Auto Show Offers Chance at Redemption for GM, Chrysler
After going through U.S. government-orchestrated bankruptcies, GM and Chrysler are looking to bring the focus back to their cars and trucks. The L.A. Auto Show is their first chance since those dark days of summer to win over taxpayers who not only own a chunk of each company but are also potential customers.
Despite some signs of progress at the show, there are big hurdles to both companies’ future success.
General Motors' President and CEO Fritz Henderson resigned on the eve of the L.A. Auto Show's media preview — an event he was scheduled to speak at; he’s been replaced in the interim by GM's board chairman Ed Whitacre Jr. Henderson’s departure overshadowed the debut of new models like the Chevrolet Cruze, Buick Regal and Cadillac CTS coupe, all of which are important new models for the automaker.
"The timing was not ideal," Rebecca Lindland, an auto analyst with IHS Global Insight, said wryly.
Although there are plenty of cars in GM's area of the show, its displays aren't as lavish as last year's. Indeed, the toned-down presence is about as minimalist as GM could go without looking out of place.
GM's 90,000-square-foot space at the L.A. Auto Show is about 16 percent smaller than last year, but with half as many brands it's easier to spotlight the cars, said Timothy Peters, GM’s assistant director of global auto shows.
"The whole story is to come out with a full array of products and to demonstrate that we get it," Peters said. "The cars are the stars."
Having a product-centric presence at the show is the right approach, according to industry observers.
"They need to show strong product," said Stephanie Brinley, an auto analyst at AutoPacific. "They need to show that they're still committed to selling cars."
"It does always come back to the product," Lindland said. "They certainly need to convey to [consumers] that the taxpayer money and investment was well worth it."
The Cruze is one of Chevy’s best examples that it’s working hard to make good on that commitment. It’s a small car with great gas mileage and improved cabin quality, the lack of which had been a big knock against all Detroit automakers. The Cruze may well be GM’s biggest PR move of the show, demonstrating that it can compete — at least on paper — against the big Japanese carmakers.
Meanwhile, Chrysler's L.A. Auto Show exhibit last year communicated just how dire things had become for the automaker. Its bare-bones display lacked the sophistication of its competitors and looked like something you'd see at a small-time regional auto show. It made Chrysler stand out — but not in a good way. The automaker aimed to change that this year.
"We'll have a stronger presence in L.A. this year with an all-new display," said Chrysler spokeswoman Carrie McElwee. "It will be more upscale."
The Chrysler stand at the L.A. Auto Show has grown by about 15 percent this year. It looks better than last year’s stand, but that display left lots of room for improvement. In addition to Chrysler, Jeep and Dodge vehicles at this year’s auto show, there's a separate area dedicated to the Dodge Viper sports car.
What’s most concerning to industry watchers is the automaker's lack of new models and what that may mean for the near future.
"Chrysler's a difficult situation," Lindland said. "Chrysler definitely is pretty weak on the product side."
Chrysler didn't debut any all-new models at the L.A. Auto Show. According to the company's recently announced product plan, new small and midsize cars sourced from Fiat aren't slated to arrive in the U.S. until 2012 and 2013.
Whether the automaker can make hay with its current lineup until then remains a difficult question to answer.
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