The motor city circuit

The 2007 Detroit Motor Show has kicked off in the US. Michael McAleer , Motors editor, was there

The 2007 Detroit Motor Show has kicked off in the US. Michael McAleer, Motors editor, was there

It may be Motor city, but for all the glitz and glamour that accompanies any car show, there's an air of stoicism about this year's Detroit motor show.

It's an acceptance that this once great powerhouse of the world car industry is struggling to retain its premier position.

Detroit is home to America's "big three" car firms: General Motors, Ford and Chrysler. That should be enough to make this show the highlight on the international circuit.

READ MORE

Yet all three are struggling to see off foreign competition. This year is likely to see Toyota assume the mantle of the world's largest carmaker. The problem, however, goes much deeper than wounded pride. The US firms are faced with enormous overheads, resulting from agreements reached with unions and employees when times were good and it seemed like the only way was up for the US brands. America's big three carmakers are expected to lose well over $10bn (€7.7bn) in 2006. Their share of the US market has fallen from 73 per cent to 57 per cent in a decade.

While Ford faces the worst of the financial woes for now, General Motors is in the midst of a turnaround strategy that seems to be bearing fruit. It's unlikely to prevent the owner of brands such as Opel, Saab and Chevrolet falling from the global top spot, but it may well see it return to healthier financial standing.

Whatever about sorting out the financial problems through cost-cutting, car executives know the real key to success for a car firm is to get the product right and to supply buyers with the cars they want.

It's also about meeting the changing demands for fuel efficiency. American buyers are suddenly realising the finite nature of fossil fuels and consumption figures are now playing a bigger role in the purchasing decisions.

The hybrid models such as Toyota's Prius are no longer regarded as wacky motors for environmentalists and image-conscious celebrities. Even in the car parks of Detroit you can spot several Prius, admittedly parked alongside giant Hummers and gas-guzzling pick-up trucks. Things are changing and the car industry is keen to lead the way.

Electric power seems the natural route and the debate is how best to create the power.

Hydrogen fuel cells remain the favoured long-term choice. Meanwhile all the major manufacturers are busy working on short to medium-term petrol-electric hybrid models or cars that take electric power from the mains overnight and store it in batteries. These plug-in hybrids may well enter production within the next four to five years, depending on how quickly engineers can master the complicated battery technology required to make them a practical alternative for car buyers.

For all the talk and attention to cleaner fuel sources, there remains plenty of new metal on display at the mid-American show. Aside from the usual array of weird and wonderful concept cars, of most interest to Europeans is the unveiling of two concepts and a production car.

First up is the new Jaguar C-XF, the design concept that signals the new look for the future S-Type replacement. To be called XF when it enters production next year, the front nose is likely to remain the same on the production car, but the rear and roofline may have to change to accommodate more interior space. The XF is vital to the future of the brand, setting it up for profits in the future or potentially a sale by owners Ford to another group.

Also within the Ford family, Volvo introduced its new XC60 concept. Again this car is said to be virtually identical to the final production version that will arrive late this year. The concept has received a very warm reception at the show and its low stance but stylish premium design should see it do very well. It will certainly put pressure on the likes of the BMW X3 and even the new Land Rover Freelander, though it is less of an off-roader and more a high-set family crossover.

Mitsubishi used the show to unveil its new Lancer to the world.

This car is crucial to the company's future, particularly in the US where the brand has struggled to make its mark.

The new model is a fully-fledged family saloon and will arrive in Ireland in September, with two engines on offer: a 1.5-litre petrol and 2-litre diesel.

Alongside the Lancer, Mitsubishi also offered a preview of what the next generation Evo will look like.

The Evo X is due to arrive in Ireland in February 2008, but for now Mitsubishi is happy to offer a concept version that sources say is 95 per cent identical to what the finished product will look like.

While these could be described as the highlights for European visitors, there were also several niche models making their debuts. Cadillac only arrived in Ireland last year but already one of its key models is being replaced and the new styling hints at the future look for the rest of the range.

The 2008 Cadillac CTS sports saloon retains the sculpted lines of its predecessor but this time comes with a more distinct front nose and vastly improved interior that aims to close the gap on European rivals such as BMW and Mercedes, regarded as the real benchmarks for quality by US brands. The CTS will feature a 3.6-litre 300bhp V6 engine.

Closer to home, BMW introduced its new 3-Series coupé convertible.

Featuring a three-piece folding metal roof, it takes much of its styling cues from the regular coupé, but storage space for the folded roof and other elements mean the end result features a rather bulky rear end that may not be to everyone's taste.

Finally, Mercedes were not to be outdone in one of its most important global markets and while it didn't have any major new models to launch, the German brand did introduce a concept car called Ocean Drive.

This is a soft-top convertible version of the new S-Class and surprisingly, rumour has it that it may well go into production. According to a spokesman, its target market is the sunny climes of California.