Automotive News - September 29, 2008 - (Page 18) 18 • SEPTEMBER 29, 2008 Need Salespeople, Tech’s, Managers & Other Employees? The Auto Industry’s #1 Recruiting, Training & Marketing Company Salespeople~BDC~Detailer~Porter~Technician Body Tech~Service Advisor~Service Manager Parts Counter~Parts Manager~Sales Manager Finance Manager~Office Staff~GSM~GM Behind on hybrids, Hyundai sets high goals Koreans fast-track lithium ion batteries Hans Greimel hgreimel@crain.com Chasing Toyota, Honda Key elements of Hyundai’s hybrid plan Mild hybrid version of Elantra debuts in South Korea next year. Electric motor only assists gasoline engine. Full hybrid version of Sonata due in United States in 2010. Electric motor can power car by itself. Plug-in hybrid by 2013 Extensive use of light and powerful lithium ion batteries No plans for a hybrid-only nameplate metal hydride technology. They are still using it,” Lee said here this month at Hyundai headquarters. “But LG Chem was a little bit late with metal hydride, so they started with lithium ion and lithium polymer a little bit earlier than Japanese companies. They jumped to the next technology. Maybe that gives us a little bit of an advantage.” Hyundai also turned to LG Chem because Japanese manufacturers couldn’t guarantee Hyundai sufficient supply of lithium ion batteries, he said. Japanese companies — such as Sanyo Electric Co., Panasonic EV Energy Co. and Automotive Energy Supply Corp. — are stretched from supplying power packs to Toyota, Honda and Nissan. Said Lee: “They said they cannot supply enough, as much as we want. They are very reluctant to cooperate with us because they need increased capacity.” LG Chem initially has guaranteed Hyundai enough batteries for 20,000 cars a year, Lee said. LG Chem also has the battery pack contract for the Chevrolet Volt, scheduled for sale late in 2010. 800-421-4550 www.clickhereforadvice.com Brian C. Hall, President & CEO SEOUL — Hyundai Motor Co. is a latecomer to the hybrid-vehicle race, but the Korean automaker is setting high targets for the technology as it chases Toyota and Honda. Hyundai is scheduled to sell its first U.S. hybrid, a version of its mid-sized Sonata sedan, in 2010. Initial annual volume is expected to be around 50,000 units. But Hyundai expects its annual hybrid sales to balloon to 500,000 units worldwide by 2018, says Brandon Yea, senior vice president for marketing. That still puts Hyundai behind the forecasts of its two Japanese rivals but it at least puts it into the same arena. Hyundai’s confidence stems partly from its partnership with LG Chem, a South Korean company that is supplying next-generation lithium ion batteries. The batteries will boost the mileage of the hybrid Sonata by as much as 70 percent over the nonhybrid version, says Hyundai r&d chief Lee Hyun-soon. A battery ‘advantage’ “Japanese battery manufacturers have been heavily relying on nickel- Red Flag Compliance. Made Easy. Mild, full and plug-In Hyundai’s first hybrid worldwide will be a version of the Elantra that is scheduled to launch in South Korea next year. The car will be a mild hybrid, meaning the electric motor helps the engine power the vehicle but cannot power the vehicle by itself. The Sonata hybrid will be a full hybrid patterned after the Toyota Prius. The Sonata’s battery and electric motor will be robust enough to propel the car for limited distances in electric-only mode. Lee declined to say what Hyundai will charge consumers for the hybrid Sonata. But he said the Elantra hybrid will cost $5,000 to $6,000 more than the standard version. Hyundai also is planning a plug-in hybrid by 2013, Lee said. That car will need even more powerful lithium ion batteries, and the supplier for that project has not been determined. Hyundai is weighing proposals from LG Chem and South Korean rivals Samsung and SK Energy, he said. The plug-in will have a small gasoline engine that won’t turn the wheels. Instead, the engine will generate electricity and extend the car’s range. Hyundai’s plug-in model will be similar to the Chevrolet Volt. Hyundai has no immediate plans to produce a hybrid-only model like the Toyota Prius or upcoming Honda Insight. Instead, the automaker will make minor styling tweaks to differentiate the hybrid versions from their conventional nameplate counterparts, Lee said. That could entail changes to the bumper, grille, headlamps and interior. “We have little experience in hybrids,” Lee said. “As soon as we get some confidence, we will study development of a hybrid-unique model.” To justify a stand-alone hybrid, the model needs sales of at least 250,000 units a year. Said Lee: “It won’t be that easy.” c The compliance deadline for the Red Flags Rule is fast approaching. CREDCO’s Red Flag Solution offers a simple, comprehensive offering of products and reporting tools to help your dealership get compliant. Identity verification OFAC screening Credit reporting services Comprehensive reporting Get Your FREE Red Flag Guide!