This year’s North American International Auto Show reflects an industry that’s flush with cash but uncertain about the future.
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Multi-million-dollar displays show new versions of big sellers like the Toyota Camry, GMC Terrain and Honda Odyssey. New technology, from gesture controls in BMWs to further advances in self-driving cars, is everywhere. Auto companies are making big promises, like Chinese automaker GAC’s plan to sell a vehicle in the U.S. by the end of 2019 and Volvo’s goal of preventing all fatal crashes in its vehicles by 2020.
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But there could be bumps ahead. U.S. sales are leveling off and the Trump administration could change the rules on trade. And it’s not yet clear which companies will be the winners in a future of car-sharing and self-driving.
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The ground is so unstable beneath them right now, said Karl Brauer, a senior director of content at Kelley Blue Book.
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Here’s what we learned at the Detroit auto show:
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— PLATEAUING SALES: After an unprecedented seven-year streak of sales increases and record sales of 17.55 million in 2016, U.S. sales of new cars and trucks are expected to slow down slightly in 2017. Interest rates and car prices are rising. A glut of used cars will also put pressure on new-car sales. Automakers are cutting production of cars to lower their inventories, but they’re also counting on new vehicles, gadgets and must-have technology, like Apple CarPlay and backup cameras, to fuel demand. At the auto show, BMW is showing off a 5 Series with gesture controls, which let drivers control volume and other functions with hand signals. Lexus’ new LS sedan has seats that give occupants Shiatsu massages. And multiple automakers are introducing new vehicles that will brake automatically to avoid an accident.
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— TRUMP EFFECT: President-elect Donald Trump and his Twitter threats to tax Mexican auto imports were…