Detroit puts on annual brave face

On our first visit 10 years ago to the North American International Auto Show, there was traffic chaos on the freeway to downtown…

On our first visit 10 years ago to the North American International Auto Show, there was traffic chaos on the freeway to downtown Detroit: the cause was emergency pothole mending.

Fast forward to the eve of the 2005 show's three-day media preview and they're at it again. Our driver takes a diversion, telling us the potholes are bigger now, taking a higher toll on bodies and tyres.

The show was glamorous in 1995 and it still was last week. The Cobo centre venue is now and was then a beacon of excitement and movement in the dreary and empty central area. Just up the street is the Renaissance Centre developed by Ford as an office and shopping revitalisation project. General Motors, the world's biggest car-maker, acquired it five years ago for a knock down price and moved in its global headquarters which keep an eye on its 200-plus markets.

In 1995 the talk was of America's Big Three (GM, Ford and Chrysler) fighting back the Japanese challenge, especially from Toyota. It's deja-vu in 2005, except that Toyota is getting closer to the gates.

READ MORE

Have the Big Three really been fighting back? GM vice chairman Bob Lutz acknow-ledged the popularity and reliability of Japanese cars and trucks. "We've got to start acting differently," he said.

Their fight back includes a line-up of environmentally friendly hybrids inspired by the success of the Toyota Prius. Hybrids are being warmly embraced by many US motorists, perhaps in repentance for years of gas-guzzling or maybe just because petrol is now $1.79 a gallon.

Prestige European marques are still causing Detroit dreads - Saab for GM and Jaguar for Ford. Both brands depend heavily on the US market with its weak dollar. Saab's Swedish manufacturing base is in doubt and GM is wondering if the Swedish cachet can be maintained while building outside Sweden. Jaguar's good news at the show, the XK coupé, wasn't good enough to mask the bad news that it is selling fewer than 120,000 cars a year against a planned 200,000.

Making GM profitable in Europe with its Opel/Vauxhall brand is the responsibility of Fritz Henderson. The brand's Irish market share has almost halved in 10 years.

So what about the Irish problem? "Not a problem, a challenge," was his brusque reply. Kevin Wale, boss of Vauxhall who now also looks after the Opel Irish territory, told us later that this year would see better results. "We intend aggressive imaging of Opel. It did well 10 or more years ago and arguably our product is even better now. There's a lot to be done on dealer morale and making buyers think about Opel, look at it and drive it."