Arduino suitability

The Arduino is perfect for that.

I'd use a 12v relay for the horn. Fairly simple.

No reason to spend extra on a serial LCD.
It only uses 6 pins (3 with a technique I developed).

Also if you want 7 segment displays you'd be wanting to grab a MAX7219 chip.
Makes it easier to work with them. One chip will run up to 8 digits.