H&B, Inc. • BMW and MiniCooper Specialists

Mid-September of this year marked the 61st anniversary of the Internationale Automobil-Ausstellung in Frankfurt. For decades, this event has been the biggest and most prestigious automobile show in the world. This year, attendance numbers were typically impressive: one thousand exhibiting companies; one hundred twenty-two new model introductions; over 600,000 visitors.

Management of a trade show on this scale requires tremendous organization and planning. One result of this is that the IAA now opens its doors to visitors in three successive stages. First in are the automotive paparazzi, on two days when they can take photos, attend press conferences, and generally feel privileged to look behind the sets of this vast exhibition. Next come “trade days” for those in the business—car dealers, leasing companies, or any number of related industries This year, this happened on Sept. 15th and 16th, and one would never have imagined from the volume of visitors that so many people could possible be in the car business (many were not, but paid the higher ticket price anyway). Finally, the doors open to waves of everyday enthusiasts, and watch out: the crowds during this phase are enormous. From the Friday afternoon start of the German weekend, the crowds hitting the gates of the IAA can look like a human tidal wave

Gasoline is now approximately $6.10/gallon in Germany, with the three grades of diesel averaging about 25% less. Diesel’s price advantage, combined with superior fuel economy and the new, powerful and clean-burning diesel technologies, put diesel models at center stage in most of the IAA exhibits. Diesels now account for 40% of new car sales in Germany—a 16% increase over the past year, and rising fast. With the exception of one whole pavilion devoted to dual-fuel (e.g. natural gas, or “Erdgas”+gasoline) cars, Toyota was the only maker showing hybrid models in a rather understated way. For the moment, those interested in energy savings are looking primarily to diesel.

BMW had a large variety of both diesel and non-diesel models on hand, of which the new One-series occupied a prominent position. This car, not planned for the U.S. anytime soon, has appeal both as an economy model and also as a pocket rocket (e.g., 130i Sport). The price of the latter, however, gives pause at the mid-30,000 Euro point (about $34,000, after deducting the 16% V.A.T.).

Within with what some journalists were calling a cautious and unexciting IAA, the BMW models looked pretty adventurous: the M6 coupe shown next to its new 500 hp V-10 engine; the take-no-prisoners styling of the Z4 coupe; the assertive if controversial look of the fives and sevens. And the drivetrain technology in all these models was distinctively advanced, in keeping with their looks. What was missing, perhaps, was the radical, over-the-top self-confidence shown at the introduction of the E65 7-series at the ’01 show. But the newer BMW pavilion—used effectively in 2003 for the 6-Series introduction—is light and airy, and shows all the cars to advantage.

Beyond the BMW exhibit, automotive excitement took the form of a handful of more or less expected, but still satisfying debuts: the Porsche Cayman S; very many cabriolets with folding hardtops; and many, many more diesels. These new-generation diesels are literally nothing to sniff at, as they now meet the Euro IV exhaust standards with sophisticated filter/catalysts. And, thanks to common-rail direct-injection technology, they make lots of power. One could imagine driving any one of them with great pleasure in the U.S., if only cost of diesel fuel over here made sense.

Mini enthusiasts gathered around the oyster-pearl concept "estate wagon" which is rumored to presage a real-world version during the coming year. Click here for more about this along with excellent photos and analysis. This was one of the single biggest spectator magnets as the show, especially among the younger crowd. Not only a great concept, but a spectacularly executed prototype. The much-anticipated new powertrains from the joint engine venture with PSA/Citroen in the south of France were not yet on display.

Audi continues to impress with its new models, though the emphasis given to the massive new Q7 SUV (which Audi calls an “SAV,” after BMW) seems out of synch with the suddenly changed energy market. Nevertheless, it is interesting how many Germans, when asked what their dream vehicle would be, answer with an SUV model of some prestigious brand, often BMW X5 or Cayenne. Apparently, real fuel prices don’t dampen these fantasies.

