Auto show highlights new models and ways to cut consumption

0 Comments | AFP, September, 2007

FRANKFURT (AFP) — The world's auto industry that meets this week at the International Motor Show (IAA) is counting on innovation and new models to stand out amidst fierce competition and pressure to preserve the environment.

Major carmakers are battling weaker sales in western Europe and to a lesser extent the United States, and are hobbled by high costs for raw materials, high petrol prices, and price wars that have cut their profit margins.

New car sales stagnated in Europe in the first half of the year, slipping by 0.2 percent compared with the same period in 2006 to 8.5 million registrations in 28 countries polled by the Association of European Automobile Manufacturers (ACEA).

Renault and DaimlerChrysler were the hardest hit, though Fiat and Toyota...