Auto-parts biggies to skip Shanghai auto show

Organizers of the forthcoming Shanghai automobile exhibition are confident that the show would evoke good attendance from global automobile companies, even as some of the major parts suppliers have decided to skip the event to cut costs.

French tire giant Michelin said yesterday that "Michelin China would not participate in Shanghai auto show this year", as "our company is involved in many other activities and preparing for an important launch".

The tire maker was one of the prominent participants at the Beijing and Shanghai auto expos in the last 10 years. Sina.com cited a PR executive of Michelin China as saying "the whole industry is in difficulty and we also have to make some adjustments".

Cathay Yu, PR manager of Magna China, cited cost savings and not the financial crisis as the reason for the absence.

"For business-to-business parts providers, participation at the show evokes less responses than direct contact with target clients," said Yu.

Some of the other automobile parts suppliers like Delphi, ArvinMeritor and Johnson Controls have also decided not to participate in the Shanghai expo to cut costs.

Automobile firms like Fiat, Renault and Daihatsu are also skipping the event to be held from April 20 to 28.

"It is a cost-saving measure that Fiat is adopting," said the Italian company in a statement.

However, Big Three US carmakers will be present in Shanghai. "GM has made a long-term commitment to China," said Kevin Wale, president and managing director of GM China. "Despite the challenges that GM and our industry now face, we believe our best years are ahead of us. One look at GM China's lineup for Auto Shanghai 2009 will convince even the most hardened skeptics," he said.

Mercedes-Benz and BMW will showcase their limousines and concept cars, while Volkswagen will also display a range of products.