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Weekly Recap: Geneva's splendor reflects growing demand for ultra-luxury cars

Geneva is one of the most glittering auto shows in the world, but the list of high-powered and bespoke luxury cars was decadent this year even by the rich standards of the Swiss exhibition. It's great for enthusiasts to revel in the flame-throwing Aston Martin Vulcan, the racing-inspired elegance of the Bentley EXP 10 Speed 6 concept and the insane performance of the Lamborghini Aventador LP 750-4 Superveloce, but there's a reason for all of this opulence: the luxury market is big business. And it's growing. IHS Automotive forecasts that so-called ultra-premium sales will nearly triple this decade from 123,000 to 353,000 units around the world. The estimate includes brands like Aston Martin, Bentley, Ferrari and Rolls-Royce, but doesn't count BMW, Mercedes and Audi, which offer less expensive models in addition to their high-end flagships. Though IHS includes Porsche and its relatively large volume in the study, the ultra-premium segment is still set grow at about the same rate, even without the German automaker's figures. So what is propelling all of this growth in the most expensive segment of the auto industry? Put simply, there's more rich people. IHS Automotive principal analyst Tim Urquhart pointed to economic expansion in China, market recovery in the United States and a surge in the lucrative technology sector as contributing factors. This dovetails with a research report by UK-based Oxfam, an international relief organization, which found the world's richest one-percent owned 48 percent of global wealth in 2014, and it's expected to increase to more than 50 percent by 2016. View 17 Photos Carmakers are moving quickly to capitalize with new products, expanding their portfolios with low-volume speedsters like the 800-hp V12 Vulcan at Geneva, and plans to enter new segments, like Rolls-Royce's strategy to make an SUV. "Ultra-premium carmakers are looking to explore ways of growing their product offerings, and thus their bottom lines, in this most potentially profitable of segments," Urquhart wrote in a report on the Geneva show. In a nutshell, there are more choices for people with more money. It's a good time to have expensive taste. Other News & Notes 2016 Mazda MX-5 Miata production launches It won't be long now. The 2016 Mazda MX-5 Miata arrives later this year, and it's officially in production. Mazda announced this week that the roadster began rolling off the assembly line at its Ujina factory in Hiroshima, Japan.

GM to trim Russian output, raise prices amid currency woes

General Motors is shutting down its factory in Russia's second largest city, St. Petersburg, from the middle of March until the middle of May as the country's currency, the ruble, continues to give economists fits. The ruble's value has plunged due not only to western sanctions, but a precipitous fall in oil prices. We knew these factors were already impacting the auto industry there, as Ford reported in its 2014 earnings statement, and now they're forcing GM to cut production at the factory, shown above, that is responsible for production of the Chevrolet Cruze and Opel Astra. Meanwhile, Automotive News is citing Russian outlet Kommersant as saying that GM has hiked its prices in the country by an average of 20 percent over the past two months. While a GM spokesman confirmed the St. Petersburg plant would be shut down for the two-month span reported by Kommersant and AN, he would not confirm the price increase. News Source: Automotive News - sub. req.Image Credit: Alexander Nikolayev / AFP / Getty Images Earnings/Financials Plants/Manufacturing Chevrolet GM Opel opel astra

GM says safety is a reason it's dropping Apple CarPlay, Android Auto

Update: GM sent us a statement as a follow-up to its original comments seen in this post: "We wanted to reach out to clarify that comments about GM's position on phone projection were misrepresented in previous articles and to reinforce our valued partnerships with Apple and Google and each company’s commitment to driver safety. GM's embedded infotainment strategy is driven by the benefits of having a system that allows for greater integration with the larger GM ecosystem and vehicles." The original story can be read in its entirety below.   General Motors announced its intention to remove Apple CarPlay and Android Auto functionality from its upcoming EVs earlier this year, and internet comments sections haven't been kind since. As the first of many EVs to follow – the 2024 Chevrolet Blazer EV – hits the market, GM is expanding on its initial explanations for dropping the tech. Motor Trend spoke with Tim Babbit, GMÂ’s head of product for infotainment, to learn more. Attributed to Babbit, from the story: “They have stability issues that manifest themselves as bad connections, poor rendering, slow responses, and dropped connections. And when CarPlay and Android Auto have issues, drivers pick up their phones again, taking their eyes off the road and totally defeating the purpose of these phone-mirroring programs. Solving those issues can sometimes be beyond the control of the automaker.” Babbit suggests that a world without Apple CarPlay or Android Auto will be a safer one, as folks wonÂ’t be looking to control their infotainment systems via their phones. However, Babbit also tells MT that this theory hasnÂ’t been tested in either the lab or the real world yet. Instead of using a navigation or music-playing app powered through your phone, upcoming GM EVs will use a Google-based infotainment system called “Ultifi” that runs a ton of integrated Google apps. Google Maps will be the native navigation app in the system; youÂ’ll be able to log in to Spotify or other apps to load your music up, and so on. The idea here is that youÂ’ll have all the same apps that were on your phone available but integrated within the infotainment system instead, and you'll be able to use voice controls to control every last bit of it with no need to reach for a phone. That sounds amenable in theory, but how consumers react to the removal of a feature that they know and love now is a risky gamble.