BID FOR A GIANT AUTO MAKER : THE SCENE : Thanks to Kerkorian, N.Y. Auto Show Kicks Off as Media Circus

Displaying showmanship worthy of his Las Vegas base, casino magnate Kirk Kerkorian on Wednesday simultaneously upstaged Detroit’s Big Three, their European and Japanese rivals and New York’s Jacob Javits Convention Center--all assembled for the New York Automobile Show.

The announcement of Kerkorian’s proposed $22.8-billion takeover deal for Chrysler Corp. stunned members of the nation’s automotive media who had traveled to New York expecting a mundane event. The show, while the country’s largest, boasts few significant new products this year, but reporters found themselves scrambling to cover what seemed the business story of the decade.

For the 35 auto makers and other companies that paid up to $1 million each to exhibit their latest wares, the show’s first media day turned nightmarish as reporters shunned new car displays and packed the Javits center’s media room awaiting the latest information from Kerkorian’s Tracinda Corp. and Chrysler.

Certainly it was the most bizarre start to a New York auto show, an event that dates back to 1900. This year’s show, which opens to the public on Friday, focuses on the use of computers and other high technology in cars.

“It was a surprise to everyone,” said show director Candida Romanelli, whose staff struggled to help a small and harried contingent of Chrysler public relations officials cope with the news event.

“It could have been a disaster, but it was under control from the beginning,” she added. “The show is going on as scheduled.”

Things started routinely enough, with a media breakfast that was supposed to feature a keynote speech by current Chrysler Chairman Robert Eaton. But just before 9 a.m., Vice President Bud Liebler appeared and announced that Eaton had rushed back to the company’s Auburn Hills, Mich., headquarters to deal with urgent business.

Many assumed it was a gag introduction for the Chrysler chief. But jaws dropped throughout the center’s special events hall as Liebler read a news release announcing Tracinda’s intent to take over the No. 3 U.S. auto maker.

The first casualty of the media stampede to cover the takeover story was Audi, the luxury-car unit of Germany’s Volkswagen, which had to scrap the North American debut of its new S6 wagon and a news conference to outline a comeback strategy in the U.S. market. Audi’s presentation was held later.

Acura, the luxury division of Japan’s Honda Motor Co., proceeded with its announcement of a new sport-utility vehicle to be built by Isuzu Motors Ltd. and introduced later this year.

The Acura presentation was well attended by members of the auto trade media but representatives of most major media were preoccupied with a Tracinda telephone news conference piped to the media room from Las Vegas.

Toyota Motor Corp.’s luxury car unit, Lexus, enjoyed somewhat better turnout for an announcement of its own high-end 4x4, the LX450, which will be unveiled early next year. The vehicle, expected to sell for under $50,000, is based on the Toyota Land Cruiser.

Some exhibitors took a philosophical view of the day’s focus on Chrysler.

“You go ahead and do your own program and make your own news,” said Tom Rhoades, a Ford Motor Co. product launch manager, steering reporters to the presentation of a new Lincoln-Mercury vehicle security system. “It’s by no means a wasted effort or a disappointment. I don’t think we were one-upped.”

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Chrysler’s Biggest Stockholders

Although Kirk Kerkorian’s Tracinda Corp. is Chrysler Corp.’s largest investor, mutual funds, money management companies and other institutions own more than 60% of the auto maker. The biggest holders as of March 31:

Shares Percent Owner (in millions) Ownership* Tracinda 36.0 10.1% Fidelity Management 23.6** 6.6 Equitable 15.8 4.5 Wellington Management 13.2 3.7 Bankers Trust New York 11.8 3.3 TCW Group 7.6 2.1 Michigan State Treasury 7.4 2.1 Wells Fargo Bank 6.8 1.9

* Based on 355 million common shares currently outstanding. Including other securities convertible into common stock, Chrysler has 415 million fully diluted common shares.

** As of Feb. 28

Sources: CDA / Spectrum, Tracinda, Chrysler