Big 3 Are Back

There couldn't have been a better curtain raiser for the North American International Auto Show than the news that Ford Motor Co. is adding 7,000 jobs in the United States to meet production and engineering needs.

It's the perfect tangible evidence of how far the domestic auto industry has come from two years ago, when coverage of the Detroit show read like an obituary.

Ford's need for more employees is fueled by surging demand for its products. The hometown automaker is now leading the industry in delivering quality, desirable vehicles across its entire line-up.

The news also was positive for Chrysler. Fiat, impressed by Chrysler's comeback and confident of its future, is upping its stake to 25 percent. Chrysler grabbed headlines Monday for a stunning array of new models, which are rolling out much sooner than expected.

General Motors has joined Ford and Chrysler in shoring up its vehicle menu, and along with Ford, is coming off a comeback year that turned surprisingly profitable. Chrysler also posted profits in 2010 on an operating basis.

It all adds up to a very positive outlook for 2011, especially for Michigan, where GM and Chrysler have promised $4 billion in new investments.

There is the definite air of accomplishment at this year's auto show. Companies that were very near death are now thriving. Detroit feels like the Motor City again.

As always, though, there are potholes to dodge. The three automakers have to be smart about their growth. They can't afford to add unnecessary costs that will have to be cut later if there's another economic downturn.

And they have to keep an eye on what's happening with gasoline prices.

Automakers are particularly sensitive to sudden spikes in fuel costs.

That's one reason the Detroit 3 have to keep a keen eye on the foreign-based competition. Toyota is developing a more extensive Prius family of hybrids, while Volkswagen and Mercedes are working on improved diesel models, hoping to secure and hold an advantage in fuel economy.

Hopefully, the automakers pressed the message of the threat presented by soaring gasoline prices with the congressional delegation that toured the show Monday. Congress must urge the Obama administration to back away from policies and regulations that are contributing to the increase in oil prices.

So far though, nothing seems to be discouraging consumers.

The Detroit Three have to keep on their toes, however. For the first time, four foreign-based automakers have a 5 percent or larger share of the U.S. market and are competing across the full line of vehicles sizes, including SUVs. Judging by the floor traffic at the auto show preview, overseas-based manufacturers will give Detroit automakers a run for their money. Happily, dealers are reporting their showrooms are filling again. Credit is easing, and leases are making a return.

That's a great way for the auto industry to start a new year.

It shouldn't be lost on anyone touring this year's auto show that the explanation for the return of the Big Three rests largely with far better cars and trucks.

The automakers seem to get that they need a diversity of products, from small to large, and that every single one has to be built with quality and designed to please consumers.

Detroit can be proud that it has got there, and much sooner than anyone could have imagined two years ago.

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