Market Developments
Geneva Auto Show – Asia Drives In
The recently concluded Geneva Motor Show (March 8 – 18) represented outward signs of the shifting global balance of power among auto giants. In what is traditionally neutral ground for the industry, the organizers highlighted the small but symbolic first foray of one of China’s nascent auto manufacturers Brilliance to the Show. This marked Asia’s steady rise and the decline of the historically-dominant US groups.
Asia’s dominance has been led by the powerful Japanese auto industry over the past decades, and bolstered recently by South Korean manufacturers that have gained a growing foothold on foreign markets in Europe.
Japan’s Toyota is forecast this year to surpass ailing US giant General Motors Corp in both sales and output as the world’s largest automaker. But Toyota’s key difference is its ability to generate record profits instead of losses. Philosophically, they believe that being No. 1 was not as important as ensuring low costs but high quality.
Despite the lack of a domestic motor industry to support it, the Swiss annual showcase is ranked as one of the most important industry events in the world alongside Detroit, Frankfurt, Tokyo and Paris.
It is estimated that approximately 700,000 public visitors were drawn to the western Swiss city to the show, with about 40 per cent of them from abroad. A total of more than 80 new models were displayed from the 250 exhibitors.
Reported by Danny Chow.