Category Archive:

“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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New Hyundai Elantra Gets Timid

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Hyundai Elantra at CastleCheck most of the boxes needed to win in the highly competitive compact car segment and the 2017 Hyundai Elantra does not miss many chances to excel.  Following the mantra of “democratization of technology” Elantra has most of the high tech infotainment and technology features available.  When you pop for them all, the retail price is $26,750.  This is a lot for a compact car of a decade ago, but not bad for the fully loaded Limited model of the all new Elantra.  For those not wanting or needing the full equipment load, the starting price is around $17,000.

Good Ease of Use  For a person reasonably familiar with today’s cars, the Elantra is easy to figure out.  It might not pass the rental car test where you should be able to start the car, turn on the headlights, adjust the radio and air conditioning system on a stormy night at Hertz, but it comes close.  Easy to understand and use are the keynotes of Elantra design.

Created to provide a destination for buyers wanting to downsize, Elantra has all the features with the possible exceptions of cooled seats and adaptive cruise control that brings you to a full stop and then proceeds when traffic moves forward.  For buyers wanting to upgrade, everything is there.  For a price.

2017 ELANTRA SEDAN

2017 ELANTRA SEDAN

Easy to Drive  Elantra is quiet, solid, comfortable.  It handles very well on aggressive back-California roads.  It is acceptably fast.  It has an automatic 6-speed transmission with its base 147-horsepower 2.0L 4-cylinder engine.  (There is an eco model available with higher fuel economy powered by a 128-horsepower 1.4L 4-cylinder turbo mated to a 7-speed EcoShift dual clutch transmission with limited feature availability).

The interior package is similar to a mid-size car of the prior generation (it is rated mid-size by the EPA). In fact, Elantra has about the same interior size of a Cadillac CTS and is bigger than a BMW 3-Series or Audi A4.  Interior materials are a notch above what used to be expected in this class of car.  The upper surface of the instrument panel is soft, but adjacent materials are hard while pretending to be soft.  The trunk is large, but accessed through a small opening due to its relatively fastback design.

Comprehensive Feature Availability  There is a 4.5-inch multi-color display between the gauges in the instrument cluster.  In the center stack, there is either a 7-inch or 8-inch monitor depending on features selected.  Both Apple CarPlay and Android Auto interfaces are avaiilable.  To enhance the sound of your music there is Harman’s Clari-Fi Music Restoration Technology.  Nice… very comprehensively done.

No Longer Head-Turning  Elantra is good looking, but not head-turning like its predecessor.  In the rear view, Elantra gets lost in traffic.  Its distinctive front view is highlighted by its large trapezoidal grille opening and LED accents on higher trim models.  Functional outboard vents in the front fascia direct air over the front wheels and help aerodynamics.  Vertical LEDs accent the outboard vents in top of the line models.  But overall, like the larger Hyundai Sonata, Hyundai has become more timid with its new compact car entry.

Elantra GT Coming  Coming in Fall 2016 is the Elantra GT with a 200HP 4-cylinder turbo and distinctive front and rear styling and unique interior trim.  The GT model will have a DSG


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2016 Hyundai Tucson – Compact XSUV Benchmark?

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Raising the Bar in a Competitive Segment  The Koreans keep getting better and the new 2016 Hyundai Tucson (product code TL) is an example of how Hyundai has executed a segment-beater.  Competing against big sellers Honda CR-V, Toyota RAV4, Ford Escape, Jeep Cherokee, Chevrolet Equinox, Mazda CX-5, etc. the new Tucson checks all the boxes.  It is well styled and immediately identifiable as a Hyundai (looks almost too much like the Santa Fe Sport).  It has a great package – good visibility, spacious front and rear seating, good cargo room, easy ingress/egress.  The fit and finish is excellent inside and out.  The interior trim materials have moved upwards – almost up to the next higher price class.