The exotic car makers—Ferrari, Maserati, Bentley, Rolls Royce, were on hand with customarily lavish displays. A few of the low-volume car builders were on hand with obviously hand-built cars for the show. Among these almost-prototypes were the retro-looking Wiesmann GT (with BMW V8 power), very handsome, if somewhat reminiscent of the old Jag XK120. Erich Bitter was back yet again with a conservative-styled exotic bearing his name. Whether this will ever see production is always the question.

Henrik Fisker, designer of the Z8 before leaving for the Ford Premier Auto Group to design the Aston Martin DB9, showed his new “Latigo CS.” This lovely two-seater is planned for production commencing in 2006 on a BMW 6-series platform, with the possibility of either V-8 or V-10 power.

Located apart from the main car builders were the various tuners: Irmscher for Opel, Brabus for Mercedes Benz, Alpina for BMW, and a couple of others. The models shown were mostly fill-ins, or massaged variants of the already extensive main product lines of the parent companies. AMG has been a part of Mercedes Benz for over a dozen years now, and, like the “M” division of BMW, has helped to draw much of the previous interest in tuning back toward the parent company’s diversified product lines. Concerns about certification for world markets, fuel economy, etc., have made life hard for these aftermarket firms. BMW tuners of yesteryear such as Hartge, Schnitzer, and MK Tuning were nowhere in evidence.

Karlheinz Kalbfell, formerly head of BMW Motorsports division, now presides over an improving, and beautifully styled, range of Alfa Romeos. These cars are reputed to have bettered their quality over the last couple of years, and perhaps Kalbfell can claim some credit for this. Their styling is very impressive, even better than the photos suggest. The Brera, in particular, shows that handsome cars can still emerge from the wind tunnel.

Most BMW fans in the U.S. have little experience of French cars, so it’s always refreshing to see how different—and yet how cool—some of these cars are. Despite Renault’s recent successes in Formula 1, the French auto industry has generally emphasized styling and comfort over all-out performance. This preference shows even in the concept cars such as Citroen’s “Sport Lounge,” which seems like a contradiction on wheels. But, then, since there are so many fast cars around these days, why not emphasize the dimensions of panache and luxury? The other side of the French auto industry—fuel sipping diesel technology—is also very advanced. Diesels such as the Renault Megane we rented on this trip are not only thrifty and powerful, but also an absolute pleasure to drive on long trips (we logged 1400 km in ten days). If U.S. fuel costs converge with those in Europe, we may well see a return of French brands to the U.S. Meanwhile, the new Citroens and Peugeots are also fascinating.

While the French cars seem well-positioned for a changing world market, many of the German brands are faring poorly. VW’s reputation for quality is suffering, as are its sales; Opel is languishing; and the German division of Ford is in the doldrums. How much of this is because of product that misses the market, how much because of the weak market itself is unclear. What is clear is that the feasibility of producing cars at below the luxury price level in Germany is becoming questionable.

High German labor costs, which are tied to the structure of the elaborate system of benefits, pensions, and health care, are on the top of everyone’s agenda. Just as General Motors claims $1500 of the cost of each car goes to health care, so the German social system seems to be dragging down the future of car manufacturing inside German borders. This problem was the number one topic of the German elections, and it hung over the IAA like a storm cloud. Most German car makers have plants in other countries, and in the event of necessity can shift production of component assemblies or whole cars outside German borders.

With this in mind, German automotive journalists took careful note of the new Chinese manufacturers exhibiting cars at the IAA. Jiangling showed a “Landwind” line of SUV’s, while Geely and Brilliance showed inexpensive but extravagantly styled sedans. The motoring press made many unflattering remarks about quality and finish of these models; and just after the I.A.A. closed, a government crash test gave rock-bottom marks to the Landwind models. Nevertheless, the prices were impressively low, and there is a general feeling that the Chinese car companies have only just begun their efforts to penetrate this most challenging of world markets. I share this feeling, and suggest a quick read of Peter Hessler's article in the Sept. 26 New Yorker, in which he gives a behind-the-scenes look at this Chinese phenomenon.

