Automakers show off new models

As most of the world’s biggest automakers Wednesday showed off their latest for reporters previewing the New York International Auto Show, Ford said things aren’t as bad for the company as they appear, while General Motors showed off three adorable minicars but said it didn’t believe Americans were ready for them yet.

Ford disagreed with GM about minicars and said, without disclosing specifics, that it would unveil one in January for future U.S. sales that is smaller than its Focus. “We do see a good potential for that segment and we want to be in it,” said Ford’s president for the Americas, Mark Fields.

But Ford believes Americans are even more ready for another “crossover,” or car-based, sport utility vehicle. So it trotted out hip-hop DJ Funkmaster Flex to help introduce the Flex, a six- or seven-passenger, V-6-powered family wagon to go on sale in the summer of next year. The Flex will be more expensive and more luxurious than Ford’s Escape, Edge and Freestyle crossovers.

Crossovers are fast replacing traditional truck-based SUVs and even minivans, being favored by many consumers because of generally lower prices, higher fuel economy and more carlike driving characteristics.

Volvo and Infiniti also unveiled crossovers Wednesday — the XC70 and EX-35, respectively. The Volvo, set to replace a model of the same name in September at a price not announced, includes innovations such as built-in height-adjustable booster seats and an optional collision-warning system, the latter now available in its S80 luxury sedan.

The Infiniti, intended to compete with vehicles such as the Acura RDX, is due in showrooms late in the year, also at a price not announced.

Market researcher J.D. Power and Associates says sales of crossover SUVs have risen from about 700,000 in 2000 to more than 2.2 million last year.

Asked how big he thought the market would get, Mark Igo, Infiniti’s vice president and general manager, said, “I don’t know. I never thought it would get this big, to be honest with you.”

At a breakfast that began Wednesday’s events at the Javits Convention Center, Fields’ boss, Ford president and chief executive Alan Mulally, said that although the company lost a record US$12.7 billion last year, there were positive signs, including reductions in factory capacity and jobs and strong sales of its new Edge SUV and Fusion sedan. “This is a pretty exciting time at Ford,” he said.

General Motors, as expected, unveiled three tiny experimental or “concept” vehicles, the four-door Chevrolet Trax and Groove and two-door Chevrolet Beat, all front-wheel drive and designed in South Korea. But Robert Lutz, vice chairman for global product development, told reporters after the unveilings that whichever of the little cars make it into production are likely to be sold in emerging nations and places where gasoline is “US$5 or US$6 a gallon,” rather than in the United States.

He said the cars as designed wouldn’t meet U.S. safety regulations but could be altered to comply. The concept cars share basics with a model GM sells outside the country as the Chevrolet Spark and are smaller than GM’s smallest U.S subcompact, the Chevrolet Aveo.

Also at Javits Wednesday:

Lexus unveiled a more powerful version of its full-size SUV, to be called the LX 570 when it goes on sale early next year with a new V-8 engine rated at 380 hp., 110 more than the current engine. Lexus said options would include wood interior trim from bubinga trees. Also available will be a system of video cameras for blind spots close to and in front of the vehicle. The price wasn’t announced, but the current LX 470 begins at about US$68,000.

Subaru said it had restyled the front and rear ends of its controversial Tribeca SUV to give it a “less polarizing” look. The revised model, which also has a more powerful V-6 engine, goes on sale in early summer as a 2008 model, starting at less than US$30,000. Subaru is scheduled to unveil a redesigned Impreza car when the media preview continues today.

Several auto executives said they were concerned about the effects on their industry of the growing number of defaults and foreclosures among so-called subprime homeowners with weak credit. “The concern is that it will bleed over into consumer confidence,” said Fields, of Ford. He said a downturn in new-home construction was cutting into Ford’s sales of pickup trucks to tradespeople.

More than a million people are expected to attend the 10-day auto show, which opens to the public Friday evening and runs through April 15.

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 Automakers show off new models 
As most of the world’s biggest automakers Wednesday showed off their latest for reporters previewing the New York International Auto Show, Ford said things aren’t as bad for the company as they appear, while General Motors showed off three adorable minicars but said it didn’t believe Americans ...

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