World's carmakers chase opportunities in revived US market (Roundup)

By Chris Cermak Jan 10, 2011, 18:23 GMT

Detroit - The world's carmakers have launched a new push for sales in the rebounding United States, revealing a series of new models at North America's top auto show on Monday.

General Motors' flagship plug-in hybrid vehicle, the Chevrolet Volt, was named North American car of the year as the Detroit auto show got underway. The much-anticipated Volt goes on this year in the United States.

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

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.

Already in effect managing Chrysler, Fiat raised its stake from 20 per cent. The purchase was triggered as it met certain performance- related targets that had been set 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 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.

German carmakers also laid down the gauntlet at the Detroit show as the country's car association VDA touted plans to break the 1- million mark in car sales in 2011 in the United States.

Porsche returned to the largest North American car show for the first time in four years, while Volkswagen unveiled a new and cheaper mid-sized sedan aimed at capturing market share in the United States.

'The conditions for further growth are in place: we are enlarging our production capacities in the US and aiming to increase our market share again this year, said Mattias Wissman, president of VDA.

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.

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.

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

The North American show boasted a mix of greener hybrid and electric unveilings from carmakers like Ford, Toyota and China's BYD Auto, while others including GM and Chrysler used the show to unveil new sedans and luxury models.

Ford detailed five new electric and hybrid vehicles it plans to bring on the market by 2012, including an all-electric version of its popular Ford Focus. Later Monday, Japanese maker 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: 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, for decades the world's largest carmaker until 2008, held onto the second spot, Dudenhoeffer said, with sales of 8.2 million cars in 2010, up from 7.5 million in 2009.

Germany's Volkswagen was third 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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