January 11, 2010 7:44 AM

Auto Show Previews Key Year for Carmakers

By
CBSNews
(CBS)  After one of the worst years ever for the auto industry the annual Detroit auto show opens tomorrow. The big show could provide a good indication of whether American carmakers are in drive or reverse, as CBS New correspondent Dean Reynolds reports.

The carmakers featured vehicles at the 2010 show - anticipated new models and no doubt a few surprises - remain hidden for now beneath plastic tarps. The u.s. auto industry has a lot riding on the cars beneath those covers. More than any of its predecessors, this car show - with more than 40 new models on display - is where the spin meets the road.

"When you consider the fact that our automakers have been through the toughest year in their history in 2009, this is definitely a watershed moment," said Doug Fox, chairman pf the North American International Auto Show.

For Ford, it's a chance to boast of its recent successes without the benefit of taxpayer dollars. Its Fusion hybrid has been a blow-out success. This year the buzz surrounds the new Taurus and economical Fiesta.

Ford sales were up almost 33 percent in December over a year earlier.

For General Motors, declining sales have still not toppled the company as the number one carmaker in the world, and there are rays of sunshine peaking through the ruins of 2009.

Sales of the Chevrolet Equinox crossover, for example, were up 121 percent last month over December of last year.

GM has pared its portfolio down to four brands - GMC, Buick, Cadillac and Chevy and is undergoing a major cultural change under its new leader Ed Whitacre. It's banking that smaller, more economical cars will be as attractive as its legendary line of behemoths.

Leading the way will be the Chevy Cruze, with an estimated 40 miles to the gallon and the new electric Chevy Volt, with its eye-popping 230 mpg rating.

Chrysler is another story. It's unveiling a line of re-tooled Jeeps now and hoping its popular minivans can tide it over until new parent, Fiat, can put its own stamp on the assembly line. At Chrysler/Fiat in the future, smaller will have to be better.

"I think there's a lot of hope out there that we're on the rise," Fox said.

Turning that hope into sales will tell the story of 2010.

Copyright 2010 CBS. All rights reserved.
Add a Comment
by sjc_1 January 13, 2010 5:49 PM EST
The Cruze looks good and the Equinox is selling well. I would rather that GM discontinue the Suburban, Tahoe and Escalade, but I guess there are enough people that still buy those.
Reply to this comment
by tiktin January 11, 2010 1:28 AM EST
I think there is something that most people are not aware of and that is that all new cars sold in the U.S.must conform to the so-called "Federal Motor Vehicle Safety Standards" (FMVSS). These so-called standards are mostly nonsensical gibberish written by committees of totally clueless amateurs who didn't have the vaguest idea what they were doing. Yet they seek to regulate every aspect of car design, leaving automotive engineers with little latitude for creativity and innovation. Because these "standards" or mostly nonsensical gibberish, they mean whatever NHTSA decides they mean, giving NHTSA the power of life and death over every car company in this country. NHTSA has used this power for political ends, as mandated by congress, as well as for defending their own bureaucratic interests. Where these standards are comprehensible, they have made cars, and motorists, less safe and have caused thousands of deaths and severe injuries. To cover up these facts, NHTSA has staged huge taxpayer funded propaganda campaigns making false and misleading statements. Those are the facts and it is time for the truth to be made public.
Reply to this comment
by lami987 January 10, 2010 11:06 PM EST
Ford appears to be in the best position among D3. It has came out with its small affordable sedans and hatchbacks like the Fiesta and Focus. I hope GM's Cruze can also be affordable to most Americans. Too bad Cruze is not yet available in hatchbacks. Hatchbacks are more practical and those from foreign automakers are becoming more and more popular here in the states. Unfortunately Chrysler is in very sad shape. Chrysler's ex CEO Nardelli was a reject of Home Depot. I don't know how much money he got from Chrysler but he got like $210 million from Home Depot when he was fired. Chrysler's board was stupid enough to hire him though.
Reply to this comment
.
Scroll Left
Scroll Right More »
CBS News on Facebook