Automotive News Europe - January 19, 2009 - 10

PAGE 10 · www.autonewseurope.com January 19, 2009 Opinion Auto shows are the next target for cost cutting These days, nothing is sacred when it comes to saving money and in 2009, auto shows will be in the crosshairs of ailing carmakers. Forgoing auto shows is a logical move. In recent years, the displays have grown ever more lavish and ever bigger. The costs for the car companies have risen exponentially. And the sheer size and showiness of the stands has done exactly what the companies wanted to avoid: detract attention from the products. Now, the global recession is causing an abrupt end to that trend. Several companies are no longer sure they will be at the Tokyo auto show in October. Ford, Chrysler and General Motors have said they will definitely pull out. Others may scale back their participation. And the organizers are even considering cancelling or postSkipping a show can poning the event. save a carmaker millions You do not need elaborate In Frankfurt and of euros. That’s money displays to showcase Geneva, companies such that can be spent on attractive cars as Daimler, BMW and more effective marketChrysler plan to reduce ing. Or it’s money that the scope of their usually can be used to speed up large displays. the development of new products that are urAnd many will forgo big press events, leavgently needed to turn the business around. ing the cars to convey the message. All this doesn’t mean that auto shows will The Detroit auto show was the first to siggo away. nal this new trend. Companies such as Nissan On the contrary. Detroit provided proof of and Mitsubishi weren’t present at all. GM and the viability of the concept. Chrysler had opted for a minimal amount of The show, which opened amid the worst show on their stands. BMW was doing withcrisis the US auto industry has ever faced, out its traditional second floor. Many CEOs clearly demonstrated that you do not need stayed home. elaborate displays to showcase attractive cars. “ Crisis forces belt tightening at Detroit show In January 1989 Nissan used the Detroit auto show to launch its premium brand, Infiniti. Neither Nissan nor Infiniti was in the Motor City this year to celebrate the 20th anniversary of that significant event. Aggressive cost cutting forced the Japanese automaker to withdraw both brands shortly before the show – even though Nissan already had paid for the space. Seeing first hand how Nissan and Infiniti’s empty space was filled provides a sign of what we most likely will see at future auto shows during these difficult times: more space for the little guys. Lotus and Aston Martin Luca Ciferri took over Nissan-Infiniti’s massive location, but the British sports car makers filled less than half the space. One reason for this was that neither brand had enough time to create an elaborate display. Even if they did, it is unlikely they would have invested the money or the resources to create a massive stand. So the pricey Lotus and Aston Martin models were simply parked on a carpet. Pragmatic? Yes. Impressive? No. Humbled giants Perhaps Nissan was wise to stay away because then no one could have compared this year’s display with those of past years. The reason I say this is because the saddest sight at the show came on entering the North area of the main hall. This is where the ailing Detroit Three had their stands. In the past, it appeared that General Motors, Ford Motor and Chrysler would pay any price to have the largest, most amazing displays at the show. This year all three had drastically reduced the size and grandeur of their exhibiting spaces. The empty square meters of prime real estate were filled by small Chinese carmakers BYD and Brilliance Jinbei Automotive. Until this year, the Chinese brands were located in low-traffic areas such as the exhibition hall’s basement. During a time of recession, auto show organizers are placing long-established-but-suffering giants alongside small newcomers. Will we soon see this repeated in the market? E-mail Luca Ciferri at lciferri@craincom.de From the Publisher Germans keep the faith in downbeat Detroit DETROIT The waffles were offered together. A day earlier it was Merfor breakfast. The filet mignon was cedes-Benz that held an exclusive served at lunch. And small hamburgevent to reveal the E class before ers and shrimp appetizers delivered the Detroit show had even started. for dinner. Where the Americans went for And who was the chef in Detroit? carpet and cars (massive exhibits Who kept the fire burning on a series were swapped for pure product), of frigid nights in the Motor City? the Europeans went for showbiz reNot the Detroit 3, but the German veals, increased sales announceJason Stein 4. The 2009 North American Internaments and impressive numbers. tional