Preview: 2008 Geneva Motor Show

As the U.S. economy girds for recession, luxury is still in vogue — at least in Geneva.

Premium brands like Alfa Romeo, Jaguar, Maserati, and Rolls-Royce are preparing to unveil swanky new vehicles in the high Alps of Switzerland during the 78th International Motor Show held annually in Geneva.

Like recent ones in the U.S., the first major European auto show of the year will spotlight the ongoing industry scramble for cleaner, lighter cars with more computerized technology.

“There’s a growing number of increasingly affluent people in Europe, as well as overseas, so the premium brands are in a pretty good position,” says Christian Stürmer, a Frankfurt-based analyst at Global Insight. “For the premium brands, the strategy is easy: Build the best-looking cars with the best technology and the best service, and you’ll get your money sooner or later.”

There will be at least one splashy debut from Nissan’s Infiniti luxury brand: Chief executive Carlos Ghosn is jetting in to introduce an all-new FX crossover utility vehicle (CUV).

Jaguar will unveil its new Portfolio-edition models, which include high-end details like charcoal leather seats with red stitching, iPod and USB connections, front parking assistance, and rich metallic paint jobs.

If you like the power and prestige of a Rolls-Royce but have no need for a large sedan, you'll relish the Phantom Coupe, a two-door version of the storied British brand's ultra-lux limo. It will go into production in a few months.

Alfa Romeo will dazzle attendees with a convertible version of its slinky super-car, the 8C Competizione.

BMW is expected to show its new high-performance drop-top, the M3 Convertible, which goes on sale in the U.S. this summer.

Expect some excitement from the mid-range as well. Automakers like Fiat, Mitsubishi, Peugeot, Toyota, and Volkswagen are set to battle for attention. “They’re facing the hardest struggle to define their strategies,” Stürmer says.

Whether they compete at the upper, middle, or bottom of the price spectrum, all car companies face serious issues as economic downturns spur fierce competition. Some of the challenges include raw materials like steel and rubber becoming more expensive, emissions standards getting tougher, and oil prices continuing their upward march.

The Geneva show is a good indicator of what’s to come for automakers from a wide range of countries. “Geneva is neutral ground,” Sturmer says. It’s not like the Frankfurt auto show, held during the summer, which is traditionally all about German manufacturers, or the Paris motor show in the fall, where French brands tend to shine. “At Geneva, everybody is there; everyone makes a point of showing off their initiatives, especially to their peers,” he says.

In the decidedly non-luxury category, some are eagerly awaiting the launch of the Ford Fiesta. It’s an important entry in the so-called “super-mini” category, says David Leggett, editor at the UK-based auto research site Just-Autos.com. “[Super-mini] means small car, basically. Sub-Ford Focus in terms of size, like the Honda Fit,” he says. “It’s a small car which is hugely important.”

The Fiesta and small cars like it have long been vital for the European market, where fuel costs are astronomical and road infrastructure cramped. Ford plans to take the Fiesta global, which speaks to a trend of downsizing vehicles that has even spread to the U.S., where large vehicles have always been the norm.

Rollouts like these seem to address the question of whether America will soon be or already is in a recession, and what will happen to the market if it is. “So there’s the idea of market segmentation as a result,” Leggett says. “Should the market shift toward smaller and lighter vehicles? Do market woes mean that pickups will be affected, particularly larger, full-size pickups?”

One brand that Leggett singles out is Smart, whose Fortwo recently went on sale in the U.S. It’s the extreme example of the super-mini — the two-seater can fit perpendicularly, nose-to-curb in a parallel parking space. “It’s making quite an impact," Leggett says. "It’s a niche vehicle, but it will be interesting to see how that might develop in the U.S. The other question then is why it’s taken Ford and GM so long to tap into the smaller vehicles for North America, which do so well in Europe."

Some premium small cars will be among the economical ones unveiled at the Geneva show. BMW is coming to town with its new line of John Cooper Works Minis — souped-up models tuned by Mike Cooper at the firm’s famous Oxford shop. The “Works” treatment includes an upgrade of the small turbocharged four-cylinder engine of the Mini Cooper S that bumps output to 218 horsepower, which is a lot for such a small car.

Legendary automobile design houses Bertone and Pininfarina will also give viewers a peek at some beautiful if impractical designs. “These cars rarely come into production,” Stürmer says. “But they give you hints of what the industry designer of fashion is currently working on and thinking about — and where everything is heading.”

Diesel hybrids, gasoline hybrids, and plug-in electric cars will all share the spotlight. Concept cars like the BMW X5 Vision, a turbodiesel-electric hybrid SUV, will tout higher fuel economy, lower emissions, and lighter construction. An extreme gas-sipper from startup German manufacturer Loremo (read it as LoReMo, or "Low Resistance Mobile") will aim to achieve 100 miles per gallon for less than $15,000.

Chinese manufacturers are starting to figure more prominently. Companies like BYD and Great Wall should draw some attention with high-tech concepts for batteries that can give electric cars more range.

They’re also looking to cut deals with North American distributors, Leggett says. “That’s what makes a great show. You’ve got an ongoing theme being addressed by manufacturers with innovative solutions. One that caught my eye is from Hyundai, which has a concept for a six-seat minivan. That’s a big vehicle, but they’re showcasing new materials and construction techniques, which means you can build it at a lower weight,” he says. “There’ll be a lot there to keep everyone on their toes.”

The Geneva auto show, held at the Geneva Palexpo, will be open to the public March 6-16 following two media preview days.

Here is a list of vehicles likely to debut at the show: