Status plays big role

RECENT motor shows have highlighted 'green themes' such as hybrids, alternative fuels and lean-running engines but consumers in the Middle East are not showing any indication that they are prepared to end their love affair with high-powered luxury cars.

A recent study found that especially Mercedes and Volkswagen boosted their fleet emission figures last year compared to figures from 2005.

Sales of Sports Utility Vehicles (SUVs) in Bahrain continue to soar because of the terrain, safety aspects and the lower cost of fuel compared to elsewhere in the world.

November sales for Mercedes-Benz cars in the Middle East and Levant, for example, were up 18.4 per cent with 1,511 cars delivered compared to last November's 1,277.

This brings year-to-date deliveries to 15,245, a 5.7 per cent increase over the same period last year, which keeps Mercedes-Benz on track to hit another annual sales record.

Sales of the Mercedes-Benz C-Class rose 97 per cent for the month, and 44 per cent compared to last year's results - 3,652 compared to 2,752.

Other highlights for the month include gains for the award-winning GL-Class full-size luxury SUV which posted a 92 per cent increase over the same month last year, while one of the region's favourite luxury sedans, the S-Class, continued to prove popular with deliveries up more than seven per cent over the same month in 2006.

November deliveries of the popular E-Class sedan were up over two per cent while the icon of the SUV range the G-Class saw deliveries rise more than 66 per cent.

"The C-Class has proved the hit of the year with our customers who love the choice of a traditional or sporty face," said Johannes Fritz, director, sales and marketing, Mercedes-Benz Cars, Middle East and Levant.

"The award-winning full-size GL-Class, the flagship of our SUV range, is also proving a big success, while we expect the mid-range E-Class to continue to sell strongly for a further 12 months before the new generation model arrives."

The story is the same in Europe where they are built. Some 54 per cent of German motorists said they would under no circumstances swap their big car for a smaller more economical vehicle that spews less CO2 into the atmosphere, according to a poll conducted by Maritz Research.

Prestige and male ego play a big part. Most of the high-powered Mercedes, BMW and Porsche seen on the roads form part of the benefits package for management in most big firms. It is generally accepted: The bigger and faster the car, the higher the status in the company hierarchy.

Germany's Social Democratic Party (SPD) recently set the cat among the pigeons by attacking a national icon and calling for a speed limit of 130 kilometres an hour on Germany's motorways, the autobahn, in order to reduce CO2 emissions.

Even Chancellor Angela Merkel intervened in the emotional debate, saying that she was opposed to a speed limit because it would harm the export-orientated German car industry.

However, the proponents of a speed limit have a point. The emission figures listed by manufacturers are compiled at speeds well below those travelled on the autobahn.

The Porsche Cayenne Turbo is listed at 358 g/km. But the Auto Bild newspaper found the same SUV consumed a phenomenal 66.7 litres per 100 km when driven flat out at 270 km/h, translating to an emission figure of 1.587 g/km.

The car makers argue that they would like to produce more smaller and economical cars but that demand for them remains small. Sales of the Smart microcar in the Daimler concern have shown some improvement this year but have remained well below expectations in previous years. Volkswagen abandoned production of the super-economical small car, the Lupo, because of poor sales.

The Brussels study showed that cars in the Daimler concern ranked bottom of the list with average emissions of 188 g/km, up 2.8 per cent compared to 2005.

At the same time, Japanese car maker Toyota reduced its fleet emissions by five per cent, Honda by 3.8 per cent and PSA Peugeot Citroen by 2.7 per cent.

German cars on average spew 173 grammes of CO2 into the atmosphere, well below the long-term European Union target of reducing CO2 emissions to under 130 g/km by the year 2012. French and Italian car fleet on average have an emission of 144 g/km and Japanese producers 166 g/km.

Pressure groups have appealed to car customers to buy cars with an emission figure of under 140 g/km and not to be blinded by the 'green' image which car makers presented at shows.