With the staging of the Frankfurt Motor Show this week and next, there is a feeling of optimism for the automotive business.
Carmakers from all over the globe assemble for the biggest European autumn car show to unveil the latest models and show concepts, like the Ford Verve I got a preview of last month ahead of the show (see report on page 4).
We are talking of a global business that turns over $1,200 billion (Lm372 billion) a year and is expected to sell a whopping 70 million units this year. It is not only the Maltese who love their cars, but millions of people around the world do not know how to get by without them and a growing proportion of buyers are acquiring their first car as standards of living rise in the new democracies in Eastern Europe, the Asia/Pacific region and other global markets.
According to JD Power Automotive Forecasting, vehicle sales will be largely static in North America and Western Europe, so any sales gains this year and next will come from Eastern Europe, which should hit five million units (as opposed to Western Europe's 16 million), Asia Pacific, which should exceed sales in North America next year (at almost 20 million) and other markets.
Yet, what is being done to make cars greener? Plenty. It is safe to say that even 'normal' cars are less polluting than they used to be, better engineered, safer and offer a greater choice of personalisation than older generation cars. Still, according to a report issued this month, top European carmakers alone will have to pay €11.2 billion (Lm4.8 billion) between 2008 and 2012 to comply with emissions-cutting legislation that is about to be enacted.
The report, by Credit Suisse and A.T. Kearney, the consultancy, estimates that it will cost German carmakers Volkswagen, BMW and Mercedes-Benz €1,500 (Lm644) per vehicle to comply with the European Union's CO2 emission targets of 120 g/km by 2012.
On the other hand, the mass-market carmakers Renault, PSA Peugeot Citroën and Fiat will have to absorb between €800 and €1,000 (Lm343.50-Lm429) on each car. The report, however, argues that the premium carmakers "appear to be better off compared to mass producers" since they have more latitude to obtain fuel savings in their cars and pass on the costs to their consumers than the mass market producers.
This new EU legislation is not just going to hit the current crop of green vehicles, like the hybrids and electric vehicles we are beginning to see more and more of. It is our everyday cars that are going to change, in some areas quite radically.
Bottom line is that we are going to have to change our driving habits and we are going to have to pay more for the privilege of owning and running a car. Our everyday cars to be even more efficient, less polluting and have the least impact on the environment. This pressure is being felt even in Formula One, where next year the ten cars in final qualifying will not be allowed to go around the track to burn fuel before the final rush to obtain pole position.
It is a small concession but significant and we should all learn from the example. As to who is going to pay for this emissions legislation - it is each and every one of us who opt to buy a car. For many of us, there is no other option, but for some it will mean they will opt like a growing number of people for one of the clean-vehicle technology options available or simply some other form of transport, whether it is car sharing, public transport or two-wheelers - motorbikes or bicycles.
Footnote
The authorities have still failed to take note of my reference to the dangerous wall in the two-lane road linking Swieqi to San Gwann at the bottom of Triq il-Qasam. I am expecting a storm at any moment and the wall will simply end up in the middle of the road.
Please get on with it and eliminate this potential hazard before it is too late!
Carmakers from all over the globe assemble for the biggest European autumn car show to unveil the latest models and show concepts, like the Ford Verve I got a preview of last month ahead of the show (see report on page 4).
We are talking of a global business that turns over $1,200 billion (Lm372 billion) a year and is expected to sell a whopping 70 million units this year. It is not only the Maltese who love their cars, but millions of people around the world do not know how to get by without them and a growing proportion of buyers are acquiring their first car as standards of living rise in the new democracies in Eastern Europe, the Asia/Pacific region and other global markets.
According to JD Power Automotive Forecasting, vehicle sales will be largely static in North America and Western Europe, so any sales gains this year and next will come from Eastern Europe, which should hit five million units (as opposed to Western Europe's 16 million), Asia Pacific, which should exceed sales in North America next year (at almost 20 million) and other markets.
Yet, what is being done to make cars greener? Plenty. It is safe to say that even 'normal' cars are less polluting than they used to be, better engineered, safer and offer a greater choice of personalisation than older generation cars. Still, according to a report issued this month, top European carmakers alone will have to pay €11.2 billion (Lm4.8 billion) between 2008 and 2012 to comply with emissions-cutting legislation that is about to be enacted.
The report, by Credit Suisse and A.T. Kearney, the consultancy, estimates that it will cost German carmakers Volkswagen, BMW and Mercedes-Benz €1,500 (Lm644) per vehicle to comply with the European Union's CO2 emission targets of 120 g/km by 2012.
On the other hand, the mass-market carmakers Renault, PSA Peugeot Citroën and Fiat will have to absorb between €800 and €1,000 (Lm343.50-Lm429) on each car. The report, however, argues that the premium carmakers "appear to be better off compared to mass producers" since they have more latitude to obtain fuel savings in their cars and pass on the costs to their consumers than the mass market producers.
This new EU legislation is not just going to hit the current crop of green vehicles, like the hybrids and electric vehicles we are beginning to see more and more of. It is our everyday cars that are going to change, in some areas quite radically.
Bottom line is that we are going to have to change our driving habits and we are going to have to pay more for the privilege of owning and running a car. Our everyday cars to be even more efficient, less polluting and have the least impact on the environment. This pressure is being felt even in Formula One, where next year the ten cars in final qualifying will not be allowed to go around the track to burn fuel before the final rush to obtain pole position.
It is a small concession but significant and we should all learn from the example. As to who is going to pay for this emissions legislation - it is each and every one of us who opt to buy a car. For many of us, there is no other option, but for some it will mean they will opt like a growing number of people for one of the clean-vehicle technology options available or simply some other form of transport, whether it is car sharing, public transport or two-wheelers - motorbikes or bicycles.
Footnote
The authorities have still failed to take note of my reference to the dangerous wall in the two-lane road linking Swieqi to San Gwann at the bottom of Triq il-Qasam. I am expecting a storm at any moment and the wall will simply end up in the middle of the road.
Please get on with it and eliminate this potential hazard before it is too late!