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MAD 4 GERMANY

Frankfurt to host launches in abundance

10/9/2011

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Frankfurt Motor Show would turn into a car market next week as carmakers plan to throng the world's most popular car show to showcase their latest models. The show will host the launch of a number of models, wherein the carmakers are expecting to see a change in the ‘low sales’ trend that is on-going in many markets.

Carmakers, by displaying their models, are making an effort towards pushing the economy, which is currently quite lax in some of the biggest automobile markets. One such market is Europe, where the government's policies to put a curb on spending has not gone down well with the customers. Consequently, the customers’ confidence in buying a car from Europe car market has declined, of late. Carmakers are also encountering similar problem in China, which is presently the world's number one auto market.

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Car bookings in some major European markets have although risen last month, analysts are still apprehensive. Barclays Capital analyst Michael Tyndall said that "Certainly from a stock market point of view, a lot has changed during the course of time. I take little comfort from good August numbers. It's been very aptly put that we have to be careful we don't talk ourselves into a recession .It's quite easy from a consumer perspective to get yourself to a point where you don't want to spend on anything, it's all too uncertain.” However, BMW's Chief Financial Officer Friedrich Eichiner stated that "We don't want to bring about a crisis by talking about it, because we don't see one at the moment."

Hoping for improved conditions, many carmakers are all set to launch innovative models at the Frankfurt Motor Show. Mercedes will take the wraps off its new B-class for the first time in Frankfurt, while its counterpart BMW will show its new 1 series compact. Europe's largest carmaker Volkswagen will show its new small city car, the “Up”.

Thus, the heat is on at the Frankfurt as carmakers get aggressive.

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    Ankit 
    Sheladiya

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