Economic reality to take some pizzazz out of auto show

But overall public attendance and spin-off revenue could be down, as well as money raised by the black-tie Charity Preview. This is not a slight on Detroit, auto executives said. It is acceptance of the industry's troubles, highlighted by the difficulties of Detroit's Big Three automakers, which are seeking $25 billion in emergency aid from the government to help them weather one of the worst auto markets in decades. Automakers agree it would be insensitive to stage pyrotechnics and flashy press conferences as they have in the past. 'There won't be champagne corks popping right, left and center,' said Jay Ward, auto show spokesman for Ford Motor Co. Ford, like General Motors Corp. and Chrysler LLC, is balancing the need to exercise prudence and cut costs while using the auto show circuit to show the products upon which revitalization plans are based. Parties, just not as grandTo be sure, cutbacks are coming. The thousands of members of the media will not likely be feted to the same extent as in the past. GM is cutting its public relations spending by about 60 percent, said spokesman Scott Fosgard, though the company will reveal three new vehicles. Chrysler, which rents out the Detroit fire station across the street from Cobo Center and opens it up as a bar and restaurant for the media during the three press preview days, will scale back and have it open Sunday night only for the media. Downtown restaurants and catering companies that thrive on auto show-related parties are taking a big hit in early bookings and seeing cancellations. Bookings are down 90 percent compared with this time last year, said John Forte, of Troy-based Forte Belanger Catering, which typically handles big events, including the glitzy GM Style party canceled several months ago. He has only one event booked so far. There has been further interest, but no more signed contracts. 'Last year at this time our calendar was fully booked with maybe a dozen large events' whose worth he estimated at about $400,000. He is hopeful there will be activity after Thanksgiving. If not, the 100 part-time employees he has on call won't be hearing from him. Bob Sereno, general manager of the Rattlesnake Club, says the restaurant lost its biggest charity-preview night event: an annual, $55,000 party for 250 guests hosted by R.L. Polk & Co., an information and marketing firm. 'They didn't have the money to do it this year,' Sereno said. 'And we're having a hard time replacing it.' He said bookings for holiday parties are down, too. Opus One has three parties still on the books after two cancellations, said manager Chip Fater. Coach Insignia in the Renaissance Center has only one event, for Ford dealers, on preview night, said Matt Prentice. Virtually all downtown area hotels are well booked during the preview days of the auto show. Officials from the Westin Book Cadillac said they're booked even after Monday's announcement that Nissan Motor Co., which had planned events there, was skipping the Detroit show. 'We're pretty locked up with European luxury brands and they have shown no signs of pulling back in Detroit,' said Scott Stinebaugh, director of marketing for the hotel. Nissan and its Infiniti brand, as well as Mitsubishi Motors Corp., Ferrari, Land Rover, Suzuki, Rolls Royce and Porsche have all pulled out of Detroit. Those departures and the down industry and economy will certainly cut into the economic impact the show has. Last year's show pumped close to $500 million into Metro Detroit's economy and provided a boost of more than 13,000 jobs, said David Sowerby, chief market analyst at Loomis Sayles & Co. 'It is consistently a major contributor to business activity in Detroit due to the amount of time spent on its extensive set-up and execution from late October to early February,' he said. The Charity Preview raised more than $6 million for children's charities last year, but there are concerns that sales of corporate blocks of gala tickets will be down. NAIAS co-chairman Doug Fox said he is hopeful generous individuals will make up the difference. Once again there will be 13,500 tickets available for what traditionally is one of the largest single-night fundraising events in the nation. Fox said he also is optimistic that public attendance will remain the same as last year at around 800,000, down from previous years. Downturn, behind the scenesFewer automakers and less complex displays already are cutting into the work of scores of electricians, riggers, stagehands and exhibit contractors. 'It's definitely the most important job all year for a lot of our workers,' said John Anter, an electrician with Motor City Electric Co., who has been working at Cobo for almost a month. 'Usually with all the overtime, it's the most we earn of any job, and lately a lot of our guys get laid off after the show and can't find other jobs for a while.' Nonetheless, that doesn't mean there aren't some upgrades. GM is updating the look of its stand with new materials and changing where some products are placed, and will highlight its three unveils: the Buick LaCrosse, the Cadillac SRX and the Chevrolet Equinox. They will be among 45 to 50 reveals, down from 55 last year. Ford will display each of its brands in its own distinctive space, but gone are the Jaguar, Land Rover and Aston Martin brands, which were sold to Tata Motors Ltd. But space is locked in years in advance, so Jaguar remains in the same area and will expand into the space that would have been occupied by Land Rover had it not pulled out. Jaguar has a world premiere and created a new, larger stand to showcase the car, said spokeswoman Carrie Wigh. Chrysler has a new stand, too, but is minding its spending, said spokesman Rick Deneau. It will attempt to withhold Chrysler's reputation for unique unveils. Last year, Chrysler showcased its new Dodge Ram pickup with the help of a herd of longhorn cattle. The Auburn Hills automaker cut back for the L.A. show by not investing in additional lighting, which made for a dark and somewhat depressing stand, but it won't do the same in Detroit. One area that could be scaled down is elaborate press kits, Deneau said. Toyota Motor Corp. plans to unveil two key vehicles in Detroit -- the third-generation Prius and a dedicated Lexus hybrid. The company is taking up the same space in the main hall for its three brands and spending roughly the same amount in Detroit as last year, said spokesman John McCandless. Several senior executives will travel from Japan, including CEO Katsuaki Watanabe. Mercedes-Benz will hold a lavish press event the night before the show starts in the new Westin Book Cadillac hotel in lieu of a press conference, but that was the plan all along, spokesman Rob Moran said, adding that no cutbacks are planned. Honda Motor Co. is forgoing traditional press conferences for 'something more subdued' to reflect the challenging business environment, said spokesman David Iida. Detroit's 2009 show was chosen for the world debut of the production version of the new Insight hybrid that goes on sale next year. But not all change is of the scaled-back kind. The departure of some automakers means others will benefit, particularly Chinese companies that have been trying to get their displays on the main floor for the past two years. They've been relegated to the hallway on the main floor and the Cobo basement, but could find their way into the main hall this year, said Shand Spencer, an NAIAS spokeswoman. Christine Tierney and Kate Lawson contributed to this story. You can reach Alisa Priddle at (313) 222-2504.

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