Motoring Weekly

'Green' the new mantra

October 8 - 14, 2008
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THE world's automakers were seeking to stifle more general concerns about a woeful global economy with boastful claims for their smaller, more environmentally-friendly cars on display at the Paris Motor Show this week.

The show, which started on Saturday and runs until October 19 after two press days which began last Thursday, reflect the dual concerns of new emissions rules and higher gas prices, combined with the economic reality of cash-strapped consumers in North America and Europe.

The mantra is that small and fuel-efficient is beautiful for mass-market cars, with a nod to the future of electric cars and hybrids that feature electricity to augment traditional fuel motors.

Citroen has unveiled its C3 Picasso, a 4.08-metre-long (13.39-foot) multipurpose vehicle designed to be 'small outside, big inside'.

Ford Motor is showing the new Ka, a 'cheeky small car' which has already landed a role in the new James Bond adventure Quantum of Solace.

Hyundai Motor unveiled the i20 subcompact, a would-be rival to the Renault Clio.

Renault and Volkswagen introduced the revamped versions of two of Europe's top-selling cars - the Megane and Golf models - with lower emissions and greener engines.

Auto shows tend to be showcases for their national champions, and the star of the Paris show is the Megane compact hatchback, which French carmaker Renault hopes will make up for poor sales of the Laguna, said Nomura analyst Michael Tyndall.

Yet the glitz and glamour that has accompanied all these brand launches can't disguise the fact that the show comes at a very gloomy moment for the industry.

The Middle East, however, continues to buck the trend and sales of a range of large and small models are on the rise. But it's too small a slice of the cake to make much of a difference.

"The timing could not be worse," Tyndall said.

Still, as Pete Kelly, a director at J D Power and Associates' automotive forecasting unit, points out: "There's no point getting involved in a big and very public motor event like this one without trying to make the very best of the vehicles you have available."

Automakers are being forced to curb emissions and fuel burn by legislation that is shaping demand. Worried that carbon dioxide emissions from road transport are rising, the European Union, for example, wants to set goals for each carmaker to sell more low-carbon models - and fine them if they don't.

The European Parliament will set a start date for curbing carbon emissions this month - as automakers complain that the stringent environmental regulation could hurt their

businesses and jobs.

In addition, national governments are adding their own enticements to be green.

In London, for example, low-carbon green cars - including many hybrids, small vehicles and electric cars - are exempt from the central London congestion charge, which costs most drivers £8 (BD5.400) a day to drive into central London.







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