The Auto Show goes on

Auto sales are tanking. Car dealerships are closing. And manufacturing plant shutdowns are feared as General Motors and Chrysler scramble to meet a Tuesday deadline to prove they're good for billions in federal loans.

But the auto show must go on.

In an economic climate like this one, extravaganzas like the Chicago Auto Show are more relevant than ever, industry experts say.

"We see it as a big opportunity to reach a high number of customers in an environment where they're thinking of buying vehicles," Ford Director of Corporate Communications Mark Truby said.

The event at McCormick Place opens to the public Friday and runs through Sunday, Feb. 22. While the slump caused manufacturers such as Nissan to skip Detroit's North American International Auto Show in January, most automakers are expected to put their best wheels forward in Chicago.

"There's a lot of pent-up demand," auto show communications director Paul Brian said.

U.S. car and truck sales plummeted 37 percent in January and 36 percent in December, historical lows for manufacturers.

Locally, well-known dealers such as Lattof Chevrolet in Arlington Heights and Extreme Ford in Crystal Lake have closed their doors while others have sold their businesses to competitors.

The best part of auto shows is the irrational exuberance. Gorgeous models, power cars, speculator special effects are givens. But with the faltering state of the industry and economy, will the sales pitch in Chicago be toned down?

The news coming out of Wednesday's media preview was schizophrenic.

While Hyundai chief John Krafcik delivered a blistering criticism of the industry for its ineptitude and called for a mindset revolution, Chrysler executives took a sunny approach, declaring "the pickup market is not dead," and introduced a new line of heavy-duty trucks.

Ford held a relatively tame but pragmatic press event with the focus on energy-efficient business delivery vans. Company officials avoided new product forecasts but talked positively about used car sales.

General Motors, however, put on a hype offensive, rolling out cars to be featured in the "Transformers" movie sequel, titled "Revenge of the Fallen." They included the 2010 Chevrolet Camaro coming out this spring and a concept Sting Ray Corvette - very Hollywood but removed from the economic realities facing many consumers.

"The Camaro's coming out at a perfect time," GM North America Vice President for Chevrolet Ed Peper said. "We need a little shot in the arm, we want joy back in driving."

The mixed signals are understandable, said Argonne National Laboratory's Center for Transportation Research Director Don Hillebrand, who follows industry trends.

A few months ago, gas prices were sky-high, raising interest in hybrids and cooling the SUV market. Now gas is practically "free," Hillebrand noted. At the same time, some automakers fear bankruptcy and car loans are hard to get, hallmarks of these volatile and unpredictable times.

"They're in a dilemma," Hillebrand said. "They're saying they're broke, so they can't do a big show,

"It's a bipolar problem and they don't know what to do. The whisper is there's a rule at GM that no executives can be photographed with a champagne glass."

The 2009 Detroit Auto Show scaled back compared to 2008 when Chrysler used a herd of cattle to promote a truck. This year, "the Chrysler president did a stand-up routine. It was really sad," Hillebrand said.

Brian predicts the 2009 Chicago Auto Show's tone "will be a little more conservative - but just because the economy's down and the auto industry is under scrutiny doesn't mean you stop marketing."

And unlike Detroit, which is a trade show, the Chicago expo "has a different dynamic, it's a big consumer show. This is where the industry learns what plays in Peoria," Brian said.

You'd like to think the industry has hit bottom and is on its way up, but the crystal ball is murky, Truby explained.

"The indication is we're bumping along the bottom, it's very volatile and hard to predict. The first half of the year will continue to be tough, we may see a gradual improvement in the first half of the year," he said.

Auto manufacturing woes aside, Brian calls the event "an affordable family entertainment option," and said visitors can check out Chicagoautoshow.com for information about discounts and special deals.

He wouldn't give out projected attendance figures or disclose numbers from 2008, only saying, "I hope it holds."

Detroit's show attracted just 650,517 people this January compared to 702,814 a year ago, the Detroit Free Press reported.

Hillebrand, who worked in research for Chrysler previously, believes "the lack of excitement in auto shows is a one-year thing.

"It will get better - it has to. Now people can't borrow money and they're stretching out cars but eventually something has to give."

What's his prediction for the hottest car of the show?

"The cheapest thing people can afford to buy."

Start your engines

What: Chicago Auto Show

When: Friday through Sunday, Feb. 22

Hours: 10 a.m. to 10 p.m. Friday through Feb. 21, 10 a.m. to 8 p.m. Feb. 22

Where: McCormick Place, Lake Shore Drive and 23rd St., Chicago

Admission: $10 for adults, $5 for children ages 7 to 12, kids 6 and under free with a paying parent, 62 and older $5

Special deals: Discounted admission on Women's Day Tuesday and Food Drive Day Wednesday. Deals are subject to change.

What else: First Look for Charity show is today. Tickets are $225 and donations go to 18 local charities.

For info: Chicagoautoshow.org

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