• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Exclusive

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

An hour in the Oval Office with President Trump.

LeadershipDetroit

Detroit’s Auto Industry Has Changed, But Not The Way Washington Planned

By
Reuters
Reuters
Down Arrow Button Icon
By
Reuters
Reuters
Down Arrow Button Icon
January 10, 2016, 10:31 PM ET
Buick And Mercedes Benz Reveal New Models Ahead Of N. American Int'l Auto Show
DETROIT, MI - JANUARY 10: Mary Barra, Chairman and CEO of General Motors, speaks with the news media after the reveal of the new Buick Avista Concept at the Buick reveal on the eve of the 2016 North American International Auto Show January 10th, 2016 in Detroit, Michigan. The NAIAS runs from January 11th to January 24th and will feature over 750 vehicles and interactive displays. (Photo by Bill Pugliano/Getty Images)Photograph by Bill Pugliano—Getty Images

By David Shepardson and Paul Ingrassia

DETROIT, Jan 10 (Reuters) – When U.S. President Barack Obama visits Detroit’s annual auto show on Jan. 20, exactly one year before he leaves office, he is expected to tout how much the industry has changed since he orchestrated a federally funded rescue in 2009.

But many of the changes on display at the city’s annual auto show will not reflect the green-transport revival the president envisioned.

“We said the auto industry would have to truly change, not just pretend that it did,” the president said Saturday in a weekly radio address devoted to Detroit.

The ‘Detroit Three’ automakers racked up record sales and profits in the U.S. market last year not because of electric cars or plug-in hybrids, but because of soaring demand for pickup trucks and sport utility vehicles fueled by gasoline prices that hit multi-year lows.

At General Motors Co, the focal point of Detroit’s bailout, pickups and SUVs accounted for nearly 70 percent of last year’s sales. In 2016 one of the SUVs GM sells in America – – the Buick Envision – will be, for the first time, imported from China, to the chagrin of the United Auto Workers union, a key Obama constituency.

With oil prices expected to stay low for some time, all the major automakers are looking for a bigger slice of U.S. truck market profits.

Nissan Motor Co and Honda Motor Co are using auto show press previews on Monday to promote new versions of their full-size pickups, the Titan and the Ridgeline, respectively.

The big splash from bailout beneficiary Fiat Chrysler Automobiles is not a small car, but a sleeker, updated minivan, which comes in a plug-in hybrid version and a powerful gasoline model more people are likely to buy. There are also new luxury vehicles to be unveiled: a revamped Lincoln Continental is expected from Ford Motor Co and Hyundai Motor Co’s new flagship luxury sedan, the G90.

Obama has made boosting fuel efficiency a cornerstone of his energy and climate policy. Mandates from California and other states are prodding automakers to continue rolling out zero emission electric vehicles, such as GM’s Chevrolet Bolt, even if sales remain slow.

In his 2011 State of the Union Address, Obama renewed a call he made as a candidate in 2008 to get 1 million plug-in electric vehicles (EVs) on the road by 2015. But sales have been far slower than expected – only about 490,000 vehicles, including 115,000 in 2015, down 6 percent from 2014. Automakers have been forced to cut EV prices and sales forecasts.

The next president will decide the fate of Obama’s goal of boosting average fuel efficiency to 54.5 miles per gallon (23.2 km per liter) by 2025. A decision on whether the final 2021-2025 regulations are feasible is due by April 2018, under a new president.

The average fuel economy of new vehicles sold in the United States has improved over the past few years, standing at 24.9 mpg in December. It is down 0.9 mpg from the peak reached in August 2014, but still up 4.8 mpg since October 2007.

The auto show also will lay bare another juggling act for Detroit. While the U.S. automakers still make most of their money from big ‘body-on-frame’ vehicles powered by gasoline, just as they did 60 years ago, they are cruising into a high-tech world of connected cars that ultimately will lead to self-driving, or ‘autonomous’ vehicles powered by batteries.

The contrast will be stark between last week’s Consumer Electronics Show in Las Vegas, where autonomous driving took center stage as GM and Ford announced new high-tech initiatives, and the display of traditional heavy metal in Detroit. But even in the Motor City, the high-tech future of mobility will not be completely ignored.

The new Mercedes-Benz E-Class from German automaker Daimler AG will offer so many advanced driver assistance technologies that with just a few software changes the car could be allowed to drive itself hands-free, company executives have said.

The difference between the new E-class and Tesla Motors Inc’s electric Model S is that Tesla Chief Executive Elon Musk is willing to allow extended hands-free driving, albeit with more limitations as of Sunday than before, and Mercedes executives are not.

Forecasts for the widespread adoption of autonomous cars range between five and 20 years away. But their advent could lead to a fresh crisis for traditional automakers and their employees, Barclays auto analyst Brian Johnson said Sunday at an automotive event.

If self-driving, shared cars become the norm, he said, that could mean 60 percent fewer vehicles on the road, and a one-third reduction in the number of auto-assembly plants by 2025 or 2030.

(Reporting By Paul Ingrassia and David Shepardson; Editing by Bill Rigby)

About the Author
By Reuters
See full bioRight Arrow Button Icon

Latest in Leadership

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Leadership

Inside Trump’s vision of the U.S. as a shareholder in American companies: ‘I should have asked for more’
NewslettersCEO Daily
Inside Trump’s vision of the U.S. as a shareholder in American companies: ‘I should have asked for more’
By Diane BradyMay 18, 2026
15 minutes ago
How a mom-and-pop car wash chain went from sticky notes to AI-powered operations that are upleveling every part of the company
AIAutomation
How a mom-and-pop car wash chain went from sticky notes to AI-powered operations that are upleveling every part of the company
By Sage LazzaroMay 18, 2026
2 hours ago
Outnumbered: At $4 billion ClickUp, a 3:1 agent-to-human ratio is rewiring work itself
AIAI agents
Outnumbered: At $4 billion ClickUp, a 3:1 agent-to-human ratio is rewiring work itself
By Sage LazzaroMay 18, 2026
2 hours ago
Solo founders are using AI to do the work of entire teams—but going it alone has limits
AIEntrepreneurs
Solo founders are using AI to do the work of entire teams—but going it alone has limits
By Beatrice NolanMay 18, 2026
2 hours ago
Donald J. Trump
C-SuiteDonald Trump
EXCLUSIVE: An hour in the Oval Office with the CEO-in-Chief, President Trump
By Alyson ShontellMay 18, 2026
3 hours ago
shyam
CommentaryHealth
World Economic Forum: women’s health gets only 20% of R&D funding. We must seize this $1 trillion opportunity
By Shyam BishenMay 18, 2026
6 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
2 days ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
Economy
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
17 hours ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
6 days ago
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
Success
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
By Sydney LakeMay 17, 2026
23 hours ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
1 day ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.