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Customer LoginsLos Angeles Auto Show 2016: Utilities continue to dominate product introductions
The media preview days for AutoMobility LA are on 15-17 November 2016. IHS Automotive expects a significant focus on utility vehicles complemented by a dash of luxury and news and discussions on mobility and connected car technology.
IHS Markit Perspective
- Significance: The 2016 Los Angeles Auto Show opens to the media on 15 November and to the public on 18 November. This year, the show changes its name to AutoMobility LA, suggesting more content on mobility services and connected cars. IHS Automotive has this preview of the event and will cover what happens throughout the week.
- Implications: As in previous years, the LA show hosts US introductions of vehicles first shown at European auto shows in preceding months. The global introductions, however, appear skewed heavily towards crossover utility vehicles (CUVs), demand for which continues to grow.
- Outlook: Introductions at the 2016 AutoMobility LA are expected to heavily skew towards utility vehicles, flavoured with some premium brands. It seems that very few mainstream cars will be on show. Overall, the LA show introductions follow recent industry trends, including the focus on mobility and its position in the wider automotive industry.
The 2016 Los Angeles Auto Show, which has been renamed AutoMobility LA, opens to the media on 15 November and the public on 18 November. The show will significantly focus on crossover utility vehicles (CUVs) complemented by a dash of luxury and by news and discussions on mobility and connected car technology. In terms of mainstream cars, Nissan has indicated a NISMO product and Honda will show its Civic Si prototype. In both cases, the vehicles are performance-oriented updates to mainstream cars and additive trim levels to relatively fresh core products.
Utility vehicle introductions
Consumer demand for utility vehicles is driving another round of introductions at several price points. Alfa Romeo offers that premium brand's first sport utility vehicle (SUV), while C-segment heavy-hitter Honda CR-V is expected to make its auto show debut (see United States: 14 October 2016: Honda reveals fifth-generation CR-V ahead of sales start in December). Mazda is showing a moderate change for the CX-5. Jeep brings a Compass replacement. Mini is displaying its largest product to date in the Countryman. With an all-new Chevrolet Equinox arriving in 2017, the standard compact CUV segment is showing a significant level of product activity in the coming months. Joining the B-segment SUV market will be the Toyota C-HR and Ford EcoSport. Volkswagen is expected to display its Atlas, a new seven-seat SUV that had its reveal in October. A concept version of Subaru's upcoming seven-seat CUV is expected as well, although the production vehicle is not due until 2018. Land Rover is introducing the latest Discovery to the US market, after its global introduction at the Paris auto show in September. IHS Markit will take a closer look at several of these here.
Alfa Romeo SUV
The Alfa Romeo SUV will be the third element of the automaker's revival and restoration as a brand in the United States, and arguably the most important for the US market. The SUV, rumoured to be named Stelvio, will get a platform from the Giulia compact sedan and is expected to offer the 280 hp 2.0-litre engine from the standard Giulia. For the US market, the Giulia and speciality sport coupé and convertible 4C set the tone for Alfa's presence. Alfa said that its spirit is 'la meccanica delle emozione' (the mechanics of emotions) and that the Giulia draws on the company's lightweight, performance sedan tradition. The SUV, however, will access a more popular segment and provide an opportunity for volume. The premium midsize CUV arena, where the Alfa SUV will compete, is the most popular premium price-class segment in the United States according to IHS Markit automotive data. The premium compact car segment, where the Giulia competes, is third. Premium compact CUVs outsell the sedan class as well. Revealing the all-new CUV at the Los Angeles Auto Show provides a nod to the premium market as well. This will be one of the most-watched introductions in Los Angeles. IHS Markit expects the vehicle to launch on the US market late in 2017.
Mazda CX-5
Mazda's CX-5 takes a moderate change for 2017 model year (MY). The CX-5 will continue on its current SKYACTIV platform, with powertrains also largely expected to carry over. Mazda said the change has "further refined every element of its design and technology to offer new dimensions of driving pleasure". The updated car may use a version of Mazda's new electronic control system, although that is not confirmed. Mazda's CX-5 sales have been flat through October 2016, despite segment sales growth. The segment is also expecting the new Honda CR-V, an all-new Chevrolet Equinox, and Jeep Compass this year, as well as relatively fresh Hyundai Tucson and Kia Sportage. The competition is increasing, and Mazda needs to retain its relevancy. Mazda will probably apply a similar formula to the CX-5 as the recent all-new CX-9, with a significant increase in interior materials and features.
