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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.

Mazda reports highest profits in its 94-year history

We may only be a third of the way through 2014, but for Japanese companies, March 31 marked the end of fiscal 2014, and it was a banner financial year for Mazda's global operations. The Japanese independent saw its highest global operating profits in its nearly 100-year history. Its global operating profits were up a huge 238 percent. Yes, a 238 percent increase over 2012 to 1.36 billion euros ($1.88 billion), eclipsing the brand's previous best year, 2008, by 12 percent. Net earnings, revenue and global sales volume also saw increases over the last fiscal year.
What's most impressive, though, is where Mazda saw improvement. The notoriously rough European market was rather kind to the Zoom-Zoom brand, where sales increased 25 percent to 163,000 units. That figure was bolstered by a 35-percent sales increase in Great Britain and a 20-percent jump in Germany, Europe's two largest markets. Japanese sales, meanwhile, were up a respectable 13 percent, to 244,000 units. In China, Mazda saw a 12 percent bump.
Notice we aren't talking about North American sales? That's because Mazda only saw a moderate, five-percent gain in the New World, with sales climbing to 391,000 units in the US, Canada and Mexico. This is particularly disappointing considering Mazda has launched three critically acclaimed products (CX-5, Mazda6 and most recently, Mazda3) for the North American market over the past two fiscal years. Still, it isn't a particular reason to be concerned, as IHS industry analyst Stephanie Brinley notes. "Five percent isn't terrible," Brinley told Autoblog, saying that Mazda should see a bump in 2014 as the Mazda3 picks up steam.

Mazda G-Vectoring Control makes driving better without you knowing

Mazda has just spent eight years developing a new technology that will make its new cars a lot more fun to drive, even if you have absolutely no idea that it's working. And subtlety's the point, Mazda engineers told us at a press event at Mazda Raceway Laguna Seca. In fact, the effects of what they've dubbed G-Vectoring Control are so fine that the marketing and PR teams are at a loss for how to do their jobs with it. "The engineers have done their work," said Mazda Director of Communications Jeremy Barnes, "But how do we get the message across?" The basic premise is this: G-Vectoring activates only when the car's on-board computer reads simultaneous steering and throttle input. The data — including throttle position, steering angle, and, crucially, how quickly you're adjusting the steering angle — are then funneled through an algorithm to reduce engine torque, which transfers vehicle weight, adding more grip to the wheels that need it. The system will appear first on 2017 Mazda6 sedans arriving in showrooms later this year, followed by the 2017 Mazda3. Actually, "subtle" does not even begin to describe the effect. G-Vectoring Control can detect as much as one tenth of one degree of steering angle, and changes the cornering forces only 0.1 to 0.5 g as a result. "That's less than the human body can feel," explained Vehicle Development Engineer Dave Coleman. In practice, G-Vectoring reduces the steering angle at turn-in, as well as the rate at which one turns the wheel. To demonstrate, Director of R&D Kelvin Hiraishi rode shotgun with us in a specially equipped Mazda6 that allowed him to turn G-Vectoring on or off at the push of a button (production cars will always have it on). Hiraishi had us drive a number of courses, including Mazda Raceway Laguna Seca itself, while an engineer measured our steering inputs with a laptop Matrix'd into the car's electronic brain. I drove the same course several times with the same car in the same conditions, with cruise control locked and the system turned on or off. Lo and behold, with G-Vectoring activated, the engineer's output graph showed that my steering inputs were indeed reduced ever so slightly. There were two times that G-Vectoring was markedly noticeable. The first on a turn with a minor banking toward the outside, and the second was during cornering over an artificially wet section of the course — in other words, when the car was at the limits of adhesion.