Car Biz Weekly

The Detroit Auto Show has already started off on a bad foot before the doors to the convention hall had even opened, with numerous automakers, including Nissan and Mitsubishi, deciding to forgo the once mighty North American International Auto Show. However, this week it seems that Detroit may not be the only show of the auto show season to get a bump start.

The Japan Automobile Manufacturers’ Association has indicated that its 2009 Tokyo Motor Show may be canceled. Potential cancellation has stemmed from fewer automakers worldwide deciding to participate in the show suggest Nissan O’Fallon. This year will mark the 41st Tokyo Motor Show, and may be the first to be canceled in that time. The theme of this year’s show is “Fun driving for us, eco driving for earth.”

Many in the auto industry would like the show to go on. Members of the Japan Automobile Manufacturers’ Association feel that the show can be a symbol of industrial prosperity and a sign the industry. Massachusetts Used Subaru points out that the industry has faced plenty of negative attention lately and by ensuring the show goes on it will illustrate the industry is actually healthy and in good standing.  Unfortunately, many industry experts feel that that outlook is a bit out of touch with reality. Overall auto sales have fallen dramatically over the past year, with consumers continuing to stay clear of dealerships worldwide. As a result, automakers have been forced to cut costs, including the marketing budgets that enable them to attend auto shows.

Although many Japanese and German automakers have already signed up to attend the Tokyo Motor Show, it’s believed that the Big Three may not have signed up to attend, which according to Nissan Service St Louis would create somewhat of a void at the show. While some of the Detroit Auto Show’s attendees bailed out, it’s hoped that the Japanese Big Three will remain committed to the 2009 Tokyo Motor Show. Otherwise, their absence may spell an unforeseen end to this year’s show.

While JAMA considers its options on how to hold the event, or have it at all, we’ll see how this month’s auto sales influence the outcome. Continue reading ‘2009 Tokyo Motor Show Faces Cancellation’

All drivers are no doubt enjoying the current price of gas, which has fallen dramatically since the record high gas prices we faced during summer. While this is certainly an exciting relief, some expect it’s a bad sign of things to come.

It was only when gas prices spiked that consumers and the media turned against the Big Three for producing truck- and SUV-heavy lineups. It seemed like overnight consumers and critics began demanding compacts and hybrids, rather than snapping up their bulky sport utilities like they had done previously. As a result, Detroit did their best to respond, introducing new plans such as the Chevrolet Volt, or Chrysler electric sports car, Jeep, and minivan. Ford also introduced new hybrid plans.

While the promise of these cars sounds extremely encouraging, there are unforeseen problems with these plug-in hybrids, fuel cells, and electric vehicles. When they finally become available in dealer showrooms, such as Hartford Chrysler dealers which are eagerly anticipated the all-new Chevy Volt, they will come with steep price tags. While the technology and the efficiency will no doubt get consumers excited and even drive them to dealers, the premiums may be too much to make them strong sellers, especially if the current recession looms for several years. What if gas prices remain low? Orlando Chevrolet dealers and others wonder, will consumers still demand and flock to these new cars that are making their way down the pipeline at domestic and Japanese automakers?

Consumers are fickle, and should gas prices remain low, Louisville Chevy admit it could be interesting to see if these new cars will sit on dealer lots in the same way SUVs and trucks are sitting on dealer lots right now. Perhaps we’ll see another public outcry for the automakers to build vehicles that consumer want to buy. While it may seem an unlikely scenario, time will be the judge. Continue reading ‘Low Gas Prices and Consumer Perceptions’