Why do Automobile Companies Exhibit at Motor Shows
From the years that Henry Ford began building his Model T until the 1960’s, much of America’s economy was centered about the automobile industry. Whilemanufacturinghas been on the decline in the United States since the end of WWII, automobile manufacturing remains a large part of the economy.
Selling automobiles is, understandably, a big business. Advertising contracts for the Detroit Three (no longer the “Big Three” withToyotatopping the list these days) can be quite lucrative. Car companies, domestic and foreign, spend large sums communicating to the buying public the benefits of purchasing their wares.
Part of the advertising budget is expended at various car shows, the New York International Auto Show and The Detroit Auto Show being examples. Numerous smaller shows throughout the country are also in the budget, some supported by local dealers.
There are two basic reasons for the companies to expend precious resources at these venues. First, and of more immediate benefit, is to get the public up close and in the cars. While the dealers advertise locally and work with customers in the show room, the car companies can put on much more extravagant displays. The dealer has his inventory on display, cars that he thinks he is most likely to move. The car company can display every model and option, some of which don’t make it to the dealer showroom floor.
Car dealers reflect the community in which they sell. A rural dealership may have more pickup trucks and utility vehicles on the lot because those are what sell. An urban dealer in a large city will likely have more sedans and luxury cars than trucks in the show room. A suburban dealership will cater to the family with sedans and SUVs.
The second reason is of more interest to the design and engineering groups at the car companies. The companies exhibit prototypes of future models to gauge public acceptance of the new ideas.
At the1939 New York World’s FairGeneral Motors exhibited what was thought to be the transportation system twenty years in the future. This gave the GM engineers some freedom in designing advancements and the public an opportunity to react to it.
In the 1950’s GM exhibited futuristic cars at various major auto shows and that continues today. Familiar names such as Buick Wildcat and Pontiac Firebird first showed up in the early 1950’s as concept cars. The Corvette was a concept car that actually made it into production. The early Corvette design was a concept car in 1952 called theXP-122. In 1965 the “Stingray” concept was the car that became the redesigned 1968 Corvette. Such innovations as fiber optic monitors to monitor all of the Corvette’s external lights were introduced with that redesign. Independent rear suspension also was introduced, a significant departure from the previous solid rear axle. What had been a two-seater sports car evolved into a more sophisticated vehicle ready to compete with Europe’s more expensive offerings. Engine size and horsepower also increased greatly with the 1968 model.
This trend continues today, with new ideas and concepts being presented to the public for their reaction. In his book “Guts”, Bob Lutz offers the opinion in one chapter that the customer is not always right. He gives an example of the public’s reaction to a heated cup holder. It received good reviews so they made it an option the following year. It was a total disappointment. The danger of asking a potential customer about an option when there is no money on the line is a pipe dream. When he has to estimate the monthly payment he becomes more practical. Per Mr. Lutz, a hard lesson learned.
