A new Corvette promised to revive the longest-running sports car in American history. A new Mercedes-Benz showcased the smaller future ahead for its classic European brand. Cadillac won its first-ever Car Of The Year award in its hometown, then debuted an extended-range electric vehicle.
Storylines emerged everywhere Monday during the first day of the North American International Auto Show. There were so many new cars and concepts, in fact, the one story missing was almost lost in the shuffle.
The economy.
Over the past five years, it’s been a dominant, if moribund theme at Detroit’s annual gathering of auto executives, journalists and car enthusiasts. But the auto industry has rebounded from the depths of the recession, enjoying three consecutive years of sales growth.
To be sure, the industry hasn’t neared its pre-recession halcyon days of 2007, when consumers bought 17 million vehicles. But in 2012, the industry sold 14.5 million units, a 13 percent improvement over 2011’s figures. Executives at least believe they’re on the right track. The worrying was gone Monday, and the change was palpable.
“This morning, I saw a new energy and confidence in the industry,” said U.S. Secretary of Transportation Ray LaHood, visiting Detroit. “It is clear to me that the U.S. auto industry is back.”
With a larger-than-life statue of hometown hero Joe Louis looking on from the Cobo Center lobby, Detroit’s mettle was on display everywhere on the opening day of the auto show.
In addition to the Cadillac capturing its first crown as car of the year, Chrysler won Truck Of The Year honors for the new Ram 1500. It was a busy day for Chrysler overall, as Jeep unveiled a diesel option on its new Grand Cherokee and CEO Sergio Marchionne panned the launch of the underwhelming Dodge Dart.
Meanwhile, Toyota dethroned General Motors as the industry’s global sales leader with 9.7 million units sold versus GM’s 9.3 million. Tesla unveiled its gull-winged X model, a crossover style follow-up to its groundbreaking all-electric Model S, Lexus unveiled its new IS and Acura debuted the long-awaited update to its popular NSX.
“There really isn’t a theme for the Detroit show this year with it being diverse, in terms of product launches with mainstream vehicles, luxury vehicles, and from trucks to iconic vehicles,” said Larry Dominique, executive vice president of TrueCar.
The theme is simply that, there are a lot of them. More than 50 models are expected to make their debuts in front of more than 5,000 media members by the time the press portion of the show ends Tuesday evening, better than the 40 that were unveiled last year.
A record 79 vehicles made their first appearances at the Detroit Auto Show in 2004, but the number fell to less than half that as the recession pummeled the industry and automakers retrenched. The industry’s willingness to commit to so many debuts this year was a sign the economy’s rebound is firm.
“It shows that the recovery that we’ve seen in the previous years was not a coincidence,” said Jesse Toprak, senior automotive analyst for TrueCar.com.
Indeed, Ford announced earlier this week that it would add 2,200 white-collar jobs in 2013 and General Motors announced it would hire 1,000 technical engineers at its research center in Atlanta. Nissan announced it would hire 1,000 workers in the U.K.
More anecdotal evidence of the industry’s collective relief: the after-hours parties that automakers are throwing this year are both more numerous and more elaborate than they were in leaner years, when planners turned the volume down on the annual bashes, careful to not be perceived as ostentatious while the industry drove hundreds of thousands to the unemployment line.
Perhaps the biggest spectacle this year, Chevrolet retrofitted a dilapidated warehouse on the north side of the city Sunday night, using the backdrop of the city’s all-too-trendy ruin porn to introduce the Corvette C7 Stingray, the model’s first overhaul in nine years.
Built since 1953, sales of the iconic sports car had tumbled to a 49-year-low of 13,164 in 2011. Its overhaul, which has at least initially won rave reviews for a higher-quality interior, has done more than put the brand in a better position.
“The soul of our company is indeed in Corvette,” said Mark Reuss, General Motors chairman of North America. “Through good times and bad for this company, there was always the Corvette.”
Cadillac’s new ELR could carry similar weight, albeit for logistical, not symbolic, reasons.
It “may be more important to Chevrolet than it is to Cadillac,” said Eric Lyman, vice president of editorial for ALG. “By sharing an assembly line, the ELR’s success will take pressure off Volt sales, allowing GM to dial back on incentives that have added risk to the Volt’s residual value forecast.”
For General Motors, it was a sensible calculation. For Detroit, the ELR announcement meant relief at its nearby Hamtramck assembly plant, where the Volt is built. And for the city, the greater problems of abandoned buildings and corrupt politicians not withstanding, the city had much to enjoy for the first time in years at its annual showcase.
“You can really feel the difference,” said Ryan Vaughan, one of the chief General Motors designers who worked Corvette. “There’s optimism.”
Featured Gallery
It’s that time of year, when the automakers give out their final sales tallies for 2012.
Many people will be surprised by the No. 1 best-selling vehicle in the U.S., but close auto industry watchers should know this vehicle well. It’s been the best-selling vehicle for 31 years. Click through to find out.
