Automakers Show Off Flash and Frugality Side by Side at Geneva Auto Show
GENEVA February 26, 2006; Matt Moore writing for the AP reported that automakers will be showing off their flash and frugality side by side at the Geneva auto show as they introduce edgy models aimed at drivers looking for style.
But mindful that consumers are feeling the high price of gasoline, automakers at the 76th International Motor Show will also be touting new fuel-efficient engines, diesel-powered vehicles and smartly designed hybrids.
"All the manufacturers are under pressure to demonstrate their commitment to the environment," said Stephen B. Cheetham, European auto analyst for Sanford C. Bernstein Ltd. in London. "The whole hybrid issue has gained momentum in the last 18 months."
He said that while hybrids, which mix traditional gas power with electricity and alternative fuels, are gaining in popularity, they're still more expensive to build -- and buy -- than small cars with diesel engines.
Italy's Fiat SpA will unveil its low-emission Panda CNG, a model based on the Panda four-wheel-drive variant that uses compressed natural gas to power the car. The tanks are stored where the four-wheel-drive transmission components are traditionally located, thus freeing up space inside the car. It's expected to go on sale in early 2007.
Sales of subcompacts have been steadily rising since 2001 as drivers wary of higher gas prices have embraced them and automakers including BMW's MINI, Honda Motor Co., DaimlerChrysler AG and others like Kia and Skoda have followed suit.
CSM Worldwide Inc., which tracks auto sales, said the number of subcompacts sold worldwide annually has risen from nearly 9.8 million in 2001 to 11.4 million by the end of 2005. Looking ahead, it said that the number sold annually will reach 14.1 million by 2009, with nearly half that in Europe, followed by Asia and the Americas.
France's PSA Peugeot Citroen, Europe's second-largest automotive group -- which is facing fierce competition from Renault SA, Volkswagen AG and Asian rivals -- will show off its new 207 model, powered by a 280-horsepower, 2.0-liter engine. Billed as a replacement to its popular 206, the company has said the 207 will complement its predecessor but aim for consumers who want more zoom than the 206 offers.
Citroen will also have a diesel-electric hybrid version of its C4, along with the C3 Gaz Naturel, which runs on compressed natural gas.
DaimlerChrysler Chief Executive Dieter Zetsche said in November that the Chrysler Group wants to launch a subcompact to meet the growing demand in U.S., Canadian and Mexican markets for more fuel-efficient cars.
To wit, the Dodge Hornet concept car will make its debut at the auto show. The compact, front-wheel drive car has a six-speed transmission that can go from zero to 60mph in just under seven seconds. AMC had a Hornet from 1970-1977.
Chrysler hasn't said if the Hornet will go into production, but analysts say it would make a good entry-level vehicle that's one step below the company's Caliber hatchback, which has a sticker price of nearly $14,000 in the U.S.
Automakers are set to unveil more than 140 new models -- including those that will be available almost immediately like Porsche AG's new two-seat coupe 911 GT3. It hits European showrooms in May for about 108,000 euros and the U.S. in August with a sticker price of $106,000.
For the truly well-heeled, Lamborghini will bring out its retooled Mercielago LP640, a lean and sleek sportscar packing a 640-horsepower engine with a price tag around $360,000.
High-priced concepts are pleasing to the eye and a way for auto companies to show off their design prowess, Cheetham said, something the Geneva auto show is legendary for.
"It's the industry kind of showing off to itself," he said. "They always have some cool concepts, that's that the industry is about."
On the more affordable side and aimed at buyers who want spaciousness but not a giant SUV, Volkswagen will bring out its Concept A, which marries its popular Golf with the stylings of a sport utility vehicle. It's likely to compete with Toyota's popular RAV-4 and BMW AG's X3 when it goes on sale next year with a price tag of about $28,696, the company said.
Others are also aiming small, with Toyota Corp. showing its Urban Cruiser concept, a compact, three-door SUV with a narrow but boxy shape.
The Swiss show, which opens to the public Thursday and runs until March 12, is the only major car show staged in a country with no sizeable auto industry. It will host 262 exhibitors from more than 30 countries, displaying 924 makes and models. About 700,000 people are expected to visit the show.