Boring. Small. The automotive equivalent of an advanced econ class. That’s pretty much what a 2000 Elantra Wagon was in the auction world back in 07’. You know that the automotive fashionistas won’t be knocking on your door… and three years ago you wouldn’t get much more than the extraordinarily cheap and chancy taking another glance at it. Hyundai still suffered from the stigma that came with making second-rate cars in a world where sub-prime buyers could buy far better vehicles with a pulse and a paycheck. To put it kindly, this one was a tough sell.
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We’re coming to the end of KOREA! WEEK! and we still haven’t answered the question: When did Hyundai start becoming a serious player in this market? When did the image change from Deadly Sin to default-choice affordable car? One can go back as far as the second-generation Excel, which cracked the reliability equation while still being rust-prone as all get out. Alternately, perhaps it wasn’t until the arrival of the current Sonata that the brand became worthy of being chosen by the frozen Middle American masses.

The truth probably lies somewhere in the middle, and I’d suggest that the car you see above was the true turning point. The first-generation Elantra (Lantra to the Cammy Corrigan crowd) was pleasant enough, but it didn’t even pretend to compete with Civics and Corollas. Hyundai was assumed to know its place, and that place was among the credit criminals, desperately poor, and the hopelessly stupid. Ten years ago, however, the Elantra woke up and decided that nobody was going to put it in a corner.
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Just two years ago the $40,000 Genesis was an audacious step upmarket for Hyundai. Tepid sales of the semi-premium line suggest that the market still isn’t quite ready for an expensive car from Korea. And yet, for 2011, the company is attempting an even larger leap with the $58,900 Equus ($65,400 in Ultimate trim). This is territory into which even storied manufacturers like Cadillac and Lincoln fear to tread (with cars at least). Does Hyundai’s large premium sedan come close enough to established competitors, while undercutting them enough in price, that potential buyers will overlook the badge? Or is it a step too far too soon destined to sell in very small numbers?

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The Economic Times of India reports that Hyundai is worried about Europe. Hyundai Europe’s Vice President, Allan Rushforth, felt positive about 2010. “This year we’ll probably achieve 2.7 percent market share in a market of around 13.49 million,” he said. But with regards to 2011, he poured cold water on that year. “Next year will be really interesting. We have yet to see scrappage washout – the year-on-year effects of scrappage from the reported registration data…..I think the first half-year will be really, really tough.”

Reuters has a different story. Read More >

You could look at the accident one of two ways. The first way to look at it was that the backhoe was at fault. It backed out halfway across the northbound exit ramp to Bethel Road from Ohio SR-315, forcing my brother to take too rapid of an avoidance maneuver, spin his pristine Porsche 944, and hit a streetlight, causing said streetlight to fall into the freeway traffic.

The second way to look at it — and, in fairness, I must note that this view was the one espoused by the Columbus Police — was that my brother, Mark, had been traveling at perhaps one hundred miles per hour (“More like one twenty,” he sniffed to me in the aftermath) and that therefore the backhoe operator could have had no reasonable expectation that the red Porsche+Audi would arrive well before he could move back off the road.

Either way, it was time for the punishment car.

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Americans are a forgiving sort, and redemption from sin is just the right gesture away. Well, that applies more to politicians and celebrities than to car companies. It can be a little more challenging to overcome the damage from a poor quality car, especially if you’re the brand new kid on the block. Just ask Yugo; they quickly walked away. As did Peugeot, Alfa, Fiat and countless other imports, even though they had been around for decades.  But the Koreans are a tough and determined folk, and when they got their less-than Excellent head handed to them on a platter, they dug in their heels and figured out what it would take to be given a second chance.  Read More >

If there’s a maxim the auto industry can take to the bank, it’s this: focus wins. Knowing a brand’s advantages and maintaining a laser-like focus on them is the way to win in the car game, and it’s a lesson Hyundai has clearly learned. Over the last several years, Hyundai has caught the media’s attention by moving into the luxury and coupe segments with its Genesis, but the real offensive is still coming. The redesigned Sonata was the tip of the spear, giving Hyundai a top-notch competitor in the all-important D-Segment, and next up are similarly improved versions of the Elantra and Accent. These three models have been some of Hyundai’s most enduringly successful nameplates, and as this graph proves, they’ve been responsible for much of the brand’s recent sales growth. They’ve even maintained decent momentum towards the end of their model lifes. With the new Tucson replacing the Santa Fe as Hyundai’s top-selling crossover, Hyundai has been able to maintain a competitive crossover nameplate for several years now, but even the hot CUV segment likely won’t provide as much juice to Hyundai sales as the redesigned Elantra and Accent. Meanwhile, Hyundai’s entries into the luxury and sporty space seem to have amounted to little more than a distraction… the lurking danger for every automaker.

