Automotive News - January 4, 2016 - Supplement - 39S

JANUARY 4, 2016 * 39S

LAMBORGHINI
Waiting for an SUV
● Detroit debuts: None
● 2016 pipeline: The Huracan LP 610-4 Spyder and
Huracan LP 580-2 rwd coupe go on sale in the spring.
● Sales trend: U.S. sales rose an estimated 2.8%
through November last year.
● Challenges: Lamborghini remains a niche player that
appeals to a small but loyal market in the United States
and elsewhere. Sales will not grow
substantially until it adds an SUV and
perhaps even a sedan.
Lamborghini faces
pressure from

other exotic brands with similar ambitions such as Ferrari,
Maserati, Aston Martin and high-end models from Audi
(R8) and BMW.
● Strategy: Play off Italian heritage and engineering
roots. Lamborghini recently obtained approval to build the
Urus SUV that will share components with other
Volkswagen Group brands. It's due in 2018. Lamborghini
isn't immune to emissions regulations so it plans to use
turbochargers and possibly a hybrid powertrain in the
Urus. Because of limited production and resources, plans
for a sedan have been nixed.
- Diana T. Kurylko

2016 Huracan LP
610-4 Spyder
2016 C-class coupe

MERCEDES-BENZ
Big launch year ahead
● Detroit debuts: Redesigned E-class sedan; freshened and
renamed SLC roadster (formerly SLK); new Mercedes-AMG S65
convertible
● 2016 pipeline: Mercedes will launch nine new, redesigned
or freshened vehicles. Spring brings a redesigned C-class
coupe, new S-class convertible and freshenings for the SL and
SLC roadsters and CLA sedan. The freshened and renamed
GLS large SUV arrives in April. The redesigned E-class sedan
goes on sale in early summer. The new C-class convertible
arrives in early fall. The new GLC coupe follows later in the fall.
● New faces: Dietmar Exler became CEO of Mercedes-Benz
USA effective Jan. 1, succeeding Steve Cannon, who left to
become CEO of AMB Group, which owns the Atlanta Falcons.
Exler, 47, had been U.S. sales chief since January 2014.
Cannon, 54, will serve as a consultant to MBUSA until Jan. 31.
Christian Treiber is the new vice president of customer
services, replacing Gareth Joyce, who became head of
Mercedes-Benz Canada on Jan. 1.
● 2015 share: 2.0%, excluding Sprinter (Jan.-Nov.); 2.0%,
excluding Sprinter (Jan.-Dec. 2014)
● Sales trend: Mercedes-Benz is heading for a record 2015,
powered by major gains in trucks and crossovers. The GLE,
which replaced the M-class midsize crossover in the summer,
is a hit. The redesigned GLC compact crossover went on sale
in late November, a month later than previously expected.
Because the outgoing GLK had largely sold down, the brand
had little to offer in the compact crossover segment,
contributing to a 12% decline in November. While MercedesBenz is still in the running for the 2015 luxury sales crown, it
fell further behind BMW in the race. Incentive spending through
the first 11 months of 2015 rose 19%, according to Autodata
Corp.
● Challenges: Dealers are clamoring for more GLEs. Initial
supplies of the GLC and the C-class coupe, on sale in the
spring, are expected to be tight. The C-class coupe, E-class
sedan and new S-class convertible will launch in a market
where trucks are king. Competition among luxury brands is
mounting.
● Strategy: Mercedes calls 2016 the zenith of its product
offensive and plans a marketing campaign with increased
spending to match. Though gasoline is cheap and the brand's
truck lineup has been updated across the board, it continues
to work on plug-in hybrids and a Tesla fighter. Cars are big this
year with the E class, C-class coupe, new S class and C-class
convertibles and updates to the brand's roadsters.
- Amy Wilson

