The economic impact of the 2006 North American International Auto Show (NAIAS) is projected to increase by 3% from last year, reaching between US$580-$600 million, according to Loomis Sayles & Co chief market analyst David Sowerby.
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The show now faces strong competition from the rival Los Angeles Auto Show which the Organisation Internationale des Constructeurs d’Automobiles (OICA) has also been named an ‘international’ exhibition – starting with the 2007 show actually scheduled in November 2006.
This means there will be three major motor shows in the US in under a year – LA 2006 next month, Detroit in January, and the first ‘international’ LA show next November.
“The NAIAS covers two full weeks, plus the considerable assembly that begins in late October each year and the dismantling of the individual exhibits afterward. The NAIAS is consistently the number one contributor to business activity in Detroit due to the amount of time spent on its extensive set-up and execution,” said Sowerby. “This year’s intense competition in the auto industry has also inspired new display designs for 60% of the exhibits this year.”
Among the most important factors that are expected to contribute to this year’s total include: in 2006, the motor vehicle industry is unveiling over 60 new models at the NAIAS; ticket sales are running significantly ahead of pace; and another strong year for travel, consistent with an expanding national economy, could lead to a gain in attendance.
For example, major travel companies are seeing 10 to 12% gains in revenue supported by rising income levels, improved labour markets and higher consumer confidence.
Local (Detroit) area personal income growth is currently growing at 4.5% and the rate of growth in personal income has a high correlation with the anticipated total economic benefit gains for the motor show.
Aggressive incentive plans offered by the major vehicle producers, combined with record product launches, could generate higher interest in participating in or going to the show.
“Many businesses, individuals and families rely on and benefit from the NAIAS each year,” said the show’s senior co-chairman Richard Genthe.
“This year is going to be a significant revenue jump for southeast Michigan as NAIAS 2006 and the [American football] Super Bowl combined will bring in nearly $1 billion to metro Detroit.”
Press preview days will be held on Sunday (!) 8 January to Tuesday, 10 January. Industry preview days are on the Wednesday and Thursday and there will be a charity preview on the Friday evening, 13 January.
The paying public finally gets to see the cars from Saturday 14 January to Sunday 22 January.
