September 10, 2013 in Business

Frankfurt Auto Show exudes freshness, shakes off recession

David Mchugh Associated Press
 
Associated Press photo

This photo provided by BMW shows the BMW i8 plug-in hybrid sports car.
(Full-size photo)

U.S. sales up

Sales in the United States, a key market for automakers worldwide, are finally back to pre-recession levels and could reach 16 million this year, according to figures released Thursday.

FRANKFURT, Germany – The world’s automakers are showing off their shiniest, most advanced vehicles at the Frankfurt Auto Show, which opens this week.

Among the 70 world premieres are a notable number of new cars powered either by batteries or hybrid gas-electric systems. There are also outlandish concept cars that flaunt technology and design but aren’t intended for sale.

It’s all spread over the equivalent of about 32 soccer fields at the sprawling Frankfurt Messe exhibition center. The show, held every other year, attracted 928,000 visitors in 2011.

Here’s what to look for:

PLUGGED IN: The show has a slew of battery-powered electrics and hybrids – which combine electric motors with internal combustion engines. However, they also come with uncertain sales and profit prospects. Both types cost more, and pure electrics can give consumers “range anxiety,” or the fear of running out of power.

That fear is a reason that plug-in cars such as GM’s Volt and Nissan’s Leaf have struggled to win market share in the U.S. after three years on sale. And gasoline hybrids are a tough sell in Europe, where people can get good mileage using cheaper cars running on diesel fuel. Electrics and hybrids are less than 0.2 percent of vehicle registrations there.

Some of the vehicles being displayed are speedy high performers in luxury price categories – which makes sense in a way. Electric motors can supply quick acceleration, while high-end consumers are more able to pay.

BMW has the i8, a hybrid sports car that uses carbon-fiber parts to save weight so it can accelerate from 0 to 62 mph in just 4 1/2 seconds. Audi has a hybrid concept of its venerable Quattro model, with a whopping 700 horsepower and top speed of 190 mph. Toyota’s souped-up concept version of its Yaris compact comes with three electric motors and a 4-cylinder engine that can belt out 400 horsepower.

WHEW, WE MADE IT: The mood at the show will be the recession is over “and we survived,” said analyst Christoph Stuermer at IHS Automotive. Sales in the United States, a key market for automakers worldwide, are finally back to pre-recession levels and could reach 16 million this year, according to figures released Thursday. EU sales are headed for just under 12 million this year – far below the 2007 level of 15.6 million.

SMALL SUVs: It’s a hot category as more manufacturers try to emulate the success of vehicles like the BMW X1, Opel Mokka and Dacia Duster. These SUV-styled vehicles have muscular styling such as bigger wheel wells and a higher seat for the driver, but are built on small-car platforms. Mercedes will unveil its GLA small SUV and Lexus will feature the LF-NX concept – using Toyota’s successful hybrid drive system.

THE CONNECTED CAR: Linking the car to the Internet, smartphones or GPS services is billed as a theme of the show. But there’s not a lot to see – yet.

One car on display at the show, the new Mercedes S-Class luxury sedan, can already drive on its own in stop-and-go traffic to reduce driver fatigue – although it quickly reminds drivers to put their hands back on the wheel. Other carmakers are aiming for similar levels of driver assistance, but technological and legal barriers remain.

© Copyright 2013 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.


There are four comments on this story. Click here to view comments >>

Get stories like this in a free daily email