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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.

Honda sees sales up but profit sliding 16 percent in 2017-18

TOKYO - Honda forecasts a 16 percent fall in operating profit for the current financial year as the Japanese automaker sees higher auto sales being offset by a stronger yen and research-and-development costs. Japan's No. 3 automaker said it expects an operating profit of 705 billion yen ($6.34 billion) in the current FY2018, down from 840.7 billion yen posted in the fiscal year just ended, and lower than an average estimate of 850.8 billion yen from 23 analysts polled by Thomson Reuters I/B/E/S. It sees a 14 percent slide in net profit to 530.0 billion yen this year, down from 616.5. Honda's projections are based on a forecast that the yen will average 105 yen to the U.S. dollar through next March, stronger than the 108 yen rate in the year just ended.BUT CAR SALES ARE UP At the same time, there's good news as Honda expects its global vehicle sales to edge up 1 percent to 5.08 million this year, bolstered by growth in Asian sales to 2.06 million units, beating out North America to become Honda's top market as more Chinese drivers flock to its cars. The company expects to sell 1.92 million vehicles in North America, 2.5 percent less than the year just ended as it struggles to sell sedans including the Accord, which have fallen out of fashion in the past few years. Honda has been ramping up production of SUVs to keep up with strong demand for larger models in the United States, although overall vehicle sales show signs of slowing following a boom cycle after the global financial crisis. Mazda is taking a similar strategy, announcing on Friday it would expand production of SUV crossover models at home, while equipping overseas plants to enable more flexible production of models according to market needs. Japan's No. 5 automaker forecast a 19 percent jump in operating profit for the current financial year as it expects higher sales volumes, particularly in North America, to help it recover from last year's profit slump.A CONSERVATIVE OUTLOOK Executive Vice President Seiji Kuraishi acknowledged that Honda's expected currency hit of 95 billion yen was based on a "conservative" yen forecast, adding that growing costs to create next-generation cars would also impact earnings. "Our costs are rising to develop new technologies which will be needed in the future, like automated driving functions and electric cars," he told reporters at a results briefing.

Recharge Wrap-up: BlaBlaCar raises $100M, NASA launches CO2 satellite

BlaBlaCar, a ridesharing startup in Europe, has raised $100 million in a funding round led by Index Ventures. After recently growing to 12 countries and 8 million users, BlaBlaCar plans to us the funding for even more aggressive growth throughout Europe. The ridesharing service pairs drivers and passengers, allowing passengers to catch rides between cities while allowing drivers to save money on fuel on road trips. Drivers are not allowed to make a profit, and are only allowed to charge enough to break even after BlaBlaCar takes its percentage, to keep costs low for everyone involved. BlaBlaCar doesn't currently have plans to break into the US. Read more at The New York Times or at Gigaom. NASA has launched its Orbiting Carbon Observatory-2 into space to keep track of carbon dioxide in Earth's atmosphere. After being delayed on Tuesday, the Delta II rocket equipped with an instrument to measure CO2 launched from Vandenberg Air Force Base in California at 5:56 am on Wednesday. It is ultimately headed for a polar orbit to watch how CO2 levels rise and fall throughout the seasons, in part to try to figure out if the land and oceans will continue to be able to absorb half of carbon emissions. The mission will last two years, and should give further insight into climate change. Learn more in the video below, at NASA or at New York Times. Mazda is likely to release a plug-in version of its Mazda2 hatchback with a rotary range extender, reports Australian site Motoring. The electrified Mazda2, and any other future Mazda EVs and hybrids, will likely be limited to markets with government subsidies for such vehicles (which doesn't include Australia) says Mazda Australia Managing Director Martin Benders. "As the best possible fuel economy at an affordable price hybrid doesn't make sense, because the fuel economy gain isn't that great unless half of all sales are hybrid, which won't happen without big tax breaks like in the Netherlands," said Benders. That doesn't rule out the US, though. A prototype version of the range-extended Mazda2 featured a 0.33-liter rotary engine to provide power to the lithium-ion battery pack when depleted. A 2.6-gallon gas tank essentially doubled the electric Mazda2's driving range to 250 miles. Read more at Motoring. Zap plans on selling 1,000 Urbee EVs per month to SunRa for distribution in China.