Automotive News - September 1, 2008 - (Page 18) 18 • SEPTEMBER 1, 2008 KOREA, INDIA, INDIA BRANDS CHINA CHINA BRANDS FUTURE PRODUCT The next batch of new Hyundais: Smaller, more fuel efficient Kathy Jackson kjackson@crain.com Hyundai division plans six new or redesigned vehicles between the 2009 and 2011 model years. In the past couple of years, Hyundai has introduced upmarket models such as the $40,000-plus Genesis sedan. But the next batch of new Hyundais will be smaller, more fuel efficient and less expensive. The four-cylinder 2010 Genesis coupe is expected to start in the low $20,000s. The Elantra compact line will be extended to include a wagon. Both cars go on sale early in 2009. Like other automakers, Hyundai is being forced to rethink its product plans after the spike in gasoline prices and the increase in corporate average fuel economy standards. Hyundai Motor Co. no longer plans a pickup for the Hyundai or Kia brands. And a wagon-type crossover, similar in concept to the Chrysler Pacifica, may not come to market as soon as the company had hoped. But a car marketed in India — barely 24 inches longer than the tiny Smart ForTwo — is under review for the United States. “We’re looking at small, fuel-efficient cars,” says John Krafcik, product development chief for Hyundai Motor America. “We will be blessed when the new CAFE standards come in.” Here are Hyundai’s vehicle plans for the 2009-through-2012 model years. i10: The tiny five-door hatchback sold in India is under consideration for the United States. Hyundai Motor Co. could market the car in the United States through the Hyundai or Kia channels or both. It is offered in India with 1.1- and 1.2-liter four-cylinder engines. The i10 cannot be sold in the United States in its current form. A source said U.S. engineers need to add weight and U.S.-mandated safety features and tweak the engine for more power. “We’re really watching sales of the Smart car,” a Hyundai source says. “If the Smart does well, we will probably definitely get this car.” The timetable has not been determined. Accent: The 1.6-liter four-cylinder engine has been tweaked for the 2009 model year to deliver a 2 mpg improvement. The 2008 Accent with manual transmission gets 27 mpg in the city/32 highway. The subcompact will be redesigned for the 2011 model year. Hyundai says the 2009 Genesis sedan is on par with luxury entries from the likes of BMW and Lexus. With all options, the Genesis stickers for $41,400. The 2010 Genesis coupe goes on sale next spring. Elantra: A five-door Touring wagon will be added to the lineup. It goes on sale in January. The Touring is derived from the i30, a hatchback Hyundai sells in Europe and Korea. The wagon is powered by the same 2.0-liter I-4 in the Elantra sedan, which makes 141 hp and 137 pounds-feet of torque. Electronic stability control is standard. Sonata: A freshened Sonata went on sale in the spring. The car will be redesigned for the 2011 model year. Hyundai’s first hybrid model also will be a version of the redesigned Sonata. Tiburon: The sporty coupe dies after the 2008 model year. Veloster: A small, front-wheel-drive coupe is penciled in, likely as a 2012 model. The car will be based on the Veloster concept that debuted last year at the Seoul auto show. Says Krafcik: “We are seriously The Veloster concept, shown, is expected to inspire a 2012 small coupe. liter V-6. The turbo system will come from the Global Engine Manufacturing Alliance, Hyundai’s joint venture with Mitsubishi Motors Corp. and Chrysler LLC. Tucson: The small crossover is due for a redesign in the 2011 or 2012 model year. The new version will be equipped with four-cylinder engines only. A turbocharged four-cylinder could be added. Santa Fe: A four-cylinder engine will be added when the small crossover is redesigned for the 2011 model year. Today the Santa Fe is available only with 2.7-liter and 3.3liter V-6s. The 2.4-liter four-cylinder is the same engine that debuted this spring on the 2009 Sonata. The redesigned Santa Fe also will get a six-speed automatic transmission. Veracruz: No major changes are expected in the near future for the midrange crossover, which debuted for the 2007 model year. Portico: Hyundai hasn’t committed to this six- to seven-passenger vehicle, which looks like a cross between a minivan and a crossover. “We’re continuing to explore the Portico