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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's rotary engine may live on as a range extender (UPDATE)

Update: We received a response from Mazda that confirmed plans for a 2019 electric car available in battery-only and range-extended models, but there was no comment on any other details. The text has been updated to reflect this. It may be time for rotary fans to start getting their hopes up a little for a return of the spinning triangle engine. Automotive News spoke with Mitsuo Hitomi, the man in charge of Mazda powertrains, who said there's a very good chance the next implementation of the rotary engine will be as an electric car range extender. The news source also suggests that such a vehicle could be just around the corner, since Akira Kyomen, Mazda's vehicle development program manager, confirmed to Automotive News that the company will have an EV out in 2019 in both pure electric and range-extended versions. We reached out to Mazda for more information, and a representative confirmed both the pure electric and range-extended models for 2019, but couldn't comment on anything else regarding those vehicles. Looking back, we have reason to believe that this really might happen. As far back as 2013, Mazda was working on a rotary-engine range-extended electric car in the form of the Mazda2 RE Range Extender. It had a total range of 250 miles, half of which came from its battery, the other half from a 330 cc rotary engine generator fueled by a 2.6-gallon gas tank. More recently, Mazda has also teased rotary power with the RX-Vision concept at the 2015 Tokyo Motor Show and another rumored rotary concept at this year's show, which could be the design concept teased recently. But most convincing is the patent we found from Mazda that described a range-extended electric car that would specifically use a rotary engine. The powertrain layout looks just like the one used in that Mazda2 concept. There's also the fact that, as we've previously pointed out, and as Hitomi mentioned to Automotive News, the rotary could be a good range-extender due to its compact size and smoothness. Of course it also isn't known for being the most efficient engine, but if it isn't required to provide all the forward propulsion, it could be made small enough that it's frugal, and the added space and weight savings would be important for making the vehicle more practical, adding more batteries, or simply keeping the car lighter. This news might not excite rotary die-hards who have been waiting for an RX-7 and RX-8 successor, but they shouldn't quite abandon hope yet.

Mixed sales results, but automaker stocks rise on need for cars in Houston

DETROIT — The Big Three Detroit automakers on Friday reported better-than-expected August sales and issued optimistic outlooks for demand as residents of the Houston area replace flood-damaged cars and trucks after Hurricane Harvey, sending their stocks higher. General Motors, Ford and Fiat Chrysler posted mixed August U.S. sales, with GM up 7.5 percent and Ford and Fiat Chrysler down. Japanese automaker Toyota improved sales by nearly 7 percent, while Honda fell 2.4 percent. Still, analysts focused on the potential for Detroit automakers to cut inventories and stabilize used vehicle prices as residents of Houston, the fourth largest city in the United States, are forced to replace tens of thousands, perhaps hundreds of thousands, of vehicles after the devastation from Hurricane Harvey. Mark LaNeve, Ford's U.S. sales chief, told analysts on Friday that following Hurricane Katrina in 2005 "we saw a very dramatic snapback" in demand. That said, Ford sales fell 2.1 percent in August. It sold 209,897 vehicles in the United States, compared with 214,482 a year earlier. Sales were down 1.9 percent in the Ford division and off 5.8 percent at Lincoln. Demand was down for cars, crossovers and SUVs. It was not clear how many vehicles in the Houston area will be scrapped, LaNeve said, saying he had seen estimates ranging from 200,000 to 400,000 to 1 million. Ford's Houston dealers may have lost fewer than 5,000 vehicles in inventory, he said. Ford is the No. 1 automaker in the Houston market, with 18 percent share, according to IHS Markit. The company plans to ship used vehicles to Houston dealers and has "every indication we would have to add some production" of new vehicles to meet demand, LaNeve said. Investor concerns about inventories of unsold vehicles and falling used car prices have weighed on Detroit automakers' shares most of this year. Now, automakers can anticipate a jolt of demand from a big market that is a stronghold for Detroit brand trucks and SUVs. "It's got to be a positive for the industry," LaNeve said. Investors appeared to agree. GM shares rose as much as 3.3 percent to their highest since early March. Ford increased 2.8 percent at $11.34, and Fiat Chrysler's U.S.-traded shares were up 5.2 percent $15.91, hitting their highest in more than five years. GM reported a 7.5 percent increase in U.S. auto sales in August, helped by robust sales of crossovers across its four brands.