Vroom and gloom at Paris Auto Show

Updated 07.22 Fri Oct 03 2008
Keywords: industry, auto, motor, crunch, credit, james, bond, france, show, car, paris

Top car makers have warned of tough times ahead at the opening of the Paris Auto Show.

Their are fears that slowing demand could force production cuts and job losses.

One of the new models on display was Toyota's iQ which it calls the world's smallest four-seater car

Volkswagen's latest Golf is one of the cars headlining the event, but it has opened under a cloud as makers struggle to attract buyers worried by slowing economies and as a global credit crisis hurts auto leasing.

Ford of Europe's President and CEO John Fleming said the industry is in a difficult position: "The economy's down, the markets are coming down, raw materials are going up, price of oil's going up."

Other CEOs were not predicting a recovery in the global car market until 2010.

Carmakers are highlighting fuel efficiency as they showed off new models to customers whose numbers and budgets have shrunk.

Tighter finances and new emissions rules look set to favour the sale of smaller models and engines.

One of the new models on display was Toyota's iQ which it calls the world's smallest four-seater car.

Ford was debuting its Ka II, while Honda gave its Jazz its European Premiere and unveiled its Insight II concept car - a petrol-electric hybrid.

The car makers are still under pressure to go green, and fit in with new emissions standards, but a full electric vehicle still seems a long way off.

But one such concept car is Nissan's Nuvu, which even has around a dozen small solar panels in the roof.

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