10 Automakers to Watch in 2020
The auto industry’s 2019 sales numbers are in. Totals have been tallied and predictions made. Overall, we’re cautiously optimistic for the coming decade, as are several automakers who wrapped up the year on a high note. But where there are winners, there are losers—and boy, did 2019 deal some nasty blows.
With that in mind, here are 10 automakers who stole headlines over the last year, either for their record achievements or epic missteps, making them major brands you should watch in 2020. Let’s look at how they rang in the new year.
General Motors
The Detroit juggernaut faced harsh criticism in 2019 for closing five North American plants amid aggressive cost-cutting strategies. It faced a 40-day UAW strike that had nasty effects on its profits and subsequently launched an unprecedented RICO lawsuit against FCA, alleging the Italian-American automaker bribed union officials for contract benefits.
Fourth-quarter sales dropped 6.3%, with experts estimating a 5.5% drop in December alone, while Q4 North American wholesales declined an estimated 25% year over year. The automaker ended 2019 down 2.3% overall, largely thanks to the struggles of its cash-cow brand, Chevrolet.
For 2020, GM plans to focus its resources on “what customers want,” i.e. SUVs, crossovers, and pickups. Expect a lot of hoopla for the next-gen Suburban, Tahoe, and Yukon/XL, as well as the Chevy Trailblazer, a new small SUV set to launch in the spring, and the all-new, next-gen Cadillac Escalade. The company also vows to invest heavily in HD trucks, increasing capacity at Flint Assembly by 40,000 vehicles annually.
Of course, GM will be jumping on the EV wave, with talks of electric and hybrid pickup options, a possible all-electric ‘Vette, and whispers of a resurrected eco-friendly Hummer?! Check the Super Bowl for that last one, as rumors are GM bought some very expensive airtime to introduce the new Hummer, with none other than LeBron James at the wheel.
Ford
The Blue Oval took some similar actions as GM, saving money wherever possible as part of its $11 billion restructuring plan set to continue through the early-2020s. It cut jobs both home and abroad, shuttering a U.S. engine plant in Michigan and closing/selling six of its 24 plants in Europe. Overall, sales totals were down 3.9%.
However, Ford truck sales for the year (including pickups and vans) climbed 9.1%, with more than 1.24 million trucks sold. In Q4 alone, they increased 15.9%—a company best since 2001. This was helped along by the addition of the Ranger, which finished its best sales quarter since launching in early 2019. The Raptor saw a boost too, with sales up 12.9%.
These numbers, combined with solid sales of the Transit van, Expedition and EcoSport SUVs, and new Explorer and Lincoln models, signal that while the company’s no-new-sedans formula definitely affected total sales, there is still obvious demand for other Ford vehicles.
Ford’s future plans are ambitious, as the automaker looks to replace ¾ of its lineup and add four new trucks and SUVs over the next year. Partnerships with VW and Rivian will help, as they’ll play a vital role in upcoming commercial hybrid and electric vehicles. Let’s be honest though—the debut we’re most excited for is the new Bronco and its yet-to-be-named little sibling. Word is, we’ll be waiting until Spring for the official reveal.
FCA
Fiat-Chrysler, unlike its Detroit neighbors, found someone with whom to share the impending financial burdens of a new decade. After courting a merger with Renault, it finally found a partner in PSA, with the two recently signing a preliminary deal marking them as the world’s fourth-largest car manufacturer. Projected annual sales are around 8.7 million cars.
December sales showed a 0.2% decline for the Italian-American automaker, with Q4 sales dropping 2.3% and the entire year dropping 1.4%. Overall, not too shabby for a company who was in federal hot water for union bribery and scandal, built up a “sales bank” of nearly 40k cars ticking off its dealers, and spent a majority of the year flirting hard with other OEs.
The real winner, however, was RAM—the only FCA brand in the U.S. to post an increase for the year, rising an enormous 18% for 2019. Fleet sales took a noticeable chunk of the company’s pie, too, accounting for 22.7% of the year’s sales totals.
For 2020, the obvious attraction is the merger. Tavares said that both PSA and FCA have no plans to ax any of the brands under their belt—so what kind of new vehicles can we expect to see? A quirky Citroën hatchback? A sleek Opel EV? One thing we do know is that we’re getting a full range of plug-in hybrid Jeeps, branded “4xe.”
Toyota
Toyota held onto its number one spot in hybrid, passenger car, SUV, small truck and retail sales, showing only a slight decline in its 2019 sales total (1.8%). Though it did stumble a little during December (down 7.2%), it ended the year on a positive note.
For 2020, the brand plans to roll-out a veritable onslaught of new product, serving up makeovers on its compact, midsize, and full-size sedans, as well as a redesigned Highlander, RAV4 TRD Off-Road model, Lexus LC convertible, and updated Tacoma and Tundra trucks. All in all, Toyota promises 31 new or updated vehicles over the next 36 months. Frankly, we’ll just be impressed if it doesn’t spontaneously combust from the effort.
Oh yea, the company also announced it’s building a prototype city of the future to test out new technologies?!
Tesla
Haters gonna hate, but Tesla deserves a spot on this list. The EV-only brand reached its 2019 sales goals, delivering 367,500 vehicles in 2019. While those numbers reflect global deliveries, not just U.S., it’s still an increase of more than 50% from last year.
