• Various News Sources, Wednesday, October 1, 2008 11:45 AM

The Detroit News has a couple of walkups to the Paris Auto Show, which opens Thursday. Auto critic Scott Burgess bemoans the fact that his penny-pinching editors (aren't they all?) were not swayed by his argument that "Detroit needs Paris ... probably more than Paris needs Detroit," leaving him writing about forthcoming models from the Motor City. His coverage includes pictures of many of the new models. In Neil Winton's "special" to the News from Paris (meaning he was already there, no doubt), he cites a Merrill Lynch analysis that states that new EU fuel economy standards will have a negative impact on sales in Europe - if, of course, you can afford to buy one at all and thenget a loan.

In fact, Reuters is reporting that shares in European automakers fell sharply today as the markets responds to the credit crunch hitting car buyers.

The New York Times  has a piece on how the squeeze on credit in the U.S. is becoming a "nightmare" for dealers and consumers. And automakers themselves are hard-pressed to borrow funds with interest rates running as high as 20%. Bloomberg News   cites a report from the National Automobile Dealers Association that projects that as many as 600 auto dealerships -- about 3% of the total -- may shut down or consolidate this year compared with 430 a year ago.

Dealers that sell cars from General Motors, Ford and Chrysler probably will account for the bulk of the closings, according to NADA economist Paul Taylor. New vehicles probably sold at an annual rate of 13 million in September, a 17% decrease from a year ago, based on according to a Bloomberg News survey of 36 analysts and economists.

Detroit Free Press columnist Mark Phelan  talks about the importance of auto shows in getting buzz going, pointing out that "the event in fashion-forward Paris" kicks off the season. Phelan opines that General Motors, which will be debuting models for Cadillac and Chevy as well as its Euro-centric Opel and Saab brands, may have the most riding on the show.  The Wall Street Journal, meanwhile, says that Honda's new Insight hybrid, which will be unveiled at the Paris show, probably poses the most formidable threat to Toyota's Prius. A web site for the Insight is already up with "concept photos" of the concept car , which is due to go on sale in the U.S. next spring.  It promises to supply photos, news and live updates direct from the show.

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