Big 3 troubles rumble through L.A. show

'It's unchartered territory,' Carlos Ghosn, CEO of Renault-Nissan, said of the current economic crisis. 'We're very glad to see that the U.S. government is helping financially,' he said, referring to the $25 billion loan package to help carmakers retool plants to make more fuel-efficient vehicles. Automakers are seeking money immediately to shore up their operations. 'No one could have predicted this crisis. The key to surviving these times is to avoid burning cash.' Ghosn, who delivered the keynote address at the show, said the worldwide financial crisis can cripple carmakers, which need access to money for both short-term obligations and long-term investments. Additionally, he said Renault-Nissan has no current interest in an alliance with any of the American automakers. 'We have to hang on to our cash,' he said. Even Consumer Reports chimed in on the bailout hearings on a day it is typically filled with talk about new product quality. 'Consumer Reports has concerns about letting domestic automakers fail,' the magazine's publisher, Consumers Union, said in a written statement. 'The loss of any major auto manufacturer would leave consumers with fewer choices and the industry with less competition and innovation, particularly at a transitional time when the industry is pursuing alternative energy technology. Moreover, the impact of losing a domestic automaker on the U.S. economy and jobs could be severe.' General Motors Corp., which canceled its press conference at the L.A. show two weeks ago, said the immediate crisis needs resolution, but the automaker remains on target with its extended-range electric vehicle, the Chevrolet Volt. 'We have not had any program changes at all,' said Denise Gray, GM's director of global energy storage systems. 'There will be a battery, and there will be a Volt in 2010.' Frank Klegon, Chrysler LLC vice president in charge of product development, said projects ready to launch within the next year will stay on track, but long-range plans will be placed on hold. 'You really have to start looking at those issues now, especially with new CAFE requirements coming,' he said, referring to federal rules to increase the fuel economy. Klegon said Chrysler remains on track to introduce an electric vehicle in 2010, though it has not determined if it will bring a fully electric vehicle or a range-extended model that uses a gasoline engine to produce electricity after the batteries are depleted to market first. Electric vehicles took center stage in L.A., starting with Ghosn, who promised to begin testing a fully electric vehicle in the United States by 2010. GM, despite skipping the press conference, showcased its Volt. BMW Group's Mini announced it would begin testing its electric Mini next year. Hyundai Motor Co. said it would develop a Blue Drive system that would include two-mode hybrids and turbocharged gas direct injection engines. It has a fuel cell electric vehicle at the show. Other carmakers emphasized their stylish next generation fuel sippers. They included: Mazda's redesigned Mazda3; the Nissan Cube; and the next generation Lexus RX350, which included the hybrid version, the RX 450h. Scott Burgess is the auto critic for The Detroit News. Reach him at sburgessdteom.

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