And other industry stalwarts also continue hitting the best-sellers list, even after some ups and downs.
But the auto industry is a ruthless business. Despite the billions of dollars it takes to develop a new vehicle, sometimes the cars just fall flat. We’ve got a list of the 5 cars we think were the biggest disappointments on the market in 2012.
MSRP: $15,755 – $26,305
Invoice: $14,661 – $24,943
Fuel Economy: 28 mpg City, 36 mpg Highway
TheHonda Civic had a great year sales-wise, up 43.7 percent compared with 2011, despite the fact that critics hated the car.
But customers seemed to like it. A lot. They especially seemed to like the deals Honda piled on in October and November in anticipation of the quickly redesigned 2013 Civic hitting the market on Nov. 29th.
Dealers were urged to sell out their inventory of 2012 models by David Hendley, Assistant Vice President of Honda National sales. In an email that was leaked to AutoBlog, he told dealers:”The changes made to the 2013 model will make the outgoing 2012 Civic a difficult model to sell when they are side-by-side.”
The new model is indeed nicer, which means the Civic could have another good year of sales in 2013.
Research the Honda Civic
Honda Civic Photos & Information
Honda Civic Best Deals
Honda Civic Local Dealer Price Quote
MSRP: $21,680 – $33,430
Invoice: $19,849 – $30,567
Fuel Economy: 24 mpg City, 34 mpg Highway
Honda had two cars in the top five best-seller list. The Accord consistently sells well, ranking most often as the second-best-selling sedan on the market. 2011 was a tough year for the Accord, due to the March 2011 tsunami that ruined production for much of the remaining year. So that makes sales of the Accord look like they skyrocketed in 2012– up 40.8 percent.
But in reality, it’s just because the Accord had such a bad year in 2011 that its numbers look so impressive in 2012.
The Accord was recently redesigned for 2013. Redesigns often ignite interest again in models, which means the Accord could be looking at another solid year in 2013.
Research the Honda Accord
Honda Accord Photos & Information
Honda Accord Best Deals
Honda Accord Local Dealer Price Quote
MSRP: $22,235 – $30,465
Invoice: $20,345 – $27,723
Fuel Economy: 25 mpg City, 35 mpg Highway
The Camry was also effected by the tsunami in 2011, but Toyota had another obstacle to deal with that year: Reverberating effects from its massive sudden acceleration recall, which cast a pall over the brand.
The Camry’s sales rebound for 2012– it was up 31.2 percent compared to 2011 – show those issues are behind them. The company sold 404,886 Camry sedans in 2012.
“Toyota had the biggest year-over-year gains of any of the Big Six manufacturers, which just adds more evidence that its unintended acceleration issues are officially in the rear view mirror,” said Jessica Caldwell, senior analyst at Edmunds.com.
The new Camry was unveiled in 2011 as a 2012 model.
Research the Toyota Camry
Toyota Camry Photos & Information
Toyota Camry Best Deals
Toyota Camry Local Dealer Price Quote
MSRP: $23,590 – $42,935
Invoice: $22,646 – $39,930
Fuel Economy: 15 mpg City, 20 mpg Highway
By many accounts, theSilverado didn’t have a stellar year. Its sales were about flat with the year before, in a market that is moving steadily upwards.
Still, Chevy sells a lot of Silverado pickup trucks. And that sheer volume of trucks makes it the second-best selling vehicle in the country.
The current Silverado is at the end of its lifespan, and sales tend to trickle down when a model starts aging. A new Silverado should be hitting the market soon, coming in the second quarter of 2013. That should help revive sales.
Research the Chevrolet Silverado
Chevrolet Silverado Photos & Information
Chevrolet Silverado Best Deals
Chevrolet Silverado Local Dealer Price Quote
MSRP: $23,670 – $52,455
Invoice: $21,953 – $47,605
Fuel Economy: 17 mpg City, 23 mpg Highway
For 31 years running, Ford’s pickup trucks are the best-selling vehicles in the U.S. by a virtual landslide. The company sold 645,316 F-series trucks in 2012, up 10.3 percent compared with 2011.
Ford is expected to show a sneak peak of its new F-150 truck at the Detroit Auto Show later this month. The vehicle isn’t expected to hit the market until 2014, but competition between Chevy and Ford will intensify in the coming months. Expect to see Ford offering more rebates and discounts on the F-Series trucks as it competes with a new Silverado.
Research the Ford F-150
Ford F-150 Photos & Information
Ford F-150 Best Deals
Ford F-150 Local Dealer Price Quote
MSRP: $15,995 – $19,995
Invoice: $15,974 – $19,550
Fuel Economy: 25 mpg City, 36 mpg Highway
Given how much Chrysler, Dodge’s parent company, has riding on the success of the Dart, its failure to gain serious sales traction in its first few months on the market is a worrying sign.