space,” Krafcik says. Other company sources say the vehicle, similar in concept to the Chrysler Pacifica, has been put on hold so the company can focus on smaller vehicles. Entourage: The minivan debuted as a 2007 model, but sales have been poor. Krafcik says no major changes are planned, but he says there are no plans to kill the vehicle, either. “Our dealers like it,” he says. “It’s supplied by Kia and inexpensive to keep in the lineup, so we will continue with it in the foreseeable future.” c looking at a small fwd to replace the Tiburon, but I can’t say when it will happen.” Azera: This was Hyundai’s largest car until the Genesis arrived. There are no plans for a redesign in the near future. Genesis sedan: Hyundai says the rear-drive sedan is equal to sedans from such luxury brands as BMW and Lexus but for a considerably lower price. The Genesis 4.6 is powered by a 375-hp, 4.6-liter V-8 and carries a $37,250 sticker price, which includes shipping. With all options, the sedan hits $41,400. The Genesis 3.8 — with a 290-hp, 3.8-liter V-6 — starts at $32,250. Sales began in July. Genesis coupe: The rear-drive coupe goes on sale next spring. The car will be offered with a 212-hp turbocharged four-cylinder engine and a 306-hp, naturally aspirated, 3.8- To give fuel economy a boost, Hyundai spends big on r&d Kathy Jackson kjackson@crain.com LOS ANGELES — Hyundai Motor Co. has expanded its global r&d budget, with an emphasis on improving the fuel economy of Hyundai and Kia vehicles. The Korean automaker is developing new small-displacement engines as well as hybrid and fuel cell vehicles. For 2008, Hyundai Motor has budgeted 1.74 trillion won ($1.87 billion), or about 5.2 percent of total company spending, on r&d. That is up from 1.48 trillion won ($1.59 billion) in 2007, or 4.9 percent of total outlays. North American r&d spending will be up about 11 percent this year, says Kim Dong-Jin, vice chairman of Hyundai Motor. The company has not detailed those figures. ‘Back to the basics’ “We are going back to the basics and focus on small cars,” Kim said in a May interview in Seoul. “We neglected the small-car market the last few years and focused on mid-sized and large to upgrade the brand. But with fuel prices going up, we are going back to the mainstream of our business. The small cars must be fwd and fuel-efficient.” For the 2009 model year, Hyundai introduced its first V-8 engine and rear-drive platform in the United States with the arrival of the Hyundai Genesis sedan. The 2009 Kia Borrego SUV offers a version of the V-8. Hyundai Motor plans to concentrate on making its four-cylinder engines more fuel efficient as well as adding turbocharged fours for the Hyundai brand. But bigger engines also are in development. A Hyundai source who did not want to be identified said the company is working on a supercharged V-8. The source said Hyundai is not keen on diesels, adding, “They’re too expensive.” Hyundai Motor’s first hybrid model will be the Hyundai Sonata sedan, set to arrive in 2010. Hyundai subsidiary Hyundai Rotem in South Korea will manufacture the electric motors for the hybrid system. ‘Better system than Toyota’ “The Prius is outdated,” Kim said. “We will have a better system than Toyota. Our goal is to have a plug-in by 2011.” Hyundai is also working on fuel cell technology, which may be used for a dedicated platform. Styling for a fuel cell vehicle may draw from the 2+2 i-Blue crossover concept shown at the 2007 Frankfurt auto show. Hyundai plans to have a running prototype of the fuel cell vehicle by 2010 and begin leasing about 10,000 vehicles annually to consumers by 2012. On the telematics front, Hyundai and Kia have entered into a longterm agreement with Microsoft Corp. to develop the next generation of incar infotainment systems. The first product offers voice-controlled connectivity between mobile devices and will be introduced in North America in 2010. Said Kim: “The next-generation Sonata (due in the 2011 model year) will be a good example of Korean IT capability in automobiles.” c
