Guest commentary: Yes, auto shows are struggling. They’re still as important as ever

Marketing

Auto shows are magical events and remain relevant and beneficial to the current new-car market. That magic has been wowing audiences since the very first U.S. auto show in New York City in 1900. Chicago’s auto show started in 1901. Denver has been organizing auto shows since 1902. Los Angeles and Detroit started hosting auto shows in 1907, spreading the magic of shiny new cars to prospective buyers.

So why are auto shows still relevant 120 years later?

They foster personal connections with consumers. The magic occurs when people walk around cars, sit in them, look under their hoods, kick their tires and inhale the new-car smell. The magic flows throughout the expansive show floor. Consumers look, compare, evaluate and add to their shopping lists. If a car is missing, it often is removed as a possible purchase. When most manufacturers participate, 30-plus new-car brands are connected with prospective buyers — all under one roof. It’s like a huge new-car showroom with all the makes.

Unfortunately, in recent years several manufacturers have opted out of this opportunity. What was fundamental and foundational for the first auto shows, showing off the magic of new cars, still exists and is needed more today than ever.

Since Detroit is the center of America’s auto industry, manufacturers and brand enthusiasts have leveraged the Motor City’s show to connect the public with big, significant and meaningful industry changes.

Bob Lutz intentionally crashed through the front plate glass windows of Detroit’s (then) Cobo Center when unveiling a new design of the Jeep Grand Cherokee. Chrysler Corp., now Stellantis, drove a herd of longhorn cattle through downtown Detroit with cowboys on horseback to unveil the next generation of its popular Ram 1500. When Chrysler was DaimlerChrysler, Wolfgang Bernhard rode a V-10, 500-hp Dodge Tomahawk motorcycle on stage. Audiences loved the showmanship.

Automotive News Executive Editor Jamie Butters is right that auto shows have challenges today (“Detroit auto show poised to disappoint again,” June 17). Nevertheless, the fundamentals are as strong or stronger than ever. Between 2010 and 2019, auto shows saw some of their largest attendance numbers in history. Based on a newly published Foresight Research report on the 2022-23 U.S. auto show cycle, 1 in 4 households nationally that intend to buy a new car within the next 12 months attended a local auto show this season. And 3 out of 4 households attending auto shows are in the market to buy a car within the next 12 months. With this kind of motivation, why are automakers opting out of this valuable channel for promoting their new vehicles?

With responsibility for producing auto shows for the last 18 years, I have attended shows in the U.S. and around the world and seen the value. Many consumers follow developments in automotive and know which manufacturers and brands skip an auto show. They ask show organizers why brands are missing. Show organizers want every automaker represented, so nonparticipation almost always is a mistaken corporate decision made by someone who may have never attended an auto show.

Here’s my assessment based on years of watching successful shows around the world.

  • Manufacturers, exhibit houses and local marketing groups need to recognize the unique marketing opportunities that auto shows create. These shows pay dividends.
  • Auto show organizers need to buck inflation trends and hold space rental fees in check. When possible, even offer a small amount of complimentary exhibit space so manufacturers are encouraged to take more. That’s a big ask because convention center/exhibit hall space is costly.
  • Media can and should play an important role, yet reporters need to remember the show is ultimately about consumers.
  • Show organizers should work to include every brand possible, whether they’re sold through franchised dealerships or by experimental models. Consumers just want to see and compare the new cars regardless of the manufacturer’s distribution method. I’ve heard from Lexus, Mercedes, BMW and Audi dealers that they want their cars next to Tesla so they can show off the superior design and build quality. Show electric bikes, too. They are increasingly popular. As the Detroit show has done, let consumers test drive e-bikes. It’s good business.
  • More interactive exhibits, including ride-and-drives, especially for electric vehicles, should be a priority. Lines for these types of experiential events are significant, demonstrating their popularity. Most Americans haven’t driven an EV, so get them started with a test drive inside an exciting auto show.

Butters makes valid points. However, throwing in the towel on auto shows, which draw in millions of new-car customers, doesn’t make sense. Auto shows translate into sales — and that will remain true for many years to come.

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