9 major automakers will not attend 2017 Frankfurt Motor Show

Article by Christian A., on August 17, 2017

Recently, we have been hearing news that some of the biggest automakers will not make an appearance at the upcoming 2017 Frankfurt Motor Show. Despite being one of the biggest motor shows, they seem to not be getting majority of the best brands - for this year’s event at least.

Normally, we would expect most brands to showcase their new cars here. But according to Automotive News Europe, companies like DS, Infiniti, Peugeot, Jeep, Fiat, Alfa Romeo, Mitsubishi, Volvo, and Nissan will not be attending the grand event this year. And these brands take up about 20 percent of total sales in Europe.

You must be wondering why then? Firstly, taking part in the biggest shows means spending more too. And the Frankfurt event is probably one of the most expensive events for automakers to attend. Furthermore, spending a lot of money to put your cars on display in these events doesn’t necessarily translate to more sales. So sometimes, these companies lose more money than they expect to earn.

Ian Fletcher, analyst from IHS Markit, said that what automakers are studying now is the huge cost versus its effect on sales. He also said that he would question the translation rate between the number of attendants and the transactions made.

In today’s world, automakers can simply market their vehicles with minimal cost through the internet - from blogs to social media. This is also true considering the fact that not everyone has time to fly to certain places to attend auto shows. Though customers can easily do their research online, it is still different to see the cars live and get a feel of how it is like to drive them, which means that auto shows still play an important role.

Unlike decades ago where you would only know of what is new when you attend auto shows, this is not the case now. Automakers should adapt to these changes and consider interacting with potential customers online through social media. Think about it this way, would you rather spend millions of dollars to display your car at a convention center (over a weekend) with only maybe thousands of people seeing it, or spend about a hundred thousand dollars to hire professionals to make you a Hollywood quality video where you can show all the new features of the car to your target market?

Another option that these companies are considering is participating in smaller events since this gives them better chances to interact with the public, as well as hosting your own event where only those who really are interested in your brand would attend. An example of which is the recent Jaguar E-Pace event in London.

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