In Geneva, a Car Party Amid Industry's Gloom : Technology, Technology News, Car

Reuters

Above, the Giugiaro Brivido hybrid car on Tuesday. Auto executives see more weak sales in Europe this year.

GENEVA—On the show floor, there were ultra-lux sports coupes, gull-winged Ferraris, a smattering of convertibles and boasts of much more to come. But the talk in the Geneva International Motor Show's backrooms was another story.
"The economic environment is still grim," General Motors Co. Vice Chairman Stephen Girsky said during a news conference here on the eve of the show's formal opening. "We thought there would be a little bit of an improvement at the start of the year but we haven't seen that. I do think we will hit bottom this year but not in the first quarter."

Photos: Geneva Auto Show

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The new Lamborghini Venenos shines on display during the Geneva International Motor Show. See more photos from the show.

Mr. Girsky is one of many auto executives who still see hard times ahead for the European market. New-car sales in the 27-member European Union are in the ditch, auto workers are fighting for their jobs and expectations of any relief this year have been wiped away like fingerprints on the glossy paint of the show's stars.
Germany reported on Monday a 10% drop in new-vehicle sales in February compared with the same period a year earlier. New-car registrations fell to about 200,000 vehicles in February. Underscoring the dramatic drop, Fiat SpA, which traditionally sells about 12,000 vehicles in Ireland alone, is projecting to only sell about 600 there this year.

Rolling out traditional "American iron" at a big European exhibition like the Geneva Motor Show, which many consider the king of car shows, in part reflects Chevrolet's global aspirations. WSJ's Jeff Bennett has all the details on the new convertible. Photo: Chevrolet

"It is going to track its way down for a little while and definitely in my view, no rebound in 2013," said Chrysler Group LLC International chief Mike Manley.

Italy's Alfa Romeo unveiled the production version of its 4C at the Geneva Motor Show Tuesday. WSJ's Gilles Castonguay has details of the new two-seater roadster. Photo: Bloomberg

"Frankly, I would like to see some stability let alone a rebound. I think it is going to be a tough year, a really tough year," he added.

Alfa Romeo, Corvette, Opel, Jaguar and Spyker all unveiled sports cars or convertibles at the Geneva Motor Show. Rolls Royce, meanwhile, showed a racy Wraith. WSJ's Jeff Bennett reports on the new-model parade.

WSJ gets a sneak peek at the McLaren P1 ahead of its official unveiling at the Geneva Motor Show on Tuesday.

One of the most anticipated cars of the Geneva Motor Show is the new "La Ferrari". WSJ takes a closer look and speaks to Ferrari's chief technology officer, Roberto Fedeli, during its unveiling. Photo: Associated Press

Renault SA Chief Executive Carlos Ghosn said, "I don't think anyone is foreseeing a pickup in the European market in the next three years. The question is: will it be bad or very bad."
Out on the show floor, the opulent new-car party raged on.
Ferrari showed off its LaFerrari which promises high performance and a starting price of €1 million ($1.3 million). Chevrolet, GM's Opel unit and Jaguar all unveiled convertibles. Even NV Spyker, which has been sidelined after its Saab unit went bust in 2011, pulled the wraps off the B6 Venator sport concept coupe.
GM's international chief, Tim Lee, said the auto maker isn't ignoring the slowdown but it has no plans to delay vehicle projects, seeing new models as helping to battle back.
The auto makers are stuck with the inability to cut workers and close plants in the near term due to a variety of governmental and worker regulations in different countries. Yet they can't stop designing and developing cars because the work here is adapted and refined for use in other vehicles around the world.
Last month, PSA Peugeot-Citroën reported a record loss for 2012 on asset write-downs and forecast a 5% drop in European industry sales volumes this year. And Volkwagen AG, one of the last mass-market car makers still earning money in the region, warned of flat operating profit compared with 2012 on intense competition this year.
Nissan Motor Co. Executive Vice President Andy Palmer, when asked if the auto maker has been cutting back on investment in Europe, explained the needs for pushing ahead despite the gloom: "We have [cut back] but we're doing it intelligently," he said. "If you can afford to invest, now is a great time to launch new products and steal market share."

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