Struggling Times for IAA Unveiling: drawing in patrons

The IAA Mobility auto show, a significant event in the automotive industry, has opened its doors in Munich today and will run until Friday. Amidst a challenging period for the sector, the event showcases the latest trends and new models, offering a glimpse into the future of the industry.

In the midst of the crisis, German car manufacturers are grappling with significant declines in profits. All major companies have reported substantial drops in profits in the first half of the year compared to an already relatively weak previous year. The reasons for these declines include electric mobility not progressing as expected, fewer car sales, especially on the crucial Chinese market, and recent U.S. tariffs.

Despite the challenges, the IAA Mobility auto show is bustling with activity. More Chinese companies are represented at the event than ever before, with 116 exhibitors from China present, making it the country with the most companies on the Munich exhibition grounds. Electric vehicle manufacturers BYD and Xpeng are among the Chinese companies showcasing their offerings.

One of the major highlights at the show is the Volkswagen Group, which is presenting four electric entry-level models from VW, Škoda, and Cupra, set to hit the market next year. One of these models is the ID.Polo, expected to start at prices just under €25,000. The ID.Polo will have its official world premiere next May, with sales set to begin in autumn 2026.

Other notable exhibitors include Mercedes-Benz, which is focusing on an electric GLC with a screen around one meter wide, the largest screen in a car from Stuttgart to date. The new Mercedes-Benz electric GLC also boasts redesigned radiator grille optics that deviate significantly from previous electric EQ models and align more with classic combustion engines.

BMW is also showcasing its iX3, the first series model of the Neue Klasse. The iX3 features more efficient batteries, shorter charging times, and a new Panoramic iDrive operating concept with a wide display strip below the windshield. BMW claims that the iX3 has an estimated range of 800 kilometers.

The future of steering and braking in the automotive industry is also a topic of discussion at the IAA Mobility auto show. Automotive supplier Bosch claims that the braking and steering behavior can be adjusted at any time using "by wire" technology, sending commands as electrical signals to motors that move the brakes and wheels. This new technology saves weight, provides flexibility in the interior, and enables quick and precise reactions.

Bosch is also implementing cost-cutting measures to deal with the current challenges. The company plans to reduce costs by €2.5 billion annually in its mobility sector by 2030, resulting in thousands of worldwide job cuts, including many in Germany. However, layoffs due to operational reasons in Germany are contractually excluded until the end of 2027; the exact number and locations of additional job losses remain unspecified but are expected to be in the thousands.

As the IAA Mobility auto show continues, it offers a snapshot of the industry's current state and future direction, with a focus on software updates, new sensors and assistance systems, more efficient electronics, sustainable materials, and innovative technologies like "by wire" steering and braking. Federal Chancellor Friedrich Merz (CDU) is expected to attend the opening of the event, underscoring its importance in the automotive world.