| Setting the Stage for the Big Show |
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By Ann JobFrom the biggest square footage of liquid-crystal display (LCD) screens to new, larger booths for South Korean automakers, the nation's most prestigious auto show is changing, big time.One thing won't change, though: Car companies putting the best possible image forward at the annual North American International Auto Show (NAIAS) this January in Detroit.Indeed, after a year of bad news—earning woes, continued market share losses, job cuts and worker concessions as well as bond-rating downgrades into junk status—struggling Detroit-based automakers General Motors Corp. and Ford Motor Co. have new booths for the NAIAS 2006 that are estimated to cost millions of dollars apiece. They also have many multimillion-dollar, one-of-a-kind concept vehicles to unveil.Officials at the two largest U.S. car companies say they plan to focus on optimistic views of the future and their new vehicles, not the disappointing past highlighted by a growing American acceptance of vehicles from overseas-based automakers, especially Toyota, Honda and Nissan.Bright Lights, Big ImageSome of the image campaigns at the Motor City show come from 5,000 square feet of LCD displays spread across the entire 700,000-square-foot show floor, according to an official at George P. Johnson, the premier maker of auto show exhibits. This is a new record for LCD displays at any U.S. auto show, and illustrates the interest of car company officials in telling their stories and conveying "the essence of the brand experience" in high-tech ways, according to Bob Albitz, senior vice president of creative services at the Troy, Mich.-based George P. Johnson. The firm has created about a dozen booths for the 2006 Detroit show—half of which are new, he added.Korean Carmakers Moving On UpAlso this year, Hyundai and Kia, based in South Korea, have moved up, literally. Confined to the basement at the Detroit show years ago, Hyundai and Kia have new, larger locations on the main show floor.Hyundai's space grew from 8,176 square feet to 11,633 as floor space devoted to GM was moved and downsized. Patrick McGrath, manager of shows and exhibits at Hyundai Motor America, said the change allows Hyundai to put seven more vehicles into its NAIAS display compared to last year. In addition, Hyundai is able to use new, more elaborate booths.Kia and Hyundai also have coveted press conference slots on the first media day of the auto show for the first time. When these Sunday press conferences originated years ago, only the traditional Big Three carmakers—GM, Ford and Chrysler—were allowed to hold press conferences that day.Both of this year’s changes reflect the growing sales and market share of the Koreans, who now sell more vehicles in the U.S. annually than each of the following: Volkswagen, Mazda, Cadillac, Mercedes-Benz and Mercury, among others.Several New BoothsHyundai, Kia, GM and Ford aren't the only ones with new exhibits at the NAIAS. Mercedes, Nissan, Infiniti and Honda have new or newly revamped booths, too.At Nissan, LCD technology is used to create an environment similar to a U2 music concert, according to a Nissan official. At the Honda stand, LCD technology is paired with a motion sensor so consumers can move their arms in front of a screen and automatically change the interior view that they have of Honda's new Fit, a small car debuting in Detroit, according to Jeff Conrad, vice president for public relations at American Honda Motor Co.And GM's exhibit features LCD and plasma screens in each of its brand displays, as well as a first-ever, wall-size, high-resolution LCD display for the automaker.Battle for PublicityAt Mercedes, the knowledge that more than 6,000 news media descend on the show makes the event akin to an auto industry's "Oscar ceremony," said Rob Moran, head of product and technology public relations."We go there with a plan, and we work on it, sometimes, a year out," he said.At GM it's not unusual for the press conference material to be planned to the finest detail. For example, an illustrator works up storyboards for executives to show them where they need to stand on stage and what vehicles will be by them, said Terri Rhadigan, GM spokesman for auto show information.The planning focuses on the media getting "that hero shot"—the auto show picture that's so compelling it gets in all the global media and captures GM's message, he said.This year, even the recent habit of car companies sharing information with news media ahead of time about new vehicles to be unveiled in Detroit has changed.In an effort to generate the most publicity at the 2006 show, GM officials have kept mum about two concept vehicles that have remained hidden, even away from many of GM's own personnel. They've also kept the vehicles away from the automotive enthusiast magazines, knowing full well that this means the concepts won't be able to get on many magazine covers until spring, because of the magazines' advance copy deadlines.But GM PR officials hope the secrecy and mystery help generate buzz and widespread coverage about these new models. "It's a calculated risk . . . but the competition [for media coverage at the show] is fierce," Rhadigan agreed. "We want to get more coverage than anybody."It's an Industry ShowWhile upwards of 750,000 people attend the NAIAS, it's not the largest U.S. show in terms of overall attendance or floor space. The Greater Los Angeles Auto Show gets more people—over 1 million—and the annual auto show in Chicago uses the most square footage for display space.But Detroit's show remains critically important as "the industry show" and always leads other U.S. auto shows in the number of new vehicle unveilings.The reason: The NAIAS is the only annual U.S. auto show sanctioned as an international show by the Organisation Internationale des Constructeurs d'Automobiles, a Paris-based alliance of auto trade associations and auto manufacturers from around the