With auto shows called off, digital reveals take center stage
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June 08, 2020 12:00 AM

Automakers: The show must go on(line)

Larry P. Vellequette
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    Bob Carter, Toyota Motor North America’s sales chief, led a video reveal for the new Sienna minivan.

    Like face masks, hand sanitizer and rubber gloves, online automotive product launches existed before the onset of the coronavirus pandemic — they just weren't quite so ubiquitous.

    But with major global auto shows either canceled or leaning that way, automakers' need for big splashes for new products has brought what once was a niche strategy to the fore, and in the process may have ripped another giant hole into the side of the auto show business model.

    Last month, Mercedes-Benz took its latest big, new-product announcement online — a redesigned E-Class coupe and cabriolet. The week before, it was Toyota with the delayed introduction of the redesigned Sienna minivan and the unexpected return of the Venza nameplate on a new hybrid crossover. Nissan has plans this month to reveal the new Rogue in an online format, the latest in what has become a flood of digital global reveals that started in earnest in March when the plug was suddenly pulled on the Geneva auto show because of COVID-19.

    Online unveilings

    With the pandemic shutting down auto shows across the globe, automakers have pivoted to what once was a niche strategy: virtual vehicle debuts.

    For automakers, digital product launches can rack up some staggering numbers.

    "The combination of the live views and the views later the same day, we had 2.3 million people view that video in 24 hours," Bob Carter, head of sales for Toyota Motor North America, said of the May 18 video he and Toyota Division General Manager Jack Hollis did for the Sienna and Venza. By way of comparison, in its best year, Toyota sold 163,269 Siennas in the U.S. in 2006, and the reimagined Venza has sales expectations of about 50,000 per year.

    "We've never experienced anything like that" for a reveal, Carter said, adding that consumers watched the 13-minute video launch for an average of more than 10 minutes, compared with an average view of less than a minute for Toyota's other brand videos.

    Hyundai put up similar numbers after the pandemic forced a last-minute change in its plans to unveil the 2021 Elantra in a virtual event on March 17. According to internal documents, the Elantra's standalone video reveal drew 22.3 million interactions with consumers in seven days, including 61,500 viewers who tuned in live and 6.1 million who watched a 2-minute highlight video within the same period.

    Taking notice

    A portion of the views and consumer interactions might be laid at the feet of feeding a home-bound audience hungry for distraction in a socially distanced world. But pandemic or not, automakers notice those metrics.

    "Some of these launches, these quote-unquote 'product reveals,' are going to have to be virtual," Kumar Galhotra, the new president of Ford North America, told Automotive News last month.

    A Ford spokesman later said Ford was "looking at several options for future vehicle introductions, including virtual reveals," but said details would be forthcoming. Ford has several important product launches due this year: the redesigned F-150, set for June 25, plus the Mustang Mach-E and two new Bronco SUVs on dates to be determined.

    Bentley’s virtual debut for the Mulliner Bacalar and other activities helped replace lost Geneva show outreach.

    Automakers have a history of amplifying their media events at auto shows by opening them up to allow consumers to watch online. But few did it as thunderously as then-Dodge brand boss Tim Kuniskis in April 2017 with the reveal of the Dodge Challenger SRT Demon at the New York auto show. The nighttime half-hour spectacle drew a whopping 1.6 million live viewers and more than 32 million views after the fact.

    General Motors tried its own standalone event last July when it introduced the long-awaited midengine Corvette Stingray and drew 475,000 viewers online. Chevy spokesman Kevin Kelly said the brand had "been looking at ways we can amplify our product message beyond traditional auto shows way before the pandemic, and those efforts to use new technologies and new approaches will certainly continue."

    Consumer engagement key

    Despite big online numbers, most automakers still believe in the auto show format because of its long-demonstrated performance introducing new vehicles to both active buyers and enthusiasts.

    When the Geneva show was suddenly canceled, Aston Martin, Bentley and McLaren briskly pivoted and held video debuts. Instead of being under the bright lights of Palexpo exhibition center, the brands introduced the vehicles from their home bases throughout England.

    Aston Martin unveiled the wild V12 Speedster, Bentley took the wraps off the posh Mulliner Bacalar roadster and McLaren showed the world one of its most extreme models yet, the 765LT.

    In addition to the Mulliner Bacalar video reveal, Bentley had a handful of replacement activities to make up for the Geneva show's cancellation.

    Mike Sayer, Bentley's head of product communications, said with the automaker's efforts that went into those activities, the brand saw a 1 percent drop in overall reach compared with Geneva 2019 but added that the number of published articles increased by 15 percent.

    In May, Lamborghini utilized augmented reality on its website to unveil the rear-wheel-drive Huracan Evo Spyder. The technology allowed people to use an iPhone or iPad to virtually check out the sports car, even on a 1:1 scale, all from the comfort of home.

    "I am still bullish on auto shows and we are still committed to auto shows," said Toyota's Carter. "It's that one-on-one engagement with consumers that is irreplaceable. We're all trying to figure out what the new consumer engagement looks like," within an active pandemic.

    Carter also said that while virtual product launches are more cost-efficient — perhaps 90 percent less expensive than traditional auto show reveals, he said — they can wear off quickly if every automaker does them for every vehicle, leading to what he called "video fatigue."

    He also said doing virtual events can allow automakers to reveal products at a time that works best for their own plans, instead of being "trapped" by the show schedule.

    "Our investments in auto shows are here to stay," Carter said. "But you may see more of a balance going forward."

    Hannah Lutz, Michael Martinez, Jack Walsworth and Laurence Iliff contributed to this report.

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