With many government aid programs for the automobile sector, such as Germany's cash-for-clunkers scheme, now being run down, the industry is looking for ways to boost car sales in the future. A switch to more fuel efficient, greener cars is one avenue that manufacturers are exploring.

"Innovation is the way out of the crisis", said Matthias Wissmann, head of the German VDA auto federation that organizes the show.

The International Automobile Exhibition (IAA), officially opens to the public on Thursday, but car makers have already started unveiling their products to the press.

Abuzz with electric models

Many major manufacturers are presenting prototypes of electric cars. Among the eagerly awaited roll-outs are one from BMW's Mini unit and a four-vehicle series covering the range from small urban to commercial models by Renault-Nissan.

"Electric vehicles will be seen on almost every stand," German auto expert Ferdinand Dudenhoeffer said, but adding that most of the vehicles will not be ready to go into mass production for at least a year or two, and their limited range may put off many car buyers.

Mercedes, Peugeot and Toyota will be among the manufacturers presenting fuel-cell and hybrid vehicles, which run on gasoline and electricity.

In a welcome distraction from the political wrangling over its future ownership, Opel will be unveiling the Ampera, a plug-in hybrid. Once its electric battery charge is exhausted a 1.4-liter petrol engine starts and runs a generator, providing the vehicle with a total range of 311 miles (500 kilometers).

Like many auto executives, Ford's John Fleming said the cars of the future were likely to be run by a variety of power sources.

"Whether electricity and battery operated vehicles are the end game, I don't know," he said.

Joining forces

Another hot topic is cross-border cooperation. BMW Finance Director Friedrich Eichiner said his company was in "intensive talks" with French peer Peugeot Citroen on expanding joint work, in particular on components.

Falling prices and overproduction in Europe are among the risks ahead and some manufacturers may not survive the turmoil without powerful partners or cooperation agreements.

"The realignment of the car industry has only just begun," said analyst Willi Diez of Germany's Automobile Industry Institute.

The motor show is a slimmed down version of the last event two years ago and 750,000 visitors are expected to attend - down from nearly 1 million in 2007. Chinese car makers have stayed away because of cost reasons. Key Japanese manufacturers such as Honda and Mitsubishi have also bowed out.

The exhibition in Germany's financial capital runs from Sept. 17 to Sept. 27.

jg/afp/dpa

Editor: Sean Sinico