NEWS: Big 3 Unveil "distinctly American" new models

[Cerberus]

Cant say I didnt see this one coming. Competition is getting fierce.

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Tuesday, January 10, 2006


DETROIT - U.S. automakers at the Detroit auto show this week used pageantry and bold styling to try to make American brands popular again, as Asian rivals continue to gain market share.

At the North American International Auto Show, Big Three carmakers Ford Motor Co., General Motors Corp. and DaimlerChrysler AG introduced a number of concept and production vehicles that heralded a return to the muscle car, while also making strong moves into the popular crossover vehicle segment.

"Athletic, powerful and distinctly American," was the tagline used to describe Ford's new luxury Lincoln brand offerings early yesterday.

GM, meanwhile, hoped to gain ground in the popular hybrid segment by offering two new models priced significantly below all other hybrids on the market.

But in a year when Ford Motor Company has planned major layoffs and plant closures and analysts have speculated that General Motors Corp. could declare bankruptcy, domestic automakers here provided only vague financial forecasts.

GM chairman Rick Wagoner would say only that his company would return to profitability "as soon as we can." Ford chairman Bill Ford, meanwhile, told reporters he hoped to "stabilize our market share this year."

While GM and Ford tried to focus attention on a slew of new vehicles being presented, Toyota Motor Corp. forecast its 2006 U.S. 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. It was expected to get an additional boost from the introduction this week of a hybrid version of its popular Camry this week, which is already the best-selling vehicle in the United States.

Honda, meanwhile, forecast growth of about 3.4% in the United States to 1.5 million vehicles in 2006 with additional sales 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 in an interview.

Korean automaker Hyundai Motor Co. forecast a 10% jump in U.S. sales to 500,000 vehicles in 2006 after having introduced seven new products in 24 months and opened its first U.S. plant in Alabama last spring.

The auto show, one of the most important of the year, opened for media previews just days after annual sales figures showed that Asian automakers now command 36.5% of the massive U.S. market.

One reason for their recent success has been a sharp drop in demand for gas-guzzling sport-utility vehicles, a mainstay of now-struggling Detroit-based automakers Ford Motor Company and General Motors.

China also is getting ready to dive into the U.S. market. Chinese Mainland's pioneering private carmaker, Geely Automobile Holdings Ltd., is going to be exhibiting at the auto show -- a first for Chinese automakers -- in preparation for the 2008 introduction of a five-passenger sedan.

Meanwhile, German luxury brands Mercedes and BMW AG both forecast strong growth in 2006.

BMW Group announced at the auto show that it had pushed ahead of rival Mercedes-Benz after global sales rose 9.9% in 2005 to a record 1.33 million vehicles. Dieter Zetsche, the new chief executive officer of DaimlerChrysler, downplayed the impact of increasing competition from rival BMW.

"Both BMW and Mercedes are strong brands because they take each other on all the time," he told reporters in a round-table interview on the sidelines of the auto show.

Mr. Zetsche said he focuses more on profitability than gross sales figures, and said Mercedes pulls in 40% more profit per vehicle than its German rival.

Nearly 40 new vehicles will be introduced on Sunday, Monday and Tuesday, as carmakers 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 considerable excitement 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.