2009年2月13日星期五

AUTOSHOW-Drawing in buyers or exhibitors a challenge

Auto shows have been around more than 100 years but as money gets tighter for consumers and car companies, show organizers are finding they have to compete harder for the attention of both.
Some automakers pulled out of the North American International Auto Show in Detroit in January, including Nissan (7201.T: Quote, Profile, Research), Mitsubishi (7211.T: Quote, Profile, Research) and Suzuki (7269.T: Quote, Profile, Research), and public attendance there fell for a sixth straight year to 650,000.
Displays were less elaborate and the media days, known for starlets, pop star sound bites and stunts ranging from cars crashing through windows to cattle drives, were more subdued.
The Chicago Auto Show, which opens on Friday, has not announced visitor numbers since 2000, when it said it attracted more than 1.2 million people. But it says attendance fell 3 percent last year, the first decline this decade.
To attract automakers, the Chicago show has set up a basic stage with lighting and sound systems that car companies can rent to hold press briefings and introduce new models.
"The days of overindulgent press conferences are a thing of the past, and this is one way to help manufacturers and the show," said Jerry Cizek, president of the Chicago Automobile Trade Association, the dealer group that sponsors the show.
"Manufacturers want return on investment," he said.
Hyundai Motor America (005380.KS: Quote, Profile, Research) used the show's central stage, and John Krafcik, acting president and chief executive of Hyundai Motor America, estimated it cost $25,000 while a "typical auto show runs $500,000" to stage a similar event.
"This is a smart way to do it. We share resources and still get our message across," Krafcik said.
Analysts and auto executives generally do not expect auto sales -- now at a 27-year low due to the recession and credit crunch -- to pick up until the second half of 2009. But Krafcik said auto shows still have value since they expose the brand.
"People who could buy a car are so worried about losing their jobs that about half have taken themselves out of the market," Krafcik said. "They'll still go to auto shows, and we want to be there."
"You can shop online for clothes too, and when they don't fit you send them back. You can't do that with a car," Cizek said. "I wouldn't buy a car before I made sure that my family fits in it."
But with joblessness soaring, adding to an economic malaise that has put car shopping on the back burner, the Chicago show is cutting costs for consumers and automakers alike.
Visitors may see regular prices cut up to 50 percent on some comfort foods like pizza, pork sandwiches and hot dogs.
If they get bored with the cars, they can try the simulated helicopter ride at the U.S. Army display or test their skills on one of the driving simulators that dot the show floor.
"Even if they aren't in the market, you can see the new technology, what's changed on the cars and keep up to date for when they are in the market," Cizek said.

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