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Showtime in London as carmakers cope with big problems - Feature

Posted : Wed, 23 Jul 2008 12:33:05 GMT
Author : DPA
Category : UK (Business)
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London - Despite all the glamour and lavish world premieres at the British Motor Show, the industry is grappling with huge problems as consumers in both Europe and North America shun fuel- guzzling big new cars. The industry is reacting by showing concept vehicles emphasizing clean-drive technology and prototypes with the fun and sporting aspect.

With just a few months to go before this year's biggest car exhibition, the Paris Motor Show, the British event which got underway Wednesday and runs to August 3, comes during the main European vacation period when big carmakers such as BMW, Audi, Porsche and VW are running their factories below capacity.

Nevertheless Opel used the event for a big marketing splash of its Insignia with both a sedan and hatchback version. It replaces the Opel Vectra with a flowing new design and styled interior.

According to Opel's marketing chief Alain Visser the car is not only aimed at winning buyers with new technology but with such nifty gadgets as a heater for the windscreen washer.

It remains to be seen whether the Insignia can penetrate the medium-sized car segment dominated by such cars as the VW Passat and BMW 3-Series.

General Motors (GM), which owns the Opel subsidiary, is facing its worst crisis in decades on its home North American market as motorists turn to more economical smaller Japanese cars. GM's sales fell by more than a quarter in the month of May.

Ford's Vice-President of Marketing and Communications, Jim Farley, even spoke of a "watershed month" with the industry caught off guard by the sudden switch from SUVs and pickup trucks.

Mercedes, which launched its micro-car Smart on the U.S. market this year, says it has more than 30,000 motorists on the waiting list. On display in London was an electric zero emission version of the Smart called the "eg" which is planned for production in 2010.

Also on show for the first time in Europe is the zero-emission Tesla Roadster electric sports car which goes on sale in Europe next year. It accelerates from zero to 100 kilometres in just 3.9 seconds and has a range of 354 kilometres. But it is way beyond the affordability of the average motorist with a price tag of 100,000 euros.

During times of high fuel prices and environmental concerns horsepower and acceleration are secondary. Land Rover has presented a study of a hybrid that averages 30 per cent less fuel consumption on the road and at the same time is more versatile in rough terrain.

Honda unveiled a lightweight roadster design study, named the OSM or Open Study Model. The two-seater joined the CR-Z sports hybrid and FCX Clarity hydrogen fuel cell car on the Honda stand.

"We are trying to show that low emission cars can be attractive," said Andreas Sittel, the OSM project leader. "There is no reason why a car that's more environmentally friendly can't look great too - and be sporty and fun to drive."

Honda however stated that the OSM was a design study model only with no production plans. In contrast the CR-Z sports hybrid is close to production stage, the carmaker confirmed.

With most of the British motor industry sold awaya to foreign buyers the show is also an event for niche manufacturers such as Westfield or Kamala that build sports and racing cars for the road in a moderate price range.

It was left to Lotus to come up with something entirely new for the first time in a decade. The new Lotus Evora, initially known under the code name Project Eagle, is a four-seater sports car for the family man, aimed at a broader market segment.

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