MY16 Hyundai Tucson

MY16 Hyundai Tucson

MY16 Hyundai Tucson

MY16 Hyundai Tucson

Hyundai Fell Behind in Segment – 2016 Hyundai Tucson Provides Conquest Opportunity  The product is good enough to begin some serious conquesting.  As the compact crossover SUV market has boomed over the past several years (growing 14.9% 2015CYTD), Hyundai has been left with a less-than-competitive product capable of selling around 45,000 per year.  As such, Hyundai Motor America’s share of the segment slipped from about 6% to 2.5%.  Some of that is due to capacity constraints from its Korean plant.  A new plant in the Czech Republic has come on line and will be supplying Europe freeing up Korean capacity.  With the new Tucson on sale in August, 2015, HMA’s volume is expected to rise to 56,200 in 2015 and up to 90,000 or higher in 2016.  The 2015 Hyundai Tucson is good enough to pull that off if there is strong marketing support behind the vehicle (the last generation was essentially a “launch and leave” proposition with little marketing support).  At 90,000 units, the Tucson will have about 6% of the segment.

Pre-Family Market Target  Who will buy the 2016 Hyundai Tucson?  HMA sees this as the entry targeted at “pre-family” singles and couples.  Tucson is 8.5-inches shorter than the Santa Fe Sport that is targeted at “post-family” couples who no longer need the seven-passenger three row capacity of the 8.5-inch longer (than Santa Fe Sport) Santa Fe.  Santa Fe is targeted at “core families”.  Tucson democratizes technology by offering most of the latest gee whiz electronic features available on higher classes of products.

Hyundai describes its styling as bold and confident and it certainly comes across that way.  It has a slightly more vertical windshield that helps ingress to the front seats.  Tucson adopts Hyundai’s new corporate face with the hexagonal grille.  From the side view, the Tucson is lean and wedgy.  Exterior styling was by Hyundai’s European studio.  The interior was styled in California.  Ergonomics are outstanding with controls placed where expected.  There is an 8-inch information screen with navigation and Hyundai’s BlueLink interface.  The only criticism is with map graphics that don’t show enough detail and seem to show only major arteries, not the interesting spur roads you pass.

MY16 Hyundai Tucson

MY16 Hyundai Tucson

Powertrain OK but Full Throttle is Disappointing  The base engine is Hyundai’s Nu 2.0L GDI 4-cylinder that has 164-horsepower and 151 lb ft of torque.  The 2.0 L mileage figures are 23/31/26mpg.  The 2.0L gets a six-speed automatic transmission.  The optional engine, and the engine on the majority of Tucson models, is the Gamma 1.6L 4-cylinder Turbo with 175-horsepower and 195 lb ft of torque.  The 1.6L mileage figures are 26/33/29mpg).  The 1.6L gets a seven-speed dual clutch transmission.  You definitely want the higher torque 1.6L Turbo.  The torque is the key to performance feel.  In the examples of the Tucson I drove, there was a noticeable lag when full throttle acceleration was wanted or needed from a stop (with traffic approaching, for instance).  Pedal to the metal was disappointing.  On a part throttle take off, this was not evident.  It seemed to happen only when you really wanted the oomph.  This is a characteristic an owner will learn over time, but Hyundai should sort it out ASAP.


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AutoPacific 2015 Vehicle Satisfaction Awards

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Owners rate Kia K900 top car, Ford F-150 top truck. Tesla Top Brand

TUSTIN, Calif. (July 8, 2015) – AutoPacific today announced its 19th annual Vehicle Satisfaction Awards (VSAs), identifying the most satisfying vehicles on the market. An industry benchmark for measuring how satisfied an owner is with his/her new vehicle, VSAs are based on survey responses from over 66,000 owners of new 2015 model year cars and light trucks.

“2015 represents a year of diversity,” says George Peterson, president of AutoPacific. “Competition is fierce and no one automaker dominates the results.” The 2015 winners are spread across nearly every manufacturer, with wins by 9 out of 11 automakers. General Motors receives the most wins with 5, followed by Kia and Nissan, with 4 and 3 wins, respectively. Honda, Toyota, FCA (Fiat Chrysler Automobile), Volkswagen and Ford follow with 2 wins each. Volvo, Mercedes-Benz and Hyundai each take home 1 win.

“For the 2015 model year, there are 274 models and 33 brands from which to choose a new vehicle,” says Peterson. “It can be daunting for consumers to sort through all of those options and try to predict which one will work best for them in the long run. AutoPacific VSAs help to give them a strong starting point.”