world. As such, the NAIAS routinely draws auto executives and news media from around the world for Press Days, where the executives have a chance to tell the media about their successes and promising better vehicles and strong business prospects for the future. For example, Honda, Nissan, BMW, Acura, Hyundai, Lexus and Kia—all based overseas—will be able to point to improved—and in many cases, record—sales in the U.S. for calendar 2005.And Toyota is on pace to become the world's largest vehicle manufacturer—topping GM—for the first time in history, likely in calendar 2006. GM has been the biggest car builder on Earth for 74 years.But all this comes at a bad time for Detroit's two largest hometown car companies. The 2006 show is the first since the Detroit show became internationally sanctioned in 1989 that GM and Ford have been in such business turmoil. "Gloom and doom" was how one auto industry observer described Detroit in the months leading up to the NAIAS as word came out about GM and Ford job cuts, plant closings and continued market share losses. Both companies are in the midst of painful turnaround plans, and "this is a pivotal show" for them, according to Jack Nerad, a senior auto analyst and editor at Kelley Blue Book, which monitors vehicle pricing and resale values.GM, Ford Have Key MessagesAsked to describe GM's media message for the 2006 NAIAS, Tom Kowaleski, vice president for global communications for GM, responded: "What we have done in all of 2005 is a lot of actions on the cost side. As we come into the 2006 and 2007 years, we will have a large percentage of new products—cars, trucks and crossovers [that we will highlight]. We will begin a number of actions to turn the company back to profitability."Dan Bedore, Ford manager of product strategy and launch public affairs, said the 2006 NAIAS will bring "a reassertion of the Ford brand as a bold American brand. You will hear a lot about driving American innovation and . . . things like hybrids. There also will be a new design philosophy that's very bold and different and a departure from what we've had. We'll really be focused on the product."The former Chrysler Corp., which now is part of Germany’s DaimlerChrysler, is also headquartered in the Detroit area but isn’t in the soup like GM and Ford. Jason Vines, vice president for Chrysler Group communications, said despite the distractions of the problems at GM and Ford, Chrysler officials “are going to participate in an auto show. I want to underline the words ‘auto show.’”Vines continued that the auto industry “is supposed to be a passionate and fun business,” and that’s the attitude his company is taking at the 2006 NAIAS.Still, the unhappy backdrop in the Motor City isn't lost on some Toyota, Honda and Nissan officials."It's a competitive business, but we don't like to see anybody having tough times," Honda's Conrad said. "It hurts everybody." He added that Honda officials won't be in Detroit "beating our chests" about the company's record 2005 U.S. auto sales.Toyota officials aren't likely to crow, either, though they have plenty to celebrate. Besides record sales, the company has seen its market share grow to more than 13 percent of U.S. vehicle sales while Ford, for example, has fallen to around 18 percent. Ford's percentage includes such foreign brands as Jaguar, Land Rover and Volvo, which Ford owns. "Detroit is so Detroit-centric that some import manufacturers tread lightly there," Nerad said. "[Toyota officials] are very cautious about this Detroit show and the whole issue of General Motors and Ford being on such hard times. They are very, very concerned about the political nature of the business and how regulators or just the public will react."Nerad also noted that GM and Ford have strengths that they will want to highlight. "GM has some serious strengths and they want to trumpet that," he said. "I think they want to come out strong. Ford will come out with its plan which will say `We're moving forward.'"Tom Libby, senior director of industry analysis at automotive researcher J.D. Power and Associates of Westlake Village, Calif., expected GM and Ford to use the Detroit show "to convey an atmosphere of confidence, that they are in charge and have a plan."Meantime, he said, "Toyota is not a company that gets up on a podium and brags . . . They're more conservative and, in general, they will just stay the course."There are likely to be some reminders of Detroit's stress, though. Blue- and white-collar workers attending the show continue to await job losses—some already announced and some still unannounced.And a group of United Auto Workers union members who say they're fed up with their union leadership announced that they plan to picket outside the NAIAS during a Press Day.Ann Job is a freelance automotive writer. |
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Ford expects its all-new display at the NAIAS 2006 to be a “sensory-led experience.”
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GM's exhibit features LCD and plasma screens in each of its brand displays, as well as the automaker’s first-ever, wall-size, high-resolution LCD display.
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Honda's new exhibit at the NAIAS prominently features the new Civics in the center of the display. There also are "pillars" fitted with large, active screens.
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Hyundai received 42 percent more space for its new display area at the NAIAS. The roomier space helps accommodate the South Korean automaker's new exhibit.
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At the NAIAS 2006, the booth for Nissan's luxury brand, Infiniti, no longer looks ‘parked’ on the edge of the bigger Nissan booth.
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Nissan's stark, technical auto show display of years past is gone. The new look at the NAIAS features Nissan vehicles amidst lots of LCD screens.
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