European automakers prepared for China losses
Small cars, luxury vehicles in the spotlight amid the glitz of Frankfurt’s auto exhibition
FRANKFURT— European automakers are shrugging off the threat to sales from China’s struggling economy and focusing instead on growing demand in their home market, where competition is getting increasingly fierce, particularly for mass-market cars.
After a summer of hand-wringing over turmoil in China, where many carmakers have enjoyed strong demand in recent years, the mood was upbeat at the Frankfurt auto show as reports showed sales were rising strong in Europe.
New car registrations grew 8.6 per cent over the first eight months in the European Union to surpass nine million units. Manufacturers are forecasting full-year growth of around 7 per cent in the region — which will make it easier to absorb any hits from China’s slowdown.
As the auto show turned on the glitz, a lot of attention was on new small cars, a market in Europe that has long been difficult to expand in.
Opel, General Motors’ European brand, and France’s Renault showed off new versions of their mainstay small cars, the Astra and Mégane, which they spruced up with safety and entertainment technology that used to be the domain of premium models.
Both have lane-departure warning and automatic emergency braking to prevent collisions. Such technologies are meant to free drivers from routine tasks and may one day lead to driverless cars.
The Astra has lost 200 kilograms compared with the previous version, which should improve handling. It supports Android and Apple smartphone interfaces, enabling drivers to use apps such as navigation, music and messaging through a dashboard display. It has optional massage seats and a scent dispenser. Opel also now has GM’s OnStar remote roadside assistance service, which enables drivers to speak to a help centre by pushing a button.
The Mégane, meanwhile, includes a Bose sound system and also has advanced driving aids such as an active emergencybraking system and parking assistance.
As she unveiled the new Astra — its 11th version — GM CEO Mary Barra said it “will play a significant role the long-term success of Opel.”
Barra stressed GM’s commitment to Opel, which went through a rough patch after GM flirted with selling it following a bankruptcy restructuring in 2009. Opel has gained market share over the past three years as it works toward returning to profitability. The Astra goes on sale Oct.10, starting at € 17,200, the same as its predecessor. The Astra isn’t coming to the United States, but its architecture could eventually be used on other GM vehicles.
While the Mégane and the Astra were the most significant launches in the mass-market category, new luxury vehicles were on display in abundance. Mercedes-Benz showed off a sporty coupe version of its mid-size C-Class sedan, and a convertible version of its high-end S-Class sedan. Volkswagen’s luxury brand Bentley has the Bentayga, an SUV with a massive 12-cylinder engine and a top speed of 301 km/h. Fiat Chrysler Automobiles displayed its new Alfa Romeo Giulia.
The four-door Giulia sedan is meant to relaunch the Alfa Romeo sports car brand and bring it back to the U.S. market. Brand chief Harald Wester told reporters that after the car was unveiled in June, more than 5,000 orders came in.
Alfa is aiming for sales of 400,000 a year by 2018, an ambitious goal after it sold fewer than 68,000 cars last year. The brand is launching two new models a year after 2016, to reach eight models by 2018.