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Payne: NACS, EVs and VW — the latest in LA Auto Show fashion
Posted by Talbot Payne on November 25, 2024
Los Angeles — Hyundai got NACS, VW returned to affordability, and Cadillac’s gone EV.
New car reveals were few at the 2024 LA Auto Show, but those few said a lot about industry trends. Automakers are facing a complicated landscape of rapidly-changing tech, government regulation and softening consumer demand as vehicles prices have escalated.
California is at the center of industry turmoil as host to the electronics revolution, aggressive emissions mandates and the biggest U.S. auto market. It offers opportunities for brands as diverse as Hyundai, Volkswagen and Cadillac, say industry insiders.
“Automakers are pushing the envelope with electric vehicles. It’s a chance to redefine themselves,” said Jessia Caldwell, head of insights for Edmunds. “They are putting themselves on the map where they haven’t been before.”
2024 LA Auto Show: Hyundai Ioniq 9 unveiling at the famed Goldstein Residence in Beverly Hills overlooking LA. Henry Payne, The Detroit News
Hyundai Motor Co. and its luxury arm, Genesis, have committed themselves to following Tesla Inc. — and its trillion-dollar market cap — into an electric future. Tesla has a small presence on the LA Convention Center floor this year but an outsize influence on the industry.
Key to the Texas automaker’s dominance of the U.S. EV market (over 55% of California sales) is its network of lightweight NACS (North American Charging Standard) Supercharger connectors, which industry competitors rejected for the European standard, the bulky CCS (Combined Charging System). After fighting Tesla and encouraging a national network for CCS fast chargers from Electrify America, EVGo and ChargePoint, the establishment has waved the white flag to the rebel.
2024 LA Auto Show: Tesla Cybertruck interior. Henry Payne, The Detroit News
New Hyundai and Genesis models (and those from sister Korean brand Kia) introduced in LA are equipped — not just with the latest screen and interior goodies — they also are the first production vehicles equipped with NACS charger ports so they can take advantage of Tesla’s vast network. Want to charge on the antiquated CCS charger? Get a CCS adapter.
That ease of use will also assist Hyundai in meeting draconian 2026 state mandates requiring that EVs make up 35% of sales. The three-row 2026 Hyundai Ioniq 9 SUV and compact 2026 Genesis GV70 Electrified models that debuted here are in two of the market’s biggest volume segments.
“Vehicles like these help with the EV transition by giving customers more options,” said Caldwell. “If you get EVs into mainstream vehicles, it sets you up for the best sales gains.”
2024 LA Auto Show: Hyundai CEO Jose Munoz with the 2026 Hyundai Ioniq 9. Henry Payne, The Detroit News
EVs come at a price, however, with the Ioniq 9 and GV70 Electrified starting north of 60 grand. EVs are a driving force behind vehicle price inflation (average transaction costs hover around $50k), both for their window stickers and because automakers have to inflate gas-powered prices to subsidize EV development.
Volkswagen, too, has strayed from its reputation for affordable cars by introducing pricey electrics like the $60k ID.Buzz. Its volume customer, however, is still a budget shopper.
So while EVs aim to assuage green consumers’ climate change crisis concerns, VW dropped an all-new gas-powered Tiguan to address the broader market’s worries of an affordability crisis.
The compact VW is the brand’s most popular chariot, but it lags segment sales leaders like the Toyota RAV4 and Honda CR-V. The redesigned 2025 Tiguan was the biggest non-electric news here, sporting a significantly upgraded interior and exterior. Now built on the more dynamic EQB evo platform that undergirds VW’s iconic Golf GTI hot hatch, the new Tiguan leans into the brand’s sporty image and bumps horsepower over 200.
2024 LA Auto Show: 2025 VW Tiguan is all-new. Henry Payne, The Detroit News
Following the redesigned entry-level Jetta sedan, Tiguan looks leaner, weighs less and could be easier on the wallet when it comes to market next year.
“There is a lot of buzz around the ID.Buzz, but it’s a bit of a niche vehicle,” said Caldwell. “The opportunity here is for affordability. People want what they can afford, and they are being priced out of the market.”
Caldwell says that ICE vehicle sticker prices have swelled while manufacturers have been cutting EV prices to goose sales and meet government mandates.
“But manufacturers can’t abandon internal combustion vehicles. The transition is going to take longer than they planned,” she said.
That said, Cadillac showed it is committed to a historic redefinition as an electric brand.
2024 LA Auto Show: Cadillac EVs front and center. Henry Payne, The Detroit News
Its Optiq, Lyriq and Escalade IQ electrics are front and center here. Not a petrol-powered XT4, XT5 or XT6 in sight. The only ICE vehicles on the stand are the track-focused V8-powered, CT5-V Blackwing sedan and the IQ’s Escalade ICE sibling.
“People in California will like the Cadillac lineup,” said LA-based Caldwell. “It should resonate because Teslas are as common in LA as (Toyota) RAV4s. People are looking for the next cool thing to own.”
Hyundai wants to ride that fashion wave too, and it has created a separate Ioniq-badged lineup of EVs. Priced below the Caddies, they are NACS-ready. Cadillac says its coming EVs will be NACS equipped too.
Henry Payne is auto critic for The Detroit News. Find him at hpayne@detroitnews.com or @HenryEPayne.