Hyundai's U.S. niche is just below the the Toyondissan's offerings. Nowhere is that role more valuable than in the burgeoning hybrid segment. Considering the forthcoming Honda hybrid is set to be priced several thousand dollars less than the industry-standard Toyota Prius, Hyundai's pressed to deliver the hybrid Sonata at an even lower price point. And so they have. Li-on-powered, no less. Reuters reports that Hyundai could release a lithium-ion hybrid version of its Sonata as early as (you guessed it) 2010. Unlike other li-ion hybrids set to launch in that most magical of automotive years, the Sonata will not be a plug-in model. With Korean hybrids deliveries beginning next year, any early-adopter glitches should be resolved before sales ramp up stateside. Meanwhile, liquid-petroleum-gas-hybrid versions of Hyundai's Avante hatchback are also set to go on sale soon in Korea, although its chances of coming stateside are almost nil. Similarly, Hyundai VP for Product Development John Krafcik rates the possibility that they'll sell their Indian-built i10 city car stateside as "very unlikely."

Interesting review of the new Hyundai Genesis luxury sedan in today's Wall Street Journal , which makes the inescapable point that the car is a Lexus GS460 for nearly $16,000 less ($53,785 versus $38,000). It has the second (to the way more expensive Mercedes E550) most powerful V8 engine in the class, runs on regular, sources its gearbox from ZF, has a warranty 10,000 miles better than Lexus's or BMW's, more front and rear legroom than either one, and an interior of equal quality and tastefulness. For better or worse, the Genesis even has a mock-BMW iDrive. (The reviewer, Jeff Sabatini, says it's better than BMW's, though, precisely because it does less.) The assessment comes to an unfortunate but inarguable conclusion: aside from whether or not a strong market still exists for cars of this size and cost, Hyundai has missed the point of why Lexus buyers pay an extra $15,785 "just for that badge on the hood… the fact remains that these cars are immensely popular precisely because they are symbols of money, power and success. The people who buy them aren't likely to spend their year-end bonuses on a Hyundai…" Sad.

In the aftermath of Black Hole Tuesday (June ’08 sales numbers), a big story got lost in the vortex. Yes, The Big 2.8 tanked, Toyota and Nissan took hits to the jaw and Honda was proclaimed the new Messiah. But June’s unsung winner puts Honda’s accomplishments to shame. In the midst of a violently contracting U.S. new car market, Hyundai-Kia (“HK”) kicked ass. And that butt-whooping is a direct threat to Detroit’s survival.  

Forget Honda’s 1.1 percent June increase. HK sakes jumped 3.5 percent; its best month ever. Its 28 percent profit growth in the first quarter dwarf’s Honda’s eight percent increase. Even more significantly, HK knocked Honda out of the global number five spot. And ominously for GM and Ford, Hyundai’s dramatic growth has become a crucial obstacle to success with their belated shift to smaller cars.

For decades, Toyhondissan has represented the evil empire eroding the reign of the house of Detroit. But as the Johnny-come-lately party crasher, Hyundai-Kia’s damage has been swift, surgically-precise and (potentially) deadly. HK’s share of the US market is up to 6.6 percent, surpassing Chrysler’s passenger car share (5.2 percent) and closing in on Ford’s 10.2 percent.

Hyundai’s Sonata handily outsold GM and Ford’s great white hopes, Malibu and Fusion. Add in the similar Kia Optima, and the HK twins are right at Altima levels (24k/month). Yes, HK’s larger SUV/CUV’s were not immune to the market shift, but their smaller cars more than made up the difference: Accent up 70 percent, Elantra up 50 percent.

And it’s not just the bigger and older brother in the family that’s hitting on all its (Tau V8) cylinders: Kia also had its best month ever, selling 28k cars, up 7.6 percent.

But the really big show is on the global stage, and that’s where HK is kicking serious butt.

HK is by far the fastest growing major car manufacturer, period. Rising from the number eleven slot in 1999, HK passed Nissan in ’05. In ’07, it passed Honda to join the ranks of the G5: Toyota, GM, VW and Ford. Although the jump from HK’s 3.9 million global units to Ford’s 5.9 million is daunting, don’t assume HK are happy where they are.

What’s driving HK’s industry leading global growth? Sheer will-forces, it would seem. The rapid Korean industrialization literally created the term “Asian Tiger.” And while Korea Inc. has clearly had Japan Inc. in its visor, Hyundai has Toyota in its. It may be indulging in stereotypes, but Koreans are noted for their stubborn and tenacious aggressiveness. Does that not perfectly describe Hyundai?