If asked to name my favorites from the 2005 IAA, I would certainly include these:

                         Allen Hardy
                         President,
                         H&B, Inc.



	I.A.A./Frankfurt	September, 2005
		For more pictures . . .
	Mid-September of this year marked the 61st anniversary of the Internationale Automobil-Ausstellung in Frankfurt. For decades, this event has been the biggest and most prestigious automobile show in the world. This year, attendance numbers were typically impressive: one thousand exhibiting companies; one hundred twenty-two new model introductions; over 600,000 visitors. Management of a trade show on this scale requires tremendous organization and planning. One result of this is that the IAA now opens its doors to visitors in three successive stages. First in are the automotive paparazzi, on two days when they can take photos, attend press conferences, and generally feel privileged to look behind the sets of this vast exhibition. Next come “trade days” for those in the business—car dealers, leasing companies, or any number of related industries This year, this happened on Sept. 15th and 16th, and one would never have imagined from the volume of visitors that so many people could possible be in the car business (many were not, but paid the higher ticket price anyway). Finally, the doors open to waves of everyday enthusiasts, and watch out: the crowds during this phase are enormous. From the Friday afternoon start of the German weekend, the crowds hitting the gates of the IAA can look like a human tidal wave The German media treats this event with the kind of reverence and analysis reserved in the U.S. for the World Series. Interviews with car company executives get prime space in Der Spiegel, along with the kinds of bylines and opinion pieces reserved in the U.S. for trade magazines like Automotive News. If, as is sometimes said, the car industry is the “locomotive of the German economy,” then the IAA is Grand Central Station—at least for two weeks every other year.The official purpose of the IAA is to celebrate the automobile in all of its beauty and variety. However, the surrounding economic and political undercurrents often penetrate the exhibition ground; this year was no exception. In 2001, 9/11 occurred during the IAA, and cast a long shadow over what had been a party-like atmosphere: BMW had created a highly stylized “techno” environment for the introduction of the futuristic E65 cars. Newly resurrected Mini had its own ’60’s retro environment next door with Twiggy-costumed hostesses catering to a very different group of car fans. The IAA of 2003 was a bit more somber, and BMW introduced the new 6-series in a new, spacious hall--the same one used this year. The lagging world economy and rising concern about the U.S. invasion in Iraq were the hot non-automotive topics. This year, those concerns persisted, but were eclipsed by an even more urgent one: rapidly escalating fuel prices. The hotly contested German elections fell on the first weekend of the IAA, and framed the auto show with much public debate of these and other economic issues vital to the industry. Gasoline is now approximately $6.10/gallon in Germany, with the three grades of diesel averaging about 25% less. Diesel’s price advantage, combined with superior fuel economy and the new, powerful and clean-burning diesel technologies, put diesel models at center stage in most of the IAA exhibits. Diesels now account for 40% of new car sales in Germany—a 16% increase over the past year, and rising fast. With the exception of one whole pavilion devoted to dual-fuel (e.g. natural gas, or “Erdgas”+gasoline) cars, Toyota was the only maker showing hybrid models in a rather understated way. For the moment, those interested in energy savings are looking primarily to diesel. BMW had a large variety of both diesel and non-diesel models on hand, of which the new One-series occupied a prominent position. This car, not planned for the U.S. anytime soon, has appeal both as an economy model and also as a pocket rocket (e.g., 130i Sport). The price of the latter, however, gives pause at the mid-30,000 Euro point (about $34,000, after deducting the 16% V.A.T.). Within with what some journalists were calling a cautious and unexciting IAA, the BMW models looked pretty adventurous: the M6 coupe shown next to its new 500 hp V-10 engine; the take-no-prisoners styling of the Z4 coupe; the assertive if controversial look of the fives and sevens. And the