Detroit auto show kicks off year of high hopes for car industry

Jan 10, 2011, 11:56 GMT

Detroit - The world's carmakers, hopeful for another comeback year in 2011, planned to start off the year with a splash as they prepared to unveil their latest models Monday at the top auto show in North America.

The Detroit auto show was expected to see more than 30 world debuts as many carmakers planned to put on glitzier displays than in the the past three sluggish years for the beleaguered industry.

The renewed vigour comes after a rebound year in the United States in 2010, with car sales climbing more than 11 per cent to 11.6 million. The US National Automobile Dealers Association has predicted similar gains in 2011.

The comeback comes after a troubling year in 2009 that saw two of the three biggest US carmakers flirt with collapse. General Motors weathered the storm, returned to the stock market and to profit in 2010, while Chrysler could do the same in 2011.

The displays of Detroit's so-called Big Three manufacturers - GM, Ford and Chrysler - will symbolise the improving fortunes for the industry as the North American International Auto Show opens for a press preview on Monday.

GM has built a two-storey display for its models at the show, Ford will offer its own test track for new models and Chrysler will for the first time expand its set to include cars from Fiat, the Italian carmaker that has managed Chrysler since the 2009 bankruptcy.

The Detroit show will boast a mix of greener hybrid and electric unveilings from carmakers like Ford, Toyota and China's BYD Auto, while others including GM and Germany's Volkswagen will be using the show to unveil new sedans and luxury models.

Organizers are predicting the show will net upwards of 400 million dollars in revenue, up from about 325 million in 2010. Other signs of a comeback: German sports car brand Porsche has returned to the show after a four-year absence.

All major carmakers saw sales increase in 2010: Japanese maker Toyota managed to remain in pole position with worldwide sales of 8.4 million vehicles, up from 7.8 million in 2009, despite a damaging recall scandal at the start of last year, according to German expert Ferdinand Dudenhoeffer from the University of Duisburg-Essen.

The newly reorganized GM, once the world's largest carmaker, held onto the second spot, Dudenhoeffer said, despite having been forced to shut down four brands through the year. GM sold 8.2 million cars in 2010, up from 7.5 million in 2009, when the US car giant went through its own managed bankruptcy.

Germany's Volkswagen, which planned to unveil an all-new midsize sedan later Monday, claimed the third spot in global sales with 7.1 million. VW has designs on becoming the world's largest carmaker by 2018, with plans to boost sales to 10 million.