GM Volt gets top car show award; Fiat ups Chrysler stake (1st Lead)

Jan 10, 2011, 15:57 GMT

Detroit - General Motors' flagship plug-in hybrid vehicle, the Chevrolet Volt, was named North American car of the year as the top car show on the continent got underway Monday.

The Ford Explorer was named truck of the year at the car show in Detroit, marking a sweep for US carmakers as the beleaguered industry hopes for a comeback in 2011. The awards are decided by a collection of the top automotive journalists on the continent.

Italy's Fiat, meanwhile, announced it had acquired 25 per cent of the third-largest US carmaker Chrysler, which also hoped to make a splash at the show by unveiling a reworked version of its 300 luxury sedan.

Fiat, which already effectively manages Chrysler, raised its stake from 20 per cent. The purchase was triggered as it met certain performance-related targets that had been ordered by the US government as part of Chrysler's managed bankruptcy in 2009.

Detroit's North American International Auto Show was expected to see more than 30 world debuts during a press preview Monday and Tuesday, as many carmakers planned to put on glitzier displays than in the past three sluggish years.

The renewed vigour comes after a rebound year in the United States in 2010, with sales climbing more than 11 per cent to 11.6 million cars. The US National Automobile Dealers Association has predicted similar gains in 2011.

The comeback follows unprecedented troubles in 2009 that saw two of the three biggest US carmakers flirt with collapse. General Motors weathered the storm, returned to the stock market and to profit in 2010, while Chrysler could do the same in 2011.

The displays of Detroit's so-called Big Three manufacturers - GM, Ford and Chrysler - symbolized the improving fortunes for the industry.

GM built a two-storey display for its models at the show, Ford offered its own test track for new models, and Chrysler for the first time expanded its set to include cars from Fiat, the Italian carmaker that has managed Chrysler since the 2009 bankruptcy.

For GM, the car award on Monday marks the latest in a series of accolades for the Chevy Volt, which carries an electric and petrol engine and goes on sale to the US public this year.

GM chief executive Dan Akerson, in a statement, said the Volt had 'the potential to transform the automotive industry,' noting it was the first electric car to win the award.

The Detroit show will boast a mix of greener hybrid and electric unveilings from carmakers like Ford, Toyota and China's BYD Auto, while others including GM and Germany's Volkswagen will be using the show to unveil new sedans and luxury models.

Ford detailed five new electric vehicles it plans to bring on the market by 2012, including an all-electric version of its popular Ford Focus. Later Monday, Toyota was to release a new 'family' based on its popular Prius hybrid model.

Organizers are predicting the show will net more than 400 million dollars in revenue, up from about 325 million in 2010. Other signs of a comeback: German sports car brand Porsche returned to the show after a four-year absence.

All major carmakers saw sales increase in 2010: Japanese maker Toyota managed to remain in pole position with worldwide sales of 8.4 million vehicles, up from 7.8 million in 2009, despite a damaging recall scandal to start 2010, according to German car expert Ferdinand Dudenhoeffer from the University of Duisburg-Essen.

Newly reorganized GM, until recently the world's largest carmaker for decades, held onto the second spot, Dudenhoeffer said, despite having been forced to shut down four brands through the year. GM sold 8.2 million cars in 2010, up from 7.5 million in 2009, when the US car giant went through its own managed bankruptcy.

Germany's Volkswagen, which planned to unveil an all-new mid-sized sedan later Monday, claimed the third spot in global sales with 7.1 million. VW has designs on becoming the world's largest carmaker by 2018, with plans to boost sales to 10 million cars.

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