Here’s a company that boldly plunged into the U.S. market just over twenty years ago, setting records for a new brand introduction– only to have their hats handed to them over quality and reliability issues with the Excel. But they tenaciously stuck with their program of continuous improvements (I’m looking at you GM) to shed their shoddy image.

And now HK have an enviously complete line-up of cars and CUV’s including the rather remarkable rear wheel-drive Genesis sedan and Coupe (2009). Yes, TTAC’s review of the Genesis gave it three stars for its vanilla flavor. But the Genesis program is another substantial step forward. Keep in mind, Hyundai aspires to be the next Toyota, not BMW. In that context, the Genesis sedan is a remarkable accomplishment.

The Genesis Coupe raises the bar even higher: a potential segment buster; something that Toyota can only look enviously upon. And there’re more goodies in the pipeline: the Kia Soul looks a potential gen1 xB successor, and the Kia Forte just looks…good.

While HK has carved out an enviable and solid position in the US, its global growth and reach is much more dramatic. The new i10 is the hot new developing-world mini, having taken India by storm, capturing the I(Indian)COTY award.

Huge new factories are coming on-line in China and India, and the rest of the world is booming for Hyundai. The i30 compact has been a substantial success in the difficult European market, with Golf-competitive looks and dynamic qualities. HK claims to have the most balanced global position of the Big Global 5. Their home market is still healthy, unlike the Japanese, US and increasingly, the European, markets.

Hyundai’s meteoric rise is another nail in the coffins of GM and Ford, both globally and domestically. HK is growing substantially faster in the developing world, blunting Detroit’s ambitions for profits abroad. Closer to home, Hyundai is part of Toyhondisshyunkia: a solid bloc controlling almost 50 percent of the U.S. passenger car market.

Ford’s coming Euro-global car line-up looks appealing. GM is… working on theirs. But will car buyers care enough to generate the market share, volumes and profits they desperately need? “Thanks” in part to Hyundai, I wouldn’t count on it.

In 2002, my friend Patrick threw a glass ashtray at me in a bar in Boston. “Berzerkowitz!” he barked, celebrating the successful hit right in the middle of my forehead. That’s how he said hi. The next morning, once he sobered up, and my face still hurt like a sonofabitch, we went for a ride in the car he rented for the weekend. “It’s the most generic car I have ever driven,” Pat told me from the driver’s seat of a Hyundai XG350L.

High gas prices are a bitch. But other factors prevent the "build a small car, stupid" strategy from rescuing the auto industry. Like the fact that steel prices have increased 60 percent this year. In the compact car market, where price point is king and profit margins are razor thin, automakers are being forced to raise prices to maintain what little profits exist. Bloomberg reports that Hyundai will increase prices on its budget cars for the second time since June, due to high steel and other component costs. The good news: Hundai's US sales are down "only" 2.3 percent and actually up 1.3 percent since the last price increase. The bad news: even the second price increase "isn't enough to cover the higher costs, but it's hard for them to boost prices more without crimping sales.'' And it gets worse too. All of Hyundai's Korean production will endure stoppages this week, thanks to labor demands for a nine percent wage increase. With sister company Kia holding on to its rock-bottom pricing, it's no wonder that Hyundai is heading upmarket. But will consumers (particularly in crucial developing markets) follow?

As the first reviews of the new Hyundai rear wheel-drive Genesis luxury sedan hits the nets and mags, let's check the "value proposition." The 280-horse V6 version stickers for $33k. Your thirty large buys you an Aisin six speed auto (you didn't expect a stick shift in a Lexus-fighter, did you?), six airbags, alphabet soup safety equipment, heated power leather seats (ahem, BMW), auto headlights,and automatic dual climate control. The V6 delivers 18/27 mpgs, which is a pretty impressive number when compared to front wheel-drive cars like the 19/26 V6 Altima. Some $38k puts the 375hp V8 in your driveway. Fuel economy is only marginally worse at 17/25. If you're willing to part with a paltry seven ponies, the 4.6-liter V8 runs on regular (87 octane) gas. And, of course, the V8 comes with more toys: uprated leather, a wood steering wheel and so on. With this kind of Acura "everything standard" pricing, these cars go from good deal to outright bargain. A comparably equipped CTS stickers at well over $40k. On the other hand, a Cadillac's a Cadillac. This is a Hyundai. Which is beating the snot out of Cadillac in the U.S. sales charts. Accent sales jumped 70 percent in June. Elantra and Sonatas are up. Even the luxury-oriented Azera is holding steady. (Hyundai's SUV and minivan sales evaporated along with everyone else's.) As for the Genesis, time will tell.

