Over a decade on, auto makers are still sorting out what car buyers are looking for in a crossover. In what ways should a crossover be more like a car, and in what others should it more resemble an SUV? Two rows, or three? Older members of the class are like time capsules, capturing what manufacturers were thinking at that point in time. And so we have the Hyundai Santa Fe, refreshed for 2010 but last totally redesigned for the 2007 model year.

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Direct injection. Dual-clutch transmission. 40 MPG highway. Three doors. 2,580 lbs. A $17k-ish price point. That might just be one of the most unconventional sets of numbers to come out of this year’s NAIAS, and the Veloster is certainly one of the more unconventional cars to launch here at Cobo. From a more cynical perspective, it is based on the Accent platform, rear headroom seems a bit cramped, the third door seems a bit unnecessary, and its marketing is a bit overly drenched in Gen Y-centric nonsense (also, official EPA numbers aren’t out yet). Still, the Veloster is a huge step from the Tiburons that came before it, and it adds an intriguing new facet to Hyundai’s American assault.

Hyundai just hit us with this teaser image, showing the forthcoming Veloster, which we (and everyone else) thought was a two-door. Apparently not. Look for the full reveal this Monday, live from the Detroit Auto Show.

“Hyundai Motor Co. and its affiliate Kia Motors Corp. sold a combined 1.1 million vehicles in China last year, becoming the second largest auto seller in Asia’s biggest car market, the companies said yesterday.”

This today in the Korea JoongAng Daily, and in case you’ve never heard of them, they are an associate of the Herald Tribune. Now why should this be a slap in the face of GM? Read More >

When TTAC’s Tal Bronfer caught a D-segment Hyundai station wagon brake testing in Austria’s Groβglockner High Alpine Road, we concluded that the “Sonata wagon” was

not a simple sheetmetal job

It turns out that was something of an understatement.

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It’s a strange question to ask, considering that Hyundai is already selling the Genesis and Equus luxury sedans, but apparently Hyundai decided to bring out the cars before launching a brand. According to the Wall Street Journal

There are three branding scenarios under consideration. The most likely is to create a subbrand called “Genesis,” and sell the models under the same dealership roof as Hyundai but in a separate part of the showroom, possibly with dedicated salespeople, said John Krafcik, the president of Hyundai Motor America.

The other scenarios are to keep the premium cars badged as Hyundais, or—in the most ambitious move—spin off the brand into separate dealer facilities, much like Lexus or Honda Motor Co.’s Acura

Those are the options, but for a little more context, let’s check in with Hyundai USA boss John Krafcik…

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Unable to provide meaningful representation to its dwindling membership, the United Auto Workers is continuing its post-bailout strategy of poking its nose into everyone else’s business with a protest planned for today at the Hyundai America Technical Center in Ann Arbor, MI. While its own workers face the aftermath of a bailout that saw tens of US plants shut down, the UAW opines on the Korean situation in a release which notes:

Frustrated by their temporary status, auto workers at a Hyundai Motor Co.mpany plant in Ulsan, South Korea, declared a strike on Nov. 15, and one desperate worker set himself on fire in protest of the company’s refusal to offer secure jobs. About 500 workers have since led an occupation of various plants in the Hyundai compound… To anyone interested in workplace fairness, the resolution of the Ulsan Hyundai workers’ strike is critical. It could either speed up progress toward ensuring global living wages, or provide a green light on the race to the bottom the auto industry began years ago – — with Toyota and Hyundai getting a head start.

