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9/28/12

The Wired Cars of the 2012 Paris Motor Show - by Damon Lavrinc

There's a bipolar vibe at the biennial Paris Motor Show. Automakers are putting on a strong face as they roll out a combination of ambitious concepts and tepid compacts while the European car market erodes beneath their feet.

The mood in Europe is much like it was in Detroit a few years ago, when the Big Three were threatening to become the Medium Two and automakers went hat in hand to Washington looking for help. Nearly every automaker at the show is feeling the pain. Overall, European sales dropped 8.5 percent last month, the 11th consecutive monthly decline with no end in sight.

The combination of labor unrest, plant closures, deep discounts, and massive operating losses are all conspiring against an industry that was plagued with plunging demand to begin with. Ford is projecting a $1 billion loss in Europe this year alone, but that pales in comparison to the $16.8 billion in losses General Motors has racked up with its Opel and Vauxhall brands since 1999. There's even talk of bailouts for some of the smaller companies.

Read More: The Wired Cars of the 2012 Paris Motor Show | Autopia | Wired.com

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