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Live, From the Washington Auto Show!

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America’s Public Policy Show.

Today, yours truly is in Washington, DC, for the annual press day at the Washington Auto Show. DC’s show is held at the Walter E. Washington Convention Center, where parking is non-existent and people are expected to get there by mass transit or on foot. Go figure.

Washington Auto Show: OICA Recognition

Despite the apparent contradiction, the convention center is the precise venue for hosting this show, given its floor size. Moreover, what had once been a tertiary show in the auto show circuit, the Washington event is now right up there with Detroit, Chicago, New York and Los Angeles.

So, let me explain what I mean before you get your knickers twisted in a wad.

Washington Auto ShowThis year, the DC auto show has secured accreditation from the Organisation Internationale des Constructeurs d’Automobiles (OICA), the credential-granting body that oversees such shows. Consider the show’s proximity to the political movers and shakers in the United States as a contributing factor for its sanctioning, especially as the White House and congressional input helps to steer the industry. Indeed, because of that political influence, the Washington Auto Show is known as the “Public Policy Show” within the auto industry.

Awards and News Conferences

Certainly, the Washington Auto Show is NOT the place where major reveals of new products and concepts are accomplished. But, it is an auto show that is big on all matters policy — to this end it also serves as the occasion for the Green Car Journal to announce three environmental awards — the 2015 Luxury Green Car of the Year, the 2015 Green SUV of the Year, and the 2015 Green Car Technology Award.

Meanwhile, the press happenings will begin with a newsmaker breakfast and opening speeches, followed by the keynote address. This year, the address will be presented by Johan de Nysschen, global president, Cadillac, and executive vice president of General Motors.

This past August, de Nysschen assumed the helm at Cadillac, bringing with him extensive experience culled from his leadership roles at Infiniti, Audi and BMW. Since then, the South African native has been actively reinvigorating GM’s luxury brand. He has also spearheaded Cadillac’s administrative relocation to New York from Detroit.

Several manufacturers do hold press conferences at the Washington show. Specifically, immediately following the keynote address, Ford will address the media with Toyota and Chrysler next in line. Later, the Green Car Journal awards will be announced, followed by Hyundai’s press conference. Next up and just before noon, the Kiplinger Best Value Awards for 2015 will be presented.

Immediately after a lunch break, the first two of the afternoon events will be hosted by the Historic Vehicle Association and then the Center for Automotive Research. Then, BMW and Volkswagen will hold a joint news conference just before the government keynote address offered by Dr. Ernest Moniz, the US Department of Energy Secretary. The press day will conclude following an SAE Plenary Session at 3:00 p.m.

Sneak Peak Reception and the Public Show

In the evening, a sneak peak reception will be held from 5:00 to 8:00 p.m. After that, the show’s organizers will prepare the convention center for the general public portion of the show, which begins tomorrow, Jan. 23, and extends through Feb. 1. Attendees will take in the more than 700 vehicles from at least 42 manufacturers on display, inclusive of domestic and foreign products.

Check out my main Twitter feed (@theautowriter) for updates throughout the day. Stories of major significance will be covered by Auto Trends next week.

Looking Ahead: Moscow International Automobile Salon

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And the show goes on.

LADA Kalina
This Lada Kalina is just one of many cars built by AvtoVAZ.

Moscow plays host to an important automotive event this month, the biennial Moscow International Automobile Salon (MIAS). This auto show is held on even numbered years and is slated to begin on August 29 and run through September 7, 2014.

This year’s show will take place amidst international tension following Russia’s seizure of the Crimea region from the Ukraine this past spring and ongoing tensions with its former USSR republic elsewhere. The press and business days are set for Aug. 27 and 28 respectively — alas, Auto Trends will not be there, but our press contacts will be on site to share those updates. We plan to feature the Moscow highlights later this week.

Moscow Auto Show

The Moscow show is sanctioned by the “Organisation Internationale des Constructeurs d’Automobiles” (OICA) or “The International Organization of Motor Vehicle Manufacturers” as it is known in English. Not all major shows receive that designation although Detroit, Washington, DC, and Los Angeles are among the three US shows that are currently sanctioned.

The Moscow show is held at the International Exhibition Centre or “Crocus Expo.” The Expo is part of the larger “Crocus City” trade fair and business center, and is located in Moscow’s Krasnogorsk district.

The Moscow show has been the site of several important global debuts including the 2014 Mazda 6 sedan in 2012. This year, the show will feature an updated BMW X6 crossover, an assortment of Chevrolet models, a Hyundai Equus limousine, a Russian market Ford EcoSport, as well as models from Renault, Lada and Nissan. Clearly, the world’s automakers understand the importance of this strategic market.

