GENEVA — Automakers are thinking small — in size, not ambition.
After years marked by environmental concerns, then the economic downturn and now European austerity measures, car manufacturers have honed their products to cater to cost-conscious buyers. At the Geneva Motor Show, which opens to the media today, Audi will unveil a new A3, Mercedes-Benz its rejuvenated A-Class, and Volvo its V40.
“Buyers are increasingly looking to downsize and hunt for savings in terms of running costs and depreciation, while enjoying the status and quality of premium brands,” said Tim Urquhart, analyst at IHS Automotive.
Urquhart said the trend could increase pressure on mass-market automakers such as Fiat, Renault, PSA Peugeot-Citroen and General Motors’ Adam Opel — which are being caught between premium carmakers and value carmakers such as Volkswagen’s Skoda and South Korea’s Kia and Hyundai.
GM’s European unit Opel received a boost Monday, when its Ampera, a plug-in hybrid with an extended range of 300 miles, was named European Car of the Year by automotive journalists from 23 countries on the eve of the motor show.
The Ampera sells in the United States as the Chevrolet Volt. The Associated Press
