Concept Cars Are Getting Real.

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Author: Helm, Burt

AUTOS

No longer just flashy attention-grabbers, these cutting-edge vehicles are more and more likely to show where carmakers are placing their bets

Every year at the North American International Auto Show in Detroit, everyone expects certain things: the throngs of car enthusiasts and press, and the flashy concept cars. What's different this year? Underneath all the showboating, auto makers are taking these concept models more seriously than ever.

The Detroit show increasingly is becoming a testing ground for radical new designs that are under serious consideration for prime-time production. While not all of this year's concept cars are destined for the highway, several are, and production-model versions of some concepts will be hitting dealership showrooms as early as this summer.

"It used to be that auto makers would develop radical outlandish designs just to grab attention," says Jean Jennings, editor-in-chief of Automobile magazine. "What we have seen in the past few years is that the show cars really do lead to something." Jennings says that even more radical concept designs such as Ford's new Reflex will make it to dealer showrooms. [See our slide show for a look at the latest designs.)

CARS SELL THEMSELVES.

U.S. auto makers are desperate to score a hit with consumers after disappointing earnings and eroding market share. In the quarter ending Sept. 30, Ford (F) saw a loss of $384 million. GM (GM) posted a loss of $1.6 billion in the same quarter. Now rebuilding tired brands and improving margins are more important than ever.

"Carmakers are really differentiating themselves from one another and creating products that can earn high profit and don't need a lot of sales incentives," says Steve Wilhite, chief marketing officer of Nissan. Recently, distinctive cars such as Chrysler's 300 and its Crossfire model have turned into runaway hits, pulling ahead of the more conventional truck and car models.

This year's concept cars provide good clues as to where the major auto makers are placing their bets. In general, each manufacturer is looking at smaller cars and hybrids, following the trend set by Toyota with vehicles such as the Prius and the RAV4 [see BW Online, 1/10/06, "Suddenly Revved about Small Cars"].

NEW DIRECTIONS.

Take the recent crop of crossover utility vehicles [CUV], the smaller, car-like sport-utilities that take queues from the Toyota RAV4. Detroit played host to no fewer than eight new entries in the nascent auto class, ranging from the luxury Lincoln MKX to the more budget-minded Kia Soul. Both are expected to go on sale within the year [see BW Online, 1/12/06, "Why Carmakers Are Crossover Converts"].

Gas-electric hybrids are another class that continues to gain momentum. Mitsubishi introduced its latest MIEV concept, a hybrid-electric coupe with four-wheel drive, and Ford debuted the Reflex, a sporty subcompact hybrid that can attain mileage of up to 65 miles per gallon. While these are farther down the line in terms of production, Mitsubishi says it expects a MIEV model to go into production by 2010, and analysts say they expect a Reflex-like model to go to market in the next few years [see BW Online, 1/12/06, "Bill Ford on Turning the Corner"].

Creating redesigned versions of old classics continues to be a popular trend among concept cars. GM announced a modern redesign of the Chevrolet Camaro, the sports car first introduced in 1969 that was later discontinued in 2002. Chrysler (DCX) also announced another throwback, the Imperial, which is based on the boat-like luxury Imperials of the 1930s and '50s. Both companies unveiled their revivals of those classics as concept cars at the Detroit show.

FUTURE IS HERE.

Auto makers are still making pure concept vehicles as well, and all concept models go way over the top with implementing new technology. Kia's Soul concept, for instance, has a notebook computer control panel next to the driver's seat, providing the driver with telematics, GPS, and even a handy way to fiddle with the MP3 player connected to the car's stereo. The Toyota F3R minivan, which has three rows of seats in the back that rearrange into a lounge area complete with special lighting, uses two fold-out flat-panel monitors to provide passengers with TV and video game entertainment.

Still, such gee-whiz improvements aren't as out of this world as they were in years past. "[With today's] manufacturing processes…what is radical to produce for a one-of-a-kind show car is not that radical to produce in the factory," says Jennings. With any luck, the coolest of these cars of the future will arrive sooner than you think.

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By Burt Helm