Are International Auto Shows really disappearing?

  • Topic: Exhibitions, Strategy & Marketing

Auto shows have been for most of the past century the main promotion channel for automotive manufacturers. Especially in Europe and North America, the first exhibitions started at the beginning of the last century. It has been years now though since talks around the eventual demise of Auto Showshave started going around.

Nowadays, despite being still an important part of the industry, the Global Pandemic might have very well accelerated the change.

The advent of the internet and growing trends like live streaming, augmented and virtual reality, are offering OEMs a faster, efficient, and more cost-effective way to reach an even bigger audience. Many automakers have started adopting alternative solutions a while back. The Quarantine forced many of them to use it. So, are International Auto Shows going to disappear completely in favour of virtual events? 

WHAT IS THE CURRENT SITUATION FOR AUTO SHOWS?

The map below shows all the major Auto Shows and Concours d’Elegance organised since the dawn of the automotive industry. It does not include rallies and specialised events for tuning and other connected disciplines, but only exhibitions where automotive marques participate to present new models or promote existing ones.

INTERNATIONAL AUTO SHOWS WORLDWIDE

auto show map*Source: Auto Shows Official websites - Graph created by the Author

 

A few trends are immediately observable from it. The major concentration in Western countries is either around major cities or places with a long history of automotive heritage. Germany, Italy, France, and the UK in Europe, while in the US New York, Detroit, Chicago, and Nashville. In the East, developing countries such as China and India have fewer events but, thanks also to the huge population, a much higher average number of attendants per event. A contributing factor to this higher attention to Automotive shows are also the more unstable and less saturated markets if compared to those of Western Countries. China’s slowdown of the last two years could be partially offset by the growing EV segment.

shang*Shanghai Motor Show

More important is the data regarding disappearing exhibitions. 71% of those highlighted in blue in the map have been permanently cancelled in the last decade, the percentage goes up to 93% by adding two years more since the 2008 Financial Crisis. Over 90% of the cancelled shows are set in Western countries where up until now there has been more variety.

These data show a general trend developing in the era of the internet where small to medium-sized exhibitions are disappearing, and large ones are heavily affected, due to three main factors. High costs for manufacturers, changing audiences and new opportunities offered by technology.

This is confirmed by the number of automakers withdrawing every year from high-profile conventions. Ford, Hyundai, Jaguar Land Rover, Lamborghini, Maserati, Vauxhall/Opel, and Volvo from the 2020 Geneva Auto Show (that ended up being cancelled). All three German luxury brands, Mercedes, BMW, and Audi did not attend the North American International Auto Show in 2019. As for the Frankfurt 2019 show, along with a sharp decline in visitors an array of illustrious names did not participate, Ferrari, Fiat, Nissan, Peugeot, Renault, and Toyota. Results were so poor in fact, that the show will not come back in 2021, but will be reorganised in another city in a big rebranding effort.
 

MANUFACTURERS CHANGING STRATEGY

Participating in large auto shows with eye-catching stages, presentations and official press conferences can easily cost up to a few million. Just the slot at the Detroit North American International Auto Show conference alone is up to $1 million. Along with this, particularly in Western Countries, numbers of attendants at auto shows have at best remained stable lately. The general trend though is downward.

So, manufacturers are looking at diverse strategies. From participating in tech-related conventions like LA’s CES as the industry moves toward electric to creating bespoke private events.

polestar*Polestar at Geneva autoshow

A while back, a Tesla spokesperson in an interview with Reuters claimed that the company is more likely to look for “events where automobiles might be less expected”. This is the spreading general sentiment. Why OEMs should reserve huge amounts of money for shows only to share the spotlight with their competitors when they could be doing it completely on their own terms and still get the same media coverage?

This is especially true when it comes to unveiling dates. Some companies will pick events on a case-by-case basis according to their own model release schedule.

HOW THE PANDEMIC ACCELERATED THE CHANGE

The Covid-19 outbreak that affected the entire industry, stopped also the first wave of big international auto shows. Some of those planned for the second part of the year are being cancelled as well or being delayed at least.

