Fuel prices can’t put brakes on car designs

THE 61st Frankfurt international auto show has got under way with more than 80 models on display for the first time.

About 1,000 car and component manufacturers from 44 countries have displays.

Among the stars of this year’s event are the Volkswagen Eos convertible - a four-seater replacement for the current Golf cabriolet - the upmarket Audi Q7 SUV and the luxurious Mercedes-Benz S-class.

During this week auto makers will show off their latest creations to motoring journalists and on Saturday the exhibition will open to the public.

The show is acknowledged as one of the most important events in the car calendar; this year it comes at a time of spiralling fuel prices in Europe and pressure on manufacturers to cut production costs.

The automotive industry is vital to Germany’s economy; about one in every seven jobs depends on its success.

Audi unveiled its first sport-utility vehicle, an entry called the Q7 it says will compete with other luxury SUVs like the Porsche Cayenne and the Volvo XC90.

The vehicle, which starts at €48,900, has Audi’s trademark curves as well as some new features, including a warning system that alerts the driver with tones and a noticeable jerk of the car if there is danger of a collision ahead.

A lot of eyes are on DaimlerChrysler AG this week as the German- American auto maker’s revamped management team unveiled new strategies and vehicles.

The company, which merged in 1998 amid promises to meld German engineering with Chrysler’s broad appeal, has stumbled since then - but with the deft Dieter Zetsche as the new chief executive, analysts predict DaimlerChrysler could steal the show.

Chief among DaimlerChrysler’s offerings is its Vision R 63 AMG, which it has dubbed a fresh “interpretation of the new Mercedes-Benz R-Class”.

Nineteen new models are expected to be unveiled at the show, notably the third-generation Punto from Italian automaker Fiat SpA and the Clio from Renault SA.

But the Punto faces competition from Japanese and Korean automakers, which are gaining more ground in the compact market, particularly in light of higher gas prices.

Demand for small cars is expected to increase, analysts said, because of uncertainty over rising fuel prices.

China’s Geely Group hopes to take advantage of those higher prices by debuting its line of small, fuel-efficient models at the show, the first time it has done so.

Toyota Motor Corp will unveil a pair of new production cars, including the second-generation of its Yaris hatchback, along with the RAV4, its small sport utility vehicle. Both are expected to be on the market next year.

Sweden-based Volvo, which is owned by Ford Motor Co, plans to unveil its new C70 coupe convertible. Instead of a fabric top, the car features a three-segment hard top and is the result of the automaker’s efforts in a joint venture with Italian car designer Pininfarina.