Auto industry sees better days ahead as optimism reigns at 2012 Washington Auto Show Public Policy Day

Auto industry sees better days ahead as optimism reigns at 2012 Washington Auto Show Public Policy Day

Signs of an auto industry in recovery are popping up everywhere these days, and nowhere was it more evident than at Public Policy Day last Thursday Jan. 26, at The 2012 Washington Auto Show (The WAS). From the days opening presentation from Deputy Secretary of Energy David Sandalow, through the late afternoon launch of the Advanced Technology Superhighway pavilion by DOT Secretary Ray LaHood, and all the press conferences in between, sustained recovery and bright future and Americas back! were the operative words of the moment. Indeed, the show halls brimmed with a myriad of Auto Show industry day presentations and announcements that exuded irrepressible confidence and upbeat spirit.

Sec. LaHood said the Obama administration had been correct to support General Motors and Chrysler with the historic bailout funds in 2009, noting that GM had already returned to its position as largest automaker in the world and Chrysler was well on its way to a full recovery. Along the way we saved a million jobs and are in the midst of creating 100,000 more, he said, referring to the multiplying effects of an auto industry in recovery.

Three years ago going to an auto show was almost like going to a funeral, but look at it today, LaHood said to a packed press conference: its like going to a wedding reception!

Here at the Washington Auto Show you can still see what is possible in America, he said, noting that the Obama administration had made it possible for the auto industry to make the hard choices that saved it, jobs and the economy. This is the story of what America is all about– picking ourselves up, dusting ourselves off and getting on with the job at hand.

DOE Deputy Secretary Sandalow remarked that higher fuel economy standards and government incentives to develop alternate fuel systems for cars and trucks, like plug in electric vehicles and fuel cells, would also pay off for the auto industry. We are only in the infancy of these technologies, he said, but as the pressure on carbon based fuels increases, the U.S. industry will benefit from being at the forefront of these alternative technologies.

That thread was also picked up by Sen. Jeff Merkley (D-OR), who is championing a measure in the Congress to build electric vehicle charging stations across the country. Demand for hybrid and electric vehicles will continue to increase and we must be ready to support that demand, he said. This will be essential if the U.S. government is to achieve its goal of energy independence, he said.

Industry keynote speaker Dave Zuchowski, executive vice president of Hyundai Motors America, said his company was well on the way to helping U.S. car buyers reach energy independence saying that the corporate average fuel economy for Hyundais fleet is already at 36.1 mpg. Zuchowski noted this eclipses the federal standard of 35.5 mpg for 2015. He said further that Hyundai was poised to meet the even higher standard of 54.5 mpg by 2025 with the development of hybrid and fuel cell models now in the development queue. Between now and then, Zuchowski said he believes U.S. new vehicle sales could reach 16 million as early as 2014.

Jonathan Browning, president and CEO of Volkswagen of America, also sounded a note of high optimism about U.S. sales and the certainty of his company achieving rising fuel economy standards. Pent up demand is building and we are very optimistic for this year, he said. VW had record U.S. sales in 2011 on the strength of its Jetta model, one of which, the Jetta TDI, being named Motor Trend Car of the Year.

Browning said VW was intensifying its Think Blue initiative with models like the EBug, the all-electric concept it unveiled at the beginning of the year and the first-of-its-kind turbo hybrid Jetta, which it will launch at the end of 2012. That vehicle will achieve 45 mpg and do 0-60 mph is less than 9 seconds.

Mark Reuss, president of General Motors North America, said he too saw good times ahead, noting that GMs launch of a wide variety of new models across its nameplates had resonated worldwide with consumers. We are going to keep that up with new models and technologies in every segment, he said. Reuss also made a point of noting GMs dedication to limiting the life cycle impact of GM models on the environment announcing that all Chevrolet models going forward will bear an Ecologic sticker on the rear windshield showing the net impact of its production, use and recycling.