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LA Auto Show starts under cloud of industry crisis
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A Chevrolet Volt plug-in electric car is displayed at the LA Auto Show in Los Angeles, California, November 19, 2008. (China Daily/Agencies)
The Los Angeles Auto Show has made a low-key start as executives from the biggest US automakers appeared in Washington to seek a multi-billion dollar loan to keep the industry afloat.
The Los Angeles exhibition, the second most important car show on the US calendar after the annual event in Detroit every January, is normally an opportunity for companies to unveil their latest models and sleek designs to car-crazy Californians.
A 2009 Mercedes-Benz SLR McLaren roadster with a base price of US$495,000 is displayed at the LA Auto Show in Los Angeles, California, November 20, 2008. (China Daily/Agencies).
Yet this year's show is taking place against the gloomy backdrop of an industry reeling under the weight of record losses, a global credit crunch and the prospect of a lengthy and deep recession.
The downbeat mood of the show was evidenced by the decision of two of the "big three" US automakers -- Chrysler and General Motors -- to scrap press conferences planned to trumpet their new models.
Photographers crowd around the Mini E. electric-drive car which had its world premiere at the BMW Group news conference at the LA Auto Show in Los Angeles, California, November 19, 2008. The Mini E will be powered by a 150 kW (204 hp) electric motor fed by a high-performance rechargeable lithium-ion battery.(China Daily/Agencies)
It was left to Ford to put a brave face on Wednesday's proceedings, with President for the Americas Mark Fields insisting that despite the financial turmoil, Los Angeles was an opportunity to show the company was continuing to develop new products such as its modified hybrid Fusion car.
"Clearly, there are lots of things going on in the industry right now, we're going to stay very focused to offering products that consumers are going to want to put on their list," Fields said.
"We're not going anywhere," he added, bristling at suggestions the US automakers were seeking a "bailout" from the US Government.
The BMW Concept 7 Series ActiveHybrid automobile has its US debut at the BMW Group news conference at the LA Auto Show in Los Angeles, California, November 19, 2008. (China Daily/Agencies)
"What we're requesting as an industry right now is a loan, not a bailout," Fields said. "Loans get repaid. We have liquidity through at least 2009, but we never know what's going to happen in terms of the economy.
"So we're in Washington right now, as a company and an industry, requesting at least access to capital, if necessary."
Earlier, Renault-Nissan chief Carlos Ghosn had set the tone by warning that automakers must adapt to survive the current crisis, comparing the present climate to the Great Depression.
Honda's CR-Z Sports Hybrid concept vehicle is displayed at the LA Auto Show in Los Angeles, California, November 20, 2008.(China Daily/Agencies)
"The United States and the rest of the world, and there's absolutely no doubt about it, are today in a very serious and worrying situation," Ghosn said. "The credit flow is far from normal, and the recession that began in the US is now spreading. It's going to be deep and affect everybody.
"This extreme level of volatility has not been seen in decades, maybe not since 1929," Ghosn said. "We're going to have to adapt, to innovate, to get out of the storm."
One highlight amid the gloom on Wednesday was the world premiere of a fully-electric Mini E from German automakers BMW.
Saturn's Flextreme Plug-In concept car is shown on display at the LA Auto Show in Los Angeles, California, November 19, 2008. (China Daily/Agencies)
BMW chief executive Norbert Reithofer said the car would be initially made available for lease to a limited number of 500 customers in Los Angeles and New York later this year before going into full production.
"By the end of the year, we will have 500 Mini Es available to customers in LA and New York City, and very important for us, their experiences with this electric car will provide valuable input -- how customers like to drive it (...) what kind of infrastructure do we need," he said.
A Ponitac Solstice Coupe is displayed at the LA Auto Show in Los Angeles, California November 19, 2008.(China Daily/Agencies)
Chrysler LLC's Dodge EV, an advanced production-intent electric prototype vehicle is displayed at the LA Auto Show in Los Angeles, California, November 20, 2008. (China Daily/Agencies)
"This input will help us to prepare for serious production."
chinadaily.com.cn/Agencies
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