Green, concept cars highlight of Chicago Auto Show
The Chicago Auto Show may be the perfect vehicle to drive people out of their homes and into car showrooms, despite winter temperatures and even more chilling economic news.
That's the consensus of show organizers and local dealers on the eve of the 101st edition of the largest auto show in North America.
The show, which opens Friday, runs from 10 a.m. to 10 p.m. Feb. 13-21 and from 10 a.m. to 8 p.m. Feb. 22 at Chicago's McCormick Place. The exhibition gives the public a chance to view more than 1,000 domestic and foreign cars, trucks, sport utility vehicles and experimental and concept vehicles.
"The auto show is a fantastic stimulus for us," said Dan Sledz, owner of Fox Valley Auto Mall in Aurora. "The consumers get to see a presentation of new and exciting products. We expect it to have a tremendous impact on us. We are looking forward to a robust spring selling environment."
While no one knows what the future holds, the past is always a good indicator. The Chicago Auto Show has been popular and successful in good times and bad.
"I do know our show is the most visited in North America. It is the largest consumer show in North America, bar none, in attendance and square footage," said Mark Scarpelli, owner of Raymond Chevrolet in Antioch and the 2009 auto show chairman.
Scarpelli said the auto show has the most preview cars, and is a one-stop shop for potential buyers interested in every model and its every variation.
"It's the best consumer show for its size and for access to the cars themselves," said Terry D'Arcy, owner of D'Arcy Volkswagen Hyundai and D'Arcy Buick Pontiac GMC in Joliet.
"Every car is on display and accessible. People can get in and out of them, they are able to touch, see and smell them," D'Arcy said.
Dealers hope the annual event will counter the constant drumbeat of bad economic news.
The rocky economy has prompted people to hold onto their old vehicles longer than ever, said Paul Brian, the auto show's director of communications. He noted the annual average of 15 to 16 million new-unit sales dropped to 11 to 12 million units in 2008, which is creating a pent-up demand for new vehicles.
Brian said people are ready to buy, but are looking for signals to pull the trigger. "That's why we are anxious to open up this show. This is not Detroit, this is not a trade show," Brian said. "Here you've got an unspoiled universe of potential customers. This is a show that can motivate people. Get them to the dealerships, through the door and make a buy."
Scarpelli believes there is a misconception among some people related to automobiles and the current state of the real estate market and mortgage credit.
"I think the news media has done a bit of disservice to businesses as well as consumers," Scarpelli said. "Credit is available, it's always been available. Its terms and conditions might have changed; banks may ask for more references. But I've had people come in and say 'I didn't think that I could get a car loan.' But it's OK to venture into an auto dealership because credit is available."
Brian agrees. "My organization (the Chicago Automobile Trade Association, the show's sponsor) represents 500 auto dealers in the Chicago area. And they're telling me banks are knocking on their doors every day saying 'Send me people. We weren't heavily leveraged in real estate. We can get them loans.' "
In fact, there may be a growing interest in new cars because of the sluggish economy.
"No doubt there is pent-up demand," Sledz said. "People have been watching on the sidelines quite a bit waiting for some good news."
Auto manufacturers traditionally offer extra incentives to buy during the auto show's run, D'Arcy said. There also is an appreciable spike in sales after the Chicago Auto Show, Brian added.
That's why the CATA has always resisted attempts to move the February event to the fall.
"This is always the case every year. It's like a rite of spring or pre-spring right before the weather gets warmer," Scarpelli said. "It's kind of the kickoff of our spring selling season.
"But whether it's been the thawing of the credit market or the new president, our business the past couple of weeks has turned better," he said. "My colleagues at other dealerships report it's more upbeat than the end of 2008."
Besides, Brian added, because of the show's long tradition, it's become a generational event. "It's a cheap ticket, affordable fun. It's a great way to get out of the house in the middle of February."
While the Chicago Auto Show will have many fuel-efficient vehicles on display, Brian wondered if most potential buyers now are interested in "green" cars or economical cars.
"How green are you?" he asked. "Am I green when gas is at $2 a gallon, at $3 a gallon, or at $4 a gallon? I think it's really an economical issue and there are different means of achieving an economic goal."
A car that can get 40 miles per gallon is great for the environment, Brian said, but are people willing or able to pay an additional $5,000 to get such fuel economy when a less expensive car may have a miles-per-gallon rating that is nearly as good?
"Is my goal to be green or to be economical? These are two different issues," Brian said. "In tough economic times people are buying with their pocketbook instead of buying with their conscience. I'm not saying that's a bad thing."
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