Hyundai’s new Elantra is the latest C-Segment car to receive a 40 MPG highway EPA rating (29 MPG in the city) as it prepares to take on Ford’s 40 MPG 2012 Focus and the 42 MPG Chevy Cruze Eco. The Accent’s only engine is a 1.8 liter engine is expected to make 148 HP and 131 lb-ft of torque, meaning you won’t have to upgrade to a special engine and aero package (as in the Cruze) or a dual-clutch transmission (as apparently is the case with the 2012 Focus). It will be down on power compared to the 160 HP/146 lb-ft Focus and more power but less torque than the 138 HP/148 lb-ft Cruze Eco, but should undercut both on price. And by bringing the model-wide efficiency up rather than tweaking special models for high efficiency, Hyundai’s John Krafcik says that his firm will have no problem hitting a 50 MPG average by 2025 (though a CAFE calculation that gives the 40/29 MPG ELantra a 44 MPG average doesn’t hurt). Meanwhile, when was the last time you heard anyone even mention the Civic or Corolla? The times, they are a-changing…

Well, it seems that the wrecked US-Korean trade pact only affects U.S. food exports to Korea. It most certainly does not seem to have any influence on Hyundai. Hyundai expects to set a company record for annual U.S. sales next week already, and to sell even more in 2011. Read More >

Hyundai’s Sonata overhaul has been well-received by critics and customers, and the next-gen Elantra looks set to move the magic to the C-segment. But what of the Accent? If there’s a vehicle left in Hyundai’s lineup that recalls the bad old days of Hyundai’s bargain-basement past, it’s the current sub-$10k base price Accent. Of course, that’s all about to change, as a new Accent is hitting the roads in Korea… and like most of Hyundai’s new product, it looks like a huge step up from its predecessor. TTAC’s man in Korea, Walter Foreman, was kind enough to send in this mega-dump of over 80 images of the new Accent, noting

Australia is pretty much a stronghold for Toyota. Looking at the figures, it seems that Aussies like well-made, cheap reliable cars. And to be honest, who doesn’t like those kinds of cars? But what happens when someone else comes to your market, and does well what you do well? Well, you get worried. Read More >

Although the Korean Won has stayed strong this year, hurting the profitability of Korean exports, Hyundai has banked $1.2b in profits in the first three quarters of 2010, reports Automotive News [sub]. Analysts had expected the resurgent automaker to earn closer to $1b in profits, but they say that an even stronger Yen has helped Hyundai cut into the sales of its Japanese competitors. And with a new Elantra, Equus, Sonata Wagon, Veloster sports coupe and other much-anticipated products about to hit the market, Hyundai is expected to keep its momentum rolling. Fujio Ando, adviser at Chibagin Asset management explains

TTAC’s own Israeli man of mystery, Tal Bronfer, has been busy with non-TTAC related work this summer, but he’s just checked in from the Alps with brand new images of the Hyundai Sonata Wagon (known in Europe as the Hyundai i40) brake testing on Austria’s Grossglockner High Alpine Road. Tal was blasting through the Grossglockner in some rapid Teutonic metal (let’s just say it has at least one “R,” and one “S” in its name, and a review is forthcoming) when he smelled brakes. Naturally, his first thought was to check his own, but the culprit was this lightly-camouflaged wagon “slowly, braking downhill all the way from the top of the mountain.” Another Sonata Wagon was tow-testing.

What these pictures reveal is that the Sonata Wagon is not a simple sheetmetal job, as the elongated roof falls away gracefully towards the rear of the car, and appears to offer integrated roof rails. It’s a Euro-style “sport-wagon” in the mold of the European Accord rather than a US-style “cross-wagon” like the Venza or Crosstour, which indicates that it won’t come to the US. After all, with the Mazda6 and Subaru Legacy wagons discontinued, the mass-market station wagon seems all but dead. On the other hand, the Sonata has been punching above its weight since it debuted, and with the Euro-Accord wagon coming stateside as the TSX Sportwagon, and a Buick Regal wagon rumored, the i40 may yet come to the states as a Sonata Wagon.

As we’ve noted before, Hyundai and Kia have been quick to exploit the weakness of the domestic auto industry by advertising their American-made cars as American-made cars. Now, they’re taking the attack to a whole new level, as Hyundai USA President John Krafcik tells CNN Money that his brand will build 80 percent of its vehicles in the United States by next year. If the Korean brand can actually achieve that goal, it would make Hyundai’s lineup the most American-built full line on the market. And though he insists that Hyundai doesn’t make decisions about production based on PR, Krafcik can’t help but twist the knife, saying

I’m going to build my three best selling cars in the US. Ford builds its best selling car in Mexico.

Oh snap!

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This weekend sees the first ever South Korean Formula 1 Grand Prix. This is a push into new markets for Formula 1. This is why they are trying to push into North America and the Middle East. But it seems that it’s receiving a cool reception from the very people whom they are trying to woo. Namely, the car business. Read More >