The average VSA score for 2015 is 25-points higher than in 2014 confirming products and customer handling are improving markedly. The brands with the greatest year-over-year improvements are Jaguar – improving eleven positions; Volkswagen – improving ten positions; Ford – improving nine positions.

The Kia K900 – Kia’s range topping luxury car – set an all time high and wins AutoPacific’s President’s Award. This award is given only when the overall score tops the previous high score. Interestingly, the all-new aluminum bodied Ford F-150 would have won this award if the Kia was not in the running.  The previous President’s Award winners were the 2014 Mercedes S-Class and the 2010 Hyundai Sonata.

Korean Manufacturers Take Over Top Spot in Satisfaction

Tesla, a domestic brand with only one vehicle, is the top scoring brand overall.  General Motors’ GMC division is the top scoring mainstream brand.  In aggregate, Korean brands are the top source of high scoring vehicles.  With 5 winning vehicles, including the top ranking Kia K900, Korean manufacturers Kia and Hyundai come out on top in combined average score, taking over the position previously held by European manufacturers. “Kia and Hyundai are continually improving owner satisfaction in key areas like reliability and quality, yet are also hitting the mark with safety, braking, handling, styling and seat comfort, not to mention a very satisfying warranty program,” explains Peterson.

AutoPacific’s Vehicle Satisfaction Awards objectively measure owner satisfaction with 50 separate attributes ranging from interior comfort and styling to fuel economy and performance.

“In many cases, an extremely satisfying vehicle is not the car or truck that has the best absolute build quality or the best safety rating,” says Peterson. “VSAs look at the big picture, which includes owners’ experiences with their vehicle’s quality and safety, but also goes deeper into the heart of the ownership experience.”

Brand SummaryVehicle Summary

About AutoPacific

AutoPacific is a future-oriented automotive marketing and product-consulting firm. Every year AutoPacific publishes a wide variety of syndicated studies on the automotive industry. The firm also conducts extensive proprietary research and consulting for auto manufacturers, distributors, marketers and suppliers worldwide. Company headquarters are in Tustin, California, with an affiliate office in the Detroit area. Additional information about AutoPacific and the Vehicle Satisfaction Awards can be found on AutoPacific’s websites: www.autopacific.com and www.vehiclevoice.com.

Contacts

Dan Hall dan.hall@autopacific.com 714.838.4234


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Kia K900 – Kia Range Topper

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Kia introduced the K900 premium luxury car for the 2014 model year.  Based on Hyundai/Kia’s rear wheel drive platform shared with the Hyundai Equus and loosely the Hyundai Genesis sedan, Kia’s entry into the luxury market is controversial.  Internally and externally there were concerns that the brand was not ready to take the leap into the $60,000 price range.  But as is often the case in the life of an import distributor, the parent company demands that you take the “gift” of a vehicle you might not think fits the lineup at the time.

KMA – AutoPacific Neighbors  Full disclosure, Kia Motors America headquarters in Irvine are less than a mile from AutoPacific’s headquarters in Tustin, California.  Every day our roads are filled with Kia Optima mid-size cars (to our eye, the best looking mid-size car presently on the market), Kia Soul hamster cars and Kia Forte compact cars.  Given the population of cars within a mile radius, Kia is the best selling brand on the market.  K900s are rarer, but does K900 hurt KMA’s position in the American market?  We don’t think so.2014 Kia K900 F34 VehicleVoice2014 Kia K900 SV VehicleVoice2014 Kia K900 R34 VehicleVoice

Conservative Design Will Not Offend  The exterior of the car is conservative and tasteful.  There is little flamboyance with the exception of Kia’s outstanding white pearlescent paint (I don’t like white cars, but the white available on the Optima and K900 is a very rich looking color).  The K900 is a large car with generous greenhouse that provides excellent visibility except rearward where the headrests get in the way.

