Serious Stuff at L.A.'s Auto Show.

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Author: Palmeri, Christopher

NEWS & FEATURES

Long a laugher compared to the giant Detroit bash, this industry showcase is gaining in prestige

When General Motors (GM) announced a big push into "bio-fuels" at the Los Angeles Auto Show on Jan. 5, comedian Jay Leno was on hand to add a little levity. "Bi-fuels," Leno joked in mock confusion. "I live in Hollywood, where a lot of people are bi. Having the ability to go either way will do very well in Hollywood."

Though nearly a century old, the L.A. Auto Show has always been something of a joke in industry circles. Running Jan. 6 though 15 at the convention center in downtown Los Angeles, it unfolds the week before the car industry's biggest showcase, the North American International Auto Show in Detroit, which opens to the public on Jan. 14. "It competes with Detroit," says John Clinard, manager of public affairs for Ford's (F) Western division. "And Detroit wins." Still, the industry turned out as it always does, with a smattering of news and new cars.

"NOT THE YEAR OF THE TRUCK."

This year is clearly a year the auto industry needs to focus on fuel efficiency, and where better to showcase that than in California? GM announced that it was partnering with Chevron, the State of California, and a company called Pacific Ethanol to supply the state with as many as 100 Chevrolet Impala cars and Silverado pickups that will run on E85, a type of fuel 85% composed of corn-based ethanol.

GM has also unveiled three new SUVs at the show, the 2007 Chevrolet Suburban, Tahoe, and the GMC Yukon XL, and a prototype Saab 9-5 sedan that will run on either regular gasoline or E85. In addition to being cleaner-burning, E85 costs about 20% less than regular gasoline. "What Detroit is trying to do is make the public aware that there are other alternatives to reducing emissions and dependence on foreign oil," says Anthony Pratt, who follows hybrid vehicles for industry researcher J.D. Power & Associates.

Ford is steering in a similar direction. In a keynote speech on Jan. 4, Mark Fields, president of Ford's Americas division, highlighted Ford's renewed emphasis on small cars, "crossover" SUVs, and other more fuel-efficient vehicles. "I can tell you with a high degree of confidence that 2006 will not be the year of the truck," he said.

A "WORLD" CAR FROM GM.

The following day Ford accepted the Green Car of the Year award from the Green Car Journal for its 2006 Mariner hybrid SUV. At the podium was legendary car designer Carroll Shelby who said it's not an oxymoron to be race-car driver and an environmentalist. "I think the problems we have [in terms of energy dependency) will be overcome," Shelby said.

Small cars are a big focus of the show. Chevy also unveiled its 2007 Aveo, a fuel-sipping "world" car that GM hopes to sell in 120 countries. Toyota introduced the Yaris, which replaces the Echo in the company's compact car lineup. Although getting upwards of 40 miles to the gallon on the highway, the Yaris will come with options typically available on higher-end vehicles such as power windows, mirrors, and door locks.

Mazda is using the show to debut its sleek new CX-7 crossover SUV. These vehicles, which have some of the space of SUVs but the maneuverability of cars, are now the industry's fastest-growing category, with sales expected to top 2 million units. Designed to compete with the Honda Pilot and Nissan Murano, the CX-7 comes with a 244-horsepower engine "That's what people want," says Mazda Global Design Director Moray Callum. "That's Mazda's brand positioning, the soul of a sports car."

CAYMAN-CRAZY.

There are plenty of high-end vehicles to gawk at. BMW is showing off its new 2006 M6, returning after a 17 year absence, it sports a V-10 engine that goes from 0 to 60 miles an hour in under 5 seconds, amazing for a car its size.

Jaguar has its new XK coupe on a pedestal. It's a car that lives up to its enormously catchy advertising slogan -- simply gorgeous. Porsche has the North American debut of its new $58,000 Cayman S, a third sports car in Porsche's lineup and one designed to bridge a gap between the $45,000 Boxster and the 911 Carrera, which starts at $71,000. Reviewers have already started gushing over the Cayman as one of the best-handling cars in mass production. "It's a Boxster with a crash helmet," says Bernd Harling, general manager of Porsche's public relations of the $60,000 hardtop.

If that's not pricey enough, ultrahigh-end cars are present in force in Los Angeles. Bugatti showed off its 2006 Veyron, at $1.2 million the most expensive production car in history. The 2006 Maybach 57S was also on display, complete with rear cup holders big enough to hold a bottle of champagne and two flutes.

After years of living in the Detroit show's shadow, the Los Angeles show is redesigning itself. Next year's centennial show will be held in November, a time slot that should give a chance to debut a lot more new products. Jay Leno may be back, but the industry jokes won't be at the show's expense.

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By Christopher Palmeri