We’ve spilled a few pixels on these pages over Hyundai’s dedication to direct injection (DI) technology, even going as far as to crown Hyundai the “new Honda” of motor technology. But DI technology isn’t without its downsides, and Hyundai tells Automotive News [sub] that the technology isn’t likely to appear on future engines with less than two liters of displacement.
Just in time for Truck Thursday at TTAC comes this hot bit of scuttlebut from Jalopnik: Hyundai might be developing a “highly-capable off-roader.” El Jalop cornered Hyundai USA boss John Krafcik at the Detroit Auto Show and asked him what his development boffins were up to. Krafcik’s cryptic answer is the seed of today’s WAROTD:
“every time our designers get together and start looking at concepts and the future, the first thing that comes out of those meetings — what everyone gets excited about — is the prospect of a Bronco-like, highly-capable off-roader.” As a follow-up on that answer, I asked if he meant a Wrangler-fighter. He answered only by smiling and repeating himself — “highly-capable.”
More capable than a Tucson? Seriously though, it will be a dogs age before Chrysler has the cash to update its bloated JK-generation Wrangler, and Hyundai’s going in for the kill. Or not… Krafic words his answer pretty cagily. Besides, Hyundai hasn’t had an even semi-serious off-roader since it rebadged the Mitsu Pajero to create the Hyundai Galloper (above).
NPR reports that Hyundai’s Assurance Plan, which is widely credited for much of that automaker’s success since the financial meltdown, has been taken advantage of fewer thn 100 times since it was instituted a year ago. In that time, Hyundai has sold over 435k vehicles, meaning the program has cost surprisingly little. Hyundai Motor America CEO John Krafic explains:
we treat it almost like a kind of insurance, a kind of social insurance, so we had to make some, you know, financial set-aside for it. And in the end, it ended up being substantially below what our expectations were, thank goodness.
According to Krafic, the program took only 37 days to implement. [Hat Tip: ClutchCarGo]
This graph of Hyundai’s market since 1993 is a refreshing antidote to yesterday’s depressing Detroit market share picture. And it doesn’t take a whiz kid to deduce the single most important factor in Hyundai’s success. Notice a bit of an uptick starting in 1998? That was the year Hyundai introduced its 10 year, 100,000 mile warranty. It’s been suggested before on these pages that GM should address its “perception gap” with meaningful improvements in warranty coverage rather than more talk. After all, if it could fix Hyundais weak 1990s-era rep, it couldn’t hurt The General’s. This seems to be conclusive proof that warranties matter as much as the products they cover. After all, what good are a few extra horsepower or more interior room to a consumer compared to insulation from risk?
If nothing else, 2009 was the year that Americans got over its disdain for Korean brands. Hyundai’s December sales were up 40 percent over 2008 capping an 8 percent annual increase, and Kia’s sales were up 43.7 percent, ending the year up 9.8 percent. Total Hyundai volume last year hit 435,064 units, while Kia crested 300,063 units. December details after the jump.
When CEO Chung Mong-Koo told his employees to make Hyundai’s quality world class, their competitors all had a collective laugh. Well, we all know how that ended, so when Chung told his employee to increase sales, the competition should probably heed his words as a warning. The Korea Times reports that Chung Mong-Koo wants the Hyundai-Kia group to increase sales by 17% in 2010, from 4.63 million (2009) to 5.4 million. “Our teamwork helped turn a crisis into an opportunity when the global auto industry was at its darkest,” said Chung Mong-Koo. “Based on our achievements last year, let’s work together to make 2010 a year of writing a new history.” Analysts like Sohn Myung-woo of Woori Investment & Securities sees the goal as achievable, saying “Hyundai will continue its sales momentum in the U.S. and emerging markets such as China and India.” But besides expanding volume, Hyundai wants to use its momentum to continually improve its brand image in mature markets like the US. To that end, it’s paying more attention to how it markets its Genesis luxury semi-sub-brand.
Puerto Vallarta is a lovely vacation spot for fans of beauty and tranquility mixed with unique Pistonhead sightseeing opportunities. Take the Chrysler K-car: a stateside rarity, but not an uncommon vehicle in a country known for taking our tired, neglected automobiles, giving them a new lease on life. But I never saw a Dodge Caliber or Neon on the roads of Puerto Vallarta. Ever. While Iacocca’s turnaround machine never died in Mexico, the rest of Chrysler’s small car lineup drifted away. For good reason? Cue the Dodge Boyz’ rebadged Hyundai Accent: the Dodge Attitude.