The most notable in Europe was the Geneva Motor Show. The cancellation forced car manufacturers to come up with alternative solutions. The different approaches were interesting. While all scheduled a time for a live presentation online, the execution was different. British marques Aston Martin and McLaren, along with others, opted for an official unveiling at their respective headquarters, while Swedish automaker Koenigsegg, having set up its own stand at the Swiss event, took advantage of it for the live presentation.

huracan AR

Following the live shows, a major event for the luxury low-volume companies’ segment during the quarantine period has been the Lamborghini Huracán AR presentation I discussed in a previous article.

The significant audience attention obtained by these live events arranged with a relatively short notice surely gave automakers a good indication of online means potential for this kind of event. In March 2020, this has been a forced decision, but in the coming years, it could become a conscious choice.  

ARE INTERNATIONAL AUTO SHOWS GOING TO DISAPPEAR?

One likely consequence of this evolving environment is the further separation between market segments.

Low-volume manufacturers have already extensively adopted private events exclusively organised for their highly selected customer base. Most of them still take part in public events, even if the attended events are less than before.
Just a couple of weeks back, Lamborghini shocked the media confirming that it will not present any new model at public events again. The company will instead focus on private events and use online channels as the traditional motor shows do not reflect anymore the brand’s values.

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After the difficult 2020, with the virus outbreak forcing different routes, more companies could follow the example. Both Aston Martin and Bentley would have already spoken about skipping the 2021 Geneva Motor Show.

As for the rest of the industry, the same formula would not be sustainable, considering the higher number of models produced every year and the audience's attention. In this context, the shows will likely take a different direction.

They are still considered one of the best platforms for networking. But in the coming years, the focus will arguably shift more towards the potential customers attending the event with more interactivity and a higher technological integration rather than traditional unveilings and press conferences. These will be increasingly paired with strong online activity and daring marketing campaigns. Some OEMs like Mercedes have already understood the potential of this formula. Relevant innovations might also come from the East, where several shows consistently attract much larger audiences. Overall, if the change is adopted by others as well, the International Motor Show could change for the best instead of disappearing.

Universo Ferrari: into the Legend’s Galaxy

  • Brand: Ferrari
  • Topic: Exhibitions

ferrari sf90

Universo Ferrari is the exhibition that, with stunning scenography and the sound of the voices that lived this passion, shows every visitor the values and history of the brand. But most of all lets them experience what only a limited number of privileged people, part of the inner circle of this iconic brand get to enjoy.

For a short period of time Ferrari offered the opportunity to guests who got hold of one of their limited tickets, to visit this unique exhibition set in a structure specifically built for the event, right beside the Fiorano racetrack. 

After a quick ride on the bus from one of the entrances of the Ferrari factory through the town of Maranello we reached the Fiorano Circuit.

universo ferrari hall

Upon entering the building a few minutes are granted to get an audio guide and take some photos beside the shiny Prancing Horses and other logos shimmering in the low light.

The semi-dark room sets the mood for the following areas where the real exhibition starts. And it starts in the best way possible.  

The entire area is dominated by diffused red lights that make the atmosphere almost tangible. A corridor flanked by screens on both sides displaying graphics with a dominant red tone leads to a circular room. There in front of a huge curved screen on the back of the room sits the 2019 Ferrari Formula 1 car, the SF90.  

This is definitely the most powerful way to captivate the audience. A video briefly illustrates the history of the founder, and right after the audience can hear the real voice of Enzo Ferrari talking about his creations and the meaning they have for him.

Within the room, it is also possible to admire the first two GP trophies won in 2019 in the past few weeks by Charles Leclerc at the circuits of Spa-Francorchamps and Monza (maybe by now it will also be the addition of the one won in Singapore).  

So, while Universo Ferrari rightfully begins from the brand’s racing heart, the following areas explore all the different ‘souls’ of the company. The first is a smaller room that through projections and audio guide describes how the focus of the company, despite firmly preserving its heritage, is actually the continuous search for innovation.

Leclerc Grand Prix cups

Almost in contrast with what is shown in this room, the one right after is the ‘Ferrari Classiche’ area. A second side of the business showing the importance of preserving that mentioned heritage. The ‘Officine Classiche’ renovate classic Ferrari’s masterpieces through a strict process and only with original parts that ensure the car’s value preservation. The 250 GTO on display, which nowadays is officially considered an art piece and is worth several millions is a brilliant example.

