The 2017 Chicago Auto Show will see introductions from several major automakers aimed at boosting interest in product lines, although there will be few all-new products. The annual Chicago show often sees more truck than car reveals, and this year is no exception.
IHS Markit Perspective:
Significance: The 2017 Chicago Auto Show this month includes reveals from Ford, Dodge, Hyundai, Nissan, Chevrolet, Toyota, Subaru, and Mitsubishi.
Implications: The Chicago Auto Show enables automakers to reach a strong consumer base and is increasingly used as a platform for showing special editions and trim packages meant to generate enthusiasm and excitement for various model lines. The show tends also to see more reveals by mainstream brands than premium brands. Compared with the buzz on future products that surrounds the CES and the NAIAS exhibitions in January, the Chicago show is firmly grounded in the here and now.
Outlook: As the platforms and options for introducing new products continues to increase, automakers look for the opportunities that maximise media and consumer coverage, as well as target specific audiences. The Chicago market is the fifth largest in the country, accounting for 3.2% of total US registrations in January–November 2016, according to IHS Markit data. For 2017, the focus at the Chicago show is on today's cars and products that consumers can have in their driveway by the end of the year. IHS Automotive expects to see products that drive interest and enthusiasm for specific product lines, including special editions, line extensions, and unique models.
The annual Chicago Auto Show this month (11–20 February) will include reveals from Ford, Dodge, Hyundai, Nissan, Chevrolet, Toyota, Subaru, and Mitsubishi – only a handful of the more than 40 brands with offerings in the US market. The most significant introduction at the show, which begins with media preview presentations on 9 February, is the all-new Ford Expedition, on which IHS Automotive is providing a separate report.
The Chicago Auto Show enables automakers to reach a strong consumer base and is increasingly used as a platform for showing special editions and trim packages meant to generate enthusiasm and excitement for various model lines. The show tends also to see more reveals by mainstream brands than premium brands. Compared with the buzz on future products that surrounds the CES consumer electronics expo and the North American International Auto Show in January, the Chicago exhibition is firmly grounded in the here and now.
General Motors
At the 2017 Chicago show, General Motors (GM) will make news with its Chevrolet brand only. Chevrolet will announce the Redline series, which will be offered on eight model lines for the 2018 model year. This production series evolved from the concept shown at the 2015 Specialty Equipment Manufacturer's Association (SEMA) show. Vehicles of the 2018 model-year to be offered in the Redline series include a Cruze sedan and hatchback, Malibu, Camaro coupe and convertible, Trax, Equinox, Traverse, Colorado, and Silverado Double Cab and Crew Cab.
Redline treatment includes black wheels with red hash marks, black nameplates with a red outline, blacked-out grilles, and black Chevrolet bowtie logos. Other design cues will be specific to the given model; for example, the Silverado and Colorado Redline trucks receive red tow hooks, while the Camaro Redline incorporates black hash marks above the wheels, reminiscent of the Corvette Gran Sport model. According to a Chevrolet statement, Silverado Redline versions will be the first in the series to be available for purchase, although orders may be placed for each model version now. Chevrolet will introduce the Redline models gradually, but all vehicles will be available by the end of this year. Chevrolet's US vice-president of sales, Brian Sweeney, said, "Since the introduction of special editions on vehicles like the Silverado and Camaro, vehicle average transaction prices have increased, time to turn has decreased, and conquest rates have risen."
FCA
Fiat Chrysler Automobiles' (FCA) most interesting news at the show is about the Dodge Durango SRT model (see United States: 7 February 2017: Chicago Auto Show 2017: Dodge to introduce Durango SRT). This edition does offer performance as well as design upgrades, including adding a 475-hp 6.4-litre V8 engine. The Durango SRT is a big contribution in changing Dodge into a performance-oriented brand, which FCA said was the intention back in 2014. The Durango SRT will sit nicely alongside the Charger and Challenger SRT products, carving out a position between practicality and fun. The model is a response to the market's demand for utility vehicles and appetite for limited editions. On the basis of IHS Automotive's first look at the product, the Dodge Durango SRT is well executed and is another example of the company's ability to deliver products perfectly aligned with brand identity, when that identity is well defined.
FCA will also show enhancements to the Ram truck line, although these do not have the impact of the Durango SRT. The Ram 1500 receives a new Sport variant, with monochromatic exterior cues to "make it an appealing alternative for truck enthusiasts", says the company. The 1500 Sport will be available with either a 3.6-litre Pentastar V6 or a 5.7-litre HEMI V8 engine, in regular, quad and crew cab configurations. The content will include heated high-back bucket seats with full centre console, heated steering wheel, halogen projector headlamps, and body-color grille, front fascia, mirrors, and rear bumper. Ram is also introducing the Copper Sport limited edition, which is special through its Copper Pearl exterior paint, body-colour grille, and black-decaled Sport performance hood, among other black exterior cues. The colour theme extends to the interior as well. Truly a limited edition, Ram will build only 3,000 of the Ram Copper Sport trucks, and only on crew-cab V8 models; the starting price is USD45,630.
