Auto Industry Crisis Casts Shadow On Detroit Show

Battered U.S. automakers are putting on a show this week, though it's clear they've already had enough drama.

The North American International Auto Show in Detroit is a chance to show off an industry whose business is evaporating. In the industry's annual showcase of new products, General Motors, Ford and Chrysler focused on humility — and sustainability.

They emphasized more fuel-efficient cars. And they avoided big publicity stunts. Last year, Chrysler kicked off the auto show with 130 head of longhorn steer accompanying a Dodge Ram pickup through the streets of Detroit.

This year, everything was different. Instead of a waterfall that spelled out Jeep, there was a curtain of electric cords signifying the company's electric car offerings.

Jim Press, Chrysler's co-president, acknowledged the contrast. "Probably like me, you're looking to see if the cows are behind me," he said.

The company's financial crisis hung over the event like a cloud. Chrysler had to borrow $4 billion from the government last month just to keep operating.

Press tried to joke about it while introducing company executives, including the chief financial officer. "The government checks go right to Ron Kolka so if anyone needs a loan, see Ron Kolka," Press said.

Frank Klegon, who oversees product development for Chrysler, introduced three new electric vehicles, including the Dodge Circuit EV. A tangerine-colored sports car appeared from beneath a sheet. It looked good. But like Chrysler's other offerings, it's just a prototype.

Can Chrysler Survive?

Many doubt Chrysler will end this year intact. They expect another company will buy its valuable brands, including Jeep, and the rest of the firm to disappear.

After the unveiling, Chief Executive Officer Robert Nardelli took questions — not about the vehicles but Chrysler's future. "You know, a lot of people, some naysayers, maybe would like to see Chrysler go away. But we're her to tell you that we're going to prove them wrong," he said.

The scene over at General Motors was more upbeat. Company employees gathered to greet the new models. They waved blue and green signs that read, "40 Miles a Gallon" and "Here To Stay."

Soon, the new GM cars came rolling down the carpet. GM executive Bob Lutz introduced the star of the show — the Cadillac Converj concept car, an electric sedan. The car was silver and creased in the back. Up front, it had a grille that smiled like the Cheshire cat.

Autoworkers Question Concessions

While GM's white-collar workers were cheering inside Detroit's Cobo Center, their blue-collar counterparts were protesting across the street in the frigid air.

The car companies are pushing the United Auto Workers for more concessions. It's part of the loan agreement GM negotiated with the White House.

Frank Warren, 49, who works at a GM transmission plant, said the autoworkers have given up enough. "We've given up positions that it's taken 30 years to get," he said. "We've got workers coming into our doors now making $14 an hour without health care. Can you support your family on $14 an hour and pay a mortgage? I don't think so."

Foreign Competition

Of the three Detroit companies, Ford is probably in the strongest position. It has more cash and is further along in its turnaround. At the show, it also had some strong new models, including a sportier, redesigned Taurus that looks nothing like its oblong ancestor.

But Sunday there was also a reminder that Ford and other U.S. companies face increased competition from all over. The car of the year award went to the Hyundai Genesis, a luxury sedan.

Hyundai once prompted laughter in the U.S. Now, it's a serious company — and one more worry for the Detroit Three.