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Major
foreign carmakers are shunning Frankfurt's International Auto Show this
year,
but climate protestors plan to attend (AFP Photo/Odd ANDERSEN)
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Frankfurt am Main (AFP) - Frankfurt's biennial International Auto Show (IAA) opens its doors to the public Thursday, but major foreign carmakers are staying away while climate demonstrators march outside -- forming a microcosm of the industry's woes.
"There
have never been so many cancellations by carmakers," said Ferdinand
Dudenhoeffer of the Centre for Automotive Research (CAR).
"The
IAA is turning into a trade fair packed with problems," he added, in the
image of the German manufacturers who host it.
Giants like
Mercedes-Benz maker Daimler, BMW and Volkswagen are seeing their engineering
advantage and profit margins eroded -- even as the global economic outlook
darkens.
The
potential blow of US tariffs on European auto imports hangs over many
carmakers, who have already suffered from an escalating Washington-Beijing trade
confrontation due to their American factories.
Meanwhile
three of the world's four largest carmakers will stay away from the IAA this
year: the French-Japanese Renault-Nissan-Mitsubishi alliance, Japan's Toyota
and US-based General Motors (GM).
Other
heavyweights like Italian-American Fiat-Chrysler and France's PSA have also
absented themselves, as well as some of the best-known luxury brands.
The
remaining manufacturers huddled in Frankfurt's massive trade fair complex have
one major priority: stoking enthusiasm for new electric models set for release
this year, as new EU carbon emissions limits enter into force from 2020.
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Porsche
expects well-heeled clients to fork over a hefty sum for its new
battery-powered Taycan model (AFP Photo/Patrick Pleul)
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Pricey
targets
If
manufacturers cannot squeeze the average carbon dioxide (CO2) output of their
fleets below 95 grammes per kilometre, they will be fined a hefty 95 euros
($105) per excess gramme on each car registered.
After years
of delay, German manufacturers still lag foreign competitors like California's
Tesla on the costly research and development for electric alternatives that can
score in the mass market.
Even at the
high end, Volkswagen subsidiary Audi has failed to dent Tesla with its e-Tron
electric SUV.
And
stablemate Porsche is betting buyers will be prepared to fork out a massive
premium over the Californian brand's top models for its new battery-powered
Taycan.
That makes
VW's Frankfurt launch of its ID.3 -- a compact all-electric car that it
compares to the legendary Beetle and Golf -- of vital importance, as the tip of
the spear in the sprawling conglomerate's 30-billion-euro electric offensive.
The first
model based on VW's modular MEB electric platform, ID.3 "is almost
critical to survival" for the company, Stefan Bratzel of the Center of
Automotive Management told AFP.
"It
has to be a success, the shot has to hit home, because a lot is riding on
it."
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Climate
campaigners inspired by Swedish militant Greta Thunberg plan to stage
major
protests at the Frankfurt auto show this year (AFP Photo/Oliver Berg)
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Marchers
expected
Where big
international competitors will be lacking, climate demonstrators are planning
to make up the numbers at this year's IAA.
Thousands
are expected to hit the streets Saturday, reaching the trade fair on bicycles
or on foot, while a blockade is scheduled Sunday amid calls for a
"transport revolution".
After
taking on coal mining over the summer, the environmentalists are turning their
fire on a sector that long seemed untouchable.
As
Germany's biggest manufacturing industry employing around 800,000 people, the
car sector was also protected through deep connections to traditional political
parties.
But the
winds are changing in German politics.
Climate
change has shot up voters' agenda after a fierce 2018 drought and months of
"Fridays for Future" demonstrations by schoolchildren, while the
Greens are polling at unprecedented levels and made big gains in this year's
European elections.
Meanwhile a
years-long diesel emissions cheating scandal rumbles on, as a case by 400,000
car owners against VW over "dieselgate" opens in three weeks' time.
And on
September 20, all eyes will be on Chancellor Angela Merkel's beleaguered
coalition government in Berlin, as it unveils a comprehensive new climate
strategy ahead of a UN summit.
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