Detroit Auto Show Reels From Another Defection
November 25, 2008
By Bill Visnic
DETROIT -- The North American International Auto Show -- whose reputation as one of the world's front-line annual international shows already has been bruised by several automakers' choice to forego a presence this year -- absorbed a more-damaging body blow on Monday when Nissan Motor Co. Ltd. announced it, too, will be a no-show at the 2009 Detroit show in January.
Nissan is by far the biggest name to join the ranks of Detroit-show defectors, adding that the company also will be taking a pass on the hugely attended Chicago auto show in February. Nissan -- along with General Motors Corp., Ford Motor Co., Chrysler LLC, Toyota Motor Corp. and Honda Motor Co. Ltd. -- helps comprise what often is referred to as the "Big Six" automakers doing business in the U.S.
Porsche AG, Suzuki Motor Corp., Mitsubishi Motor Corp., Rolls-Royce, Land Rover and Ferrari S.p.A. already said they will not be displaying their wares at the Detroit show, but Nissan's departure surely brings a new level of gloom for show organizers, not to mention the embattled city, region and state.
"This is not a comment in any way about the importance of the Detroit or Chicago auto shows, a Nissan spokesman told the Detroit News.
Perhaps not, but it speaks plenty about the cash crunch that must be going down at Nissan.
Last month, Nissan moved just less than 50,000 vehicles -- a 33 percent dive from October 2007 as the company has been caught along with most other automakers in the deeply downturning economy. Moreover, Nissan's sales in Japan for the six-month period ending September 30 declined 11.3 percent excluding minicars and were down 5.3 percent including minicar sales.
And Japan's 12 automakers reported domestic vehicle production fell 11 percent in August, the biggest drop in more than a decade. They blamed double-digit declines in exports to the U.S. -- the biggest decline five years.
In July, Nissan announced it was offering buyouts to hourly and salaried workers at its Dechard, Tennessee, powertrain plant and Smyrna, Tennessee, assembly plant.
PHOTO:
The all-new Nissan 370Z was introduced at the recent Los Angeles auto show -- part of the reason the company sees the Detroit and Chicago shows as expendable.
Posted by Bill Visnic at 3:20 AM under Business , Companies , News | Comments (2) | digg this | Seed Newsvine
It seems to me that Nissan should do Chicago or Detroit (personally I vote for Chicago) so that they will have hit the coast and the midwest.
Take a smaller space if you want, but bring some cars. The dealers can't be happy that their marketing dollars aren't going to support an appearance.
Posted by: bankerdanny | November 25, 2008 at 1:12 PM
It seems to me that Nissan should do Chicago or Detroit (personally I vote for Chicago) so that they will have hit the coasts and the midwest.
Take a smaller space if you want, but bring some cars. The dealers can't be happy that their marketing dollars aren't going to support an appearance.
Posted by: bankerdanny | November 25, 2008 at 1:12 PM