Autonomous cars loom, but the Detroit auto show goes on
DETROIT — The North American International Auto Show in Detroit opened to the press this week with one big question hanging in the air: How will autonomous vehicles change the industry?
The answer is still unclear. In the meantime, automakers continue to put out new vehicles of all shapes and sizes, including small cars, SUVs and the almighty pickup, which dominated the show.
All will be on display when the show opens to the public Saturday, with a charity preview on Friday night.
Here are some things we learned from the preview this week:
Trucks are king
Pickups are the most popular vehicles in the U.S., and trucks unveiled at the show make clear that will continue for a long time.
General Motors spent heavily to update its topselling Chevrolet Silverado pickup, cutting up to 450 pounds of weight by using more aluminum and lighter high-strength steel. The truck also gets two new V-8 engines that can run on one to eight cylinders depending on how much power is needed.
Fiat Chrysler's Ram also got big updates, losing more than 200 pounds and giving it a gas-electric hybrid engine option. Both the Silverado and Ram were given more athletic stances and meaner looks. Ford added a diesel engine to its F-150 and rolled out the midsize Ranger.
Automakers turn big profits on large pickups. Sales rose nearly 6 percent last year to almost 2.4 million, even though total U.S. auto sales dropped 2 percent. Ford's F-series is the country's top-selling vehicle, followed by the Silverado and Ram.
Tax reform boost?
U.S. auto sales are likely to fall to around 16.7 million in 2018 from 17.2 million last year, says Michelle Krebs, an executive analyst with the car buying site Autotrader.com. But that would still make it one of the 10 best sales years in history, so the market remains strong.
U.S. income tax code changes this year may stimulate new auto sales, but any increase likely will be offset by rising interest rates and the abundant supply of late-model used cars that pull buyers from new vehicles, Toyota Motor Corp.'s top North American executive says.
North American CEO Jim Lentz expects a sales boost of 200,000 vehicles as tax cuts put more money in people's pockets. But the increase could be negated as rising rates keep some people on the sidelines, and some buyers opt for a lower-cost but nice offlease used car.
Tax cuts could boost pickup sales because businesses can write off the expenses immediately under the new code, Lentz said.