New York Auto Show 2015: Mainstream brands stand out amid luxury products

The New York Auto Show displayed a number of mainstream products alongside the luxury headline-grabbers as this year's exhibition, which runs to 12 April, held the first of its press days yesterday (1 April). Among the most significant products for their brands on display at the show are the Chevrolet Malibu, Kia Optima, and Scion iA and iM. However, in terms of volume, the Honda Civic Coupe Concept is the most significant.

Honda Civic

Honda has pulled the wraps off the Civic Coupe Concept in New York, providing one of the surprises of the show. Along with introducing a new, more aggressive styling, Honda confirmed that the Type R will be added to the brand's US line-up. The five-door hatchback, sourced in the United Kingdom, returns. The new Civic will be the first application of Honda’s Earth Dreams 1.5-litre VTEC turbo engine for North America, mated to short-throw 6-speed manual and CVT transmissions. Sales are set to begin this autumn. At the unveiling event, John Mendel, executive vice-president of American Honda, said, "The new Civic will be, flat out, the most dynamic, the most technologically advanced and the most refined and stylish Civic we've ever made. In every way, this will be an epic Civic."

Honda’s US research and design team led the development of the Civic sedan and coupe variants, the first time for a global Honda product, with production beginning in North America first and the plant in Alliston, Ontario, Canada, being the lead plant for the sedan. The engine will be produced in Anna, Ohio, United States, and the CVT in Russells Point, Ohio, with each plant receiving investment in new equipment, processes, and training.

Honda said the new-generation Civic has a longer wheelbase and a lower, wider stance than previous versions, with a longer hood and shorter front overhang ensuring a more athletic appearance. The Civic will also increase the level of automatic driver assist systems, with the production car featuring lane-departure warning, forward-collision warning, multi-angle rearview camera, adaptive cruise control, and a lane-watch system, as well as introducing Honda’s third-generation Advanced Compatibility Engineering body structures.

During the introduction event for the Civic, Mendel said that Honda's revisions include both a new platform and new Earth Dreams engines. He said the more rigid and lightweight platform "was created through a new global development approach", and brings new manufacturing technologies and methods, and he cited a new inner-frame welding system and increased use of modular assemblies as examples. "This new Civic will be hands down the most dynamic, the most technologically advanced, and the most refined and stylish Civic we've ever brought to market… This upsized Civic responds to a clear call from the market, especially from Gen-Y buyers, for a vehicle that is slightly larger, yet with a sportier, more aggressive feel. It makes good use of its larger dimensions." he said.

An indication of the importance of the Civic to Honda is that the company says more than 20 million have been sold globally, and more than 10 million in the United States. Honda’s Civic had been the brand’s second-best-selling vehicle for years, losing that title to the CR-V in 2013, according to IHS data, but it still accounts for sales of 325,983 units, and 23.7% of Honda’s US sales. With a new-generation Civic, IHS forecasts that in 2016 the model will again see sales exceed those of the CR-V.

Chevrolet Malibu

Chevrolet introduced the Malibu on 1 April, with the Spark following today (2 April). The new mid-size Malibu brings Chevrolet an attractive, premium-look mid-size sedan with a competitive feature set, which continues to compete in one of the most competitive segments in the US market. With the new-generation Malibu, Chevrolet has addressed many of the complaints against the previous version by moving to modern styling, as well as stretching the wheelbase by 3.6 inches to ensure a comfortable and accessible rear seating area. The mid-size sedan market remains larger than 2 million units annually, with entries from nearly all mainstream automakers. Although General Motors (GM) holds less than 10% of the segment, the company sells nearly 200,000 units per annum and IHS Automotive forecasts this will jump to 212,000 units in 2016. At that volume, GM is unlikely to out-sell any of the top models, but it is important that Chevrolet, as a full-line automaker, should be able to offer a competitive entry in the segment. While Chevrolet is able to bring forward a two-mode hybrid that advances the Malibu's powertrain, the updated Malibu largely plays catch-up with the rest of the market in terms of feature set. The Malibu has received enhancements to the drive assist programs, including optional front pedestrian alert (including last-second braking).

GM continues to deploy lightweight technologies, and offers a Malibu lighter than the outgoing car, and one which adds a hybrid powertrain to the available options list. The new car also incorporates OnStar 4G LTE and the new Teen Driver features (see United States: 25 March 2015: Next-gen Chevy Malibu to include Teen Driver feature; GM recalls 2013 to 2015 Malibu on sunroof issue – report), along with forward-collision alert, rear cross-traffic alert, and automatic parking assist as options. The standard engine will be GM’s new 160-hp, 1.5-litre turbocharged 4-cylinder unit with stop-start technology; however, a 2.0-litre engine producing an estimated 250 hp is optional. The vehicle will not go on sale until late into 2015, with the hybrid due on sale in spring 2016 (see United States: 26 March 2015: New York Auto Show 2015: 2016 Chevrolet Malibu includes hybrid option).

At the auto show, GM confirmed that the Volt-related hybrid system will deliver an estimated 48 mpg in the city, 45 mpg on the highway, and 47 mpg combined. GM’s Daryl Wilson, lead development engineer for the Malibu hybrid, said the ability to maximise city and highway performances is largely because of the two-motor drive system, adopted from the Volt. The two-motor system enables GM to optimise one motor for the demands of highway driving and the other for the demands of city driving, rather than having to set one motor for both situations. Implemented in the Volt, Wilson said that system was developed by leveraging lessons learned from the pick-up hybrid, which offered a two-mode system. He said, "We have two sweet spots, in essence." Wilson also said that, while similar to the Volt's, the Malibu’s system was optimised for propulsion, which uses a smaller battery and is still able to support electric-only power for driving up to 55 miles per hour, while the Volt's system is optimised to maximise energy storage in the battery. On the future of the eAssist mild hybrid stop-start system, Wilson said that it would remain within GM’s arsenal of electrification and would be offered in some applications.

