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Honda Odyssey Leapfrogs Minivan Competition

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Has the new 2018 Honda Odyssey leapfrogged its competition the way Chrysler’s second generation minivans did in the early ’90s?  After spending several days with the Odyssey on the Big Island of Hawaii, the case can be made that the Odyssey is the best minivan out there.  Up until now, the clear leader was the new-for-2016 Chrysler Pacifica.  Its advanced styling, stow-‘n-go seating and available plug-in hybrid make Pacifica a persuasive choice in the minivan category.  Only the Honda Odyssey and Toyota Sienna are real competitors.  Other minivans like the Nissan Quest and Kia Sedona don’t have the volume to be mainstream players.  Ford and General Motors abandoned the minivan market years ago to concentrate on SUVs – a good move.

Odyssey a Cornerstone of Honda Brand  Honda has a relatively narrow and focused lineup for a mainstream brand.  The Honda Odyssey is one of its cornerstones.  The new 2018 Honda Odyssey is the fifth generation of the minivan.  The fourth gen Odyssey was with us for seven model years which is long for a Honda product.  Based on Honda’s Global Light Truck platform, the new Odyssey shares major components with the Honda Pilot crossover SUV and the Honda Ridgeline pickup.  From AutoPacific’s assessment, all three of Honda’s new truck products are fully competitive and compelling.  The new Odyssey checks most of the boxes to make it the best minivan available today.

Still a Soccer Mom Image  Lets talk about minivans a minute.  Minivans are the perfect vehicle for a family.  They carry kids, their friends and their stuff.  They are seen as suburban taxis driven by a mom schlepping her little darlings from LaCrosse practice to Little League to band practice.  When we note in focus groups of suburban mothers that they should be driving a minivan, most women strongly disagree.  When compared with the active image of even the tamest crossover SUV, the SUV wins and the minivan loses.  The soccer mom image of the minivan cannot be avoided.

2018 Honda Odyssey Elite

Evolutionary Design With Bold Cues  The new 2018 Honda Odyssey comes pretty close to avoiding the minivan image as does the Chrysler Pacifica and the “swagger-wagon” Toyota Sienna.  The styling of the new Odyssey is evolutionary but more  interesting than before. Odyssey continues with the chrome “lightning bolt” window surround that has been a distinctive design cue since the previous generation.  Now, however, the bodysides get a few more curves to add more personality to the design.  The front end design is a swath of brightwork similar to the Pilot and Ridgeline.  This look is being adopted throughout the Honda lineup and adds interest to the Honda “face”.

Magic Slide Seats Compete with Chrysler’s Stow-‘n-Go  The interior is very comfortable and accommodating for any size family.  Gone is any pretense of a walk-through from the front seats to the rear.  There is now a very usable console including excellent cupholders and a deep console box.  Honda has made interior flexibility one of its hallmarks.  The very small Fit and HR-V crossover SUV have interior flexibility that can accept many different sizes of cargo.  The Odyssey “Magic-Slide” second row seat counters the Chrysler Pacifica’s stow-‘n-go rear seating design.

In the Honda design the individual second row seats can be moved from side to side and fore and aft.  The center position is good for children in child seats which can be fixed toward the center of the vehicle – a good location in a side impact.  One of the rear seats can be positioned in the center and pushed forward so the driver and/or front seat passenger can tend to a baby in a child seat.

2018 Honda Odyssey Center Stack w/Apple CarPlay

Ergonomics Top Notch, But Nav Screen Display Needs Work  Ergonomics are always a Honda forte and the 2018 Honda Odyssey does not disappoint.  The instrument cluster gauges are bright and easy to read.  The center screen is large and bright with navigation by Garmin.  I found the information display on the screen to be hard to read because the fonts were so small.  While Garmin provided the guts, Honda designed the display graphics and could have made the font size bigger, contrast better and included the city name in addition to the road name on the display.  (Why is it so hard to get the city name on the display?  Everyone should do it!).  I ended up using Apple CarPlay maps and streaming in lieu of the Honda system.

Loaded Odysseys Want for Nothing  95% of the 2018 Honda Odysseys (EX and above) will have the full suite of Honda’s safety features standard including Honda Sensing and blind spot monitoring with cross traffic monitor.  The top level Elite model includes acoustic windshield and side glass that Honda contends makes the vehicle the quietest minivan on the market.  In fact, when you opt for the Odyssey Elite, there is very little missing from its equipment list.