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After admiring some beautiful classic pieces like the engine of a 308 GTB, sitting right beside the car itself, it is time to proceed to the next area. The new space goes back to the atmosphere set at the beginning of the exhibition. The whole room is nicely styled and dominated by red lights, while solemn background music mixed with the roar of Ferrari engines set the tone. Here, a path designed on the floor leads the visitor from the road cars represented by a Portofino and a limited edition 488 Pista Spider, to a smaller circular area behind a thin curtain at the centre of the hall where the pinnacle of road and track-focused cars meet: a LaFerrari Aperta and its counterpart FXXK Evo.  

Following the same path out of the circular area where these two Ferrari souls meet, the transition goes completely on the racing side. Here are on display three aspects of Ferrari’s racing: an F310B from the 1997 Formula 1 season, a 488 Challenge for the Mono-marque championship dedicated to its clients, and the 488 GTE that won the 24 Hours of Le Mans in 2019. Sitting right behind, in fact, is the actual trophy of the race.

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The last area is introduced by a famous quote from Enzo Ferrari: “La macchina migliore è quella che deve ancora essere costruita” (The best Ferrari ever is the one that has yet to be built). This hall, the largest of all, is constituted by different spaces. The main one which reproduces the structure saw at the 2019 Geneva Motor Show and, like at the show, serves to display various models. Among the well-known Portofino, GTC4 Lusso, 812 Superfast and F8 Tributo, one stands out: the SF90 Stradale, the first production series hybrid Ferrari. Displayed here in its two iterations: one in red as the standard version and one in grey equipped with the so-called Assetto Fiorano (Fiorano Setup). The latter includes various upgrades and lightweight parts (such as the carbon fibre wheels) to make it lighter and ensure a better performance.

Other points of interest are two dedicated rooms for the new models unveiled a few weeks back: the 812 GTS and the F8 Spider that bring to four the count of models unveiled in 2019 leaving just one out for this year. There is a walk in the back of the main hall that leads to a reproduction of a Tailor-Made space where clients customise their car upon ordering them with the widest range of options available.

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Finally, to make the experience more exciting and closer to that of clients and people close to the brand, in a small theatre it is also possible to enjoy a live presentation of the F8 Spider and seeing it arriving on the stage from behind dark panels after a proper introduction (slightly anticlimactic if someone has already seen the new model in the previous area, thus it is highly suggested to switch these two activities since there is no pre-established order).

One last treat upon exiting the large exhibition hall is the outdoor terrace where it is possible to gaze at the Fiorano racetrack, where everyone stopped at the balcony for a moment dreaming to see a roaring red car flashing by, as well as the first two members of the Icona Series, Monza SP1 and SP2.

monza sp2

Universo Ferrari is the perfect synthesis of the many faces of the brand. It brings every guest into the Legend’s galaxy and lets everyone perceive the history of passion that created this brand and made it what it is today as well as feeling the excitement of being a part of it. If you are not one of the lucky Ferrari owners, there are different ways to get to know the brand and its products, but this is the best one.

Ferrari’s tribute to the most successful driver of all time

  • Brand: Ferrari
  • Topic: Exhibitions

On the 3rd of January, the Museo Ferrari in the Italian city of Maranello opened a special exhibition to celebrate the 50th birthday of the German driver six years after the skiing accident.

I drove from Bologna, my hometown, on a cold morning just a day after the opening ceremony and jotted down my impression on what struck me as a special moment in Ferrari’s history.

On arriving in Maranello, one can instantly feel that something is profoundly different from many other picturesque small towns in Emilia-Romagna. And not just because of the big prancing horse standing at the centre of the first roundabout leading to the city.

maranello roundabout

With a population of fewer than 20,000, the town carries the weight and memory of one of the greatest and most recognised Italian enterprises, which still inspires the entire world. Here, Ferrari’s long history of records and successes feels more real than ever. Visitors, whether they are car enthusiasts or not, are amazed by the incredible legacy forged by a group of talented and most of all passionate people.

ferrari museum entrance

After parking, I reach the entrance of the museum where I am greeted by the red F1 car standing on the wall. After getting my ticket, I proceed to the exhibition starting on the first floor, because 'Michael 50' is only a section of the larger permanent exhibition.