The Spark is GM’s smallest US entry and is a more impactful product in other markets, including Europe, where it is the Opel Karl (see Switzerland: 4 March 2015: Geneva Motor Show 2015: Opel introduces Karl, Corsa OPC, announces OnStar in 2015 and United States: 10 March 2015: New York Auto Show 2015: Chevrolet to reveal new-generation Spark). What the Spark does for Chevrolet in the US is to provide a gateway into the brand for customers. While the Malibu serves the heart of the US market, the Spark is in the entry position. IHS forecasts sales of the Spark will be about 28,000 units per annum in future years, after sales of the current generation have been seeing dramatic declines.

Chevrolet’s second-generation Spark, whose design is optimised for international markets, has a much more grown-up look than the first generation and a slightly longer wheelbase, and dramatically increases the list of available driver-assist features. These include side blind-spot alert, lane-departure warning, and forward-collision alert, and the car also has Chevrolet’s MyLink colour screen. There is a clear trend towards deploying such features in lower-priced vehicles, as also evidenced by the technology on the two Scion models introduced in New York (see below) and Toyota’s recent announcement about bundling advanced driver assistance systems (ADAS) at a manageable price point (see United States: 31 March 2015: New York Auto Show 2015: Toyota, Lexus introduce low-cost automated brake packages).

Scion iA and iM

Scion is expanding its product line-up by two this year, a much-needed move for a brand starved of new products. The iM is a five-door hatchback, essentially the same as the European Auris, with a 137-hp, 1.8-litre 4-cylinder engine and 6-speed manual or 7-step CVT transmissions. Technology on the iM seems somewhat scarce, however, though it does receive a rear-view back-up camera. Scion promises, however, a manufacturer's suggested retail price (MSRP) of less than USD20,000.

The iA is based on the Mazda3 and built by Mazda in Salamanca, Mexico. As well as being offered in the US as the Scion iA, in markets in South America it will be the Toyota Yaris sedan. The iA’s relationship to the Mazda is clear, but the Mazda is a solid foundation. Scion plans to offer the iA at an MSRP of USD16,000, for a mono-spec model with standard laser and camera-based, low-speed pre-collision safety system. The iA has a 106-hp, 1.5-litre engine, choice of 6-speed automatic or manual transmission, and keyless entry on the standard equipment list.

Both of these products offer inexpensive automotive packages, though Toyota has used high-quality materials in the interior. Additionally, as the cars mirror their internationally offered siblings, which wear the Toyota brand in those markets, it is difficult to say that Scion has a distinct personality. Scion is relying on its marketing prowess and product positioning to find space in the market as an affordable entry with style. The brand’s role is to bring buyers in who may eventually move up to Toyota models.

Kia Optima

Kia’s Optima is its best-selling vehicle in the US market, and also one that competes in the most competitive segment, mid-size cars. Kia’s current-generation Optima was also the brand’s lead car in introducing its new design approach. During the vehicle introduction, Kia said that this generation will provide a symbol of the brand’s continuous refining of design and "obsessive attention to detail". As with the Malibu's, the Optima’s chassis is longer, wider, and stiffer than previously, improving handling as well as interior space. Kia Motors America's vice-president of sales and marketing said, "The all-new Optima retains the signature personality of its predecessor, but we’ve improved everything, providing more space, better ride and handling, more technology and greater refinement." In developing the design, the company said it was careful to strike a balance between keeping the current car’s personality and making the car modern and fresh. It has a slightly longer wheelbase (110.4 inches instead or 110.0) and is an inch wider than previously, addressing concerns about interior packaging.

Inside, the Optima offers improved materials choices for a better feel, with a driver-oriented cabin simplified for a cleaner look. Kia has also promised Apple CarPlay and Android Auto, for late availability, which were also expected with the latest Hyundai Sonata, which went on sale in summer 2014, but the systems still have not been made available. However, the updated eServices include features to help parents with teen drivers, including geo-fencing, speed alert, curfew alert, and driving score. These types of systems are becoming increasingly common in the mid-size sedan segment, largely pioneered by Ford’s MyKey system. Under the hood, the Optima will offer carry-over 2.4-litre GDI and 2.0-litre TDI turbo engines. First launched in the Hyundai Sonata, the Optima has the178-hp, 1.6-litre 4-cylinder engine turbo.

While Kia’s new Optima does have a more mature look than previously, it is also a bit more conservative and predictable, after the first generation shook up Kia’s showroom, which could end up slowing sales somewhat. We forecast the Kia’s sales will increase from 154,263 units in 2014 to 168,055 units.

Outlook and implications

These mainstream, heart-of-the market cars are predicted to collectively account for sales of about 787,000 units in the US in 2017. The Honda, Chevrolet, and Kia products update existing models, with the Civic representing the biggest leap forward. As additional entries, the Scion products have most opportunity to bring a notable jump in sales for the brand - but it is also questionable if they offer enough to stand out in a competitive landscape. In addition, most of the models are demonstrating the evolution of technology and its introduction in lower price-point vehicles, as ADAS becomes available at more price points.