An industry dominated by one issue

Michael McAleer , motoring editor, gazes into his crystal ball, and highlights the big events on the motoring calendar for 2008…

Michael McAleer, motoring editor, gazes into his crystal ball, and highlights the big events on the motoring calendar for 2008

One issue dominates the global car industry today and will do so for the year ahead: fuel. We can make the modern combustion engine more fuel efficicent and cleaner, but the long-term future requires a completely new power source other than oil. Most engineers suggest it will be electric, but what fuel will create the electricity remains to be decided.

At home, there will be one major issue dominating the Irish market this year and that's the changeover to an emissions-based tax system due to be introduced in July. It has effectively split the market into two segments, with big engine car sales likely to take place prior to the changes and those buying more fuel-efficient cars waiting until after the tax changes take effect.

The savings are potentially significant, though we will have to wait and see if all the tax cuts on new low-emission cars will be passed on to buyers by the car firms.

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The good news is that, for all the upheaval on this small island, the global car market is continuing to create some really stylish new model offerings and interesting new niches.

First up in the city car class, this year may see the arrival of a production version of Toyota's IQ concept car. This will be a 3+1 seat format in a car that's only marginally bigger than a Smart. If the concept format makes it into production then it's certain to be a talking point in 2008. Meanwhile Volkswagen is also likely to bring a production version of its rear-engined city car the UP onto the market.

In the supermini market, the big news will be the arrival of a new Fiesta. Based on the Verve concept car, it shares many parts with the recently introduced Mazda2, which won great criticial acclaim in 2007. Ford is hopeful of big things from its new entrant.

With the new Ford Mondeo and Mazda6 likely to steal the limelight in the family car market for the first six months, both will face two new rivals in the family car market, when it comes to the July sales race. First up will be the new Citroën C5, which is a world apart from the drab outgoing model. Taking its cue from the likes of the C4 and C6, the new car will finally be a decent rival to the established big sellers in this segment.

IT WILL BE FOLLOWED BY THE introduction of the long-awaited replacement for the Opel Vectra. With a name change to Insignia, this new car is planned to push Opel's family car image closer to the more premium offerings of Mondeo and Passat.

All these models will also be vying with several other tempting new models, such as the revamped Renault Laguna. It all adds up to a good year for buyers in the family car market.

Further up the price bracket and the new Audi A4 will be the big talking point of the small executive market, pitting Audi firmly against the dominant BMW 3-Series and reinvigorated Mercedes C-Class. We've already driven the car and it really puts it up to the current class-leading BMW. In terms of coupés in this class, the RS5 may break cover this year, heralding the introduction of a new RS4, but the BMW 1-Series is likely to take a serious pick-up in sales on the back of their excellent emissions rates - and therefore lower tax - and also the new coupé version which has impressed our testers.

In the main executive market, the arrival of the new Jaguar XF will make headlines. With a radical restyling both inside and out, the new car has cast off the pipe and slippers image of the outgoing S-Type.

The new car is more champagne bar than wood-panelled members bar. Our first drive report last month gave the car a strong bill of health to take on the dominant German marques and that's vital for the brand, with new owners due to take over the helm from Ford this year.

In terms of performance cars, the Japanese are set to offer most of the excitement. At the supercar end of the market, Nissan's new GT-R will revise the petrolhead love affair with the Skyline models of old, while Toyota may just surprise us before the year is out and confirm production of a new Supra model, perhaps based on a petrol-electric hybrid powertrain.

Other stars in this category will be the Lexus IS-F, hoping to challenge the almighty BMW M3 for its throne. Elsewhere the battle between Subaru and Mitsubishi will continue with a new Evo X arriving in February, followed quickly by the Impreza Sti. That's going to be the battle royal for rally fans.

There will also be a welcome return of the Scirocco name to the Volkswagen family. It's been long overdue, but VW is set to spice up its offering to coupé fans with this car, and a new coupé version of the Passat by year's end. The latter will vie for attention against the likes of the upcoming Renault Laguna coupé.

From a green perspective, we can expect an increase in the number of cars featuring stop-start technology. This system cuts out the engine when it comes to a halt and taken out of gear, then restarts it once the clutch is depressed. We have been very sceptical about its ability to impact on fuel savings but if it brings down the average emissions for the car, and hopefully moves the car into a lower tax band, then it's a useful addition to a new car.

For all the fuel efficient technology being developed, sales of suburban SUVs will continue to grow in direct proportion to the ire of the anti-SUV lobby. Admittedly most of these sales will be in the crossover end of the segment, with models like the Nissan Qashqai and upcoming Ford Kuga, which are really high-set hatchbacks, rather than fully-fledged SUVs. At the upper end of the SUV market there will also be new crossovers introduced, such as the new BMW X6, supposedly a coupé-format SUV.

It all adds up to another strong year for a car industry that needs to focus its efforts on finding alternative power sources, while maintaining profitability.

It's safe to predict the big question of 2007 may well be with us when we come to see off 2008: just what will be the overall winner in the race to replace oil as the fuel source of the future? No one seems close to an answer just yet.