Engine Upgraded – 10-Speed Transmission  The 2018 Honda Odyssey is powered by a 280-horsepower 3.5L single overhead cam V6.  The additional 32 horsepower over its predecessor gives the new Odyssey the power to pass at will.  On a long stretch uphill climb on the Daniel K. Inouye Highway on the Big Island, the engine strained a bit.  On anything but steep grades the power is adequate.  The Elite model includes a 10-speed automatic transmission – all others have 9-speeds.  The shifting is transparent in the 10-speed model.

~$30,000 – $47,000 – Is There Room for a +$50,000 Model?  The base price of the 2018 Honda Odyssey is $29,990 with a $940 delivery charge.  The Elite model is $46,670.  Honda pays particular attention to vehicle price points as do all manufacturers.  As a high volume, mainstream brand keeping prices affordable is paramount.  However, some automakers are wrestling with ways to charge even more for their top of the line products because buyers want more stuff.  The Odyssey Elite is $46,670 – $3,230 below $50,000.  Could there be a place for a $50,000 entry in the very price-conscious minivan market?  While Honda competitors are moving mid-size SUVs into the low $50,000 range could there be a place for an even higher spec Odyssey?  It would be interesting to do the analysis.


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“Trucks” to Continue to Outsell Cars – XSUV Segment

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500 wide Car Truck Sales 1987-2021500 wide Car Truck Mix 1987-2021AutoPacific, an automotive specialist research and product planning consultancy, forecasts that trucks, including XSUVs will be about 60% of the market for the foreseeable future.  In fact, reading the crystal ball for the next five years, this percentage of the mix may be low.  The charts above detail how cars and truck sales and market penetration have evolved since 1987 and the forecast for the future.

The hottest product segment in the American light vehicle market is the crossover SUV (XSUV).  A crossover SUV can be as large as a Chevrolet Traverse or as small as a Chevrolet Trax.  There are dozens of XSUVs in between.  And there will be more.

The XSUV segment has become so hot because this type of vehicle corrects the criticisms buyers had of traditional SUVs which sold very well, but were not optimal.  Buyers wanted products that were not hard-core off-roaders, but more civilized and city friendly.  The SUV market exploded in the early 1990s with the introduction of the Ford Explorer and Jeep Grand Cherokee.  It wasn’t until 1996 that the crossover SUV began slipping into the marketplace.  First the Toyota RAV4 and Honda CR-V appeared.  They were followed by the luxury crossover RX300.  Clearly the manufacturers were listening and reacting.

Here are just a few of the things we know about the evolution of the SUV market over the next five years…

Cadillac  Cadillac states that it has too few XSUVs (one, the upcoming XT5) and wants to add two or three more to its lineup while adding one more car as a range topper between now and 2020.

Buick  Buick is adding the small Envision XSUV to its lineup this Spring.  Envision is assembled in China.

FCA Drops Cars to Add XSUV and Pickup Capacity  Fiat Chrysler Automobiles is dropping its Chrysler 200 and Dodge Dart in favor of more capacity for XSUVs and pickups.  The Ram pickup will take over the FCA Sterling Heights, Michigan Plant when the Chrysler 200 is dropped.  FCA’s huge Belvidere, Ilinois plant will be populated by XSUVs when the Jeep Compass and Patriot plus the Dodge Dart fade away.

Toyota Pushing RAV4  Toyota Motor Sales has stated that they would not be surprised if the RAV4 XSUV overtook the Camry mid-size car as its best selling product.  Camry was the best selling car in the USA in 2015.

Lexus will add a 3-row XSUV above the RX350 in the next few years.500 wide SUV XSUV Sales 1987-2021500 wide SUV XSUV Mix of SUV 1987-2021

 

The charts above show the impact of crossover SUVs on the light truck market.  Huge volume increase and market share increase.

Hyundai Aggressively Adding XSUV Capacity  Hyundai is replacing 50,000 units of car capacity in its Montgomery, Alabama assembly plant with the Santa Fe Sport.  That drops capacity for the Hyundai Sonata and Elantra from 400,000 to 350,000 units per year.  Hyundai admits that they underestimated the demand for XSUVs years ago.  This capacity move reacts to market demand and dealer pressure to get Hyundai dealers more XSUVs that are easier to sell and require less incentives and discounting.