BRiC Nations

Like many countries, the auto industry is a significant contributor to the Russian economy. Hundreds of thousands of people are employed directly by automotive manufacturers, with millions more employed by suppliers and ancillary industries. Russia, along with Brazil, India and China comprise the BRIC nations, representing large nations with economies that are emerging global.

The dust up between Ukraine and Russia has lead to sanctions from the west. Those sanctions have driven up inflation within the Russian Federation and are contributing to auto sales falling by more than 7 percent year-to-date. Talk that Russia might retaliate by restricting automotive imports has yet to pan out. Whatever the course that the Putin administration plans to take, it will have little bearing on this year’s show.

Russian Production and Consumers

The Russian automotive industry produced more than 2.2 million vehicles in 2013. Russians bought 2.9 million new vehicles, ranking sixth in the world and coming in just behind Germany in Europe. The long-term outlook for the Russian consumer market remains bright with sales expected to recover within the next few years. A RolandBerger study pins sales at 3.3 million per year by 2020, considerably below the lofty 4 million annual units analysts had forecast earlier.

AvtoVAZ is the largest Russian automobile manufacturer, producing Lada brand vehicles for the local market mostly. Nissan is the biggest foreign brand in Russia and along with its French partner, Renault, has taken controlling interest in AvtoVAZ.

The Japanese manufacturer is currently building Nissan and Datsun models for the local market. AvtoVAZ has the capacity to build 1 million vehicles per year and the Russian market is expected to overtake the German market within the next few years.

Potential Deeper Conflict

Perhaps the one thing that might detract from this year’s Moscow show is if things heat up in the Ukraine. At present, thousands of troops that have pledged allegiance to Russia are battling with Ukrainian nationals to the east and along Russia’s border. Putin has been carefully weighing his approach to this conflict, mindful that his response could lead to deeper sanctions. If so, the Russian economy could sustain a harder hit, perhaps reversing the long-term prospects of that nation’s budding automotive industry.

Photo courtesy of AvtoVAZ (Lada).

Record Global Vehicle Sales Reached in 2012

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Global vehicle sales broke a record in 2012 with more than 82 million units sold. That figure represents an increase of nearly 34 percent over 2009s economy-challenged global sales of 61.2 million units according to the International Organization of Motor Vehicle Manufacturers or OICA.

sales increase
Global auto production and sales are on the rise.

Production and Sales

Global vehicle production reached 84.1 million units in 2012 as Asia produced 43.7 million vehicles followed by the Americas at 20 million units. Europe came in third at just under 20 million vehicles; Africa and Australasia contributed the remaining amount.

The difference between production figures and sales numbers can be attributed to excess inventory and unrecorded registrations for government vehicles.

Ups and Downs

The sharpest production increase was recorded by the NAFTA nations: Canada, the United States and Mexico, rising by 17 percent. Japan and South Korea followed with an increase of 11 percent followed by China, India and other Asian countries coming in at 6 percent. African production also rose, increasing by 5 percent.

Production south of Mexico for the rest of the Americas fell by 2 percent last year, breaking a string of increases that began in 2003.

Europe saw some stark differences in 2012 with production in the E27 or mostly western European nations plunging by 8 percent. Turkey and Russia, however, helped pace production in the other European countries, with an increase of 4 percent observed.

Looking Ahead

Automotive production and sales are expected to set another record in 2013 with the OICA forecasting a sales rise of 3 percent based on continued strong demand in China and in the United States. Nearly half of all new vehicle sales take place in Asia with China accounting for about one in four new vehicle sales.

Production and sales are expected to continue to fall in Europe as the continent works through its current economic challenges. Emerging markets beyond China such as Russia, India, Brazil and Africa are expected to also see improved sales in 2013.

About the OICA

The OICAs mission is defend the interests of new car manufacturers, assemblers and importers, particularly as relates to their national federation. The organization brings together the various national associations and studies issues that impact the development and future of the global automotive industry. OICA is the global voice of the auto industry, speaking on its behalf to both governmental and nongovernmental entities.

OICA also puts its imprimatur on select auto shows around the world, coordinating the scheduling of the same. In the US, shows in Detroit and Chicago are OICA sanctioned as are shows in Geneva, Seoul, Buenos Aires, Johannesburg and Tokyo.

See Also — Jan. 2013 Auto Sales Rise Faster Than Expected