drivetrain technology in all these models was distinctively advanced, in keeping with their looks. What was missing, perhaps, was the radical, over-the-top self-confidence shown at the introduction of the E65 7-series at the ’01 show. But the newer BMW pavilion—used effectively in 2003 for the 6-Series introduction—is light and airy, and shows all the cars to advantage. Beyond the BMW exhibit, automotive excitement took the form of a handful of more or less expected, but still satisfying debuts: the Porsche Cayman S; very many cabriolets with folding hardtops; and many, many more diesels. These new-generation diesels are literally nothing to sniff at, as they now meet the Euro IV exhaust standards with sophisticated filter/catalysts. And, thanks to common-rail direct-injection technology, they make lots of power. One could imagine driving any one of them with great pleasure in the U.S., if only cost of diesel fuel over here made sense. Mini enthusiasts gathered around the oyster-pearl concept "estate wagon" which is rumored to presage a real-world version during the coming year. Click here for more about this along with excellent photos and analysis. This was one of the single biggest spectator magnets as the show, especially among the younger crowd. Not only a great concept, but a spectacularly executed prototype. The much-anticipated new powertrains from the joint engine venture with PSA/Citroen in the south of France were not yet on display. Audi continues to impress with its new models, though the emphasis given to the massive new Q7 SUV (which Audi calls an “SAV,” after BMW) seems out of synch with the suddenly changed energy market. Nevertheless, it is interesting how many Germans, when asked what their dream vehicle would be, answer with an SUV model of some prestigious brand, often BMW X5 or Cayenne. Apparently, real fuel prices don’t dampen these fantasies. The exotic car makers—Ferrari, Maserati, Bentley, Rolls Royce, were on hand with customarily lavish displays. A few of the low-volume car builders were on hand with obviously hand-built cars for the show. Among these almost-prototypes were the retro-looking Wiesmann GT (with BMW V8 power), very handsome, if somewhat reminiscent of the old Jag XK120. Erich Bitter was back yet again with a conservative-styled exotic bearing his name. Whether this will ever see production is always the question. Henrik Fisker, designer of the Z8 before leaving for the Ford Premier Auto Group to design the Aston Martin DB9, showed his new “Latigo CS.” This lovely two-seater is planned for production commencing in 2006 on a BMW 6-series platform, with the possibility of either V-8 or V-10 power. The labyrinthine Daimler-Chrysler pavilion was substantially redesigned since ‘03. The addition of Chrysler models has now created an amazing range for the integrated company, from tiny Smart cars on the low end to giant Maybach limousines at the top. In between lie the A-, B-, C-, E-, and S- class cars, as well as the ML and new “R” series (looking like an upmarket Chrysler Pacifica). Chrysler offerings such as the wild Dodge (euro-only) SUV’s, variants on the Pacifica, the Chrysler 300C and a range of Jeeps add a dash of fantasy to this otherwise stolid company. Much hoopla attended the introduction of the new S-class Mercedes, so that it was difficult to see the cars for the masses of onlookers, even on trade day. Prominent in the S-Class displays were the new distance radar and “Brake Assistance Plus” technologies, claimed to insure optimal distances between the driven vehicle and surrounding traffic. To a BMW driver, however, this emphasis seems aimed more to concerns of passive safety than to active driving. Upon close viewing, the styling of the new S-class—the perennial bellwether of the luxury market—was a mixed bag: Mercedes has molded some surprisingly awkward lines into this bigger and heavier version of last year’s model. It seems that BMW can rest a bit easier about its recent E65 facelift. Located apart from the main car builders were the various tuners: Irmscher for Opel, Brabus for Mercedes Benz, Alpina for BMW, and a couple of others. The models shown were mostly fill-ins, or massaged variants of the already extensive main product lines of the parent companies. AMG has been a part of Mercedes Benz for over a dozen years now, and, like the “M” division of BMW, has helped to draw much of the previous interest in tuning back toward the parent company’s diversified product lines. Concerns about certification for world markets, fuel economy, etc., have made life hard for these aftermarket firms. BMW tuners of yesteryear such as Hartge, Schnitzer, and MK Tuning were nowhere in evidence. Karlheinz Kalbfell, formerly head of BMW Motorsports division, now presides over an improving, and beautifully styled, range of Alfa Romeos. These cars are reputed to have bettered their quality over the last couple of years, and perhaps Kalbfell can claim some credit for this. Their styling is very impressive, even better than the photos suggest. The Brera, in particular, shows that handsome cars can still emerge from the wind tunnel. Most BMW fans in the U.S. have little experience of French cars, so it’s always refreshing to see how different—and yet how cool—some of these cars are. Despite Renault’s recent successes in Formula 1, the French auto industry has generally emphasized styling and comfort over all-out performance. This preference shows even in the concept cars such as Citroen’s “Sport Lounge,” which seems like a contradiction on wheels. But, then, since there are so many fast cars around these days, why not emphasize the dimensions of panache and luxury? The other side of the French auto industry—fuel sipping diesel technology—is also very advanced. Diesels such as the Renault Megane we rented on this trip are not only thrifty and powerful, but also an absolute pleasure to drive on long trips (we logged 1400 km in ten days). If U.S. fuel costs converge with those in Europe, we may well see a return of French brands to the U.S. Meanwhile, the new Citroens and Peugeots are also fascinating. While the French cars seem well-positioned for a changing world market, many of the German brands are faring poorly. VW’s reputation for quality is suffering, as are its sales; Opel is languishing; and the German division of Ford is in the doldrums. How much of this is because of product that misses the market, how much because of the weak market itself is unclear. What is clear is that the feasibility of producing cars at below the luxury price level in Germany is becoming questionable. High German labor costs, which are tied to the structure of the elaborate system of benefits, pensions, and health care, are on the top of everyone’s agenda. Just as General Motors claims $1500 of the cost of each car goes to health care, so the German social system seems to be dragging down the future of car manufacturing inside German borders. This problem was the number one topic of the German elections, and it hung over the IAA like a storm cloud. Most German car makers have plants in other countries, and in the event of necessity can shift production of component assemblies or whole cars outside German borders. With this in mind, German automotive journalists took careful note of the new Chinese manufacturers exhibiting cars at the IAA. Jiangling showed a “Landwind” line of SUV’s, while Geely and Brilliance showed inexpensive but extravagantly styled sedans. The motoring press made many unflattering remarks about quality and finish of these models; and just after the I.A.A. closed, a government crash test gave rock-bottom marks to the Landwind models. Nevertheless, the prices were impressively low, and there is a general feeling that the Chinese car companies have only just begun their efforts to penetrate this most challenging of world markets. I share this feeling, and suggest a quick read of Peter Hessler's article in the Sept. 26 New Yorker, in which he gives a behind-the-scenes look at this Chinese phenomenon. If asked to name my favorites from the 2005 IAA, I would certainly include these: the new BMW 1-Series for compact coolness all of the new diesels for practicality and clean, effortless power among concept cars, top marks for the new Mini "estate wagon," the Citroen "SportLounge," the Smart prototype mini-Jeep, and many more... for affordable fun in an extremely cute and extremely modular package, how about the Citroen C3 Pluriel? and, for sheer gorgeousness in a production model, I think it's a tie between the Alfa Brera and Porsche's new Cayman "S". More images of these and other Frankfurt show cars can be found here. Allen Hardy President, H&B, Inc.	BMW 745d — Fuel economy in the "Luxus Klasse" BMW130i — economy car or pocket rocket? BMW Z4 Coupe Porsche Cayman S Volkswagen Eos Convertible MINI Estate Wagon Concept Wiesmann GT Alfa Romeo Brera Coupe Citroen "SportLounge" Smart Mini-Jeep Concept

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