Hyundai will add 45,000 units to its Tucson compact XSUV volume this year.  Built in South Korea, Tucson has been limited because it is popular around the world and the vehicle was capacity constrained.

Hyundai also recognizes there is a hole at the bottom of their XSUV lineup and are adding a sub-compact B-Segment XSUV to fill that hole.  There is a possibility that a smaller A-Segment XSUV will replace the Hyundai Accent hatchback.


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2015 Chrysler 200 Goes in a Different Direction

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2015 Chrysler 200S

You know that last time you rented from Enterprise and you were really hoping to get a Nissan Maxima or maybe even a Chevy Impala?  Then you come to find out they “upgraded” you to a Chrysler 200!  Yay!  The Chrysler 200 and Dodge Avenger have ruled the rental car roost for years and Chrysler is finally ready to shed that image by dropping the Dodge Avenger and bringing the 200 up to competitive standards for the 2015 model year.


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Reflections from the Detroit and Chicago Auto Shows

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Has the 2014 Auto Show Season been a bust so far? Well, with the exception of the all new Ford F-150, there has not been much to justify all the fabricated hoopla at either the North American International Auto Show in Detroit or the Chicago Auto Show. You can almost count the significant new news on one hand. In order of importance to the United States market and their manufacturers here are the most significant: Ford F-150, Chrysler 200, Honda Fit, Hyundai Genesis, Mercedes C-Class in Detroit and the Subaru Legacy in Chicago. OK, that is six significant entries. Others that might have made the list are the GMC Canyon mid-size pickup and the Lexus RC-F coupe. The Detroit Show ended up focusing on performance models or concepts like the production-ready Subaru WRX STI, Toyota FT-1 super car, Chevrolet Corvette ZO6 variant, BMW M3 sedan and M4 coupe, Cadillac ATS coupe. The only other vehicles of note at the Chicago Show were the 2015 Lincoln Navigator with new front and rear styling and the Mercedes GLA compact crossover SUV.


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AutoPacific’s 2013 Ideal Vehicle Awards Are In – Trucks

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Background of AutoPacific’s IVAs:  AutoPacific’s Ideal Vehicle Awards for 2o13 are given to brands and vehicles that best meet the expectations of their buyers.  The person driving the truck does not want it to be bigger or more powerful or have better info/entertainment systems.  Based on the results of over 52,000 respondents, the IVAs are owner-based awards that can serve to give truck buyers an idea of how well manufacturers have designed vehicles with their customers in mind.

As you read through the brief descriptions of the winners’ results you will notice some similarities where owners of most vehicles want change. Visibility  Among all trucks about 22% of owners want better driver’s seat visibility.  Roominess  About 19% of truck owners want more passenger roominess than now.  Power vs Fuel Economy  Even when talking about today’s high gas prices, truck owners want good power and acceleration.  About 21% want more power and acceleration and only 9% of the respondents would sacrifice power and acceleration for better fuel economy.  Ingress/Egress  About 19% of all truck owners want their vehicles to be easier to get in and out of.  Info/Entertainment Technology  Design of the info/entertainment technology is one of the most hotly contested areas of vehicle design today.  Some manufacturers have a good handle on this, but 22% of truck owners want more info/entertainment technology than they have now.  These folks are offset by 14% who want their info/entertainment technology to be easier to use.

With that preamble in mind, here are the Ideal Vehicle Award winners for trucks  for 2013…


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2014 Fiat 500L – Whelming

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The 2014 Fiat 500L is on sale now.  Fiat unloaded the first boatload of 500Ls in Baltimore early June and by mid-June they had begun arriving at nearby Fiat Studios.  Adding this larger four door vehicle to the Fiat line-up is very welcome to Fiat dealers who have been limited to the Fiat 500 albeit with two bodystyles and a multitude of models.  The 500L is based on Fiat’s new “Small Wide” platform and shares nothing with the smaller 500 except for the “500” nomenclature and its engine.  Like the 500, the 500L strives to be very emotional in its styling with cab-forward proportions and a long floating roof that is usually in contrasting colors to the body.  Early on, it will turn heads.

