2009 Detroit Auto Show: More Steak, Less Sizzle

Outlandish concepts are out at this year's Detroit auto show and in are cars that take direct aim at Toyota and Honda

By David Kiley

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In contrast to the razzle-dazzle and boosterism of years past, the atmosphere at the North American International Auto Show in Detroit this week is a somber one. With U.S. automakers battling to survive and to avoid bankruptcy, a worsening economy, and some major manufacturers bypassing the show altogether, there is a worry that public attendance will be much lower than in past years.

Even with all the bad news, most auto companies are taking the attitude that the show must go on. And for host companies General Motors (GM), Ford (F), and Chrysler, it is expected to be a show with little in the way of bombastic presentations or crazy vehicles that look as if they are destined more for video games than showrooms. Instead, it's meat-and-potatoes time, with Detroit automakers concentrating almost entirely on electric vehicles and newly designed cars and crossovers aimed at their fastest-growing categories, meant to sell in large numbers and cut into the market shares of Asian rivals.

General Motors, which has to prove "financial viability" to the U.S. government in order to keep the $13.4 billion loan it is receiving to stay afloat, is not expected to show any 1,000-horsepower concept cars. Instead, one of the highlights is a redesigned Chevrolet Equinox compact crossover SUV. Despite this category being the fastest-growing over the past eight years, the old Equinox was a poor entry. "No question that we could have and should have done better," says Ed Peper, Chevy brand chief for GM. "Our margin for mistakes or launching vehicles that aren't 100% competitive is zero."

The headline on the new Equinox, which arrives in showrooms in mid-2009, is that GM expects the new 4-cylinder, 2.4-liter direct-injection engine to earn a government fuel economy rating of 30 mpg/highway. That is a 25% improvement over the V6 engine, which was the only one offered in the current Equinox, and 2 to 3 mpg better than the current Toyota (TM) and Honda (HMC) offerings. A 3.0-liter V6 is also available. "The compact crossover SUV category is crucial because it draws buyers from every age, and that Chevy has been a minor player has been a crime," says independent marketing consultant Dennis Keene.

Problems Addressed

The current Equinox, with 2008 sales of just 67,000 compared with 287,000 Honda CRVs and 173,000 Ford Escapes, has also been criticized for a bland exterior, a cheapish interior, and too few standard features. The new one attacks all fronts with a more stylish exterior, six standard airbags, four-wheel disc brakes, StabiliTrak electronic stability control and traction control, as well as standard OnStar. The interior plastics are higher grade, and the new layout of the instrument panel has a much more premium feel. "They seem to have fixed everything that was wrong with the old one," says Rebecca Lindland, an analyst with IHS Global Insight.