Tuesday, March 07, 2006

Motor industry displays several shades of green at Geneva show

The motor industry is going green but two sides to the coin are on display at the Geneva Motor Show until March 12. On the one hand, more environmentally-conscious cars with greater fuel efficiency are the rage. On the other, carmakers are also promoting gas guzzling all-terrain vehicles that only a few drivers will use to full purpose in the countryside.


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The world's second largest car maker, Toyota, introduced the hybrid electric and petrol powered car to the mass market, and all European car makers are investing heavily in more fuel efficent or smaller vehicles.

Apart from high oil and petrol prices, the trend is also driven by tougher emissions standards and environmental demands.

"It's clear that carmakers must offer cleaner models. There's a wide range of technology available," said Ford Europe chief executive John Fleming.

Fleming highlighted new biofuels -- mixing petrol or diesel with fuel extracted from sugar or rapeseed -- saying they can reduce emissions without forcing the owner to pay more.

Meanwhile, Peugeot-Citroen group (PSA) displayed prototypes of economical hybrid vehicles for the first time, using a combination of electric power and diesel rather than petrol. The group is aiming to market them in 2010.

"We are doing our ecological duty by offering cars that pollute less in terms of carbon dioxide emissions, but it's up to the customers to choose," said PSA Jean-Martin Folz.

"We're ready to bear our share of responsibility, but not all the sins of the world."

Emmanuel Bulle, an industry analyst with the ratings agency Fitch explained: "Carmakers are giving themselves a green image more than anything else."

"On top of that, they know that once it comes to buying a car, consumers are swayed by their wallets or by the design more than by ecological considerations," he added.

Sales of hybrids -- currently only marketed by Japanese groups Toyota and Honda -- are still limited, partly because the technology is costly to produce and the price tag carries a premium.

Many European carmakers prefer to rely on diesel-engined cars, which can be 20 percent more economical than their petrol equivalents, and have come a long way since clattering and smokey old taxis clogged city streets.

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(Ads by Google)"The desire for less fuel consumption is growing everywhere, whether it's influenced by environmental or economic concerns, due to booming oil prices," said Patrick Blain, sales director for the French firm Renault.

"But that doesn't mean people will accept sinister-looking cars made out of cardboard that don't motor," he added.

But some car makers are highlighting their light trucks or four-wheel-drive sport utility vehicles (SUVs).

"The motor car is still an instrument for freedom and generates passion," said Carlos Tavares, product planning chief at Nissan.

"On top of the technological advances that help our vehicles remain ecologically acceptable, we give our clients what they expect, especially all terrain vehicles."

General Motors vice chairman Bob Lutz signalled that the group was still counting on all terrain vehicles and light trucks, the cornerstone of the range for carmakers in the United States.

Lutz highlighted signs that consumers were going back to SUVs in January and February after a dip in sales when oil prices reached record levels last year.

"They're selling extremely well," he said.

Nonetheless, faced with the threat of a ban on big four-wheel-drive vehicles in some city centres, some manufacturers are playing the green card.

After Toyota's luxury brand Lexus, German sports car maker Porsche is working on a hybrid version of its upmarket Cayenne all terrain vehicle for launch in 2010, aiming particularly at the United States.

Hybrid vehicles normally function with clean electric power in low speed city traffic. Wolfgang Duerheimer, Porsche's research and development chief, admitted the move boiled down to a question of "social acceptance".

© 2006 AFP

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