Auto manufacturing executives are pinning their hopes on new models - especially fuel-efficient hybrids, advanced fuel cells and electric vehicles - to boost sales as North America struggles in the tightening grip of a recession.

"I'm certainly working more hours than usual at the office lately," said Marc Comeau, General Motors of Canada's vice-president of sales, service and marketing. "But I'm convinced this new lineup of vehicles we have is our best yet. Consumers are really going to like what we have to offer."

Comeau helped announce the launch of nine new hybrid vehicles last week on the floor of the Canadian International Auto Show in Toronto, the most offered by any major manufacturer.

"There isn't really that much of a change in (marketing) strategy this year. It's all about delivering the best product and the best value to the consumer. Whoever can do that, in the end, will come out ahead," he said in an interview.

Brennan O'Connor, Business Edge

GM Canada vice-president of sales and marketing Marc Comeau discusses the company's strategy during these difficult times.

GM officials are hoping the next few months will be a turnaround for the company. Earlier this month, the automaker reported selling 14,254 cars and trucks in January, a 46-percent drop from the same period in 2008. The company sold 5,034 cars, off more than 60 percent year-over-year, while truck sales fell 34 percent to 9,220 units.

The day before Comeau attended the auto show for a media preview last week, General Motors' parent company in the U.S. announced it would be laying off 10,000 workers. Officials declined to give details on how those layoffs would be spread throughout the Canadian and U.S. operations.

Ontario politicians have been scrambling to find a way to protect increasingly endangered auto jobs.

Economic Development Minister Michael Bryant said the Ontario and federal governments were still negotiating a bridge loan for Chrysler Canada after promising in December to spent $4 billion to help the two struggling automakers.

But GM Canada surprised observers by saying it no longer wants that first, urgent portion of the aid package and added that it was crafting a new plan. Analysts suggested that could mean either new confidence, or that the automaker was considering pulling jobs out of Canada.

"But the Part 2 to all this remains the same, which is to provide financial assistance in the event that all of the conditions are met for the companies to be viable and transformational in their approach," Bryant said.

GM and Chrysler were supposed to get the Canadian aid in three instalments, with the first portion expected Dec. 29.

Funding was then deferred until mid-January at the request of the companies and GM now says it passed on the emergency loan because it was able to temporarily support itself with "cost-saving measures and access to other facilities."

"We are now focused first on working with all our stakeholders in Canada to ensure we can make necessary changes to restructure and ensure a sustainable and viable business for the future," said GM spokesman Stew Low.

During initial negotiations in the fall, Bryant had argued Canada should offer aid ahead of the U.S. to ensure Ontario jobs were protected.

But Canada waited for the U.S. to unveil its own bailout package before announcing its plan to loan General Motors Canada up to $3 billion and Chrysler Canada up to $1 billion - totals based on the U.S. aid and proportional to their Canadian production.

Canadian Auto Workers union president Ken Lewenza said he believes the province still has a chance to secure jobs, but expressed frustration at the lack of information and transparency involved in the process so far.

"Until we know what that U.S. (bailout) number is in a real sense, I don't think that at this particular time we've lost our bargaining chip," Lewenza said. "But I can tell you that we are nervous because we haven't heard anything."

He said the union remains committed to "being part of the solution," but won't make any commitments until it sees the details of the agreements between the companies and the government. "I can go in there tomorrow and make some compromises, but until we see the terms and conditions of the loan, we ain't doing nothing."

Statistics Canada reported more than 129,000 jobs were lost across the country in January as the unemployment rate shot up to 7.2 percent, compared with 6.6 percent the previous month.

The figures showed a steep drop in manufacturing, with the largest monthly decline on record as 101,000 net jobs disappeared in January. The hardest hit was Ontario, which suffered 36,000 of those losses.

Back at the auto show, Ford officials were also trying to remain positive and keep focus on the latest product announcements.

"People will always buy cars, and we have the most innovative vehicles out there," said Dean Stoneley, Ford of Canada's vice-president of marketing. "This is really the best time to buy a car with all the fuel-efficient models packed with so many great features."

One of those new features is called MyKey, which has parental controls to limit the speed and stereo volume when the vehicle is being used by teens.

"We're different from what's happening in the United States in that we have a different market," he added. "They are very closely tied together but we are affected by different things."

Stoneley added it was "too early to tell' how much the federal government's announcement to buy $12 billion worth of consumer credit notes from auto-financing companies would help the industry. He also declined to discuss government loans for the struggling automakers.

"Consumers need access to good credit at an affordable rate and we really applaud that initiative. But how much or any other details remains to be seen," he said.

Steven Beatty, managing director for Toyota Canada, said it plans to survive the recession by going "back to the basics."

"There is a change of pace this year. Usually we have the pyrotechnics and dancing girls. This year we're letting the products speak for themselves," he said.

"We must be aware of the current economic climate. That means responding with a business model that produces the right product at the right time. I think we have succeeded here."

Moving forward, Beatty said the product development focus is definitely on sustainability and hybrid or alternative vehicles.

"The industry has responded to the recession by producing some great products. That's really the basis on which we plan to compete the most," Beatty said.

- with files from the Canadian Press (David Hatton can be reached at hatton@businessedge.ca)