Until now, Hyundai had told us about two engines in the upcoming Genesis sedan: a 375 horsepower 4.6-liter V8 and a 3.8-liter V6 with 290 horses. But data mining on the EPA website tells us that the 2009 Hyundai Genesis will also feature the same 3.3-liter V6 that's in the Sonata. The 3.3-liter V6 is/was schedded for the Genesis overseas; until now there was no news that Hyundai was planning to offer it to us North Americans. In the 2009 Sonata, this engine makes 249hp– which sounds like a more than suitable number for an entry-level Genesis powerplant, considering that cars like the BMW 3-Series start with 230 ponies. Uh-oh. Hyundai's depending on the value equation for the Genesis to sell. When the new model clocks-in with 249 horses in base trim, and Infiniti's G35 offers 300+, they risk losing the stat-sheet buyers. Now I can hear the clicking already "But the Genesis doesn't compete with the G35." Yes, but– all cars that overlap in price can and do compete with one another. One last note on the smaller V6. The EPA ratings for the 3.3 are 19/27; the bigger 3.8-liter V6 is rated at 18/27.

The rear wheel-drive Genesis sedan is Hyundai's first foray into the luxury car market. We brought you in-person pictures back in March at the NY Auto Show. Now, Hyundai has released the pricing info. For $33k you can get yourself a V6 model with a very healthy 290 horses and six speed autobox packing the usual luxury toys like dual climate control and heated leather seats (ahem, BMW, leatherette). Jumping to the big boy 4.6-liter V8 will cost you another $5k. In addition to the 375 horsepower monster up front, you get a better six speed autobox (ZF this time around), "ultra-premium" leather seats, leather all over the dash, a higher end sound system, and more useless but marketing-necessary toys. Three ways to look at these prices: first, the V6 model is right on point with cars like the Infiniti G35, although you can guarantee they will drive 100 percent differently. And we can't leave out the $32k completely unluxury Pontiac G8 GT. Alternatively, consider the value of the Genesis over a BMW 5-Series, whose 230 hp 528i starts at over $44k. Finally, just for kicks, let's look at things in historical perspective: in 1990, the Lexus LS400 had a sticker of $35k. 

The Detroit Free Press reports that a little-known loophole in California's greenhouse gas emissions standards will allow some foreign manufacturers to avoid meeting the tough standards. Under the 2004 rules set by the California Air Resources Board (CARB), automakers averaging fewer than 60k annual unit sales in the Golden State would be exempt from the 2016 emissions standards. The Big 2.8 and Toyondissan would have to meet the 35mpg by 2016 standards; Volkswagen, Hyundai and (possibly) BMW would not. The loophole was revealed in discussion of a Senate bill designed to overturn the EPA's decision not to allow California to set its own emissions standards. GM spokesmouth Mark Kammer was unimpressed. "There's a lot of cherry-picking opportunities for a [foreign] manufacturer." The United Auto Workers' Legislative Director Alan Reuther also spoke on behalf of the his members' employers and… the planet. The loophole "undercuts the effort to reduce CO2 emissions and improve fuel economy. And it gives a major competitive advance to newer entrants into the auto market." CARB rules indicate that the exemption sales limit could drop to 4k units per year after 2016, but the proviso is not legally binding. At least not yet. 

Automotive News [sub] reports that Hyundai/Kia have scrapped plans to build a mid-sized unibody pickup truck at their new plant in West Point, GA. Sources from Hyundai (PR department?) say the truck (thought to be inspired by Honda's not successful but we build it on the same production line as the Odyssey and Pilot so who really cares Ridgeline) would have been built on the updated 2010 Kia Sorento chassis, which is set to switch to unibody design. Instead, the Georgia plant will build a Kia small car, likely the Optima. Executives say a Hyundai-branded car may be built there as well, "if the platform is compatible." As consumers turn away from large body-on-frame trucks, you might have expected a yen for lighter, unibody trucks (just as VW's Rabbit-based pickup sold well during the 1970's fuel crisis). And you might be right. But Hyundai/Kia's not about to make that gamble. Not with so much riding on the (larger and heavier than typical for Hyundai) Genesis RWD vehicles. 