Table of Contents Feed for the Digital Edition of Automotive News - September 1, 2008 Automotive News - September 1, 2008 'Mr. Big Volume' hit again Auto ad spending plummets American Axle to grow outside U.S. Nissan, Renault aim to share more parts Steven Ribet joins Automotive News in Shanghai Salaried workers face the ax Asbury to challenge verdict Lutz wants loan guarantees VW passes Ford as No. 3 global seller in 1st half Suzuki in disguise Dodge hopes smooth ride of coil springs will distinguish Ram Candidates split on union organizing bill Check in the mail? Toyota, Ford can tell 10 CTS stays true to concept GM shifts some vehicle design work to U.S. Infiniti may add cars, big and small BMW slashes production of big engines Toyota cuts sales forecast Chrysler: Viper lures suitors Honda hybrid plan bets big on small cars Ford starts L-M consolidation meetings Obama renews aid offer — industry wants it now Honda taps rainwater to create wetlands U.S. loans could make sense, but can't be a bailout Wanna buy a car? Wanna buy a brand? PPG story recalls Exner's Imperial Toyota goofed on Scion; is Prius next? Editor grows up; import vet pleased Field reps blamed for GM's problems Honda Insight engine isn't noiseless Trucks, Vette fine; rest of GM, blah Reynolds to dealers: Replace aging servers by year end Saddle up! Dem delegates honor slain Arkansas dealer Kia makes a mark of its own Koreans step up; Indians step cautiously; Chinese step back The next batch of new Hyundais: Smaller, more fuel efficient To give fuel economy a boost, Hyundai spends big on r&d U.S. plans fizzle for most Chinese vehicles Mahindra delays U.S. retail launch until 4th quarter of '09 Dealers Personnel Despite tough times, Galpin profits by pimping rides Web service leads grow Uh, I didn't mean to say you should retire Remembering Phil Hill, racing's modest giant Mulally to speak at gadget show GM picks Volt battery supplier Split verdict in fraud case July auto output was up in Japan Bob Fisher Dems reopen the CAFE Hummer, king of the desert? MG remains a no-show in North America Mustang silly Protests could bring ta-ta from Tata The politicians (and I) need a new road map Welburn's design journey began in Philly Automotive News - September 1, 2008 Automotive News - September 1, 2008 - (Page Intro) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 1) Automotive News - September 1, 2008 - American Axle to grow outside U.S. (Page 2) Automotive News - September 1, 2008 - Suzuki in disguise (Page 3) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 4) Automotive News - September 1, 2008 - 10 CTS stays true to concept (Page 5) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 6) Automotive News - September 1, 2008 - Chrysler: Viper lures suitors (Page 7) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 8) Automotive News - September 1, 2008 - Obama renews aid offer — industry wants it now (Page 9) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 10) Automotive News - September 1, 2008 - Honda taps rainwater to create wetlands (Page 11) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 12) Automotive News - September 1, 2008 - Field reps blamed for GM's problems (Page 13) Automotive News - September 1, 2008 - Trucks, Vette fine; rest of GM, blah (Page 14) Automotive News - September 1, 2008 - Saddle up! (Page 15) Automotive News - September 1, 2008 - Dem delegates honor slain Arkansas dealer (Page 16) Automotive News - September 1, 2008 - Koreans step up; Indians step cautiously; Chinese step back (Page 17) Automotive News - September 1, 2008 - To give fuel economy a boost, Hyundai spends big on r&d (Page 18) Automotive News - September 1, 2008 - Mahindra delays U.S. retail launch until 4th quarter of '09 (Page 19) Automotive News - September 1, 2008 - Personnel (Page 20) Automotive News - September 1, 2008 - Web service leads grow (Page 21) Automotive News - September 1, 2008 - Web service leads grow (Page 22) Automotive News - September 1, 2008 - Web service leads grow (Page 23) Automotive News - September 1, 2008 - Web service leads grow (Page 24) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 25) Automotive News - September 1, 2008 - Uh, I didn't mean to say you should retire (Page 26) Automotive News - September 1, 2008 - July auto output was up in Japan (Page 27) Automotive News - September 1, 2008 - Bob Fisher (Page 28) Automotive News - September 1, 2008 - Bob Fisher (Page 29) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 30) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 31) Automotive News - September 1, 2008 - Welburn's design journey began in Philly (Page 32)
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