When Ferrari, Porsche, Mitsubishi, Suzuki, Rolls Royce and Land Rover withdrew from the Detroit Auto Show, well, who cares? Niche manufacturers all. But now that Nissan has announced that it’s pulled the plug on the North American International Auto Show, it’s the middle of the beginning of the end for the show. MSNBC carries the story, reporting that the Japanese automaker’s official statement on the non-matter. “Based on the fact that we have no major new products to show at the 2009 Detroit and Chicago auto shows, as well as the current economic conditions which will impact the shows’ marketing effectiveness, we have decided to cancel our involvement and participation.” Wow! Both their involvement AND their participation? That’s some serious you-know-what. MSNBC rubs salt into the wound, bringing-up the inconvenient truth that Nissan unveiled the Cube at the LA Auto Show.(forgetting to mention the 370Z U.S. debut). The bigger picture: Detroit is no longer the center of the automotive universe.
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I don’t think Nissan will be the last one. Detroit is history. Probably not a good idea for an import brand to be hanging out there anyway. If they hadn’t made those good cars that people liked, Detroit would still be thriving.
Detroit has an auto show?
A year or two ago Mr. Autoextremist.com wrote a scathing entry about the foolishness of Porsche pulling out of the Center of the Universe. His site doesn’t post user comments, but I sent him a private email telling him politely that he was nuts.
LA and NY are far more interesting markets for the world’s car companies than Detroit is. Once upon a time, Detroit was the center of the international automotive business, much like Silicon Valley once was the center of the semiconductor business. Today, neither city is what it was. Semiconductor design and manufacturing is a global enterprise which happens to have a few of the big players still headquartered in California, but most of the real action is elsewhere. The same is true for autos and Detroit. Next up, LA … which is slowly but surely loosing Entertainment Capital status.
At least we don’t have to hear the folks from the Chicago show gloat.
I’ll miss saying hi to Nakamurasan.
Perhaps the beginning of the end for this year’s show? Absolutely.
However, predicting the death of NAIAS is a bit extreme. The economic downturn is, as you know, hitting automakers particularly hard, and that is the cause of these automakers pulling out. Many of them quite simply have nothing new to unveil this year at NAIAS, and don’t want to spend the money putting up their elaborate displays with nothing substantive to put on them. Plus, no matter what they unveiled, even if it was earth-shattering, it would be playing second fiddle in the press to the economic concerns. Once the economy picks back up, expect NAIAS to be pretty much the same as it has been.
That being said though, I actually think Chicago has the most potential to be the premier North American auto show. The facilities are fantastic (and have been growing significantly over the last few years), and its one of the most consumer friendly shows in the US. If NAIAS does truly collapse, I’d wager Chicago would take its place.
You can get a house with a garden for USD 9.000 in the Detroit ‘burbs …
Why hold a motor show there?
Car shows: crowds, moronic “concept cars” and the occasional actual vehicle.
I’m supposed to go, as part of my job, but I haven’t been to one in years–not even the New York show, which is 60 miles from where I live.
When you get a free pass from a local dealer, and parking is free, car shows are a nice way to while away an hour or two on a winter afternoon.
I can’t imagine why anyone would pay to go in. You can see the same and more for free at any car store, and have the added pleasure of getting a free cup of coffee.
I am not sure why any foreign auto maker would want to display in detroit anyway. This is enemy territory for the imports. They cannot be expected to receive a friendly reception. In fact, the detroit fanclub is actively hostile to imports. So the passing of the detroit show will be like the passing of detroit as center of the automotive world. Only the domestic fans will be upset. Everyone else is moving on anyway. LA and NYC will be the places to be in the future. Detroit is starting to look like it will be lucky just to survive.
Rday, have you even been to the Detroit Auto Show? I have every year for the past 10, and ALL cars seem to get a great reception. Nearly a MILLION people come every year, and my guess is the majority are not from Detroit. My point being people from all over the country (even the World) come to this show. This has always been the case. I’m sure you realize this is not your typical metropolitan car show that only draws locals. That being said, I’ve found most folks that go are true car enthusiasts. People are not just hanging out at the GM/Ford/Chrysler exibits, they are all over the Cobo Center taking tons of pictures, video, etc… It is a GREAT show!!! This is not to say LA/New York/Chicago could not put on as good of a show, but to date they have not. The NAIAS has been far-and-away the best show in the USA, and arguable the World. Will this trend continue? Who knows…. But I would never knock the Detroit show until someone else proves they can do better….
BTW – Another HUGE advantage of Detroit is this: Tickets $6 to $12, Parking $5 – $10 all day, reasonable priced food, and $65 to stay the night (Nice hotel 15 minutes from Cobo Center). Agreed, Detroit is not the ‘prettiest’ city, but at least the family can afford the trip. Imagine the total cost of this same trip in NY/LA or even CHI. Ouch….
