Automakers introduce glossy cars and new hybrids at the Detroit Auto Show,
but with General Motors Corp and Chrysler LLC still teetering on the edge of
failure and industry sales expected to worsen, the demand for new models is
subdued and the show atmosphere tense.

DETROIT, MICHIGAN, UNITED STATES (JANUARY 11, 2009) NBC -
Economic uncertainty and a fight to survive took center stage at the
auto show media preview that opened Sunday (January 11, 2009) as the battered
industry shelved the glitz to save precious marketing dollars and braced for
another rough ride in 2009.

The struggles of GM, Ford Motor Company and Chrysler -- seen as the
weakest of the Detroit three -- to survive a deepening global recession and
vicious plunge in auto sales hung over the industry's single biggest marketing
event.

Highlighting the gloom in the Motor City, the show opened as the United
Auto Workers union geared up for another round of tough negotiations with GM
and Chrysler, which are mandated to cut labor costs under a $17.4 billion
federal bailout.

Many automakers -- including Nissan, Mitsubishi and Suzuki -- skipped
the show and almost every company scaled back displays. Their exits have left
space for Chinese automakers to be on the floor for the first time this
year.

U.S. auto sales fell 18.5 percent to 13.2 million units in 2008,
dragged down by the credit crisis, financial market turmoil and a weak housing
sector that caused consumer confidence to plunge to record lows.

Most Wall Street analysts and industry experts expect sales to decline
in 2009, to as low as 10.5 million units, with some automakers looking for a
pick up in demand by year end. The first quarter is expected to be an
extension of 2008.

While faring better than the U.S. automakers, Toyota Motor Corporation
is forecasting its first-ever operating loss for the business year to March 31
and it has also put on hold plans to complete a new assembly plant in
Mississippi.

Ford and GM, preparing for a further plunge in demand, have cut first
quarter production plans by 38 percent and 53 percent, respectively, from a
year ago. GM, Chrysler and Ford -- which typically have extravagant product
introductions and multi-million dollar displays -- have cut back on auto show
budgets and Japanese automakers also plan for a low-key presence.

Chrysler, which some analysts say could be participating in its last
Detroit auto show, toned down the bombast in favor of a straightforward
approach. In 2008, Chrysler punctuated the introduction of a redesigned Dodge
Ram pickup with a cattle drive in front of the show venue complete with
cowboys and Texas Longhorn cattle. Chrysler also has dropped its sponsorship
of a firehouse converted into a pub for reporters under the new austerity
drive.

GM, on the other hand, eliminated its annual fashion show that was
usually headlined by a Hollywood celebrity. Honda Motor Co had a booth but no
press conference, foregoing an opportunity to play up the debut of its
all-important new Insight -- the first of its next generation of low-cost
hybrid cars.

In a departure from the past, few executives from Japan are attending
the show.