For those who have not been paying attention, the 500L competes with the Kia Soul, Nissan Cube and MINI Countryman.  It is available with dark tinted rear windows meaning it is classified as a truck.  It is front wheel drive and powered with Fiat’s 1.4L Multi-Air Turbocharged 4-cylinder engine found in the 500 Abarth mated to either a six-speed manual transmission or Euro Twin Clutch automatic – a full automatic will be available in the first half of 2014.  The 160-horsepower 4-cylinder has 184 lb-ft of torque.  But the vehicle is much bigger and heavier than the minuscule Abarth and does not have near the performance.  But that’s another story we’ll address later.

Big Car Room in Micro Car Footprint The real story about the 500L is its size.  Think of it as a B-Segment four-door hatchback with a large car sized interior.  It has panoramic view windows for great visibility.  The seating position is upright and the seat is positioned so you can just slide into it.  No climbing to get up into the seat.  Once you are in, there is generous headroom and adequate shoulder room even for the largest drivers and passengers.  The steering wheel has a squarish inner diameter so the instrument cluster can be viewed without obstructions.  The ergonomics are good with controls easy to reach and operate. Fiat claims the 500L has best-in-class headroom, legroom, interior volume and cargo space.

Four Models – Pop-Easy-Trekking-Lounge The four models range in price from $19,900 (with destination included) for the Pop to $24,995 for the top of the line Lounge.  The more aggressive USA-only Trekking model – shown above with the kayak mounted on the roof – is a step down from the Lounge at $21,995.  While Fiat describes the 500L as the “Anti-SUV”, the SUV-like cues on the Trekking model are certainly a nod in that direction with more aggressive cladding and even a unique front fascia.  While the Trekking model is USA-only now, Fiat says other markets like the model and are asking that it be added to their line-ups as well.  The interiors are differentiated by material usage – hard and soft trim – and color.  But each interior attempts to be a bit playful and engaging.  Attention to detail is very good.


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2013 Fiat 500e

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Some naysayers are already preparing their eulogies for the electric car. They say that have failed. They say that consumers don’t want them. They say the market’s not ready for them. Our view?  To date, they’ve been a tough sell, but there’s some real progress being made. We’re not ready to start cuing Mozart’s Requiem just yet.

Consider if you will the new Fiat 500e, the Italian brand’s new entry into the electric car segment.  It’s great to look at. It’s fun to drive. It’s quick. It’s well equipped with lots of features. And the whole package incorporates some very convincing and innovative motivators to consider one.

From our point of view, there are two major reasons why electric cars haven’t taken off yet. One is price. Electric cars cost far more than their gasoline powered counterparts. The other is range anxiety. Consumers are (rightly) concerned that electric cars won’t get them where they need to go and that they could be left stranded, with no backup in sight.


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New York Auto Show – A3 and Cherokee Most Important

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The 2013 New York International Auto Show was full of important reveals this year… renewed crossovers –  Toyota Highlander, Acura MDX, an all new Range Rover Sport, the new BMW 335GT, freshened Dodge Durango, the all new Cadillac CTS and many more.  The most important, however, were the Audi A3 and the Jeep Cherokee.  Why?  Both vehicles are very important to their brands and have the potential to generate substantial sales.

Audi Takes the Safe Route with A3: The 2015 Audi A3 really was not at the New York Auto Show.  The A3 will be officially introduced at the Shanghai Auto Show in late April 2013, but there was a reveal for about 120 journalists the evening before the first press day.  It will be launched in the USA in early 2014.

The smaller Audi A3 has anchored the Audi lineup with a five-door hatchback (“Sportback”) that never had much sales potential in the USA.  American buyers continue to perceive liftback cars as cheaper, flimsier and less desirable.  In Europe, the five-door is the preferred bodystyle primarily because European car-owners do not have the American-style family fleets where there is a vehicle for every purpose. For a one vehicle family,  the hatchback can carry out a multitude of duties.

Recognizing that to really succeed in the USA market, the 2014 Audi A3 becomes a much more traditional three-box four-door sedan.   This gives Audi an opportunity to really step up sales in the face of the upcoming front wheel drive Mercedes-Benz CLA and the already-on-the-market BMW 1-Series.  Audi did not stray from its own winning formula.  Audi DNA is present in the exterior styling and the interior with an A8-like sweep at the front of the instrument panel.  Very nicely done, but not one obvious risk.

