Tuesday, January 13, 2009

Detroit Auto Show - The Difference Between a Winner & a Loser

So, the most depressing Detroit Auto Show ever is upon us. To be fair, the whole scene is so depressing I have been reading about it less than I should because I am worried about my supply of Zoloft and Prozac. Still, one thing is immediately obvious. Ford has a plan. GM thinks it has a plan. And Chrysler wishes it had a plan.

Ford is going down the road of hybrids in a big way, with a view to a fully electric vehicle at some point. Whether or not this effort is aimed more at congress than at the consumer, only time, and the price of gas, will tell.

GM appears to be pinning its future hopes on the Volt. Like the name implies, this is a purely electrical car, which appears to have been extremely well developed. However, the MSRP is said to hover around $40,000 for its 2010 introduction. Unless gas hits $6 a gallon, my guess is that GM will have some trouble getting people to flock to show rooms for a $40,000 vehicle with relatively novel technology and that looks vaguely like a mix of a large Toyota Prius and a Chevy Malibu. This is a shame, since the vehicle actually drives extremely well, sources say.

Chrysler seems to be in disarray. They have a pretty sketchy future lineup. The Chrysler Aspen/Dodge Durango hybrid has supposedly been scrapped for 2010. Who is going to buy a one-year production hybrid vehicle? Someone please tell Chrysler to get a plan or start selling off divisions. Last month, while in south Florida, I noticed one Chrysler dealer who was promoting "buy one get one free". If you bought a Jeep Commander at full price, they would throw in a PT Cruiser for free. No, I am not kidding. If you took the time to read the small print as you rushed out the door, you would see that this offer applied only to new 2007 Jeep Commanders. Yes, you read right, the cars that had been sitting on the lot for almost TWO YEARS. Chrysler may be in worse shape, from a strategic view point as well as a financial viewpoint than anyone imagines.

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