I’ve been to the Detroit show a few times. It is always freezing and downtown Detroit is sooo ghetto. The auto show itself was quite impressive, but it can’t overcome its city.
If you’ve got a kid who loves cars, the LA auto show is great for wearing them out!
I’ve been to the Detroit show as a spectator, as someone working the show and as someone presenting in the conferences during industry week that proceeds public week.
The Detroit show is not very well run, the venue is terrible and yes, I agree that is at the wrong time of year for Detroit to have any hope of looking good. I do wish they would move it to the Fall but the organizers are dead-set on it being the first show of the calender year (like that means anything) and they want it running during the slowest part of the sales year in Winter so that it will hopefully spike sales during the slow times. I think this last fact is a large part of the reason automakers are pulling out of Chicago and Detroit-they do not see a sales spike coming anytime soon, show or no-show.
The dirty little secret about the Detroit Show is that it is held at the abominable Cobo Center has nearly none of the amenities you expect in a contemporary convention center-Why? Because it’s this simple-Detroit only has a handful of conventions that require overnight stays so thus the city does not attract a lot of conventions, does not have a lot of hotel rooms, so therefore, no nice convention hall…and with the new Rock Financial Convention Center in Novi eating up a lot of the one-day conventions that used to go to the Cobo Center, the hand-writing is on the wall for Cobo-it’s over…Detroit needs a new Convention Center and NOW if it ever hopes to retain the NAIAS or just slink back into being a regional show…as far as I am concerned the LA Auto Show is the new NAIAS and has been for at least the last 5 years.
For the duration of the show, TTAC should book a hospitality suite at the Detroit Marriott at the Renaissance Center. Stock it full of food and booze and give TTAC readers VIP access.
The internet is hurting these big, national shows. Why spend money to see a new production vehicle or concept car when you can view it on various websites within hours of the official unveiling?
My friends and I still go to the smaller, more local shows held in Washington, D.C., and Philadelphia in late January, early February. The crowds are managable and the admission prices and parking fees aren’t outrageous. Plus, it’s fund to spend a day with friends looking at new cars.
Droid800,
Sorry, but it’ll never be the same as it has been. In fact, NAIAS has been in decline for a few years now. The high point was back around 2000, when GM and Ford were spending millions in attempts to one-up each other, and other manufacturers also had to spend more than they otherwise would have to not look shabby in comparison.
The NAIAS is North American and has very little to do with International…and that is exactly what “Detroits” problem is. Last time I went a few years back(to that ghetto of a downtown, as has been mentioned), the only thing I remember was GMs “engine of the year”…some 1.3L turbodiesel that no way, no how was ever going to make it here. Shame that no truly “international” vehicles showed up then as Detroit sure wouldnt be in(as bad)the world of hurt they are now.
Delta City, anyone?
For the duration of the show, TTAC should book a hospitality suite at the Detroit Marriott at the Renaissance Center. Stock it full of food and booze and give TTAC readers VIP access.
The food and booze will cost more than the suite I’d guess…
Auto shows are a cutthroat business. In the first tier, which includes Geneva, Frankfurt/Paris and Tokyo, I see no downturn. As a matter of fact, Geneva just reported they are booked out for the March 2009 show. (Luckily, I already reserved hotel rooms). These shows are quite well organized, attract millions, and are still the place to present any major new car.
Then there are a whole lot of second- or third-class shows like Turin or Birmingham or Leipzig that used to be important but by now are mainly for locals. Detroit is in danger of losing its first-tier rank.
jkross22:
I agree entirely. The Seattle auto show is pretty weak overall but my kids have a great time and it’s free for them to attend (and $9 for me with credit union coupon). It’s also a good environment because you can check out the cars without interfacing with a salesman at all.
You can get a house with a garden for USD 9.000 in the Detroit ‘burbs …
Why hold a motor show there?
No class bias here, no, not at all.
That figure is simply not representative of home values here. Can you find a 1000 sq ft two bedroom on a slab with it’s own backyard for $9,000 somewhere in the Detroit area? I suppose you can but I doubt the home is habitable. I check the list of HUD homes and foreclosures for sale from time to time. While it’s true that you can find some real bargains around here, the $9,000 homes are few and far between.
The business with the “garden” above is based on ignorance. Detroit has always had a large percentage of individual homes on their own lots with backyards. For a long time realtors had a hard time selling condos around here because people are used to their own lots, however small they may be.
