Article on Dertroit show skips over RVGD,
of course, but does mention them, lol.
DETROIT AUTO SHOW: Small Players Unveil Grand Plans
Tuesday 01/12/2010 4:04 PM ET - Dow Jones News
By Shawn Langlois
While the first day of the Detroit auto show focused on the big guys and the here-and-now of smaller cars, day two offered up a glimpse of what a few lesser-knowns have in mind for the future of the industry.
And no shock: it's electrified.
First, Ford Motor Co. (F) kicked off the festivities at Cobo Hall Tuesday by rolling out its high-tech Lincoln MKX. General Motors Co. followed up with a plug-in hybrid concept from Cadillac called the XTS Platinum.
But after that, companies like BYD (1211.HK), Commuter Cars, CT&T United and Revenge Designs (RVGD) used the space made available by the departure of some high-profile brands to show off their quirky assortment of cars on the main floor.
BYD displayed its e6 electric crossover, which is targeted to be sold in the U.S. sometime in the second half of the year.
The vehicle, boasting a range of 200 miles on a single charge, is part of the company's ambition to grow into China's biggest car maker by 2015 and the world's biggest by 2025. That's a goal the company has touted before, and to say it's ambitious would be to put it mildly. In fact, BYD only sold 450,000 vehicles last year.
Crazy? Perhaps. Then again, crazy typically doesn't draw the attention of billionaire investor Warren Buffett, who holds a 10% stake in the company.
Tesla Takes Aim At Mass Market
The Tesla Roadster is a favorite among the green-leaning wealthy these days, but Chairman and Chief Executive Officer Elon Musk made clear at the Detroit show that his aspirations for the upstart Silicon Valley company go well beyond niche.
"Our strategy from day one has always been to get to mass market with electric cars," he told a gathering of reporters as the big show wound down Tuesday.
He said the Roadster and its six-figure price tag is merely a stepping stone...a sexy, lightning fast, profitable stepping stone capable of selling up to perhaps 1,000 units a year. But still, a stepping stone.
The next step will be the Tesla Model S, a sporty sedan expected to cost under $50,000 after federal rebates. It won't be in the market for maybe another two-and-a-half years, Musk said, but he's targeting annual sales of about 20,000 vehicles by the time it kicks into high gear.
Currently, there are two prototypes of the Tesla S on the road, and that number is expected to swell up to about 20 by the end of the year.
Fast forward four to five years and Musk is looking to realize his long-term goal with the third-generation Tesla hitting the lots bearing a much friendlier sticker price down near $30,000. He sees this vehicle reaching annual sales of 200,000 units.
AutoNation CEO: Credit Key To Recovery
It's all about the credit, according to AutoNation (AN) CEO Mike Jackson.
"You could have all the traffic in the world, but it doesn't mean a thing if nobody is around to finance a purchase," he said in an interview at the Mercedes exhibit, where servers were busy handing out chocolate-covered ice cream bars.
The proof is in the numbers. Last month, Jackson pointed out that traffic in dealerships across the country was actually 15% lower than a year ago, yet sales spiked by double digits and calls for a recovery began to ring out.
"This confirms that the panic and the crisis we endured last year was triggered by the withdrawal of financing," he said. "Traffic may be down this year with employment the way it is, but at least we have credit for those in the market."
Jackson's projections for 11.5 million cars and trucks sold in 2010 are mostly in line with those from the industry's other top executives. After that, he said other economic factors will likely kick in to push sales back to normalized levels.
"In 2011, when housing stabilizes, credit continues to improve and unemployment eases, we'll see the next leg of the recovery," he said.
As for all the buzz surrounding electric cars, Jackson said they will only represent a fraction of total sales, barring a huge surge in gas prices.
"These are credible offerings and they'll be around for a long time, but we've had hybrids for 10 years and they don't even make up 3% of the marketplace," he said. "In a decade from now, electrics won't even make up 2% unless gas tops $7 a gallon."
Then, of course, all bets are off.
-By Shawn Langlois; 415-439-6400; AskNewswires@dowjones.com
AI