It was an interesting year for Tesla, or more specifically its ever-entertaining CEO, Elon Musk—defamation lawsuits and botched Cybertruck reveals, notwithstanding. After having to cough up a $40 million SEC fine for tweeting that he was going to take Tesla private at $420 per share (something he maintains was a bad weed joke taken too seriously), Musk and his company finished 2019 strong—hitting that sweet $420 just in time for Christmas.
And the stock rally has continued, launching Tesla’s market capitalization to an estimated $89 billion in early January. That’s not only the highest of all time, it’s also more than GM and Ford combined. Impressive for a brand that boasts only 1% the auto sales of those behemoths.
While the wild ride has been fun to follow, expect the violent trajectory to eventually plateau. EVs may be the future and Tesla might be leading the charge, but the company famously struggles with production and delivery targets. Regardless, expect to see more Model 3s hit the road in 2020, as well as the new Model Y, refreshed Model S and Model X programs, a new “million-mile” battery, and perhaps some clarity on the new Roadster?
Hyundai
The historically economical sedan brand got a glow-up in 2019, introducing two new SUVs—the flagship, three-row Palisade and the compact, entry-level Venue—as well as a completely redesigned eighth-gen Sonata. Inching its way upmarket, and decidedly away from fleet service, Hyundai posted a 3% gain in 2019—its best in three years. Additionally, the brand set an all-time annual record selling 368,160 SUVs (a 20% bump over 2018), representing 53% of total sales, the highest SUV mix in Hyundai history.
This is a brand to watch not only for 2020, but in the new decade as well. It has an ambitious goal to become a top-three EV manufacturer by 2025 and an interesting strategy for profitability by incorporating “mobility services” into its product catalog. Hyundai offered a little taste at CES 2020, where it announced a concept Personal Air Vehicle (PAV) a.k.a. “flying car” created in partnership with Uber.
Nissan
The Asian automaker had a beast of a year, with the Carlos Ghosn scandal, plummeting profits, issues with Renault, and now a messy corporate restructuring.
Net income was down a jaw-dropping 94.5% year-on-year for Q1, resulting in the automaker cutting 12,500 jobs worldwide, as well as implementing plans to cut both global production capacity and its model range by 10% by the end of 2022. U.S. sales plunged in December, dropping 30%—the biggest monthly tumble in more than a decade.
The goal for 2020 seems to be more about surviving than thriving. The brand plans to pull away from high sales incentives and unprofitable fleet business by moving upmarket, investing in EVs, eliminating less successful/popular model variants, and oddly enough, making more sedans. What should you be looking for? If Nissan can hold onto a CEO and actually regain consumer confidence.
Mazda
Despite Mazda’s beloved CX-5 seeing its best year ever (up 2.6%), the Japanese brand ended 2019 on a dismal note. Down 7.2% overall, with a 70% drop in operating profit during Q1, this is the second year in a row that the automaker’s total sales have declined. Particularly surprising was the poor performance of the very well-reviewed, new-gen Mazda3, which dropped double-digits—down 21.5%.
Regardless of its poor performance, Mazda deserves your attention in 2020 and the decade beyond. The automaker has been on the premium-brand track for a while now, aggressively working its way upmarket. More interesting, though, is the unique path it’s carving to get there.
While other badges enthusiastically jump on the EV train, Mazda has vowed to improve fuel-efficiency first through clean gasoline and hybrid engines—a move the company claims addresses emissions without taking the focus off driving performance. EVs are on the menu, yes, but the fact that they’re not a priority will be something to watch play out over the next few years.
For now, keep an eye on the new CX-30, already getting great reviews, as well as progress on the new $1.6B Mazda Toyota Manufacturing plant in Alabama, set to open in 2021.
Subaru
Subaru ended 2019 with a smile, setting a new all-time sales record of 700,117 units—up 3% over 2018. In fact, the year marked the 12th straight year of sales increases and 11th consecutive year of record sales, with the redesigned Forester and Outback and new three-row Ascent leading the charge.
Subaru looks to ride this wave into the new decade, with ambitious plans to boost overall global sales. Those goals extend to the “technological advancement of safety & environmental performance,” i.e. more hybrids, more EVs, and more autonomous bells and whistles.
It’s all pretty vague, we know, so instead enjoy this wild move by the automaker to debut a new car model at the Singapore Motor Show with an exceptionally dirty name…
Volkswagen
It’s amazing how a brand who spent half the decade in the doghouse could end 2019 smelling like a rose. Apparently, consumers have accepted VW’s Dieselgate amends because sales jumped 3% for the year, with more than half belonging to the Tiguan (up 6.7%) and Atlas (up 37%) SUVs. The iconic Beetle jumped 19% too, despite production ending in July.
It should come as no surprise that VW is an automaker to watch in 2020. The brand has been all but screaming its future plans from the rooftops, betting big on EVs and reinventing itself under the ID series. Amazingly, everyone seems to have just accepted VW as a pioneer of EV and AV technologies, quite literally forgiving and forgetting the whole computer-programmed-emissions-bypass fiasco.
Regardless, watch for dozens of new electric rides to roll out from the German automaker, all wearing goofy, hip names like the ID Crozz, Buzz, Roomzz, and Vizzion. First up will be the more minimalist-dubbed “ID 3.”
Do you agree or disagree with our list? What automakers will you be watching in 2020?
