As spring draws near, automakers hope for a renewal in sales

By BOB COX

rcox@star-telegram.com

After a long, cold winter comes a hankering for driving with a convertible top down or a sunroof open and the smell of a new car's interior. At least that's what Tarrant County auto dealers are hoping.

Auto dealers are ready for spring both meteorologically and economically after coming off the worst year for new car and truck sales in more than two decades -- part of a tumultuous 18 months. The spring selling season kicks off today with the opening of the four-day Greater Tarrant County Auto Show at the Fort Worth Convention Center.

With the economy improving, dealers and automakers are optimistic that more consumers are going to be ready and able to replace their tired old wheels with a shiny new model.

"As bad as times have been, it's still an exciting time in this industry," said Lee Chapman, president of the New Car Dealers Association of Greater Tarrant County. "Cars have never been better."

The Fort Worth show will be smaller than in past years, a reflection of the difficult economic times. About 270 new cars and trucks, ranging from the tiniest subcompacts to hulking diesel pickups, will be on display, many loaded with the latest in high-tech digital communications and entertainment technology.

The auto industry has been undergoing a staggering transformation since mid-2008. General Motors and Chrysler, already burdened with large debt loads, weak profitability, and, some experts would say, a shortage of good, new vehicles, were pushed to the brink. Both companies, with the aid of huge government bailouts, went into bankruptcy reorganization. They shuttered plants, cut jobs and renegotiated workers' wages and benefits, and dropped unprofitable models. GM has shed four of the eight brands it was still promoting a year ago: Saturn, Pontiac, Saab and Hummer.

Hundreds of dealerships, including several Chrysler franchises in Tarrant County, have been closed. Hundreds more GM dealers across the country will close this year after their franchise agreements are terminated, although none in Tarrant County. And tough economic times could shutter others.

And about the time the auto industry was breathing a sigh of relief that the worst was over, industry leader Toyota suddenly found itself caught in a firestorm of media coverage, lawsuits, and regulatory and political scrutiny about unintended acceleration of its vehicles, in some cases blamed for fatal accidents.

Season of surprises

"We keep thinking there can't be a bigger news story [in the auto industry], and then it tops itself," said Jessica Caldwell, market analyst for the Edmunds.com consumer advisory service. "You never thought Toyota would be going through something like this."

On the reverse side of the business equation, Ford is the one U.S. auto manufacturer that has come through the turmoil in better shape than in many years.

"In the early part of the decade, they looked like they were in trouble," said John Wolkonowicz, auto industry analyst with the IHS Global Insight consulting group. "Now they're on top, can do no wrong, and they're the darling of the industry."

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