile forecast growth of about 3.4 per cent in the US to 1.5 million vehicles in 2006 with a nice boost coming from the prestigious car and truck of the year awards, a first for the Japanese automaker. “It will be a great plus in terms of marketing,” chairman Takeo Fukui said.

The auto show opened for press previews just days after annual sales figures showed that Asian automakers now command 36.5 per cent of the massive US market. One reason for their recent success has been a sharp drop in demand for gas-guzzling sports utility vehicles, a mainstay of now-struggling Ford and General Motors.

That trend is set to continue in the new year, said Volkswagen chairman Wolfgang Bernhard.

“We see the American consumer is going to buy more small, fuel-efficient vehicles,” he said, “That means cars are making a comeback and crossovers are coming back, and anyone who’s positioned for that is going to do well.”

China is also ready to dive into the US market. The mainland’s pioneering private carmaker Geely is exhibiting at the show — a first for Chinese automakers — in preparation for the 2008 launch of a five-passenger sedan.

Nearly 40 new vehicles were to be introduced yesterday, today and tomorrow at the 2006 North American International Auto Show as automakers vie to capture the attention of more than 6,800 journalists from 63 countries.

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. One that created some buzz was the Toyota F3R minivan with stylish, modular seats that rotate and swivel to transform the car into a lounge equipped with two track-mounted flat-panel video screens.

Honda bags awards

DETROIT: US automakers were dealt another bit of bad news on Sunday as the prestigious North American Car of The Year Award was presented to the Honda Civic and its sibling Truck of the Year honors went to the Honda Ridgeline. The awards are presented by a panel of 49 independent automotive journalists from various publications. — AFP