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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.

2024 GMC Acadia to go big again for third generation

In July, spy shooters caught prototypes of the next-gen GMC Acadia wrapped up tight in camouflage. We couldn't make out any useful aspects but one: The coming third-gen Acadia is larger than the current second-gen. Remember, GMC debuted a smaller Acadia for the 2017 model year, lopping eight inches of length and three inches of width from the first-gen large mid-size SUV to create a smaller mid-size three-row SUV. The new prototypes appeared to show that decision would be reversed, now we have proof thanks to more comments unearthed from GM's recent Investor Day presentations in New York. Caught by GM Authority, automaker president Mark Reuss said, "Alongside the Traverse, we’ll move the GMC Acadia to a little bit different size standpoint. This comes in a little bigger than the old Acadia, so itÂ’s a big transformation for GMC and its part of the market." In a 2016 Automotive News piece about how GMC planned to increase sales volume, AN reported, "One potential avenue: venturing into Jeep's terrain. Industry sources believe GMC is drawing up plans for an SUV based on the same body-on-frame platform that serves as the bones of the GMC Canyon and Chevrolet Colorado midsize pickup. It's in the early stages — it doesn't appear to have been sourced to suppliers yet and the SUV's arrival isn't expected until 2020 or later." The first-gen 2016 GMC Acadia was 200.8 inches long, while a 2016 GMC Canyon Crew Cab with the roughly 5-foot bed was 212.8 inches long. It's thought that truncating the second-gen GMC Acadia to 193.4 inches long and 75.4 inches wide was intended to leave plenty of room for the planned SUV on the Canyon platform. However far that SUV project got, it was reportedly canned in 2018.   Hence an upsized Acadia returns. Reuss' comment about the Chevrolet Traverse could imply what's coming for the GMC, the Chevrolet being 205.9 inches long and 78.6 inches wide. A bigger Acadia could make a better sales proposition against the two-row Terrain, too. The Terrain costs almost $9,000 less than the Acadia and is 182.3 inches long and 72.4 inches wide. It's not clear when GMC plans to show the new Acadia, but the consensus is that it will go on sale for the 2024 model year. Expect an all-new cabin, Super Cruise capability and a front fascia reminiscent of the new Canyon. Powertrain options are a mystery.

Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits