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Detroit's top car debuts

Source : FORBES
Last Updated: Tue, Jan 13, 2009 12:45 hrs

The automotive industry experienced a dismal 2008, with sales in recent months falling to their lowest per capita level in 50 years. The misery will only get worse in 2009, according to most forecasters, who predict vehicle sales around 11.6 million units in North America, down from 16 million just a few years ago.

In Pictures: Detroit's Top Car Debuts

While companies like General Motors and Chrysler struggle to stay alive with government loans, even once-healthy companies like Toyota Motor are retrenching and restructuring.

But car salesmen are eternal optimists. They know consumers will eventually come back into showrooms, which is why carmakers must continue investing in new products.

Among the highlights expected at the North American International Auto Show in Detroit, which gets underway Jan. 17: the Chevy Orlando, Cadillac SRX and 2010 Lincoln MKT. Lexus is unveiling the first dedicated hybrid model, the HS 250H, and Audi will announce the A3 2.0 TDI, a compact luxury sedan with a highly efficient diesel engine.

This year's affair is noticeably less glitzy, as automakers look to cut costs with more modest exhibits, less food and fewer giveaways.

Some carmakers are skipping the show altogether. Nissan, Infiniti, Suzuki, Porsche, Aston Martin, Rolls Royce and Ferrari are among this year's no-shows. It's a sign of the times. GM skipped the Los Angeles show in November to focus its limited resources on the Detroit show. But, perhaps as another sign of the times: Two upstart Chinese carmakers--BYD and Brilliance Automotive--have been given prime exhibit space on the main show floor.

Sneak Peeks

Despite the glum atmosphere, the Detroit show still has plenty of notable vehicles and promising technologies on display. In addition to Lexus, there are new hybrids from Toyota and Honda, new clean diesels from European carmakers, and plug-in electric concepts from Chrysler and others. Fuel-efficiency is a common theme, with many manufacturers introducing cars with smaller, turbocharged engines that burn less fuel without compromising performance.

For struggling domestic automakers that were criticized last month by lawmakers for having lousy lineups, the auto show is also a chance to prove them wrong.

GM, for instance, will show off its global product development expertise with the new Buick Lacrosse, the first GM vehicle designed jointly on three continents--North America, Asia (China) and Europe. It's also showing two redesigned crossovers, the Chevrolet Equinox and Cadillac SRX, both of which boast better fuel economy due to new engines.

Chrysler, meanwhile, hopes a bevy of plug-in electric concepts will convince skeptics that it still has a future. Many analysts say the company's days are numbered, and predict its assets will be sold off in chunks. But Chrysler officials say the company is investing for the future, with plans to build one plug-in by 2010 and three more by 2013.

Ford Motor hopes to recapture some of its past glory with a redesigned Ford Taurus that is more athletic and upscale than today's dowdy version. The original Taurus, introduced in 1986, redefined the family sedan, becoming the best-selling car in America. Over the years, however, it was relegated to rental car status. The new Taurus is critical to Ford's effort to rebuild its car lineup after years of dependence on trucks and SUVs.

In Pictures: Detroit's Top Car Debuts

Among the Japanese carmakers, the important news is replacements for the Toyota Prius and the Honda Insight.

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