BTW – Another HUGE advantage of Detroit is this: Tickets $6 to $12, Parking $5 – $10 all day, reasonable priced food, and $65 to stay the night (Nice hotel 15 minutes from Cobo Center). Agreed, Detroit is not the ‘prettiest’ city, but at least the family can afford the trip. Imagine the total cost of this same trip in NY/LA or even CHI. Ouch…
Every year parking for the Chicago show gets more expensive. It’s $16 to park across the street in the McCormick Place parking facility, and it’s up to $24 to park at the adjacent Hyatt. Cobo, for all its problems, has parking on the roof and in the basement and I think it’s something like $7 or $8. Most years I don’t pay to park at all because I know where there’s free street parking a block away from Cobo and since you have to get to the show by 7 during the media preview, there are almost always empty curbside spots that early in the morning.
If you don’t want to stay downtown, suburban hotels are not more than 20 or 30 minutes from Cobo except during rush hour. None of the hotels close to McCormick Place in Chicago are less than expensive. You have to go to the suburbs for decent hotel prices and commuting to McCormick takes a lot longer than in Detroit.
I am not sure why any foreign auto maker would want to display in detroit anyway. This is enemy territory for the imports. They cannot be expected to receive a friendly reception.
They come because there are almost 7,000 journalists from all around the world. The show is a business, the display space costs big money (hence the companies pulling out when there isn’t a good business case), and DADA, the dealer organization that runs the show, treats its customers at the show, i.e. the car companies, pretty much equally. DADA also includes foreign brand dealers so I doubt that the sponsoring organization would treat the foreign marques poorly.
BTW, the NAIAS has raised over $40 million for children’s charities. Their charity preview has been copied by the other major shows.
Detroit auto show DOA? Ummm… maybe Detroit itself is DOA. With Chrylser unable to keep the lights on at its booth at the LA auto show, the downward spiral continues. The auto show is the least of the concerns for the city as a whole. The disrepair of Cobo Hall is fairly representative of the state of affairs for Detroit and its automakers. When the hall gets updated, I’ll have faith in Detroit again.
It is always freezing and downtown Detroit is sooo ghetto.
Please explain what you mean by “ghetto”.
February in Chicago is within a couple of degrees avg temp of Detroit in January. I’ve been working those two shows since ’02 and it’s always been colder in Chicago than Detroit, with a couple of blizzards during the Chicago preview. Also, there’s a reason why they call Chicago the Windy City and McCormick is less than a block away from Lake Michigan.
Chicago’s a great city, the show organizers there put on a nice show and treat the media attendees well (well, when they aren’t whining about non-journalists getting into the preview), and McCormick Place has more space for the displays (actually I think it’s too big at this point, my feet kill me at Chicago).
Other than the number of introductions, the Detroit, Chicago and Toronto shows probably have more in common than differences.
Other than the number of introductions, the Detroit, Chicago and Toronto shows probably have more in common than differences.
Toronto has hardly any introductions and few concepts, but when it does showcase products, it does those that might not get much airtime at the bigger shows. It does have some very nice “specialty” shows; the Art Deco one from a few years back was very interesting; the Sport Compact stuff is on the wane, which is a shame because the first year or two were fascinating.
It’s too damn expensive for what it is, though.
It’s too damn expensive for what it is, though.
Get press credentials. Smaller crowds, you get to talk to the execs and designers and there’s free food.
I’m interested to see how the current mess will affect spending on food and press materials at the NAIAS and Chicago shows.
Toronto has hardly any introductions and few concepts, but when it does showcase products, it does those that might not get much airtime at the bigger shows.
One nice thing about Toronto is that the companies often bring in some of the more successful concepts from the previous year’s US shows so you get another look at them. Also, from a journalistic standpoint, the smaller crowd of reporters make it easier to get at higher level execs. I was able to ask Mark Fields some questions at Toronto and with the crush of folks at the Ford NAIAS reveals, and the preference given to prominent journalists and media outlets that’s not as likely. I think I was the last person to interview Wolfgang Bernhard before he got canned.
By ghetto, I mean unemployed, homeless, alcoholics (plural) on every corner.
Detroit has lost population every decade for 60 years, and even the dead are being disinterred and relocated by relatives fleeing Detroit. The Renaissance City never did, rather it has become synonymous with urban blight and decay, a modern ruin with entire city blocks filled with crumbling, decaying, or bulldozed structures. Crime, drugs, and homelessness exceed other metropolitan averages, and huge swaths of the city are abandoned, with prairie and wild animals overtaking large areas visible even from satellite imagery.
Houses can be had for $9, much less $9000.
In short, the very definition of “ghetto”.
Best of all, I can provide external links to respectable publications to support everything I’ve just typed, often with exact quotations, from those who are not blinded to the forest in front of them.