Jeep Compass
The new Jeep Compass, which replaces both the Patriot and Compass, had its global introduction in Brazil. North American volume will be supplied by FCA's plant in Mexico. The vehicle will offer standard and off-road-ready Trailhawk models and take exterior styling reminiscent of the Grand Cherokee. IHS Markit projects that the North American Free Trade Agreement (NAFTA)-produced Compass will offer Fiat's 1.4-litre or 2.4-litre 4-cylinder engine options. The Compass is forecast to record sales of about 154,000 units in 2017. The new vehicle is expected to prove to be much more competitive from interior, feature, and drivability views. This is also the second Jeep product on a shared Fiat-Chrysler platform and will contribute to Jeep's transition to a globally produced and sold brand.
Toyota C-HR and Ford EcoSport
These two models join the standard subcompact CUV segment, which exploded in 2015 with five new entries. Sales, including from the subcompact CUV segment, are expected to stabilise in 2017 in the US market. The segment's US sales reached 651,000 units in 2015 and are forecast to increase to about 832,000 in 2016. However, we expect the segment to post sales closer to the 800,000-unit mark throughout the rest of the decade. New entrants will be facing a more competitive environment, with existing entries looking to hold market share.
Within Toyota's US range, the C-HR is forecast to account for about 3% of the brand's sales. The Ford EcoSport is expected to register similar US sales and account for about 2.5% of Ford's US sales. The Toyota was introduced in Europe earlier in 2016 and is being produced in Turkey. The EcoSport going on sale in the US is a facelift on an existing product, rather than an all-new entry.
Luxury in Los Angeles
The luxury market - both at premium and exotic price points - is strong in southern California and there is typically a strong showing at the Los Angeles show. For 2016, however, there are comparatively few all-new global introductions or luxury press conferences. The exotics (Bentley, Bugatti, Ferrari, McLaren, Rolls-Royce) are not expected to have displays, opting to reach consumers through special VIP events. Along with the confirmed non-SUV premium Alfa Romeo and Land Rover introductions there will be an expansion of the Porsche Panamera line. BMW is expected to show the X5 xDrive 40e, while Audi is anticipated to feature the convertible of the A5 and use the show as a backdrop for the Q5 introduced at the Paris show. Mercedes-Benz will show several AMG models already introduced, with an E63 AMG and GLE43 both expected. Another entry reported to be on Mercedes' agenda for Los Angeles is a Mercedes-Maybach product. Volvo is expected to show the V90 to the US market. Along with Audi and BMW, neither Cadillac nor Infiniti have scheduled press conferences. Cadillac is rumoured to be showing the Escala concept, while Infiniti may show its QX Sport Inspiration concept.
Mobility and the connected car
The Los Angeles auto show has incorporated a forum for discussing mobility solutions and connected cars for the past few years. With the 2016 show, the two elements are more integrated. The panel topics will include cyber security and artificial intelligence (featuring representatives from IBM Watson and Amazon Alexa). A mobility session will involve representatives from Daimler's Moovel and GM's Maven. Press conferences are scheduled from BMW's ReachNow and Hyundai. IHS Markit will cover and report on developments, with analysts on site from our technology, mobility, and forecasting group.
Outlook and implications
Introductions at the 2016 Automobility LA are expected to heavily skew towards utility vehicles, flavoured with some premium brand. In terms of mainstream cars, it appears very few will be on hand. LA show introductions follow recent trends of the industry, including the focus on mobility and its position in the wider automotive industry. According to IHS Markit automotive data, utility vehicles have captured a 38.8% share of the US market through October 2016, up from 36% in the same period of 2015. Including pickup trucks, light-truck segment sales reached a record 62% of the US market in October. IHS Markit expects business-focused announcements from the mobility conferences. These have scheduled more time to discussions than announcements, reflecting the nascent mobility space. IHS Markit is attending both product and mobility events and will provide ongoing coverage.
About this article
The above article is from IHS Automotive Same-Day Analysis of automotive news, events and trends, and is a deliverable of the World Markets Automotive Service. The service averages thirty stories per day and also provides competitor and country intelligence. Get a free trial.