VOLVO
Banking on new models
● Detroit debut: S90 luxury sedan
● 2016 pipeline: S90 goes on sale
this summer.
● New face: David Thomas was
named vice president for customer
experience and network, effective in
August.
● 2015 share: 0.4% (Jan.-Nov.);
0.3% (Jan.-Dec. 2014)
● Sales trend: With the launch of the
redesigned XC90 large crossover,
Volvo's U.S. sales rose 18% through
November. The XC90, the first
redesigned vehicle under Geely
ownership, has been highly praised
and demand is brisk.
● Challenges: Volvo dealers aren't
profitable enough and that won't
change until the company replaces
more vehicles in the lineup.
● Strategy: Volvo plans to revamp the product range with
an all-new scalable platform, design and four-cylinder
engine family. Seven new or redesigned vehicles are

S90
planned by the end of 2017. Volvo also plans to start
building vehicles in the U.S. in a new South Carolina
factory in late 2018.
- Diana T. Kurylko

ALFA ROMEO
Selling style and story, but not cars
2016 Giulia sedan

● Detroit debuts: None
● 2016 pipeline: Giulia sedan
● 2015 share: 0.004% (Jan.-Nov.); 0.0% (Jan.-Dec. 2014)
● Sales trend: Selling by the dozens
● Challenges: Design and build luxury cars and crossovers
- as inexpensively as possible - that will sell at
incredible premiums over deeply established German and
Japanese competitors with loyal fan bases in a market
where many consumers have never even heard of Alfa
Romeo. (Also overcome a lifetime of quality concerns
among potential customers who have heard of the brand.)
● Strategy: Outsell Audi around the world. Eventually.
- Larry P. Vellequette

ROLLS-ROYCE
A new Dawn, crossover
2016 Dawn

● Detroit debuts: None
● 2016 pipeline: New Dawn convertible
arrives this spring.
● New face: Pedro Mota was to become
president of Rolls-Royce North America on Jan.
1. He had been Porsche Cars North America's
vice president for the western U.S.
● Sales trend: With 2015 sales up 2.7%
through November, Rolls-Royce expects a
record year in the U.S.
● Challenges: The ultraluxury brand has to
lure buyers with new products. Long

development and product cycles have meant
extended periods between redesigns. Volume
luxury brands are moving up with new and
more expensive models and nipping at the
heels of Rolls-Royce. Whether the brand can
maintain its appeal will depend on more
modern redesigns going forward rather than inyour-face staid and pretentious cars.
● Strategy: Rolls-Royce will launch a
crossover in 2018 and is working on a
redesigned Phantom flagship sedan. The new
models are being targeted at younger buyers.
It is also stepping up its bespoke business
rather than increasing volume to boost profits.
- Diana T. Kurylko

Table of Contents for the Digital Edition of Automotive News - January 4, 2016 - Supplement

Nouveau riche collides with old money at Cobo
Cadillac's edgy exterior styling evolves
Design boss Wagener maps out M-B's turnaround
Chevrolet, Toyota raise game in green battle
FCA designer Gilles: People should order their cars
A new minivan and a few sedans
Challenging tasks ahead
Ain't no mountain high enough
Big car launches pose test
Betting on NSX glory
Crossovers are crucial
Flying fashionably under the radar
Bigger, more luxurious
Heating up in '16
Hitch revival on a crossover
Fresh sheet metal ends product drought
New variants coming
Trucking along amid redesigns, cheap fuel
Striving for the luxury crown, again
The good times just keep rolling
Treading water with a stylish life jacket
Onward to luxury cars
Performance overtakes lost volume
Banking on a first: An ultraluxury crossover
Bargain brand no more
Turbos, high-end luxury in the mix
A few big launches in '16, then a lull
Rebooting with an SUV
Waiting for more trucks
Charging up the cheaper EV
Content, volume, profit focus
Major launches on deck
A major truck launch holds the key
Keep the momentum going and win back share
New global boss for growing automaker
Building on Continental buzz
Crucial launches are on the horizon
Ready to fly solo
Crossovers keep sales surge rolling
Finally, some fresh products
Riding the light-truck wave
A new Dawn, crossover
Banking on new models
Key launch year ahead
Selling style and story, but not cars
Waiting for an SUV
Former Detroit stars (and where they are now)

Automotive News - January 4, 2016 - Supplement