Cars of 2008: A Sneak Peek

What will you be driving in 2008? A look ahead at the cars and trucks coming in the future

by Matt Vella

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If there's one constant question in the auto industry, it's "what's next?" Every new model year creeps further and further onto the previous one's turf, with new vehicles now slated for introduction to the public up and down the calendar.

Automakers certainly haven't been shy about showing long-off product way ahead of time for numerous reasons: to ward off competition, to reassure investors, and to generate buzz. What's more, with a growing number of concept models being shown in nearly production-ready stages, getting a preview of what'll be on the road a year or so out has never been easier.

Now, in late 2006, as the bulk of 2007 models are just becoming available to consumers across the country, the industry already knows quite a bit about what 2008 has in store. Even a brief survey of some of that model year's announced vehicles confirms that various of this year's trends are likely to continue.

Emphasis on Efficiency

So, given the details that have already been tipped, what do we know about 2008? Look for an industry that continues to focus on: fuel efficiency and clean energy, excitement-generating low-volume vehicles, innovative new models aimed at new markets, and workhorse vehicles aimed to maintain financial momentum.

The explosion in popularity of gas-electric hybrids has not gone unnoticed, even if many industry veterans still harbor questions about the vehicles' true efficiency. What's certain is that the market leader, Toyota (TM), isn't happy to sit still. It will continue pouring hybrid drive systems into new vehicles. Meanwhile, General Motors (GM), the world's largest automaker, will no longer sit out the hybrid craze as of 2008.

Lexus, Toyota's successful luxury division, is finally going after the granddaddy of large luxury sedans, DaimlerChrysler's (DCX) Mercedes-Benz S Class (see BusinessWeek.com, 5/10/06, "The New S550: Sportier, Sexier, More Expensive"). The LS 600h L (see BusinessWeek.com, 4/14/06, "Lexus' New Luxury V8 Hybrid") is intended as the company's new flagship, with more technological bells and whistles than imaginable.

Of course, the banner technology is a hybrid drive system like the one found in comparably plebian Prius cars. The LS should feature an engine that pumps out more than 400 horses as well as a plethora of techy gadgets to keep drivers and passengers occupied and safe.

Energy Trailblazers

GM is getting ready to bring on its own pack of hybrids.It's even putting its new two-mode system into huge SUVs like the GMC Yukon.

No word yet on the exact gas mileage this 2008 will get, but the company says to expect a 25% increase. If that's the case, it would mean the availability of a gigantic vehicle earning fuel economy of over 20 miles per gallon combined—quite a feat for such heavy vehicles that required thirsty V8 engines.

Some are even thinking beyond gasoline. Honda (HMC) has always been a trailblazer in clean energy. After all, it—not Toyota—was the first Asian manufacturer to sell a fuel-sipping gas-electric hybrid to American consumers.

The Honda FCX, which debuted at the recent Los Angeles Auto Show (see BusinessWeek.com, 11/29/06, "L.A. Auto Show Thinks Green"), is the next big thing, or so Honda hopes. It is powered by a hydrogen fuel.

The company wowed green energy fans when it announced that it would begin selling a market-ready version of the model next year to Japanese customers. Like the second-generation Prius, the FCX's exterior adopts a futuristic look that suggests the advanced technology underhood.