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Automakers are rolling out new electric and hybrid models at the Geneva International Motor show as they get ready to meet tougher emissions requirements in Europe.
The show is taking place against a background of multiple challenges faced by the industry, from slowing sales in China, its biggest market, to potential disruptions from Brexit.
Last month Nissan announced that it cancelled plans to make its X-Trail SUV in the UK – a sharp blow to Brexit supporters, who had fought to have the model built in northern England.
The company said it had made the decision "for business reasons" and it comes amid falling sales of diesel vehicles in Europe. But Nissan added that "the continued uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future."
Jim Holder, the Editorial Director of Autocar, says Brexit casts a shadow over the luxury auto show.
Jaguar Land Rover In January said it will cut 4,500 jobs as the carmaker addresses slowing demand in China and growing uncertainty about the UK's departure from the European Union.
The luxury carmaker, which launched its I-Pace pure electric car at the 2018 Geneva International Motor Show, will not be attending the this year's Swiss motorshow.
The traditional automotive industry is being challenged by the looming disruption from new technologies such as autonomous driving and smartphone-based services that offer use of a car without ownership, as well as regulatory pressure to add more zero local emissions vehicles.
The traditional automotive industry is being challenged by the looming disruption from new technologies such as autonomous driving and smartphone-based services that offer use of a car without ownership, as well as regulatory pressure to add more zero local emissions vehicles.
In both cases, automakers are sinking billions in investment into markets that don't yet bring big sales volumes.
Tough new limits on emissions of carbon dioxide, the main greenhouse gas blamed for global warming, in the European Union take effect from 2021, and get even tougher by 2030.
Carmakers originally bet on diesel to help them meet reduced average fleet emissions.
But diesel sales have plummeted in the wake of Volkswagen's 2015 scandal over cars with software that let them cheat on diesel emissions tests.
Yet that raises its own questions, not least consumer reluctance to buy electrics due to concerns about limited range and lack of places to charge.
Troubles in the global economy are hanging over the show.
China car sales dipped last year, and there is uncertainty about the outcome of US-China trade talks.
World markets were lifted Friday (1 March 2019) by suggestions that the US could endorse a trade deal with China in the coming weeks.
Failure to reach a deal could see President Donald Trump adding new import taxes that could slow the Chinese economy and global trade.
Britain could wind up leaving the European Union without a negotiated deal to smooth the transition, leading to sudden imposition of tariffs that could disrupt the auto industries' complex supply chains.
The economic troubles facing the world's largest economies will stop luxury auto makers from producing their high end cars, and it won't stop wealthy car enthusiast from buying them.
Geneva tends to be a place for high-end automakers such as McLaren, Ferrari, Lamborghini and Aston Martin to show off gorgeous rides with prices starting at thousands of euros, pounds or dollars and heading up from there. This year will is no exception.
Despite the push for lower emissions, automakers can't resist the SUV and its relatives, called crossovers, because they sell well and can earn strong profit margins.
Automakers also haven't forgotten small gasoline-powered cars, which remain a leading sales category, especially in Europe's crowded cities where parking can be a hassle. Renault has a new version of its Clio and Peugeot offers a second-generation version of its 208.
The Geneva International Motor Show, held at the Palexpo Center, will open to journalists on from the 4th of March. It opens to the public from Thursday through 17 March.
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