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Jeep, Lincoln, Honda and Hyundai are adding new vehicles to
their respective model lineups at the upcoming AutoMobility LA
expo. Other notable reveals are expected to include start-up
Rivian's upcoming pick-up truck and SUV models and a second EV from
Audi.
Trucks and SUVs
Among the most notable reveals will be the all-new Jeep truck.
Derived from the Wrangler, this has been one of the most
eagerly-awaited reveals. The vehicle, expected to be called
Gladiator, is closely related to the Wrangler and will be a
lifestyle truck, prioritizing exceptional off-road capability with
competitive towing and payload capacities. The Jeep truck will
compete in the mid-size pick-up segment in the US--and the US is
expected to far and away be the most important market for this
product. The Jeep truck will provide new competition for the
lifestyle-oriented versions of traditional mid-size pickups, and an
alternative for truck buyers looking simply for something different
and yet functional.
In Los Angeles in 2018, Honda will reveal a two-row SUV and
revive the name Passport, while Hyundai's lineup will grow to
include a three-row SUV called Palisade. The new products fill
potential white spaces in the respective OEM lineups. The Passport
will sit between the CR-V and the Pilot, while the Hyundai Palisade
will be at the top of the brand's SUV range. For Honda, the
opportunity to improve overall volume is more attractive than
potential risk for cannibalization of either CR-V or Pilot.
Passport gives Honda an entry better sized to compete with the Ford
Edge, Chevrolet Blazer, Hyundai Santa Fe, and Nissan Murano. The
Hyundai Palisade will take on the likes of the Ford Explorer, Honda
Pilot, Chevrolet Traverse, Subaru Ascent and Volkswagen Atlas,
expected to offer high grades of amenities and technology. The
Palisade is expected to be a strong three-row alternative for the
US market, though the brand is among the last to arrive; this will
make standing out in the crowd all the more difficult.
Lincoln is expected to show its all-new Aviator. Lincoln
revealed a concept version of the vehicle at the 2018 New York Auto
Show; it shares with the upcoming all-new Ford Explorer, which has
not been formally revealed. Aviator is Lincoln's second attempt in
this space, having offered an Explorer-based SUV from 2002 to 2005.
The Aviator will see Lincoln increase its shift from a
passenger-car to an SUV premium brand.
Luxury in LA
As Los Angeles is a trend-setting area and one of the most
significant markets for sales of luxury vehicles, the sector is
watched closely in LA. However, the luxury being introduced in 2018
will be mostly derivative versions of key models. One exception is
the all-new Porsche 911; though not Porsche's highest volume
product these days, it is iconic and has traditionally been the
purest expression of the brand. Porsche needs to ensure the iconic
sports car continues its legacy as well as possibly carefully use
the entry to provide a transition to an electric future, though
photos of the undisguised vehicle during testing suggest it will be
a highly evolutionary effort. Another exception is Audi's reveal of
the second of its full battery electric vehicles, the e-tron GT,
expected to take a sports car form. BMW will reveal the latest M
treatment for the 3-Series, as well as show several vehicles
revealed at off-auto show events in recent months, including the
X7, 8-Series Convertible, and Vision iNext. Mercedes-Benz is using
Los Angeles as a backdrop to reveal a track-ready version of its
AMG-GT super car. Volvo is taking an unusual approach and will not
feature a car, but push focus onto connectivity, the company's Care
by Volvo subscription model, and its vision for autonomous driving
(including the Volvo 360c concept). The approach aligns with
Volvo's current focus--and also that it's product cadence does not
align with a new car to debut at this event.
Electrification
As technology develops and increasingly stringent fuel economy
and emissions regulations come into play globally, alternative
propulsion and electrification is becoming part of the fabric of
the automotive industry, and is now a thread throughout auto shows
rather than a trend. At the 2018 Automobility LA show, the most
significant announcements in this area include a new truck and SUV
from start-up Rivian and an expected Mitsubishi concept, tipped to
be a result of collaboration in the Renault-Nissan-Mitsubishi
Alliance. Other electrification news from the expo is expected to
the Subaru Crosstrek PHEV, an electric version of the all-new Kia
Soul, which takes a reveal at LA and will also play up its utility
shape with a new, more rugged trim level. The Subaru Crosstrek is
this company's first effort into the PHEV space; application of the
powertrain solution to its best-selling US model provides an
opportunity for reaching more Subaru customers.
Cars
Automaker news on passenger cars at the 2018 expo is expected to
be overshadowed by SUVs, as has been the case for several recent
auto shows. However, Mazda will reveal the all-new Mazda3 at the
event. While in the US, Mazda3 sales have struggled against SUVs as
the well-received vehicle aged, globally it is the most significant
vehicle in the company's lineup. It will usher in an all-new
platform and an all-new engine for the company, and as such has a
key role in future product development. Toyota's new Corolla, which
took an international debut in Guangzhou, is expected to be on
display in LA.
Outlook and Implications
The number of significant introductions is modest, but varied.
Matching current and projected consumer buying trends, several
automakers are increasing their truck or SUV lineups with new
offerings. As electrification becomes a part of automotive
strategy, in response to regulatory trends globally, several LA
reveals feature key moves in this direction as well. As for
passenger cars, these will not steal the show, but IHS Markit does
expect some key reveals in this category.
In the US, sales of passenger cars have declined and light-truck
sales have increased, and automakers continue to alter vehicle
lineup offerings in response to an accelerating consumer trend. The
new trucks and SUVs are arriving in response to a longer-term trend
and are set to contribute to the acceleration of the shift--in
2023, IHS Markit forecasts the US market will see sales of light
trucks approach 75%, compared with an expected 69% in 2018 and only
49% in 2000. Excluding the recessionary years, the share of light
trucks in the US has been growing since 2000. Since 2015, when
light trucks accounted for 57% of US sales, new entries, low fuel
prices and increased consumer confidence have accelerated the
trend. This is reflected in the makeup of introductions at all auto
shows, including this Los Angeles event.
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The above article is from AutoIntelligence Daily by IHS Markit. Every working day, AutoIntelligence Daily provides about 30 articles focused on automotive news, events and trends. Get a free trial.
