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MOTOWN BLUES

12th February 2004
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Page 54, 12th February 2004 — MOTOWN BLUES
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Which of the following most accurately describes the problem?

Oliver Dixon struggles to find a reason for Detroit and, lo and behold, discovers the agenda-defining motor show of all time, albeit via social disintegration, the failing US economy and briefly, inexplicably, Canada.

Why go to Detroit? Good question— at any time of year, the city founded by Mr Cadillac is a place short on glamour and long on a feeling of "wish I wasn't here-. But in January. Detroit means one thing. For eleven months of the year the city's publicity wallahs lay claim to being at the epicentre of the global automotive business. And, for a couple of weeks, usually in sub-zero temperatures. that epicentre claim isn't too far from the mark, because immediately after New Year's Day the COBO Center defrosts its doors and plays host to NA1AS, the North American International Auto Show.

So that's why I'm in Detroit, where the golden rule is to keeping moving. Horizontal winds means that spending too long in any one place results in a snowdrift behind the knees. Moreover, although Michigan's biggest city's most recent claim to fame is the title of Fattest City in America (squashing long-time champion Houston into second place) the fact remains that there are bits of this place in which life is cheap.

But there's nothing cheap about the parking fees required to attend the NAIAS bean feast. Bear in mind that I'm at the wheel of a Chevrolet Cavalier.This does reduce the likelihood of being mugged: driving one of these things about in what passes for broad daylight in the NorthEast United States in January sends a message to the criminal fraternity (the message being, "here is a man who can sink no further").

Sinking feeling

But.irrespective of the shame inherent in being behind the wheel of Detroit's answer to the diesel Maestro Clubman, the fact remains that it still has to be parked prior to what I trust will be a graceful entrance.

A man of regular-ish habits.! follow the signs that say "Parking".The way my nose is pressed against the screen of this automotive antichrist suggests that lam going downhill — in reality now as well as merely figuratively. But there's also a second set of signs, suggesting that I head for the roof. Maybe that's a kindly thought Anyone reduced to driving a lime green Cavalier obviously can't afford the pills or the razor blade necessary for the final act.so why not throw self off a high building? Instead I'm burrowing deeper into the earth,and the signs are becoming more insistent. "Park on the Roof." Deeper yet. Park on the Roof, durribass." Deeper yet... decompression is setting in and my nose is bleeding."The Roof. On top of the Building."

And then. finally, as a trickle of blood emerges from my ears, a final washing of the hands: "Sod you then. Go to Canada." So I do.

Emerging from the Windsor Tunnel. I'm questioned by Canadian immigration. Quizzed on the purpose of my visit. I take the "honesty is the best policy" approach and inform the immigration 'droid that my presence here is a dreadful accident because all I'm trying to do is visit a trade show in another country.

As the sound of latex on wrist echoes around the immigration hall, the dogs are unleashed to go sniff the Cavalier and its contents.The dogs look supercilious; I look cold.And probably guilty. Then embarrassed, as it becomes necessary to ask directions. Not just for a street,Or even a town,but a country. And a biggish one at that.! return to the United States via the Ambassador Bridge. the country's busiest land border. I get back to the COE 0 Center, decide "what the hell" and park outside the door. In total, parking this heap has cost two hours of my time, eight dollars in tolls and a round trip of 32 miles.

So...finally...what of the show? It pitches itself as being the agenda-setting event of the year, and it seems that Japan is where it's at.A strange thing to say in this part of the US, but Toyota walked away with Car of the Year prize for the hybrid Prins. Hollywood's latest musthave accessory.

Arguably more significant was the unveiling of three concept pickups from Honda. Mitsubishi and, again,Toyota.The SUT, Sport Truck and FTX are all pitched four-square at the burgeoning SUV/pickup market over here, and all three are noteworthy.

Honda doesn't tend to get into new markets without doing the maths first, and the SUT could well be a big challenger here. But pride of place in the earthshaking states must go to Toyota's VS hybrid FTX.

It drew more than a few admiring glances: at times it was hard to keep up with the number of reps from other players in this sector who decided to come and have a prod. In an industry that is not without its problems at present,Toyota looks set to put much of the opposition in the shade.

Of the companies that didn't have so far to travel,it's a slightly different story. Chrysler unveiled a 260mph car put together in under a year using, as far as I could tell. German engineering courtesy of AMG. Does this herald yet closer links between the Daimler and the Chrysler arms of DainderChrysler?

It would seem to makes sense: Chrysler is in a hole and, while a 450hp sports car is not likely lobe the right shovel with which to dig itself out of that hole, the trend looks to he more platforms sans frontiers. How far this will effect DaimlerChrysler's CV operations is questionable, but no one doubts the "Teutonicisation" of the American operation.

Old glories

As for Ford.pride of place went to William Jnr and the new Mustang.The Mustang is an icon of US motoring, but then cholera was once an icon of UK healthcare.The UK got rid of the latter; the US seems determined to celebrate the former.

Maybe that's why the Japanese are blazing the trail in terms of engineering and design. Face it like medallions and chest wigs the muscle car is old news, and the Mustang was dated even before Burt Reynolds moved on to his second set of hair.

That fixation on past glories is a worry and, depending where you happen to sit, so is the US economy. On the plus side,construction spending rose 1.2% to a seasonally adjusted annual rate of $934.5bn,buoyed up by higher outlays on homes, roads and office buildings.

November 2003. from where these figures come, marked the fifth straight month that the annual US building rate has set a record, reflecting a boom that has been generated by the lowest interest rates in more than four decades.

Economists expect that boom to continue because they believe the Federal Reserve will keep a key interest rate it controls at a 45-year low, at least until mid-2004. in a bid to ensure that the current economic rebound does not falter.

Ups... and downs

In fact US factory activity hit a 20-year high in December, while the job index for the battered manufacturing sector indicated a second month of gains (after 40 months of losses).' US gross domestic product rocketed by 8.2 in the third quarter of last year. and there's palpable feeling of confidence about the pl But (there's always a but) there is a dark side.Talk to those who should know, and yr can reckon on interest rates going up by tw points over the next two years. Overall job gains slowed to a mere LOCO in December, suggesting that the recovery is fragile.

Credit card and car loan delinquencies a up, and the fastest growing bankruptcy gro in the US is now the over-65s, who cashed home equity over the past few years and ar now feeling the breeze.

More pertinently. the US budget gap no sits at an eye-watering $.374bn,or about 3.5 of GDP the highest proportion since 199'. And the White House expects this number hit about 4.5% this year.

This has caused three separate groups al pundits to predict a cumulative deficit tota $5 trillion over the next 10 years, if current' cies remain in place.That is a scary number not just for the US but for the rest of us as v Because if the world's biggest economy he south, you can bet your boots that we're nc going to remain unaffected.

Not a clue

Whatever Detroit showed us this year,the remains that the broader picture here is on of utter uncertainty. Remember that 2004 i an election year. and George W will be tryi hard to win over those for whom the budgt deficit, overseas adventures and a newly pc middle class are a problem.

Any bookie prepared to give odds on wl going to be in play by this time next year wi be very brave.., and probably the proud ov of one of those rather nippy new Chryslers


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