Credit where credit's due: Ford was the first automaker to risk afflicting their customers with the blue screen of death and install the Microsoft SYNC system in their products. Not only did Microsoft's in-car multiple device Bluetooth-enabled voice-activation thingie not serve-up a code 10, but Ford put it in their entry-level models AND milked it with plenty o' marketing. But Bill Gate's mob let it be known from the start– as did responsible members of the media– that SYNC was heading into rival products after an 18-month "window of exclusivity." And so, at the end of the year, Ford's bragging right will be defenestrated by none other than Korean budget car maker Hyundai– a Ford wannabe if there ever was one. Yup, Hyundai is next to SYNC up. The New York Times reports "Windows Automotive will first appear in Hyundai vehicles in North America in 2010, said Martin Thall, general manager of Microsoft’s automotive business unit. Subsequent versions will give drivers voice control over navigation systems and video entertainment, in addition to cellphones and digital music players." There was a brouhaha recently when rumors circulated that Ford would allow Microsoft to use SYNC for advertising, which they vigorously denied. Or at least didn't confirm. Yet. What's the bet Kia/Hyundai show similar restraint? 

Hyundai just started production at its new $790m plant outside Beijing, as it ramps up its bid to become China's largest car manufacturer. Forbes MarketScan reports that initial production at the new plant will be 200k Elantras, ramping up to 300k by 2010. This would give Hyundai's Chinese operations an annual production capacity of 600k, putting it at the top of the Chinese biz in terms of volume. But Hyundai has to match increased capacity with improved sales numbers. The Korean firm's sales were down 20 percent last year, and Chairman Chung Mong-koo has set the ambitious goal of increasing sales in the Middle Kingdom by 64 percent this year and by 100 percent by 2010. The new plant should help meet this goal, says Chung, as its economies of scale should help lower costs and increased capacity means more vehicles can be tailored to the Chinese market. With Chinese sales booming, the opportunity exists for Hyundai to score big sales. With commodity prices rising however, it remains to be seen whether the extra investment actually translates into improved profitability.

If you recall, Hyundai presented the production version of the rear wheel-drive Genesis Coupe at the New York Auto Show last week. We can now bring you some specs. The base engine is a turbocharged and intercooled 2.0-liter four-cylinder mill, cranking-out. 212hp at 6500 rpm, and 217 ft.-lbs. of twist at 2500 rpm. The optional 3.8-liter V6 is good for 306 horsepower at 6000 rpm, with 263 ft.-lbs. of torque at 4700 rpm. Both cars feature a six-speed manual as standard (which means most American buyers will be paying more for a slushbox). The turbo four gets an optional five-speed auto while the V6 gets an outstanding optional ZF six-speed auto. Now for the bad news. The V6 weigh-in at 3549 lbs and the four-banger ain't no featherweight neither (3439 lbs.). That puts the Genesis Coupes almost exactly on par with FoMoCo's V6 and V8 Mustangs. Hyundai's only performance estimate: the V6 will make it to 60mph in "under 6 seconds." So why not fir the Genesis with a 250-horse version of the blown four that Kia showcased in their Koup concept? Why not indeed.

Click here for a Pixamo gallery of the Genesis Coupe 

With Toyota set to begin selling hybrids in South Korea this year, Hyundai is fighting back by announcing it will begin mass-producing its own hybrids. Donga reports that the announcement of a liquid petroleum gas (LPG/LNG)-electric hybrid and gas-electric hybrid versions of the Avante (Elantra) sedan coincided with Chairman Chung Mong-koo's visit to a Kia factory over the weekend. The automaker has already provided hybrid cars to the Korean government, but this announcement heralds Hyundai's first attempt to go after the commercial market. The LPG-hybrid will be available in 2009, followed by a standard hybrid and larger LPG-hybrid models in 2010. Also planned are fuel-cell models to go on sale in 2012. No word yet on whether these models will be available in the States, but since Hyundai cites the projected million-unit hybrid market of 2010 as rationale for this move, one has to assume that we'll be seeing these gas-sippers at some point.

In rounding out our coverage of Hyundai's offerings in NYC, we've got shots of the facelifted Sonata and Genesis Coupe. Both are much, much better in person than in pictures. The Sonata's biggest aesthetic improvement is the interior, which goes from zero to hero. Build quality and fit and finish are way better, and it no longer is ergonomically challenged. Hyundai's Mission: Bland sedan has, dare I say, some style. As for the Genesis coupe, while I thought the initial press shots showed a hideous Lexus IS knock-off in coupe form, in person it's more of an Infiniti G37 coupe knock-off. Very slick car, and with Kia's use of a 290 hp turbocharged four in the Koup concept, the turbo four that Hyundai announced for the Genesis coupe sounds promising. Although Hyundai didn't have any prices, you'll be glad to know that Hyundai's trademark olfactory character is unchanged in this RWD coupe: even the preproduction show car's interior smelled like a Hyundai interior, which I'd describe as musty crayon.

Click here for Pixamo gallery