Los Angeles Auto Show 2008: California-Oriented Product Dominates Introductions

The 2008 Los Angeles International Auto Show gets under way today, despite an industry in turmoil and the prospects of a collapse of the domestic industry dominating the news headlines. The show this year has a decidedly mixed message, with the latest high-horsepower sports cars mixing with newly arrived fuel-efficient vehicles that more resemble the interests of the California market itself. What follows is a run-down of the various introductions expected today from the automakers that have chosen to participate in the show. Notably absent: General Motors (GM), which pulled its scheduled news conference earlier this month, and cancelled the introduction of the new 2010 Buick LaCrosse and Cadillac CTS Coupé for the LA show. Instead, it will debut the Buick at the North American International Auto Show in Detroit in January 2009; the Cadillac has not been given a published introduction date at present.

• Nissan: Bookending this year's show are two iconic sports cars, the first coming from Nissan in a form of the new 2010 Nissan 370Z. The Z now features a 3.7-litre, 330-hp V6, significantly more powerful than the outgoing 3.5-litre model, but features a smaller, lighter platform that is an evolution of the FM architecture used for the previous 350Z. The new "E-platform" is set to see duty in Nissan's Infiniti line-up as well, underpinning the next G-coupé and sedan, FX and EX crossovers, and M-sedan as well. Nissan is also unveiling the Cube subcompact to the world, with the new generation set to be introduced to North America for the first time. The boxy five-seater front-drive minicar will be priced under US$20,000 when it debuts, going on sale alongside Nissan's Versa subcompact.

• Ford: Ford has the other iconic sports car introduction at the show, with the new 2010 Mustang making its debut. The new Mustang features slightly revised sheet metal but a significantly upgraded interior, with higher quality materials, improved construction, and more amenities than the Spartan outgoing model. Horsepower on the 4.6-litre V8 featured in the GT is increased to 315, up from 300 on the 2009 model, while torque is rated at 325 lbs./ft., up from 320. The base model's 4.0-litre V6 remains unchanged. The new Mustang will be offered in coupé, convertible, and novel glass-roof variants. But, like Nissan, Ford is tempering the introduction of the Mustang with some responsible actions as well: the new Ford Fusion and Mercury Milan Hybrids. These are Ford's first full-hybrid sedans, using the system from the Escape/Mariner crossover utility vehicles (CUVs) to achieve significant fuel economy gains, reportedly besting the Toyota Camry Hybrid by some 5 mpg highway. Both cars will feature restyled interior and exteriors for 2010, but the Hybrids will come with a novel LCD instrument cluster that is reconfigurable for varying degrees of data delivery. Both will go on sale at the beginning of 2009.

• Mazda: The Japanese automaker is set to announce the global unveiling of the new Mazda3 sedan. A mild reworking of the outgoing 3, the new model should represent a restyling and freshening, but no real upgrades in terms of technology or efficiency. The popular vehicle will continue to offer significant upgrade options such as xenon headlights and all the various bells and whistles for consumers to choose from.

• Luxury Automakers: A slew of new luxury vehicles and convertibles are being unveiled at the show. Ferrari is set to debut its California hard-top convertible, making its first appearance at a North American show. Both Lexus and Infiniti are expected to unveil their latest convertibles as well, with Lexus debuting an IS convertible variant and Infiniti launching the new G37 convertible. Bentley is debuting a special edition of the Azure, while Lexus is also set to introduce the newly freshened version of its best-selling RX crossover.

Outlook and Implications

Despite the turmoil going on in Washington on the East Coast, the mood on the West Coast is still one of excitement about the auto industry. This LA Auto Show provides some important new introductions for the industry, but the vehicles being unveiled are frankly very well suited to the California market, one that values both fun and frugality. On the fun side are the iconic sports cars from Ford and Nissan, both the Z car and the Mustang are very popular with Californians, given that the climate generally makes such vehicles usable year-round. It is interesting to note though that while horsepower numbers are creeping up for both of them, the new vehicles also show increasing signs of environmentally conscious design. The new Z is lighter and smaller than the one it replaces; the new Mustang is 12% more aerodynamic, resulting in better efficiency.

On the other end of the "responsibility" scale, small, fuel-efficient vehicles continue to make debuts in the U.S. market, despite fuel now dropping to under US$2.00/gallon throughout much of the country, less than half of what it was just six months ago. The Cube has been a popular B-class car in its home Japanese market for many years, but Nissan has not brought it to the United States until just now. The success of Toyota's boxy and diminutive Scion xB (a U.S.-market version of the Toyota home-market bb) almost certainly played a part in the decision to import the new Cube from Japan; more interesting is that this vehicle is likely to form the basis of a new Chrysler subcompact expected to arrive from Nissan sometime in 2010, and likely resembling the also-boxy Dodge Hornet concept car. Mazda's new 3 should prove popular, as the last one continues to be in high demand given its very respectable combination of high-quality feel, top-notch driving dynamics, and reasonable price.