• by Karl Greenberg , April 5, 2007

Perhaps it's appropriate that Greenpeace showed up at the New York International Auto Show yesterday to attempt to hang a banner and protest automakers.

Nearly every product unveiled by the likes of GM, Ford, Nissan's Infiniti division and even Chrysler Group's Jeep division seemed to concede the point that fuel efficiency and emissions are not a back-burner issue any longer. Also, compact crossovers dominated the stages yesterday, as Chevy, Ford, Infiniti, Jeep and Subaru showed off their latest.

The theme was set by Ford's CEO Alan Mulally, who spoke at the International Motor Press Association breakfast, which launched the show. He prefaced his prescription for turning the company around with an assertion that Ford will, in the process of fixing itself, also address global warming and develop alternative fuels.

Mulally put a positive spin on March's sales numbers--which saw Ford sales down 13.2% year to date, saying last Month's numbers reflect a healthier balance between cars and trucks. He says the mix--traditionally 70% trucks and 30% cars--has shifted to 46 percent cars, 50% trucks in the first quarter this year, and that the sales shortfall was partly a result of fewer fleet sales. "Our goal is to have 70% of our product line refreshed by 2008 and 100% by 2010," he said.

Crossovers outsold traditional SUV's last year for the first time, and Ford, late to the game, says its crossover sales were up 40% last month. The company unveiled a new one, called Flex, which goes on sale in 2008. The Flex will be the third crossover for Ford after it launches the Taurus X crossover this year.

Rebecca Lindland, analyst with Global Insight, Lexington, Mass., says that, while Ford's late to crossovers, it's not too late. "They just have to play catch-up. But they haven't missed the chance because the market is expanding fast, and consumers are tweaking their preferences in terms of styles, features. It's about how much 'swag,' how many unique features you can have for parents and kids," she says.

Thus, Lexus rolled out a new version of its LX 570 crossover that is stuffed with technical gee-gaws like cameras that allow drivers to see the blind spot, high-tech stability controls, a sophisticated terrain "brain" that allows the vehicle to automatically manage insufferably rocky terrain and several other "first of a kind" features.

Jeep showed a brand-new version of its Liberty crossover, this time with an optional retractable fabric roof, a sunk-in-the-floor storage unit and MyGig entertainment system. Frank Klegon, EVP of product development, used the occasion to announce that the Grand Cherokee, for the first time, will soon be available with a common-rail diesel engine, which, he says will garner 20% fewer CO² emissions.

General Motors pulled the wraps off of three sub-sub-compact concept vehicles--Groove, Beat and Trax, developed at the company's design studios in Seoul, South Korea--a joint venture between GM and Daewoo. The company plans to allow consumers to have a say in which of the three designs is produced for the U.S., via a campaign driving traffic to vote4chevrolet.com.

Lindland says the talk of better mileage and emissions reflects market direction. "As we continue to brush three dollars a gallon, consumers care about this. They are certainly looking for more efficiency in the vehicles than they already have. But they aren't willing to pay more for the vehicles, though."

She says the trio of mini-cars GM unveiled demonstrates how better mileage isn't a selling point in itself. "They demonstrate that you can offer good gas mileage in a package with a lot of attitude. Consumers want style along with good mileage."