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Auto industry's mood upbeat
Tuesday, January 13, 2009

DETROIT -- The perilous state of the domestic auto industry has been topic No. 1 at the North American International Auto Show, but auto executives and others are in no mood to throw in the towel.

Auto executives have been offering explanations and hints of defiance and determination as they have vowed to carry on regardless of the financial crisis.

At General Motors Corp.'s unveilings, employees waving signs of support such as "We're All Charged Up" and "Here to Stay" lined a path for a parade of cars headed by GM executives and Michigan Gov. Jennifer Granholm. Mario Impemba, a Detroit Tigers broadcaster, led the packed crowd in applause as each GM vehicle drove to the stage.

"Lost in all the hearings and headlines of the past several months is the very important fact that GM is a company that is driven by great cars and trucks, and technology leadership," said Chief Executive Officer Rick Wagoner. "And buried in all the financial news of recent months, is the fact that we've made tremendous progress over the past several years in making cars and trucks that consumers really want to buy."

Chrysler LLC, which in past years has had some of the most elaborate settings for its new models, played it low key with only a simple stage.

"The first half was a pretty decent year, highlighted by our aggressive restructuring. We saw good progress and positive results,' said Jim Press, Chrysler vice chairman and co-president. "Then came the second half, and our world changed overnight."

Referring to Chrysler's precipitous year-end sales results, Mr. Press said: "You have to consider that we slashed our fleet by one-third, taking 200,000 units out. We de-stocked our dealers, reducing their inventory by 12 percent. We eliminated four models, reducing fixed costs. But we lost significant volume. The best thing you could say about 2008 is that we learned a lot."

Don Hammonds can be reached at dhammonds@post-gazette.com or 412-263-1538.
First published on January 13, 2009 at 12:00 am