NAIAS Is a Sign of Detroit's Resurgence

The electricity was palpable at this year's North American International Auto Show (NAIAS).  The crowds returned, and so did the excitement, both further evidence of a new dawn in Detroit. 

For a second straight year public attendance increased with 735,370 visitors to NAIAS this year versus 714,137 in 2010.  In fact, a single-day record from 1993 of 74,900 for a Friday, was broken with 75,327 attending just on Friday, January 21st alone. 

From an emotional standpoint alone, it was a remarkable turnaround from the trepidacious atmosphere of the recent past, and the exhibits seemed to mirror the renewed optimism.

The largest Ford Motor Company display in the world debuted at NAIAS in 2011.  The stunning size, vibrant blue, and interactivity captured the attention of most visitors as soon as they walked through the door.  The Ford display area was 25 percent larger than last year and included 75 vehicles, 22 interactive exhibits and 67 product specialists on hand to build enthusiasm and answer questions. 

Visitors were invited to learn about new Ford technologies and products through digital interactions, live games and shows, vehicle simulators, and even electric vehicle rides on a specially created, 208-foot-long, elevated track.  It was a true acknowledgement of varying tastes, as some consumers remarked on finding great joy in the quiet ride of an electric vehicle, while fifty feet away a product specialist got the crowd yelling and cheering to hear how loud the Mustang engine could be.

Ford's thunderous, interactive, and energetic exhibit was fitting given the progressive improvements of the company under the leadership of CEO Alan Mulally.  The Ford Explorer even captured Truck of the Year honors at the show.

Since NAIAS Ford has also announced great strides in profitability.  The company's 2010 full year net income was $6.6 billion, or $1.66 per share, a $3.8 billion increase from a year ago.  Their revenue was $32.5 billion in the fourth quarter alone and $120.9 billion for the full year, representing an increase of $17 billion from full year 2009 (excluding Volvo from 2009).

Neighboring Ford's exhibit was another impressive show floor from General Motors.  The Chevy Volt, chosen as the 2011 Car of the Year, had everyone buzzing.  It was the undisputed focal point of the General Motors display, and a big sign of announcements soon to come.  Today GM CEO, Dan Akerson, announced that the company is preparing to launch two more electrified vehicles, with the intent to eventually sell one under every one of the company's U.S. brands.  

Akerson told reporters that GM has ramped up product development spending to $7 billion annually, from $5 billion in 2009 and indicated that the automaker plans to keep that level constant, despite fluctuations in global auto sales.  This comes on the heels of previous great news that the company would be hiring 1,000 new electric vehicle engineers, and plans to add a third shift at Flint Assembly, generating 750 jobs for the plant that makes the award-winning Chevrolet Silverado and GMC Sierra heavy-duty pickups.  2010 calendar year, total sales for GM’s four brands increased 21 percent to 2,202,927, while retail sales rose 16 percent for the year.

For it's part at NAIAS Chrysler's display seemed slightly more modest in size and style, but still a strong presence.  Reveals of an all new Chrysler 300 and a substantially freshened Jeep Compass were highlights and rounded out the 16 new and updated models coming from the Auburn Hills-based automaker.  While Chrysler seems to have a longer drive back to glory, positive signs are on the horizon.

This week Chrysler reported a $199 million net loss for the fourth quarter of 2010, but excluding interest on its government loans and other restructuring debts, it earned a $198 million operating profit.  While a loss of $199 million in final quarter of 2010 is not what anyone wants to see, it's a significant improvement from the $2.7 billion the company lost in 4th quarter of 2009.

The overall charge in the air at the 2011 NAIAS was due in no small part to actual electricity in many forms, and the significant impact it may have on Michigan's economic future was apparent throughout.  On the lower level of Cobo visitors were treated to rides in electric cars, while Michigan Economic Development Corporation (MEDC) took the opportunity to highlight massive potential growth opportunities for our state both in alternative fuel and battery production for vehicles, as well as wind, biofuels, and solar as a powerful new industry growing in our state.  The University of Michigan's solar-powered racing car was on display, as well as sample electronic fueling stations, LED lighting, and statements about the broad potential of renewable energy to create Michigan jobs.

Beyond all the cars as stars, NAIAS demonstrated the shining spirit of Detroit.  The Charity Preview, a black tie gala, continued to be one of the top single-night fundraising events in the nation.  This year the goal of selling 10,000 $250 tickets was surpassed with nearly 10,500 guests helping to raise $2.6 million for local children's charities.

The excitement surrounding this year's auto show, wasn't just about the resurgence of American automakers though, or the return of significant foreign exhibitors like Porsche.  It's also a demonstration of heightened regional cooperation and the much needed, and until recently painfully slow, movement toward a Cobo expansion.  New plans are finally underway, and that's no small feat, and no small victory.  It means a lot to both the image of Detroit and it's automakers, as well as an important influx of annual spending in the city.

According to NAIAS Chairman, Barron Meade the economic impact of the show for the region this year is estimated to be between $350 and $375 million.  Those are dollars funneled into the local economy from visitors to NAIAS in the form of hotels, transportation, catering and entertainment, and it represents more than a $25 million improvement over the 2010 NAIAS.

While this year's auto show in Detroit may be over, thankfully the story it foretold is not.  We have a long way to go in restoring our leading industry and our best known city, but positive signs are all around us, if we choose to see them and believe.