Editor’s Note: This story has been updated with new information provided by show organizers.
After a three-and-a-half-year delay due to COVID, the North American International Auto Show will stage a return next month and its newly released media schedule suggests the journalists on hand will be keeping busy from morning through night.
While a first glance shows 16 separate events on the media calendar, a closer perusal reveals that only three manufacturers are on the list, including Jeep, Chevrolet and Ford — the latter staging what is the most eagerly anticipated news event, the debut of the next-generation, 2023 Mustang.
This marks the lowest attendance by manufacturers since the essentially local Detroit Auto Show was transformed into the powerhouse North American International Auto Show in 1989. At its peak, organizers claimed to have as many as 70 separate product unveilings during the annual event.
NAIAS officials announced Chrysler would also be participating in this year’s media day, adding there may be more additions to the schedule coming.
But NAIAS is far from the only auto show struggling to convince the industry to remain onboard as manufacturers explore alternative ways to reach out to consumers.
Detroit is not alone
The Geneva Motor Show last week announced it has canceled its traditional winter gathering for the fourth year in a row, though it plans to partner with organizers to set up a show in Doha, Qatar in fall 2023.
The pandemic has been a major factor in the scaling back of auto shows. Geneva was all set to go in 2020 — until Swiss authorities announced a nationwide-ban on large public gatherings. Concerns about new COVID variants contributed to the cancellation of the shows for 2021, 2022 and, now, 2023.
But even before the pandemic struck, change was in process. The once-mighty Frankfurt Motor Show ended its long run in 2019 due to lagging manufacturer interest and sagging consumer turnout. At its peak, the German event could count on 2 million or more potential car buyers passing through its turnstiles. But attendance steadily dwindled, falling to 931,000 that final show, a 40% dip in paid attendance from two years earlier.
“All auto shows are going through the same thing,” said John McElroy, the host and producer of automotive TV show Autoline, and a longtime auto show attendee.
Some on the rebound
COVID initially forced the cancellation of all the major U.S. auto shows. The ones staged recently have been shadows of their former grandeur. The Chicago Auto Show traditionally filled the vast McCormick Place in Chicago with displays set up by virtually every automaker operating in the U.S. This year, manufacturer participation was fractional and only one of the convention center’s two main halls were used. The number of automakers showing up for events in New York and Los Angeles has also been down sharply.
And, even when brands have set up displays, they’ve been far less likely to follow through with news conferences, said McElroy, noting, “These used to be incredible media events, but since COVID, they’re really changing.”
As Frankfurt discovered, changes were afoot even before the pandemic. And as several industry officials told TheDetroitBureau.com, it reflects a change in marketing strategy taking advantage of new communications opportunities. The cost of putting on a press conference at an auto show is sky high compared to the hybrid media events now coming into vogue, where manufacturers skip the show, instead hosting an event offsite.
It’s cheaper, noted one automotive executives, who added, “It gives us hours rather than minutes with the reporters that choose to attend.”
How it used to work
Pre-Internet, auto shows were the easiest way to ensure not only public attendance, but a large media turnout. At its peak, Detroit’s NAIAS claimed to have more than 5,000 media attendees — though skeptics would question the numbers.
But the costs could be staggering. At the major U.S. auto shows in Detroit, Chicago, New York and Los Angeles, setting up even a small stand was a million-dollar affair. And adding a news conference easily doubled that. During the rein of former CEO Jacques Nasser, Ford was widely rumored to have spent nearly $25 million to stage a grand event in Geneva to celebrate its acquisition of luxury brands Jaguar, Land Rover, Aston Martin and Volvo.
Now, automakers are learning they can stage virtual previews and reach a substantial number of reporters at minimal cost. And some of those events have been open to consumers, as well.
Then there are the alternative events manufacturers have begun exploring. The Texas State Fair has served as the backdrop for the preview of a number of pickups over the last decade. And, as TheDetroitBureau.com this week reported, about 20 new vehicles and concept models were unveiled during the tony Pebble Beach Concours d’Elegance and related events during Monterey Car Week.
“We had to get smaller” to cope with the realities of post-pandemic life, Dave Sloan, the recently retired general manager of the Chicago Auto Show said in an interview when the event returned.
Down but not out
But don’t count auto shows out, insists McElroy. If anything, they may find a new life, at least when it comes to reaching out to consumers. And that reflects the changing nature of what automakers are producing — and how consumers are buying.
“The shows are still very important for the public,” said McElroy. “In fact, there’s an argument to be made that auto shows are the perfect place to teach consumers about electric vehicles.”
And that could become even more the case with strict new mandates like the ones in California that will see sales of conventional, gas- and diesel-powered models phased out by 2035.
COVID has had another big impact on the auto industry that could play out at the auto show level. Subsequent shortages of semiconductors and other materials and components have led to a severe shortage of vehicles on dealer lots. In some cases, potential buyers can’t even get a test drive of a vehicle they want, so auto shows might provide the only opportunity to see that model in person.
And, even when these shortages subside, most automakers plan to scale back on dealer inventories to reduce costs. Ford CEO Jim Farley told TheDetroitBureau.com last month the automaker will aim for a 30-day supply of vehicles, half the level pre-COVID.
Helping buyers
He also expects to see a substantial number of shoppers skip the showroom entirely, making their purchases completely online.
The typical auto buyer now visits just 2.4 showrooms before making a purchase, down from 6.1 times in 2005, according to research quoted by Peter Welch, the president of the National Automobile Dealers Association.
And that, said McElroy, would give potential buyers even more reason to head to an auto show.
Recent studies back that up. Showing consumers very interested in going back to auto shows big and small, as COVID concerns lessen. According to Foresight Research, 56% of those who purchase a new vehicle say a visit to an auto show was influential in their final decision.
So, while events like NAIAS may be losing their glitter in the media world, they continue to play an important role in the automotive sales process.