Auto Industry Aches and Detroit Breaks

Few cities in the world are as dependent on one industry as Detroit is when it comes to automobiles. Decades ago, the southeastern Michigan city hitched its fortunes to the auto industry which has resulted in spectacular times as well as many years of financial want. These days, Detroit and some of its surrounding communities are virtual zombie towns, occupied by the living dead who don't quite know that they are indeed dead.

To be fair, Detroit has produced some amazing products down through the year - whether designed locally or built elsewhere - the Ford Mustang, Chrysler's minivans, Jeep, and the Chevrolet Corvette are among the many models which represent the best of America's automotive fleet. Unfortunately, arcane management practices, outdated union rules, and stiff competition has taken the sheen off of the Detroit glitter, putting the city in the precarious place that it finds itself today.

One of the crown jewels of the beleaguered city is its annual auto show which has earned the title of North American International Auto Show due to its proximity to Windsor, Ontario and for the reason it is considered to be the premier event in two countries for the introduction of new automobiles. Annually, as many as seven thousand members of the international press show up at Detroit to get a glimpse of new models, to network, and to report on the industry. Hundreds of millions of dollars is poured into the gritty city, funds which help bolster the financial position of Detroit.

This coming show will be a bit more subdued as the world passes through one of the most difficult financial crises seen in decades. The NAIAS is not immune to pain as several automakers have announced that they will stay away from the upcoming show. Perhaps most surprising was the recent announcement that Nissan - one of Japan's Big Three automakers - would not appear at the Detroit show (or Chicago in February) choosing to conserve its marketing funds.

Nissan now joins Suzuki and Mitsubishi as three Japanese automakers who are forgoing the Detroit show along with Rolls-Royce, Ferrari, Land Rover, and Porsche who previously announced that they would not be in attendance either.

For the city of Detroit, the absence of any automaker is a bit of a sting, but for others it becomes an opportunity to find some space at the crowded Cobo Center. Brilliance Automotive is one of the Chinese brands who will likely petition to occupy Nissan's space, a move that could give the automaker prime marketing real estate in advance of selling several models stateside later in the year. Inadvertently, Detroit may be making it easier for one more competitor to gain entrance to the competitive American market, low cost cars from China which will certainly provide more pressure on General Motors, Ford, and Chrysler during a tough economic decline.

Matthew C. Keegan is a freelance writer who resides in Cary, North Carolina. Matt is a contributing writer for Andy's Auto Sport an aftermarket supplier of quality parts including custom tail lights and headlights.