The A3 comes with four 4-cylinder engine choices – 170HP 1.8L turbo, 2.0L turbo (we’re guessing at about 230HP), 150HP 2.0L turbo diesel and high output 2.0L turbo (we’re guessing at about 275HP).  The high output goes in the S3 model.  The Sportback will return in the 2014 calendar year with e-tron plug-in hybrid technology.

The A3 will not be a Spartan A-Segment car.  Audi is positioning it as a fully-featured Audi – just smaller.  It will offer Audi’s MMI system, 4G LTE connectivity and even Audi’s Bang & Olufsen audio system.

One key takeaway from the A3 reveal is that the car is the same size as 1994 model year A4.  A very successful car with solid sales results, the A4 was key in establishing Audi as a very desirable premium brand in the USA.

Something tells us that the A3 will not be an inexpensive car with its impressive standard equipment load (leather seating, bluetooth, rain sensing wipers and panoramic moon roof standard).  With the slightly larger Mercedes CLA announced at a sub-$30,000 price we are wondering where the new A3 will be positioned?

Jeep Cherokee Returns While the Audi A3 is a low risk opportunity for volume growth, Jeep’s new Cherokee is at the polar opposite on the risk scale.  Jeep describes the Cherokee’s styling as “polarizing” and it certainly is.  Mike Manley, President of Jeep cautioned journalists in a December briefing before the Detroit Auto Show that “you might not understand” the vehicle.  This was somewhat reminiscent of Wayne Cherry’s (head of GM styling in the late ’90s) statement that “you are too old to understand the (Pontiac) Aztek.  In Manley’s defense, he describes the styling direction for the Cherokee as “something that will be fresh in 2019”.  So Jeep has not taken this path lightly.  It is a calculated step.

What is so polarizing about the Cherokee?  First, it takes the name of one of the most successful SUVs ever produced.  The 1980s Cherokee was the first high volume SUV to add a 4-door bodystyle to the lineup and soon proved that 4-doors, not 2-doors, were the way to go.  The Cherokee had the seven vertical slot grill that is part of Jeep’s DNA, but it had rectangular headlamps that, while modern for the time, broke away from the traditional round headlamps Jeep used.

While the new Cherokee is relatively conventional from the A-Pillar rearward, its front end design is the most surprising and, yes, controversial.  Instead of round headlamps, the Cherokee has horizontal units styled into the front fascia and fenders.  Cherokee still has the seven vertical slots in the front fascia – part of Jeep DNA since the beginning – but they now are bent in the center giving the vehicle a more aerodynamic appearance.  The story of the capability of the vehicle is being lost in the commentary about its front end styling.

Under the skin, the Cherokee uses the same Alfa/Fiat platform used by the new Dodge Dart.  It has a 9-speed automatic transmission and three advanced 4×4 systems.  The Trailhawk model is fully “Trail Rated”. Think of Trailhawk as the Cherokee Rubicon.  Powered by a 184HP 2.4L Multi-Air TigerShark 4-cylinder engine, Jeep claims a cruising range of up to 490 miles and highway fuel economy of 31mpg.  The optional 3.2L Pentastar V6 gets 271HP.

Cherokee has a full array of Chrysler’s latest features available from its UConnect information system with an 8.4-inch center screen and programmable instrument cluster, new steering wheel controls, parking assist systems, blind spot monitoring, cross path detection and adaptive cruise control with stop and go capability. These features are becoming the price of entry in mid-size vehicles and even some smaller entries.

When Bob Lutz was a Chrysler he once said (of the early 2000’s Peterbilt style Ram pickup), “I don’t care if people love it or hate it as long as 15% of them love it enough to buy it”.  That may be the case with the new Cherokee.  A Polarizing design will certainly get people talking and writers writing.  So far, it seems that the negatives are outweighing the positives on the Cherokee.  It won’t take long to tell if the vehicle is a sales success.  It begins production in April 2013.


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2014 Jeep Grand Cherokee Upgraded… Great Gets Greater

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Award Winner Gets Major Changes After Only Three Years The 2012 Grand Cherokee has been arguably the best affordable “real” SUV on the market since the latest generation was launched for the 2011 model year.  The Grand Cherokee was so good that its owners rated it higher enough against its competition to win AutoPacific’s Vehicle Satisfaction Award in 2011 and 2012 AND AutoPacific’s Ideal Vehicle Award in 2011 and 2012!  This sweep in these tough-to-win owner awards is testament to the excellence of the Grand Cherokee.

Developed in Time of Hardship The 2011 Grand Cherokee was developed during the dark days of the reign of Cerberus Capital Management.   Their ownership of Chrysler steered the firm to the bankruptcy courts and a bailout by the U.S. and Canadian government, UAW and CAW.  Ultimately, Fiat took control of Chrysler and Jeep and the firm is now prospering.  It is surprising that under the eyes of Cerberus, the 2011 Grand Cherokee turned out to be such a good vehicle.

Best Gets Better Like other Chrysler products (Chrysler 300, Chrysler 200, Dodge Charger, Ram 1500), Jeep’s product team has reinvigorated the vehicle but mostly under the skin.  The front fascia is new.  Taillamps are new.  A couple of wheel designs are new.  And the interiors are new and much more upscale.  Grand Cherokee gets Chrysler’s latest iteration of its excellent and easy to use UConnect system.  Gone is the 5-speed automatic transmission replaced by a silky smooth 8-speed unit.  A 240HP 3.0L V6 diesel is available for the first time.  So, the Grand Cherokee is a substantially upgraded version of the 2011 vehicle.  And it works!


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Women Drivers More Satisfied than Men

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An automotive industry truism is that it is easier to satisfy your grandmother than a young man.  Is this true?  At least the gender portion of the statement is accurate.

Driver satisfaction is a critical measure of vehicle acceptance.  Having a satisfied buyer results in better loyalty, better word-of-mouth, stronger image.  Satisfaction is a central building block of a brand.  AutoPacific has been measuring driver satisfaction since 1993 and it is always instructive to look at the differences between women and men drivers.

In AutoPacific’s annual 2012 Vehicle Satisfaction research, women drivers score 39 rating points higher than men – 674 over 635 in their overall Vehicle Satisfaction score.

Cadillac Tops Satisfaction Among Women While the top four brands in the satisfaction hierarchy are the same – Cadillac, Mercedes-Benz, Lexus and Lincoln – the scores given them by women are much higher.  Cadillac up 50 rating points.  Mercedes up 16 rating points.  Lexus up 41 rating points.  Lincoln up 42 rating points.  Interestingly, the rating for Fiat – perhaps the ultimate chick’s car – is at the bottom of the list among women but still higher by 29 rating points than among men.

Infiniti FX - Top in Satisfaction Among Women

Models With Touches of Luxury Score Better With Women In terms of individual vehicles the top twelve satisfying vehicles among women are:  Infiniti FX at 774 (+94 rating points higher than men), Chrysler 300 at 767 (+89 rating points), Lexus ES at 742 (+40), Cadillac SRX (+48), Mercedes C-Class at 735 (+50), Buick Enclave (+57), Honda Crosstour at 729 (+73), Lincoln MKS at 728 (+50), Range Rover Evoque at 728 (+43), Lincoln MKX at 726 (+58), Honda Odyssey at 725 (+40), Lexus RX at 725 (+43).  The lowest vehicle line among women is the Nissan LEAF at 550 rating points.  The highest scoring vehicle among men is the Mercedes-Benz ML practically tied with the Cadillac Escalade.  The lowest vehicle line among men is the Mazda2 at 502.

Women are More Satisfied With a Comfortable Stuff Hauler Women are much more satisfied with Fuel Economy (+8.3%pts), Warranty (+6.9%pts), Collision Avoidance Technology (+6.9%pts), 3rd Row Seat Comfort (+6.8%pts), 2nd Row Seat Comfort (+6.3%pts), Flexible/Changeable Seating (+6.5%pts), Rear Seat Entertainment System (+6.4%pts), Roof Rack (+6.0%pts), Price/Monthly Payments (+6.0%pts), Convertible Top (+6.0%pts).  Many of these attributes are characteristics of vehicle types very popular with women drivers like Sport Utility Vehicles and Minivans.  They want a comfortable vehicle with a good warranty that gets good fuel economy.  They want the interior to be flexible and provide entertainment for their children.  They are more satisfied with an affordable stuff hauler useful with children.


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