Nissan
As with other automakers at the show, Nissan is focusing on high-impact trim levels, although it is also rumoured to be showing the King Cab Titan. Nissan is expanding its Midnight Edition equipment package to the Sentra, Altima, Maxima, Rogue, Murano, and Pathfinder. The package, available immediately, was first available on the Maxima SR sedan. The Midnight name comes from its black wheels, spoiler, mirror caps, and special floor mats. As it is applied to cars and utility vehicles, Nissan tweaks the enhancements so they are the most appropriate ones for each model.
In a statement, the senior vice-president of Nissan North America sales and marketing said, "The idea of expanding the availability of the Midnight Edition package was driven by customers who loved the blackout treatment on Maxima SR ... the six models offering Midnight Edition packages account for more than 75% of our US sales." Nissan says that 85% of buyers choosing the Maxima SR opt for the Midnight Edition.
Other automakers
Subaru is introducing a mid-cycle enhancement of the Legacy sedan and Mitsubishi is revealing repackaged equipment on the Outlander Sport in a 2018-model-year-only Limited Edition. Both companies released much of the detail on these products ahead of the show.
Volkswagen (VW) continues to use auto shows to drive buzz around and interest in the upcoming Atlas three-row utility vehicle. Harking back to the days of VW camper vans, the company has created an Atlas Weekender concept, with 18-inch wheels, carrier roof rails, and wheel-to-wheel sidesteps and an Urban Loader roof-rack-mounted cargo box, which expands to provide 17.7 cubic feet of storage space.
While Lexus will display the all-new LS sedan and LC coupe at the show, the only significant news, at the time of writing, from luxury brands is expected to come from Infiniti. For the 2016 model year, the company introduced a Signature Edition of the QX80 full-size sport utility vehicle (SUV), and the trim is being updated and renewed for the 2018 model year, as well as being applied to the Q50 sedan, according to an Infiniti press release. The new versions will take their first bows at an auto show at the Chicago exhibition.
We also expect that Hyundai will introduce the latest Elantra GT hatchback and Toyota will reveal new packages for some of its trucks. IHS Automotive will report on the details of these as they become available.
Outlook and implications
As the platforms and options for introducing new auto products continues to increase, and automakers look for opportunities that maximise media and consumer coverage, as well as target specific audiences, the Chicago Auto Show has seen its role decline over the years. However, the Chicago market is the fifth largest in the country, with a wealth of customers – in November 2016, the Chicago area accounted for 3.16% of all new-vehicle registrations, according to IHS Markit data. As a result, the show remains significant from a consumer perspective and is well attended by media outlets.
The Chicago Auto Show also tends towards more mainstream brand introductions, and 2017 is no exception. Recent premium brand vehicles introduced at other shows will be on display, but no specific news from luxury brands is expected. While the Chicago area is significant in terms of buying power, IHS Automotive registration data from January–November 2016 indicates 86% of registrations in the area were non-luxury vehicles and only 14% were luxury brand vehicles. By comparison, registrations of luxury vehicles accounted for about 27% of all vehicles in the same period in two areas in the US state of Florida. The third-highest rate of luxury registrations was in New York, at about 23%. Compared to the national level, Chicago does see higher penetration of luxury vehicles, as luxury registrations made up only about 12% of all registrations nationally in January–November 2016.
The most significant and extensive introductions at the 2017 Chicago Auto Show will be the Ford Expedition, the Hyundai Elantra GT, and the Subaru Legacy facelift, as well as the addition of the King Cab version of Nissan Titan, assuming the expectations prove accurate. At the time of writing, full details of the Elantra are not available. Nissan's, Chevrolet's and FCA's introductions at Chicago are, along with Mitsubishi's Outlander Sport Limited Edition, among the simplest product updates. They are not likely to make a notable impact on overall sales volumes, but provide the opportunity to improve profit margins through efficient content packaging and transaction prices. They also offer the chance to build up a more emotional connection with owners, by offering a package that may feel a little special compared with the standard fare.
There is commonality among the special editions from Ram, Nissan, and Chevrolet. These products feature design cues suggesting customisation of the product, without creating unsustainable production complexity at the automakers' plants. Generally, performance is not improved by these special editions, whether towards sporty performance or efficiency; these are designed largely to be cosmetic packages. GM and other automakers will continue this strategy as long as they can leverage them into increasing transaction prices more than costs and to increase customer satisfaction and contribute to improving brand loyalty. This strategy is also one that plays well in a mature, slow-growth market in a solid economy, such as the United States. When consumer confidence is down, typically the economy is down, and interest in the flair of products tends to decline in favour of interest in value. These packages do largely offer both flair and value in line with current consumer demand, however. In most cases, for consumers, these packages bundle popular content at a more accessible price.
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.