Geneva Auto Show - for Cars Big or Small, It’s All about the Design

FOR IMMEDIATE RELEASE
(Free-Press-Release.com) July 27, 2011 -- July 26th, 2011:- As the latest spike in oil prices sends buyers in search of cars that are smaller and more fuel efficient — and less lucrative for automakers — companies are looking for ways to defend their profit margins. One solution is to make compact cars cool enough to command a premium price.
Design, always important in the car industry, is becoming even more essential, auto executives said at the annual Geneva International Auto Salon, which continues through March 13.

“Design is the No.1 factor in the purchase decision,” said Norbert Reithofer, the chief executive of Bayerische Motoren Werke, whose Mini and 1 Series vehicles are two examples of small cars that buyers are willing to pay substantially extra for.
“Brand image is becoming more important and one of the key elements is design,” said Joachim Schmidt, head of sales and marketing at Daimler, the maker of Mercedes cars.
Car companies have always earned more money with big cars. But high fuel prices not only skew sales toward less profitable smaller cars, even buyers who choose to stick with larger cars may opt for smaller engines — a six-cylinder in their Mercedes, for example, rather than a V-8. That also hurts profits.
“We see a danger of downsizing,” Mr. Schmidt said.

Even without more expensive fuel, carmakers have been under pressure to make better-looking cars. For the premium carmakers, design is one reason that a buyer should pay more for a Lexus or a BMW. As Thomas Weber, the chief of research and development at Daimler, points out, you can buy a watch for $50 that tells time with the accuracy of an atomic clock. Design is what makes people pay thousands for a high-end Swiss brand.
Mercedes, once seen as rather staid, now considers it important “not only that a car looks good, but also that it looks cool,” Mr. Weber said.
But design has also become more important for mass-market automakers. “Today, if you make small cars you cannot make poor cars,” said Luca di Montezemolo, the chief executive of Ferrari and former chairman of Fiat. “Even cars that are not expensive are making a big effort to present nice, good design, with accessories and color.”

In Geneva, Ford displayed a new vehicle, the B-Max, that shares some design features with the Fiesta but also minivan-type design elements including rear passenger doors that slide rather than swing open. Ford plans to start selling it next year.

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