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In my editorial on GM’s plant to take on the Indian market in partnership with SAIC, I wrote that Maruti Suzuki’s monstrous market share indicated the possibilities for GM. Well, the Indian market leader isn’t going to just sit on that lead. In 2007, Osamu Suzuki said that his firm’s Indian passenger car market share would never drop below 50 percent, an assertion that took two years to prove untrue. The WSJ reports that although the overall Indian market will probably grow 16 percent this year, Maruti’s share of that market has fallen over the last year from 45 percent to about 40 percent (with passenger car share down from 55 percent to 48 percent).
Hyundai’s new 2010 Tucson has landed in LA. Basically the same as the model dropped at Frankfurt a short while ago, it’s a total refresh of the Tucson that leaped Hyundai into the CUV market in 2005. We all know that Hyundai has built their lineup on copying the basics from Japan while adding value and flair, and the Tucson is no different. The CUV’s lines are more than a little reminiscent of the Lexus RX, for about half the price. New for 2010 Hyundai is touting the Tucson’s 31 mpg on the highway, 61 lb lighter kerb weight, panoramic sunroof, and long overdue bluetooth and larger screen navigation system. Like it’s Sonata sibling the Tucson gets only the Theta II direct injection four pot mated to their new 6 speed transmission.
Hyundai is continuing their roll in North America with their latest Sonata, and they know it. In (now) typical Hyundai fashion they stuck it to Toyota and Honda, touting not only their increase in sales in 2009, but their industry-besting CAFE numbers as well. Hyundai is claiming 35mpg highway for their new Sonata with the 2.4L GDI engine, and say the turbo GDI expected mid-2010 will get the same 35mpg on the highway. According to the President of Hyundai North America, the Sonata will be in showrooms in January 2010 and should list for under $20,000 with the usual bevy of standard equipment you expect in a Korean car. Check out TTAC’s review of a Korean-spec 2011 Sonata here.
The Hyundai sales juggernaut rolled on in November, posting the highest month-on-month gain of any brand with a 46 percent increase [release here]. Its sister brand Kia wasn’t far behind with a 21 percent sales gain over November 2008 [release here]. Year-to-date, the two brands have combined for 680,282 units, a mere 16,417 fewer than Nissan’s 2009 numbers.
South Korea’s Hyundai will spend some $800m to build a third Chinese plant, says the Nikkei [sub]. The plant will be located in Beijing along with its two existing facilities. It is targeted to come on-stream at the end of 2011, with an annual capacity of 300,000 units.
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One of the most overlooked arguments during last year’s bailout debates was the fact that America’s automotive industry was not under threat. Sure, a few companies based in Detroit were panhandling at death’s door, but so-called “import brands” have been closing the gap in terms of Americans employed for years. And America’s transplant auto industry is continuing to grow. Even as the Detroit firms have slimmed down their North American manufacturing footprints, foreign firms are moving ahead with American and NAFTA-area plants despite the economic downturn. Not only do these moves signify possible new jobs, they also represent a long-term bet on the fundamental strength of the US economy.
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Reuters reports that Japanese manufacturers are running scared from Hyundai-Kia. A combination of a rising Yen and South Korea sealing more and more free trade agreements with other countries has helped Hyundai-Kia immensely. Of course, copying Toyota’s business model of building reliable cars at affordable prices has helped greatly, too. All this momentum from South Korea is getting Japanese car executives a little bit nervous. “I think there’s a sense of crisis in the whole (Japanese) industry,” Toshiyuki Shiga, chief operating officer at Nissan Motor. “Whether you take the Free Trade Agreements or foreign exchange policy, I get the impression that South Korea is tackling things well.”
A reader writes:
I’m beginning to shop around for pads for my ’07 Sonata (3.3 liter motor). I’m looking to replace the OEM pads (which were very good, BTW) with something with a little more bite. Initially, I was looking at ceramic pads, but I’ve noticed in my shopping that Titanium Kevlar pads are roughly $10 cheaper depending on where you go. What is the consensus between Ceramic vs. Titanium Kevlar? Is it one of those you get what you pay for deals? Or is there a value? Also, would it be ill-advised to mix and match? Say Ceramics up front and Titanium Kevs in the rear? I’m having a somewhat hard time looking for sites that offer ceramics for the rear of the car. Do the B&B recommend any good sites for brake shopping? TireRack doesn’t offer them, at least for my car. I’ve scoured the forums and they are mostly useless on this subject. I basically want a set of pads that bite well, haul the car down noticeably and give good feel. I don’t care about brake dust.
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