Actual finance blog

January 29, 2010

Efficiency, optimism on display at car show

Filed under: online — Tags: , , — Professor Besto @ 8:51 am

ST. LOUIS — People attending the first day of the St. Louis Auto Show filed past a shimmering lime-green Ford Fiesta — a fuel-sipping car that will roam 40 miles for every gallon of gas.

Ford was among a handful of automakers inside America’s Center to give prominent display to their eco-friendly, fuel-efficient cars at the start of the four-day event Thursday. Ford launched its strategy three years ago — before $4-a-gallon gas — and it’s still a top priority, said Cory Miller, a Ford zone manager in Kansas City.

"The Nineties was a decade where people didn’t necessarily care so much about fuel consumption; they cared more about style of the vehicle they wanted," Miller said. "Since the spike in the gas prices — even though the prices have stayed relatively moderate — people are once-bitten, twice shy.

"People remember having to dip into their pockets quite deeply to fill up."

While gasoline prices have returned to Earth, many car owners are still jittery about future price swings, Miller said. But they also want cars that are fun to drive, safe and of good quality. The Fiesta — a top seller in Europe — will be available in U.S. showrooms this spring.

Despite a dismal two-year stretch that resulted in the

government bailout of General Motors and Chrysler, industry officials said Thursday that there is guarded optimism that the worst may be over for the beleaguered auto industry.

"Really, I think we’ve turned the page," said Brian Sullivan, executive producer of the St. Louis Auto Show.

Still, not all manufacturers have been able to shake bad news entering the show.

Toyota was forced to suspend U.S. sales of top sellers because of problems with the gas pedals. Toyota representatives staffing the St. Louis display declined to talk about the halt to sales or a related recall, referring questions to company officials in California.

A federal judge on Thursday rejected the United Auto Workers’ request for a temporary restraining order that would have allowed the union to pass out leaflets in the lobby of the America’s Center. The UAW sought to draw attention to Toyota’s recent product problems and Toyota’s decision to close a plant in California.

Honda touted its entry-level Fit and its hybrid Insight alongside its Accord Crosstour, CR-V and Element, although Joe Duco of Meyer Honda in O’Fallon, Ill., said fuel efficiency isn’t the only thing driving today’s car buyer.

"There are still a lot of people inquiring about fuel efficiency," Duco said. "I think right now they’re kind of looking for that in-between vehicle."

Jeff Blair of Festus crawled behind the wheel of the Insight but concluded it would be too small for his family of four. While he’s not in the market for a new car right now, Blair said fuel efficiency is important when deciding to buy a car.

Blair is a copy machine technician in St. Louis who spends a lot of time on the road. His wife drives 45 miles each way to work at Barnes-Jewish Hospital.

"Gas mileage is definitely a big thing when you buy a car," said Blair, who owns a Honda Civic.

Not far away, Volkswagen’s display boasted that its TDI clean-diesel vehicles would make owners the toast of "tree-huggers and road-huggers alike."

While the blending of green technology and vehicle performance has been a theme at auto shows nationwide, so has one of relief among automakers who believe the worst is over, said Jeff Schuster, executive director of global forecasting for J.D. Power and Associates.

To that end, Schuster said, there is a correlation between attendance at auto shows and the public appetite to buy cars.

"Fuel economy … raises itself in importance more when fuel prices are high," said General Motors spokesman Craig Eppling. "They’re moderate now. We would have thought maybe three or four years ago $2.50 or so was high. Now, we’re generally accustomed to it."

Eppling said General Motors tracks why people buy cars. Style now rates high — along with safety and price. GM expects vehicle sales to track with the U.S. economy, Eppling added, so 2010 should be a good market but not necessarily a great one.

"This past year, the motivation has been value," Eppling said. "With the economy and the mind-set of ‘Do I have a job?’ and so forth, people are looking for a value."

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