The Dart was meant to resuscitate Chrysler’s small-car lineup, one of the areas in which is was most sorely lacking when it fell into bankruptcy court four years ago. The Dart is a nice-looking car that was built on a platform originally designed for the Alfa Romeo, but tuned for American tastes. And Chrysler succeeded. We really like the Dart, and think it is a solid challenger to Ford Focus, Mazda3, Hyundai Elantra and Toyota Corolla, with some advantages on design and available features.
Despite the fact Chrysler has been marketing the heck out of the Dart, its sales were lackluster. We aren’t sure why, but wonder if the”Dart” name may be a bit “retro” for some as it was a model name Dodge used until the 1970s. By the end of the year, the Dart was starting to do a little bit better, and December was its best sales month. But with 25,303 sales for all of 2012, the car, despite endorsements by us and others, has been a sales disappointment. Her’s hoping for a better 2013.
Research the Dodge Dart
Dodge Dart Photos & Information
Dodge Dart Best Deals
Dodge Dart Local Dealer Price Quote
MSRP: $25,900 – $29,200
Invoice: $24,452 – $27,507
Fuel Economy: 24 mpg City, 35 mpg Highway
The Acura ILX has had, by many accounts, a terrible launch. The car, based on the Honda Civic platform, was launched with three engines: Two which came straight from the Civic and a hybrid engine that gets just 111 horsepower.
That amount of power for a car that’s supposed to be considered upscale is just meager and underwhelming. Reviewers have also been disappointed with the car’s cargo space.
Acura said it aimed the car at a younger buyers who didn’t necessarily care about performance. But with sales coming in a 12,251, apparently Acura missed the mark.
Research the Acura ILX
Acura ILX Photos & Information
Acura ILX Best Deals
Acura ILX Local Dealer Price Quote
MSRP: $42,810 – $49,800
Invoice: $40,241 – $46,812
Fuel Economy: 18 mpg City, 27 mpg Highway
As the entire Lincoln brand continues to flounder, one car stands out as especially disappointing in 2012: The MKS. Once the flagship to the entire brand, the MKS volume was at just 12,524 units (and that number marks a 2.5 percent increase).
But it’s currently the worst selling sedan Ford Motor Co. makes today. (Many vehicles out sell the MKS annual figure in one month’s time.)
Luxury does not have to be about volume. But then again, volume does help demonstrate a vehicle’s popularity. Right now, the MKS lacks style and sophistication and is more expensive that much better competition. Sometimes the numbers don”t lie. – Scott Burgess
Research the Lincoln MKS
Lincoln MKS Photos & Information
Lincoln MKS Best Deals
Lincoln MKS Local Dealer Price Quote
MSRP: $29,015 – $34,980
Invoice: $27,854 – $33,581
Fuel Economy: 25 mpg City, 36 mpg Highway
The Buick Regal was one of those cars that could help redefine General Motor’s premium brand. But in 2012, its disappointing sales figures suggest consumers have not bought into the brand’s rehabilitation.
Overall, sales of the midsize Regal, a very sporty sedan built on the European Opel Insigna, were down 38.7 percent.
This car offers excellent performance, sleek European styling and loads of creature comforts. But it’s hard to see how it fits in the Buick lineup and Buick’s damage to the nameplate may have created a road too tough to follow.
Furthermore, the popular compact Buick Verano may have cut into the Regal sales. The Verano has more of the quiet riding Buick feel to it. It’s also an excellent vehicle that may have the right appeal to Buick customers looking for a luxurious car with a moderate price tag.
And if they want performance, the Verano’s 2-liter turbo charged four-cylinder engine provides plenty of power.– Scott Burgess
Research the Buick Regal
Buick Regal Photos & Information
Buick Regal Best Deals
Buick Regal Local Dealer Price Quote
MSRP: $18,600 – $22,065
Invoice: $17,724 – $21,012
Fuel Economy: 41 mpg City, 44 mpg Highway
This year, more and more customers put fuel efficiency as their No. 1 consideration when looking at new cars. Given that, the Honda Insight hybrid should have done much better than it actually did.
The car, which gets 41 mpg in the city and 44 on the highway, should be a great contender for fuel-conscious drivers. But it fails to compete well with the ever-popular Toyota Prius, which has more standard features and gets better fuel economy.
Insight sales fell 62.4 percent for 2012, and Honda says its evaluating whether or not it makes sense to sell the Insight in the U.S. or whether to transfer production over to the U.S. The car is manufactured in Japan, and currency exchange rates aren’t helping make the car profitable for Honda.
“The insight is one of those vehicles that costs more to produce in Japan and sell in the U.S. than we would like right now,” said Robyn Eagles, a spokeswoman for Honda.
Research the Honda Insight
Honda Insight Photos & Information
Honda Insight Best Deals
Honda Insight Local Dealer Price Quote