GM General Motors Company

By Adrienne Roberts 

DETROIT -- The North American International Auto Show is losing some luster as a can't-miss destination for luxury car companies, with many now giving wealthy buyers their only glimpses of the priciest models at another associated event in the shadow of this city's downtown convention center.

The Gallery, an official auto show event held Saturday evening, attracted 500 people for cocktails, dinner, and expensive cars at the MGM Grand Detroit casino, complete with food from Wolfgang Puck. A car must carry a minimum $100,000 price tag for a company to hawk it.

The event gives wealthy show-goers access to vehicles no longer on the main show floor. While major players such as General Motors Co., Ford Motor Co. and Toyota Motor Corp. faithfully display vehicles and hold press conferences and events at Cobo Center, other marquee names are now missing in action.

Among those skipping the main show floor this year are Volkswagen AG's Bentley and Lamborghini; Fiat Chrysler Automobiles NV's Maserati; Land Rover, Jaguar, Porsche and BMW's Mini. Ferrari SpA and Rolls-Royce haven't been at the auto show in nearly a decade.

The Consumer Electronics Show in Las Vegas, now held a week before the Detroit car show, is stealing some attention from the Motor City as Silicon Valley tech giants race to develop self-driving cars and traditional auto companies descend on Sin City to show their own tech bona fides. The upshot for the Detroit auto show is fewer press conferences -- a half-day versus three days in years past -- and a less crowded show floor as some brands skip it.

The modern show represents a departure from two floors of the hulking convention center on the banks of the Detroit River brimming with car displays that cost even small companies $1 million to set up shop. Auto shows in other locales, too, are starting to prove more attractive to some manufacturers.

"Experience over the past few years has shown that our new products attract very great interest at the shows in Los Angeles and New York," said a spokeswoman for Porsche, among the brands showing vehicles at the casino event. "As a consequence, we shall be concentrating on our presence at these shows in the future."

Somewhat filling the void, many of the priciest vehicles are now at the exclusive event at the nearby casino, with $10 million of cars on display. Enthusiasts who often own multiple cars have previously purchased $3.5 million worth of these luxury models at the event.

The Gallery, an event spokesman said, is designed to be a showcase for auto makers looking to "get into the hands of a few high profile, high net worth individuals." The guest list includes 100 holders of American Express's so-called black-card, an invitation-only piece of plastic, who were flown to the event. Food from Wolfgang Puck included king crab claws, roasted Cantonese duck and oxtail stuffed ravioli.

Aston Martin, Bentley, Bugatti, Lamborghini and Rolls-Royce showcased vehicles Saturday evening for those high rollers, as did Karma Automotive, a Chinese-owned electric-car company. Karma showed a $130,000 Revero plug-in hybrid, its first such display at The Gallery. Only 1,000 of the electric cars -- which compete with those from the more-established Tesla Motors Inc. -- will be built annually, starting during the first three months of this year.

Tim Oleston, a product specialist at Karma, said the auto maker's customers tend to be people who already own four to five cars. "At $130,000, it's in the right price point, but the exclusivity is there," Mr. Oleston said. He contended that the car's looks and rarity would help set it apart from the likes of a roped-off $2.6 million Bugatti Chiron sitting across the aisle.

(END) Dow Jones Newswires

January 09, 2017 10:56 ET (15:56 GMT)

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