Kia K900 Interior Outstanding  The K900 interior is a work of art.  The seats are nicely styled, supportive and infinitely adjustable with Mercedes-like seat controls on the door trim panels.  The instrument panel is electronic wizardry with a very well designed programmable 12.3-inch instrument cluster and 9.2-inch center stack screen with Kia’s UVO eServices telematics system.  Radio controls are actually easy to use with KNOBS (!) and source buttons.  The rear seat is very spacious and comfortable.  In the uplevel VIP executive package (a $6,000 option) designed for Korean CEOs to ride in the rear there are redundant controls in the center arm rest.  In the particular example we have been driving for a week, the interior trim is a very light grey or off white which makes it seem open, airy and spacious.  The contrasting grey environmental color gives a very upscale ambiance.2014 Kia K900 IP VehicleVoice2014 Kia K900 Cockpit2014 Kia K900 Rear Seat VehicleVoice

Lexus-Like Dynamics  Dynamically, the K900 harkens back two generations to the Lexus LS430, before Lexus decided to try a more sporty route.  The ride is very isolated, soft and cushion-like.  The 5.0L gasoline direct injection V8 is powerful and smooth.  Mated to an 8-speed automatic transmission we saw an average fuel economy of about 15mpg.  While the fuel economy is not sterling, it is about what you’d expect in a car like this.

So, the Kia K900 is not a German luxury car and is not what the Lexus LS460 has evolved into.  The Kia K900 is a very competitive, traditional luxury car that will be comfortable for the long haul and easy to live with.


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2014 Hyundai Tucson Wins AutoPacific Vehicle Satisfaction Award

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2014-tucson-04

The all new 2014 Hyundai Tucson is the highest scoring Compact Crossover SUV in AutoPacific’s 2014 Vehicle Satisfaction Award. Coming in behind the Tucson is the MINI Countryman and the Kia Sportage, followed by the Buick Encore, Mitsubishi Outlander Sport, and the Subaru XV Crosstrek.  The Tucson last won the VSA in the 2010 model year.

The 2014 Hyundai Tucson demonstrates its excellence in the Compact Crossover SUV class by winning or tying in fourteen of fifty satisfaction attributes. The Tucson is within one tenth of a satisfaction point in fourteen other attributes, putting it at the top for Compact Crossover SUVs.

The top ten highest ratings by Tucson owners are: vehicle and brand reputation, the perception of reliability and dependability, overall quality and braking, exterior size and styling, the warranty, the exterior color, and feeling safe while driving.

The expressive styling of the new Tucson continues Hyundai’s move towards more expressive styling making the Compact X-SUV a head-turner in a rapidly growing category.

AutoPacific VSA Logo Feature


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2014 Chevrolet Camaro Wins AutoPacific Vehicle Satisfaction Award

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The 2014 Chevrolet Camaro is the highest scoring Sporty Car in AutoPacific’s 2014 Vehicle Satisfaction Award research. Coming in just behind the Camaro are the Hyundai Veloster, Scion tC, Dodge Challenger, Ford Mustang, and the Hyundai Genesis Coupe.

The 2014 Chevrolet Camaro led its category with twenty-nine of fifty wins or ties in satisfaction. The Camaro also was within one tenth of a point with six more attributes. This puts the Camaro leading in seventy percent of the satisfaction categories.

The top ten highest ratings by Chevrolet Camaro owners are: exterior color and styling, brand and vehicle reputation, handling and braking, image, perception of reliability and durability, perception of feeling safe when driving, and it is fun to drive.

Competition for the Camaro gets stiffer for the 2015 model year with the all new 2015 Ford Mustang being introduced and the facelifted 2015 Dodge Challenger entering the fray.  The Hyundai Genesis coupe also is due for a update and reportedly gets a V8 engine for the first time.  Camaro also is getting a facelift about now, so the playing field will be mostly all new for 2015.  It will be interesting to see how the Sporty Car dynamics play out.

AutoPacific VSA Logo Feature


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AutoPacific 2014 Vehicle Satisfaction Awards Announced

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AutoPacVSAlogo blogOn Monday June 16, 2014, AutoPacific announced its 18th annual Vehicle Satisfaction Awards (VSA), identifying the most satisfying 2014 model year vehicles on the market.  Other automotive awards provide information on defects – things gone wrong.  AutoPacific’s research looks at the issue of vehicle ownership in a totally different way – how satisfied a new vehicle is to its owner.  While it’s important to know how well a vehicle is screwed together, it is even more important to learn how well buyers and drivers feel about their vehicle.