One must, however, point out that the UAW has made its fair share of contributions to recent declines in auto worker wages. After all, it forced nearly half of GM’s Orion Assembly plant workforce to take a 40 percent wage cut in order to build a politically-popular fuel-efficient subcompact (the next-gen Aveo) in the US. Not only did this represent an unconscionable screwing of its own union “brothers” but it also directly hurts the Korean workers the UAW now so self-righteously defends by by stealing jobs using the very same “race to the bottom” that it decries. Besides, the labor situation in Korea is a bit more complex than the UAW’s Manichean moralizing makes it out to be…
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Hyundai has been working its way out of the low-cost, low-quality basement for some time now, but even with the introduction of its Genesis luxury sedan, the brand has maintained a certain amount of working-class value appeal. That image has served Hyundai well over the last several years, when an economic downturn has sent record numbers of customers to Hyundai dealerships in search of a deal. But with a new upscale-looking design language transforming solid but uninspired offerings like the Sonata into memorable designs, Hyundai wasn’t likely to remain the scrappy, more-for-your-money underdog forever. And sure enough, Hyundai tells Automotive News [sub] that it’s getting away from the solid values of quality and practicality, and moving into the tenuous world of “premium” brand placement. Executive Vice President for global marketing Cho Won Hong explains

In the past 10 years, we have been very successful in building an image for quality. From now on, our direction will be defined as new premium or modern premium. We have been doing quite well in building good functional quality. But we still have some room to improve our emotional quality, and that is related to our brand strategy. That’s why we set modern premium as the brand direction for the next five to 10 years

So we now know that GM’s failure to create a decent subcompact during the, oh, forty years in which doing so would have saved the company from certain ruin… well, do we really need to get into that rant right now? Read More >

Even when marketers are locked in an epic struggle for the hearts of consumers, they still treat each other with a basic level of respect. After all, the competition is just competition; the real enemy is the consumer. But the competing impulses towards ruthless competition and collegial courtesy can often just cause more confusion. Take this spot from Hyundai, which makes a big joke out of a problem that isn’t especially widespread, and yet refuses to actually land the punch. What Hyundai is trying to do here is mock Chevrolet for coming out with a special “Eco” version of its Cruze that gets 42 MPG highway, and then using that claim to advertise all Cruzes with just an asterisk to remind buyers that the Eco model costs extra. Which is an interesting approach, except that we haven’t been able to find much evidence of this tactic… in fact, it seems that at least some Cruze ads cop to a 36 MPG, and the asterisk only references that the number is from the EPA. Did Hyundai jump the gun on this one? If so, the brand’s decision to break out sales of every 40 MPG vehicle it sells should help get things back on track.

Though an upcoming 429-horsepower 5.0-liter V8 might suggest otherwise, Hyundai intends to lead the industry in fuel economy. As recently as 2005 this would have seemed a pipe dream. That year’s Hyundai Sonata automatic managed fuel economy ratings of only 19/27 MPG from the EPA (2008+ system), well below the 21/31 achieved by the Honda Accord and Toyota Camry. The 2011 Sonata does far better: 22/35. But the glory, of course, goes to hybrids, and so the Sonata will soon be available in hybrid form. The projected EPA numbers: 36/40. Is Toyota’s hybrid leadership in danger?

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Review any car priced between $18,000 and $28,000 lately, and someone’s bound to comment, “I’d much rather have a $20,000 Hyundai Sonata.” This hasn’t just been talk. Sales of the 2011 Sonata have exceeded Hyundai’s most fanciful expectations, leaving the car in short supply. Now, to add fuel to the fire, you can get the Sonata with a turbo. Should you? Well, it depends.

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Did we say that Toyota is casting a wary eye on Hyundai? The Koreans are on a roll. They are boosting their production capacity in China to 1 million units per year. And they do that right in front of my nose, in Beijing. Read More >

Hyundai could have timed this announcement a bit better. Wouldn’t the following announcement have been a fine crowning of  TTAC’s Korea week? Instead, the week ended unceremoniously with a reflection on thee shitboxes. From shitbox to market leader: Hyundai has kicked Toyota from the pedestal as the largest Asian carmaker in Europe. In a way. Read More >

Hyundai seems fearless. Its venture above $30,000 with the Genesis wasn’t a rousing success, yet two short years later they’re doubling down with a $65,000 flagship. But there is one car they dare not offer here, from the opposite end of the line: the diminutive i10. So, what are we missing?

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