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A motor present with guests: IAA finds new house in Munich | Enterprise | Financial system and finance information from a German perspective | DW

A concept paper for the IAA Mobility 2021

Indeed, it is a fresh start in several ways. On the one hand, the International Motor Show (IAA) opens its doors to the public as the first major trade fair in Germany since the beginning of the COVID-19 pandemic.

It is a glimmer of hope for the hard-hit trade fair industry, which, according to the trade fair committee of the German economy, suffered an economic loss of over 40 billion euros due to canceled events during the pandemic (AUMA).

On the other hand, it is a new beginning for the IAA itself. After half a century in Berlin and after almost seven decades in Frankfurt, the most important German automobile exhibition has now found a new home in Munich.

But that’s not all: after a disappointing IAA in Frankfurt two years ago, the organizer, the Association of the Automotive Industry (VDA), promised a revision. However, since the classic auto shows are fighting for their relevance and because “the mere presentation of sheet metal is no longer sufficient” – as car expert Peter Fuss from EY Consulting puts it – the IAA dares to experiment.

Hybrid trade fair … but different

The event asks the question “What will move us next?” – and answers them with a range of mobility options. The car is just a piece of the puzzle. Electric scooters and bicycles, but also trams, buses and autonomous vehicles will be shown at the event and emphasize that personal mobility options such as e-scooters and bicycles are just as much a part of the mix as cars, buses and self-driving vehicles.

The IAA Mobility 2021 asks the question: “What will move us next?”

The IAA Mobility will be a hybrid trade fair, but not in the usual sense during the pandemic, in which the participants can take part in person or virtually. The automobile exhibition takes place both on the exhibition grounds, where product presentations and specialist conferences take place, as well as in popular places in downtown Munich. The two parts are connected by a 12-kilometer blue lane, which also serves as a lane for test drives.

The experiment is not without risk. Auto expert Ferdinand Dudenhöffer is skeptical of the “fair that doesn’t want to be”, as he wrote in his preview. He regrets the lack of a clear focus on the car. “When the car is no longer the focus, the auto show – once the largest in the world – loses its importance.”

A pale shadow of past glory

This can already be seen. In addition to the three major German manufacturers (VW, BMW and Mercedes-Benz), only Hyundai, Renault-Dacia and some newcomers from China take part in the show. Companies like Toyota, Stellantis (which own brands like Chrysler, Fiat, and Opel), and General Motors have graciously accepted. Tesla has never been to an IAA anyway, but Volvo, Ferrari and Rolls-Royce have also received a permit this year.

Even the German auto majors only have a modest presence compared to their often grandiose appearances at past IAAs in Frankfurt. And whether it will increase the popularity of the new IAA, which Volkswagen is mainly exhibiting on the exhibition grounds while Mercedes-Benz uses the open space in front of the historic Feldherrnhalle, remains to be seen in the next few days.

International Motor Show Munich IAA Mobility

Many of the event’s pavilions were set up at popular locations in Munich

But the auto industry – and that brings us to another fresh start – is currently doing quite well despite the pandemic, semiconductor shortages and supply chain bottlenecks.

According to the latest figures from the consulting firm EY, the global automotive industry has never earned as much money operationally as in the first half of 2021. The 16 largest car companies generated an operating profit of 71.5 billion euros compared to a loss of around 4 billion euros in the same period of time Previous year. One of the reasons: Due to the dramatic shortage of computer chips, manufacturers are currently prioritizing the production of high-margin models and making a lot of money with it.

The Chancellor is coming, and so are the demonstrators

But the automakers desperately need that money as they are going through a big change. In the face of climate change, many countries have announced plans to phase out internal combustion engines. For example, the European Union has proposed an effective ban on the sale of vehicles with internal combustion engines from 2035.

As a result, global automobile manufacturers, including in Germany, are focusing on electric vehicles. At the same time, however, they also have to invest in new operating systems for their “smartphones on four wheels” in order to catch up with Tesla. In this way, the car could be integrated into various mobility concepts, including those in which owning a car is not a priority.

It is precisely this mobility puzzle that the IAA in Munich is trying to present. The event will hardly come close to attracting the 500,000 visitors who flocked to the Frankfurt exhibition grounds two years ago. In the best of times, up to a million people crowded through the halls of the IAA in Frankfurt.

In any case, Angela Merkel will be among the visitors. The outgoing Chancellor will open the fair on Tuesday, and numerous critics of the auto industry will also make themselves felt.

Various bicycle rallies and blockades are planned, similar to the demonstrations in Frankfurt in 2019. The protests, some of which were violent, contributed to the fact that the IAA had to give up the German banking metropolis. But Frankfurt now has a new trade fair: the Eurobike bicycle trade fair will take place there from 2022. Maybe a sign of the future.

The article was taken from the German original