The AutoPacific 2014 Vehicle Satisfaction Awards objectively measure owner satisfaction with 50 separate attributes ranging from interior comfort and convenience to fuel economy and performance. “Vehicles that score highest in the Vehicle Satisfaction Awards are delivering value and satisfaction across a wide range of attributes,” says George Peterson, president of AutoPacific. “The winners perform well in 50 separate categories that objectively measure the ownership experience.” An industry benchmark for measuring how satisfied an owner is with his/her new vehicle, AutoPacific’s VSA are based on the results of responses from over 92,000 new vehicle owners.

For 2014, the most satisfying brands are Lincoln, Top Premium Brand and GMC, Top Popular Brand. The vehicle – car or truck – registering highest overall satisfaction is the new-for-2014 Mercedes-Benz S-Class that also wins AutoPacific’s second President’s Award for achieving the highest VSA score ever.  The truck with the highest overall satisfaction score is the new BMW X5 Premium Luxury Crossover SUV.

“With the launch of each new car and truck, carmakers try to improve the product and increase the satisfaction of their buyers,” explains Peterson. “By surveying a substantial number of owners who have purchased a new 2014 model year vehicle, The AutoPacific’s 2014 Vehicle Satisfaction Awards provide an objective measurement of how well the makers are doing. More than one-third of new vehicle buyers are positively influenced by objective awards based on owner ratings when deciding on a new car or truck.”

The awards in 2014 are much more diverse than they have been in previous years, with no single brand dominating the results.  Multiple top-ranked award winners are:  Chevrolet with four winners; Lincoln with three winners; Mercedes-Benz, BMW, Kia, and GMC with two winners each.

The brands that improved their relative ranking positions in 2014 compared with 2013 are:  GMC moving from 17th to 8th position; Lincoln moving from 6th position to 1st position; Ford moving from 25th to 19th; Chevrolet moving from 21st to 16th.  Brands with the largest drop in position were Volkswagen moving from 16th to 28th position and Jaguar dropping from 7th to 17th.

From a manufacturer perspective, General Motors was tops with seven wins and Ford had four wins.

“AutoPacific 2014 Vehicle Satisfaction Awards help vehicle buyers sort through an increasingly complicated selection of brands and models.  For the 2014 model year, there are 274 models and 32 brands from which to choose a new vehicle.  The VSA clearly shows the buyers which vehicles are at the top of the class they are considering,” says Peterson.

Top 2014 model year performers are:

PRESIDENT’S AWARD FOR HIGHEST VSA SCORE EVER: Mercedes-Benz S-Class

HIGHEST SATISFACTION PREMIUM BRAND: Lincoln

HIGHEST SATISFACTION POPULAR BRAND: GMC

2014 PASSENGER CAR WINNERS:

Premium Luxury Car

Executive Luxury Car

Aspirational Luxury Car

Luxury Mid-Size Car

Large Car

Mid-Size Car

Premium Compact Car

Compact Car

Economy Car

Sports Car

Sporty Car

Hybrid Car/EV

Mercedes-Benz S-Class

Lincoln MKS

BMW 3-Series GT

Lincoln MKZ

Chevrolet Impala

Kia Optima

Mercedes-Benz CLA

Kia Soul

Chevrolet Sonic

Chevrolet Corvette

Chevrolet Camaro

Lincoln MKZ Hybrid

2014 LIGHT TRUCK WINNERS:

Heavy Duty Pickup

Light Duty Pickup

Luxury/Large SUV

Mid-Size SUV

Premium Luxury Crossover SUV

Luxury Crossover SUV

Large Crossover SUV

Premium Mid-Size Crossover SUV

Mid-Size Crossover SUV

Compact Crossover SUV

Minivan

Ford F-Series Super Duty

GMC Sierra

Infiniti QX80

Jeep Grand Cherokee

BMW X5

Cadillac SRX

GMC Acadia

Toyota Highlander

Nissan Rogue

Hyundai Tucson

Honda Odyssey


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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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2014 Mitsubishi Mirage – 3rd World Appliance

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We at AutoPacific have just completed a week’s worth of driving the Thailand-built Mitsubishi Mirage. Now we know what drivers in a third world country experience when they drive locally assembled cars. And we don’t like it much.
2014 Mitsu Mirage SV


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