Environmental focus

Undisclosed pre-tax profits at the ­luxury sports-car maker were up – thanks to stock options trading in Volkswagen, where Porsche has acquired a majority and initially planned to raise it to 75% this year. Volkswagen, Europe's biggest carmaker, warned that its profits and sales this year would decline, but insisted it would boost its overall global market share. The ­German group refused to give a precise forecast after reporting record revenues and earnings for 2008 in a ­surprise announcement. However, elsewhere in the industry, the figures are deep red and are threatening to deteriorate as firms such as General Motors, Chrysler and the rest run out of cash.
On a more optimistic note, in Brussels, the European commission (EC) today waved through Italian and Spanish plans to bail out their respective auto industries after securing commitments that they would be non-discriminatory and remain within the hallowed internal market rules.
And, in Paris, Peugeot Citroënsaid it would accelerate a joint venture with Japan's Mitsubishi to launch electric cars on Europe's roads by late 2010. It is already bidding to provide La Poste with 500 electric vans and working with power group EDF on a plug-in hybrid capable of running on batteries for 50km.
This year's motor show will be centred on the environment. "There will be a green focus. It will be a welcome diversion from the financial crisis," said analyst Rebecca Wright of Global Insight. But, amid all the new green models on display, there will still be room among the 85 planned launches for high-performance Bentleys and Bugattis.
The industry's problems could lead to a re-drawing of the ownership structure worldwide with a radical move to shrink capacity. The European commission reckons the European industry is ­saddled with 20% over-capacity that needs to be stripped out in time for the recovery.
General Motors' Europe plan set out last Friday to save Opel and Britain's Vauxhall relies heavily on €3.3bn (£2.9bn) of government aid, including from Britain. Karl-Theodor zu Guttenberg, Germany's federal economics minister, indicated Berlin was in no hurry to oblige.
The plan requires €3bn from parent GM and €1.2bn of savings as well as ­private investors stumping up 25% to 50% of new capital and will almost inevitably see one or more of the plants close.
Brussels says the long-term global outlook is "promising", exponential demand in emerging markets and the imperative of a "greener" fleet bringing new opportunities. But, in the next few days, executives will warn that it could take years for China, India and the rest to recover, and reduced budgets for investment and R&D will put back the "greening" of the ­industry and make EU targets for cutting emissions to less than 120g a kilometre unreachable.