At Frankfurt, Supercars and Superminis

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A Crossover Generation

Small is beautiful on the Continent, and European automakers excel at making design-savvy minis, micro-vans, and subcompacts. Volkswagen (VLKPF) will have a concept version of its 2009 "new small car" on display—the platform will be used to make a tony city runabout for Europe and possibly the U.S., and a low-cost version for emerging markets. Ford will show its Verve concept car, foreshadowing the follower for its Fiesta subcompact.

And the much-touted remake of BMW's Mini Clubman (BusinessWeek.com, 7/25/07) will also draw crowds.

Small SUVs and crossovers are the fastest-growing vehicle segment in Europe. With some 5% of the market in 2006, SUV sales could double by 2010, according to forecaster J.D. Power. (Like BusinessWeek.com, J.D. Power is a unit of The McGraw-Hill Companies (MHP).) And in Europe, automakers are pushing smaller utes and crossovers—a mixup of sedans, minivans, and SUVs. BMW will unveil its hotly awaited 2008 X6, a coupe-like crossover version of the X5 (BusinessWeek.com, 4/27/07), which will also be available in a hybrid version.

Volkswagen takes the wraps off its long-awaited Tiguan, baby brother to the large Touareg SUV (BusinessWeek.com, 2/23/07), which will also have a clean-diesel version and be sold in the U.S. And Ford of Europe will spotlight an ice-white Kuga SUV.

Some Big Knockoffs

VW was set to eclipse rivals by unveiling eight new models to the press on Sept. 10, three days ahead of the Frankfurt show's official opening. But Renault-Nissan (NSANY) Chief Executive Carlos Ghosn called a press conference two hours earlier than VW for the same day. Both Renault's Ghosn and PSA Peugeot-Citroën (PEUP) CEO Christian Streiff are throwing the gauntlet down to Volkswagen with new models such as the Peugeot 308 compact and the Renault Laguna sedan, eager to regain market share lost to the resurgent German automaker over the past two years.

German automakers BMW and DaimlerChrsyler (DAI) will be watching closely to see whether German importer China Automobile displays cars that look very similar to the BMW X5 and the Mercedes Smart. Both are exploring possible legal action against Chinese automaker Shuanghuan for violation of intellectual-property rights.

Shuanghuan makes the CEO (which resembles the BMW X5 and has been selling in Italy and Romania) and the Nobel (which resembles the Smart and has been selling in China). German importer Karl Schlôssl, owner of China Automobile, plans to display six cars at the show, and says his models do not resemble the German luxury makes.

Click here to see a roundup of highlights of the 2007 Frankfurt auto show.

Edmondson is a senior correspondent in BusinessWeek's Frankfurt bureau .