Once again, I find myself catapulted back 70-plus years, in Italy still reeling from World War II, when it all started. It starts with a beautiful 250 GT Berlinetta SWB (Short wheelbase) in the Tour de France livery, a real legend that won the race for three years straight, from ‘60 to ’62, along with Le Mans for two years and many others.

The first hall is completed by a rare Moto Scuderia Ferrari, a 166 MM, and a timeline with photos and quotes from important moments in the company's and its founder's history. This setting introduces the theme of the exhibition.

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From there on, different halls show through the evolution of their cars the fascinating history of this company from different perspectives, the engineering (with engine evolution), the technology, and the design, as shown by the body shell of the light and nimble Monza 750 of 1954 which also won different races in the same year and inspired the latest models unveiled by the house of the Prancing Horse, the beautiful Monza SP1 and SP2.

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Starting from old classic GTs up to modern models and to track-focused special editions like the 2018 488 Pista, the aggressive, more powerful version of the 488 GTB which already won an award as Top Gear Magazine’s “Super car of the year” and whose V8 720bhp engine won the “Engine of the year” award as well.

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Then, walking through the legendary cars of Maranello you reach the entrance of the first hall dedicated to the best driver in Ferrari's history. Like for the rest of the museum, this special exhibition goes beyond just the brand success to show also Schumacher's personality, dedication to the sport, and his great achievements not only in racing but also in helping Ferrari's road-legal cars development. That is in fact the aspect highlighted in the first of the two rooms dedicated to Michael's birthday.

Here are displayed the two cars that he helped to develop, the 430 Scuderia and the California. Along with these, numerous photos showing the important moments of his career and his work in Maranello are paired with inspirational quotes from Schumi, as fans still call him, that reflected his work ethic, dedication, and determination.  

The exhibition is organised with the Keep Fighting Foundation, a non-profit initiative celebrating the attitudes to 'Keep Fighting' and 'Never Give Up' inspired by the F1 Champion organisation and operating in numerous charitable projects developed directly or through partnerships.

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Continuing to the second room, you reach the main area dedicated to this great racing driver. In hindsight, I am somewhat glad to have gone there alone and would suggest others do the same to fully appreciate such a powerful atmosphere. Many are in fact the people that by entering this ‘shrine’ remain almost in religious silence.

On the wall stand his astonishing records, 7 World Championships, 91 race victories, 155 podiums, and more. On the right side, an interesting display houses all the Ferrari F1 cars in tiny and incredibly detailed models. On the other, a timeline of all Ferrari’s World Champions, from Ascari to Raikkonen, including each one’s photo, helmet, and car model. As you raise your head you find that the whole wall is completely surrounded by Grand Prix Trophies.

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Finally, the circular area, the real heart of the exhibition. The Eight most significant F1 Ferraris of the Michael Schumacher era. The first one of 1996, the F399 of 1999 when Michael missed the Title because of an accident and a broken leg in Silverstone but that brought the Constructor Championship back to Maranello, then the 5 titles, F1-2000, F2001, F2002, F2003-GA, and F2004 (Schumacher and Ferrari's most winning car), and last the 248 F1 of 2006, Schumacher’s last season for Ferrari before his first retirement (cars in order in the photo below). The setting is complemented by screens showing videos of his successes and powerful music that make the whole experience even more memorable.

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I must have spent at least 40 minutes just in this room, remembering the Sundays at home watching Grand Prix. After a while, I proceeded toward the last bit of the museum and then the exit, with the music still resounding in my ears. I got in my car and drove back to Bologna.

All in all, this exhibition cherishes the achievements of a great sportsman, that changed completely the approach to this discipline and the image of racing drivers, affecting deeply also the future generations. His determination and clear goals vision are among the best example and strongest inspiration that one can find in our modern society, and that is why everyone, enthusiast or not should pay a visit to Ferrari Museum’s ‘Michael 50’. You have time until April, don’t miss out!

michael schumacher quote"I've always believed that you should never, ever give up and you should always keep fighting, even when there is only the slightest chance." - Michael Schumacher

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