Nissan drops out of auto show
6 others will pass; economy cited
BY BRENT SNAVELY • FREE PRESS BUSINESS WRITER • November 25, 2008Read Comments(18)Recommend(1)Print this page E-mail this article Share this article: Del.icio.us
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Nissan Motor Co. said Monday that it has decided to pull out of the 2009 North American International Auto Show as well as the 2009 Chicago Motor Show. Top Three Ways to Increase Your Credit Score
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With the Detroit automakers teetering on the edge of bankruptcy and pleading for loans from Congress, this year's auto show was already shaping up to be unusually subdued before news Friday that Mitsubishi Motors Corp. would withdraw. Nissan's departure shakes the foundation of a show that is Detroit's signature annual event, generating tourism revenue estimated at nearly $500 million annually. The show was already suffering from the loss of five other luxury and niche automotive manufacturers. Alan Buddendeck, spokesman for Nissan North America, said the decision was made after the company unveiled three new or redesigned cars at the Los Angeles auto show, and because of the need to review all marketing expenditures during the worst industry sales environment in 25 years. "We had to ask ourselves, 'Is this the best use of our marketing dollars?' " Buddendeck said. "And it is not." At the Los Angeles show, Nissan held news conferences for its redesigned 370Z Coupe, unveiled its Nissan Cube crossover and Infiniti G37 convertible. It also showed the low-priced version of its Versa subcompact car for the first time. Nissan's decision caught Detroit show organizers by surprise. As of 5 p.m. Monday, Joe Serra, senior cochairman of the North American International Auto Show, said he thought Nissan was merely thinking about reducing its presence. Serra said he would try to persuade Nissan to change its mind. "We will work with them and see if there is a way for them to have a presence," Serra said. "I think it's crucial for them ... to be here." Mitsubishi said it decided to exit the auto show because it is able to reach more potential buyers at shows in Chicago and New York. "Basically, looking at the economic realities of things, it just was our decision to redeploy those resources towards other things, particularly shows that are a little bit more consumer-oriented," said spokesman Dan Irvin. "This was not an easy decision. This is a one-year decision." In addition to Nissan and Mitsubishi, four other automotive manufacturers have decided against participating in this year's Detroit show: Rolls-Royce, Land Rover, Ferrari and Suzuki. Porsche Cars North America Inc. was not part of 2008 show and is not returning for '09. "I think, without a doubt, for us to think it will be business as usual would be foolish," Serra said. "We have to be aware of the economic conditions that we are in." Still, Serra said he anticipates that this year's event will feature about 45 product introductions from manufacturers around the globe and that demand for space at Cobo Center remains high. Last year, economist David Sowerby studied Cobo and the auto show and concluded that the event pumps about $472 million into the regional economy. Earlier this month, the auto show announced that at least two Chinese automakers are to be at the 2009 show. BYD will return, while Brilliance Auto, BMW's partner, will make its first appearance. "No doubt, this show will have a different feel about it," Serra said. "But that being said, we are the show in North America and it's a wonderful event that allows the manufacturers to showcase their products." Contact BRENT SNAVELY at 313-222-6512 or bsnavely@freepress.com.
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