Bells, Whistles & Gas Sippers
By Tom Spalding, The Indianapolis Star
Dec. 28–With auto sales expected to be flat nationally in 2008, automakers will continue to roll out incentives to keep sales volumes from going into idle.
But it’s not numbers or financial lures that are drawing crowds to the six-day 2008 Indianapolis Auto Show, which kicked off its 94th year Thursday with more than 450 vehicles from 39 domestic and foreign manufacturers.
“The economy doesn’t affect your desire to look and window-shop, you know?” said Martin Murphy, executive vice president of the event sponsor, the Automobile Dealers Association of Indiana.
“Everybody is hoping the economy is going to get better and maybe they’ll want to buy one of those (vehicles) this spring. That’s what we’re counting on.”
Patrons went to see, for example, features like Bluetooth controls on the steering column in the new Nissan Rogue. Or the styling of the five-door 2008 Chevrolet Aveo, with a $10,595 list price, billed as the lowest-priced car in America.
Rick and Jennifer Copple, New Palestine, aren’t in the market for a new car but took their children Brooks, 15, and Emily, 13, to the show purely for the entertainment value.
“Bells and whistles are nice, but in today’s economy, it’s all about price and gas mileage,” said Rick Copple.
Robert Rice, Indianapolis, agreed. He attends the show every year just to sightsee. “It’s nice to have extra features, but fuel economy is most important,” he said.
Automakers, including GM, Ford, Chrysler, Toyota and other foreign manufacturers, know that to generate reasonable sales levels, a larger number of shoppers will need to visit showrooms in 2008.
That requires significant “public” incentives such as zero-percent financing, large cash-back offers or ultra-low lease payment deals, according to industry expert and auto analyst Art Spinella of CNW Marketing Research, in Bandon, Ore.
In his newsletter, Spinella reported that manufacturer incentives averaged $4,264 a vehicle in December. The average transaction price — the amount paid by the consumer after incentives — was $26,574.
Auto analyst Mark Cornelius, at the research firm Morgan & Co. of West Olive, Mich., said he expects U.S. sales of light vehicles (a category generally defined as SUVs to compact cars) to dip about 3 percent to 15.6 million in 2008.
More consumers are facing credit-card woes and declining equity in their homes, making people “think twice” about how they’ll pay for a set of new wheels, he said.
The Indianapolis Star is a sponsor of the annual show.
Ted Evanoff contributed to this story.
IF YOU GO:
— What: Indianapolis Auto Show 2008
— Where: Indiana Convention Center & RCA Dome, 100 S. Capitol Ave.
— Why: See more than 450 vehicles representing 39 makes of domestic and import auto manufacturers, plus exhibits in more than 375,000 square feet of space.
— Dates and times: Six days of events began Thursday. Event runs from 11 a.m. to 9 p.m. today through Monday; and 11 a.m. to 6 p.m. Tuesday.
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