Winds of change blow through motor city

Michael McAleer , motoring editor, previews the Detroit motor show

Michael McAleer, motoring editor, previews the Detroit motor show

With chill winds rushing up the Detroit Strait, biting at the faces of workers preparing for the first of the world's great annual motor shows, it's an appropriate climate for those from the US's big three car giants - General Motors, Ford and Chrysler - who call Detroit home.

Motor city still reckons itself as the hub of the US car industry, but on a world scale the winds of change are already pushing Japanese brand Toyota into the top three car firms in the US - and the world. It's set to overtake Ford this year and may well overthrow GM before this decade is out.

As important as the Detroit show is as a showcase of new metal, it's location means it's just as important for showcasing new management and ideas to the world's motoring press. For the past few years now, the US car giants have used the show to unveil new radical business plans that would turn the ailing brands around and return them - and Motor city - to the pinnacle of the industry.

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Last year it was the turn of GM to fight-off suggestions that Chapter 11 bankruptcy was looming on the horizon. While many at the time doubted the ability of its management to turn around the fortunes of the motoring behemoth with its plethora of brands - ranging from Opel and Chevrolet to Cadillac and Saab - Rick Wagoner and Bob Lutz seem to have done just that. While it's still a long way from competing for blue chip status on the stock market, the success so far will no doubt hearten management at the latest Detroit firm to undergo market woes: Ford.

The 103-year-old company posted a $7 billion (€5.3 billion) loss in the first nine months and has warned of tough times ahead for at least the next two years. It's core north American operations have been battered by slipping demand for mid-sized sport-utility vehicles and pick-up trucks, and by high labour costs. Recently, family scion Bill Ford has given way to former Boeing executive Alan Mulally. Two recent events may have bought Mulally some time for a turnaround: a major borrowing spree that brought in $25 billion (€18.9 billion) in loans and the decision by over half its blue collar workforce in the US to take early retirement. However, in recent interviews, he has continued to suggest that Ford will suffer serious financial pain for at least another two years.

For many industry watchers, the Ford management presentation next Sunday morning will be as important as any new models on display from the blue-oval brand.

This year will see the launch of several new models with a European relevance, with top billing for the new Mitsubishi Lancer, the BMW 3-Series hard-topped convertible and several production ready concept models.

The new Lancer is vital to the future of the Japanese brand and is due for launch in Ireland in September, to be followed by a hatchback version in December 2007.

Mitsubishi has gone through several years of financial hardship that culminated in former partners DaimlerChrysler (DC) refusing to invest any more money in the brand. The two firms parted ways but the Lancer is based on designs and engineering created during that partnership.

It shares its platform with the new Outlander and also features the same 2-litre diesel engine. A 1.5-litre petrol engine will also be offered. A high-performance version, the EVO X, will be introduced in February 2008. Pricing and specification are not yet confirmed but the saloon version is expected to start at just under €20,000.

Meanwhile, BMW remains keen to pursue growth through the US market. With a factory in South Carolina and it's new X5 recently getting its world debut at the LA motor show, the Bavarians are again opting to hold a global launch in north America rather than Europe. This time it's the new 3-Series coupé convertible, the brand's first foray into the realm of folding metal roofs.

The new car will initially be powered by BMW's 300bhp 3-litre turbocharged engine which will hopefully help overcome the extra weight of the roof and its motors.

The Germans will also showcase the second model from Rolls Royce since it acquired the British luxury brand in 1998. The new Phantom Drophead Coupé is a two-door, four-seat convertible.

Of the US brands, several will be of interest to European buyers. The success of its Bentley lookalike 300C has driven sales and interest in the Chrysler brand and the Detroit-based - but German owned - brand will be hoping to repeat some of that success with the introduction of its Sebring range, a rival to the Audi A4 which is due in Ireland later this year. It will be followed by a new four-door coupé styled in a similar fashion to the Mercedes CLS. This model will appear at this weekend's show in concept format.

The German parent will also use the Detroit show to introduce a funky four-door convertible concept based on the current S-Class. Although there are no plans for production, any final decision will depend on the reaction from the show.

Concepts will be the strong players this year, with the Honda Accord coupé on show along with stronger indications from Jaguar of its new S-Type replacement, the XF. A concept version is likely to be on show at Detroit.

Over at Volvo, a new mid-sized SUV, the XC60 concept, is expected to be virtually identical to the production model, apart from the use of chrome on the air vents. The new model will hit the markets in 2008.

Of course, while the US brands will seek to drape the flag across the industry at this year's show, the Japanese will be ever-present, though discretely showing their wares. For Toyota, the main attraction this time will be at its Lexus stand where buyers will be enticed not only by closer indications of its supercar plans, with an updated LF-A concept, but also the world premiere of its new performance range. Similar to BMW's M-power versions and Mercedes AMG range, Lexus will introduce the first "F" version in the current IS range. The new IS-F will feature a 5-litre V-8 425 hp engine and is likely to be rear-wheel-drive.

There will no doubt be other surprises in metal form this weekend, but industry watchers hope there will be no major surprises from the management as Detroit struggles to regain its mantle as the world's motor city. DETROIT INTERNATIONAL MOTOR SHOW

WHEN? Sunday, January 13th until Sunday, January 21st

WHERE? COBO Exhibition Center, Detroit, Michigan

HOW? Aer Lingus has daily flights to Chicago from where you can get several daily connections to Detroit

SHOW TICKET PRICES? Adult tickets are $12 (€9), with over-65s and children between 7-12 years for $6 (€4.50)