Auto Show lived and breathed If Detroit proved anything it was and thrived as if it were a Frankfurt preview. that America remains the place to play for Europeans. And they played it big. The Europeans rediscovered America last Mercedes showed a commitment to alterweek in the face of the largest economic and native fuels. Audi said it was increasing its automotive downturn in recent memory. marketing dollars amid a marketing collapse. “Some of the exhibits shown by the Detroit companies were smaller than our dealerships BMW showed style and Mini displayed pizzazz. VW revealed a stunning roadster. Bein America,” an Audi executive told me at an tween them, the Germans saved the show. event in downtown Detroit where the VolksSo why would Europeans care so much wagen group brought the automotive world about Detroit? Because the US market will bounce back, maybe even by end of year. Whether it is the Obama effect or the fact that a US Congressional bailout will mean the Detroit 3 (or Detroit 2 come end of ’09) are still operational, the Europeans believe that pulling out of the US here means they are conceding everything. The Europeans saved the show because they know the US will be saved and that their success depends on an American rebound. They proved that the world’s most important market can’t be abandoned – that in times like these you can’t wait for the problem to fix itself. You have to show you can fix it, and that you have the solution. These days the Europeans are serving, and they hope more Americans will be interested in what’s on their menu. E-mail Jason Stein at jstein@craincom.de Automotive News Europe www.autonewseurope.com Jason Stein: Publisher and Editorial Director Tel: (49) 8153 907522 e-mail: jstein@craincom.de Arjen Bongard: Editor-in-Chief Tel: (49) 8153 907501 e-mail: abongard@craincom.de Keith E. Crain: Publishing Director Peter Brown: Group Publisher EDITORIAL GERMANY: Argelsrieder Feld 13 82234 Oberpfaffenhofen Tel: (49) 8153 907509 / Fax: (49) 8153 907510 e-mail: aneletters@craincom.de Paul McVeigh, Managing Editor Tel: (49) 8153 907503 e-mail: pmcveigh@craincom.de Douglas A. Bolduc, News Editor Tel: (49) 8153 907504 e-mail: dbolduc@craincom.de Mark Rechtin, News Editor Tel: (49) 8153 907525 e-mail: mrechtin@craincom.de Mark Appleton, Copy Editor Tel: (49) 8153 907502 e-mail: mappleton@craincom.de Georgia Chapman, Production Editor Tel: (49) 8153 907511 e-mail: gchapman@craincom.de Tom Freiwah, Layout Tel: (49) 8153 907512 e-mail: tfreiwah@craincom.de Anita Fograscher, Editorial Assistant Tel: (49) 8153 907509 e-mail: afograscher@craincom.de ONLINE Mark Stevens, Online Editor Tel: (49) 8153 907524; e-mail: mstevens@craincom.de REPORTERS GERMANY: Bettina Mayer, Industry Reporter Tel: (49) 8153 907526; e-mail: bmayer@craincom.de “ If the product is good, it will shine, even when parked on a simple carpet. So get ready for a new kind of auto show in 2009. A show that will have smaller stands and less glitter. A show that that will be less dominated by the biggest players. A show that will have more physical space for Chinese companies and suppliers in the main display areas. And a show with fewer top executives around. For years, auto executives have said that the product should be central at an auto show. Now they’re moving closer to achieving that. Oh yes, and one piece of advice: Don’t skimp on the lighting. A car parked on a stand, languishing in the shadows, is the saddest sight you can encounter at an auto show. John Revill, Staff Reporter Tel: (49) 8153 907527; e-mail: jrevill@craincom.de Hurtej Kaur, Staff Reporter Tel: (49) 8153 907525; e-mail: hkaur@craincom.de ITALY: Viale Cavaglià 8, 10029 Villastellone (TO) Luca Ciferri, Chief Correspondent Tel: (39) 01196-91970 Fax: (39) 01196-10113 e-mail: lciferri@craincom.de FRANCE: 28, rue des petites ecuries, 75010 Paris Lawrence J. Speer, Staff Reporter Tel: (33) 147-709420 / Fax: (33) 147-709421 e-mail: lspeer@craincom.de NETHERLANDS: Pimpernel 3, 8131 GH Wijhe Wim Oude Weernink, Reporter Tel/Fax: (31) 570-521093 e-mail: woweernink@craincom.de UNITED KINGDOM: Tony Lewin, Reporter Tel: (44) 1342 822479 Fax: (44) 1342 825462 e-mail: tony@tonylewin.com CZECH REPUBLIC: Lyle Frink, Correspondent Tel: (420) 606-486729 e-mail: lfrink@craincom.de IRELAND: Olive Keogh, Correspondent Tel: (353) 1-833-5473 Fax: (353) 1-8330467 e-mail: okeogh@iol.ie JAPAN: 1-7-1 Yura Kucho, Chiyoda-ku, Tokyo 100 Hans Greimel, Asia Editor, Automotive News Tel: (81) 423-60-8767 / Fax: (81) 423-60-8768 e-mail: hgreimel@crain.com CHINA: Yang Jian, Managing Editor, Automotive News China Tel: (86) 10-8453-0390 e-mail: yangjian@autonewschina.com

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Automotive News Europe - January 19, 2009

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