Car enthusiasts and professionals are headed to Frankfurt this week to the International Motor Show (IAA) as the industry emerges out of long crisis in Europe, but warily eyes slowing demand in China.
The organizers, Germany’s Verband der Automobilindustrie, said the IAA’s 66th edition promises 210 world premieres and an “amazing display of innovations” from 1,100 exhibitors from 39 countries,
The biennial event is held in Frankfurt’s gigantic trade fair exhibition, a space the size of 33 football pitches.
Photo: Reuters
The world press enjoyed a sneak preview yesterday and industry professionals have the grounds to themselves for two days before it is open to the public on Saturday.
After long years of crisis, the industry finally has something to smile about as demand picks up again in Europe, where new registrations increased by 8.2 percent in the first six months of this year.
The European Automobile Manufacturers’ Association is penciling in growth of about 5 percent for the whole year.
However, that increase will not be sufficient to return the industry to annual sales in Europe of 16 million units that it had seen before the 2008 to 2013 crisis cut the market by around a quarter.
“Even if we’re starting from very low levels, it’s still encouraging to see the market recover,” driven by double-digit growth in southern Europe, said Stefan Bratzel, director of the Center for Automotive Research CAM in Bergisch Gladbach, Germany.
However, it is not just Europe: The sector’s new-found health is evident in North America, too, with demand near record highs.
By contrast, emerging economies such as Brazil and Russia are mired in recession. China, where years of double-digit growth turned it into the world’s biggest automobile market, has been hit with a brutal economic slowdown, and demand is projected at just 3 percent this year.
Volkswagen AG generates 36 percent of its sales in China, just ahead of US rival General Motors Co’ 35 percent, but foreign joint ventures in China have lost ground to wholly owned Chinese makers, whose products are frequently cheaper.
Nevertheless, industry experts point out that the market penetration is still very low in China, so the demand is likely to continue to grow in the medium term, even if at a less profitable rate for foreign makers.
Among the new models on display at this year’s IAA, Renault SA’s Megane 4 and Opel’s Astra 5 will both be vying for attention. The French carmaker will unveil a new version of its Talisman, while German top-of-the-range maker Audi AG will present the next generation of its A4.
However, it will be the urban 4x4s, the market’s darlings, that are likely to steal consumers’ hearts, with Volkswagen and Ford Motor Co presenting more affordable models such as the Tiguan and the Edge, while Jaguar will show off its luxury F-Pace and Bentley its ultra-exclusive Bentayga.
For those opposed to the fuel-guzzlers, there are more ecologically minded models — particularly interesting for drivers in Europe, which already has the most stringent transport carbon-dioxide emission goals in the world and could see them tightened at the Conference of Parties 21 summit in Paris in December.
Toyota Motor Corp has chosen Frankfurt to lift the veil on the fourth generation of its flagship hybrid, Prius. BMW AG will also present a series combining both electric and gasoline engines.
Another key focus at this year’s IAA will be exciting new technologies such as automated driving. For the first time, about 30,000m2 of exhibition floor space will be given over to new forms of mobility, from the connected to the self-driving car.
In other news, BMW chief executive Harald Krueger fainted yesterday during a press briefing at the show, forcing the German carmaker to halt the presentation.
The 49-year-old Krueger, who has headed BMW since May, was speaking to reporters at the company’s exhibit when he apparently felt dizzy and collapsed. He was helped away by two bodyguards.
BMW said in a brief statement that Krueger had a dizzy spell and that he had not been feeling well in the morning after returning from a trip abroad. It added that he was feeling better after an initial examination.
A BMW spokesman at the show a short later said that Krueger had canceled all his meetings scheduled for yesterday and returned home.
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