* Enroll in our FREE Red Flag Webinar Oct. 9th Featuring Hudson Cook & Compli CREDCOservices.com/RedFlag CALL TODAY! 866.491.4256 *Free copy of “A Dealer's Guide to the Red Flags Rule” by Michael Benoit of Hudson Cook. Limit one per dealership. Offer valid for new Red Flag Solution customers only. Must sign up for complete Red Flag Solution (credit reporting services, OFAC screening and ID verification) to qualify. Offer good while supplies last. 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Table of Contents Feed for the Digital Edition of Automotive News - September 29, 2008 GM, Ford and Chrysler place new-product bets Credit freeze could mean cash crisis Mr. Big Volume reaches the end of the line Korea's revolving door Mazda quits Ford Credit for Chase Mitsubishi, UAW reach tentative agreement Volt could break feds' 100 mpg ceiling Chase cuts back on auto leasing Target for Traverse: No. 1 in large crossovers BMW's new 7 series: Timing may be all wrong Tucson revisited Can Ford light fire under Fiesta? Lithia puts brakes on used-car stores Revived Mercury will focus on 3 segments VW taps 'zealots' to promote diesels Farley, Leuliette will kick off World Congress The new Soul (and nose) of Kia Hyundai: Drivetrain key to more mpg Taxpayers at risk if firms get fed loans - then fail GM plans high-tech small engines for Volt and Cruze Buick looks upscale Denso says U.S. woes will cut its profits Denso: No plans to make hybrid parts in U.S. Bailouts are a bad idea Chic small cars? Check them out at the Paris show Credit's no problem, but a weak brand is Helping dealers helped GM Ford field rep didn't help at all Who knew? Electric cars are fun to drive Where is the power going to come from? Hyundai shifts its U.S. ad agency Hyundai, Kia mold separate identities Behind on hybrids, Hyundai sets high goals Dealers Flashes of genius, years of turmoil No cop-out; car designed for police use PICTURE THIS: A trip to the bank RV sales drop 31.9% in June Mexico sales off 4.8% in Aug., 1.2% for 8 mos. Suzuki to aim pickup at motorcycle owners Experts: Learn Korean hierarchies Readers' comments on Bill Heard's collapse Bill Ford sells some Ford stock CarMax net income falls ArvinMeritor raises forecast Toyota plans CNG concept Chrysler cuts 250-300 salaried workers Minority supplier drops stamping business Will Cerberus buy up Chrysler to wave bye-bye? Rioters kill supplier exec in India No pickup seen for pickups Piech's ploy was masterstroke in war with Porsche Honda's highway groove music: It sounded better on vinyl St. Louis dealer to paper that outsourced typesetters: 'Deal me out' Automotive News - September 29, 2008 Automotive News - September 29, 2008 - (Page Intro) Automotive News - September 29, 2008 - (Page Bellyband1) Automotive News - September 29, 2008 - (Page Bellyband2) Automotive News - September 29, 2008 - Mr. Big Volume reaches the end of the line (Page 1) Automotive News - September 29, 2008 - Mr. Big Volume reaches the end of the line (Page 2) Automotive News - September 29, 2008 - Volt could break feds' 100 mpg ceiling (Page 3) Automotive News - September 29, 2008 - Tucson revisited (Page 4) Automotive News - September 29, 2008 - Tucson revisited (Page 5) Automotive News - September 29, 2008 - The new Soul (and nose) of Kia (Page 6) Automotive News - September 29, 2008 - The new Soul (and nose) of Kia (Page 7) Automotive News - September 29, 2008 - Buick looks upscale (Page 8) Automotive News - September 29, 2008 - Buick looks upscale (Page G1) Automotive News - September 29, 2008 - Buick looks upscale (Page G2) Automotive News - September 29, 2008 - Buick looks upscale (Page G3) Automotive News - September 29, 2008 - Buick looks upscale (Page G4) Automotive News - September 29, 2008 - Buick looks upscale (Page G5) Automotive News - September 29, 2008 - Buick looks upscale (Page G6) Automotive News - September 29, 2008 - Buick looks upscale (Page G7) Automotive News - September 29, 2008 - Buick looks upscale (Page G8) Automotive News - September 29, 2008 - Buick looks upscale (Page G9) Automotive News - September 29, 2008 - Buick looks upscale (Page G10) Automotive News - September 29, 2008 - Buick looks upscale (Page G11) Automotive News - September 29, 2008 - Buick looks upscale (Page G12) Automotive News - September 29, 2008 - Flashes of genius, years of turmoil (Page 9) Automotive News - September 29, 2008 - Denso says U.S. woes will cut its profits (Page 10) Automotive News - September 29, 2008 - Denso says U.S. woes will cut its profits (Page 11) Automotive News - September 29, 2008 - Ford field rep didn't help at all (Page 12) Automotive News - September 29, 2008 - Ford field rep didn't help at all (Page 13) Automotive News - September 29, 2008 - Where is the power going to come from? (Page 14) Automotive News - September 29, 2008 - Where is the power going to come from? (Page 15) Automotive News - September 29, 2008 - Hyundai, Kia mold separate identities (Page 16) Automotive News - September 29, 2008 - Hyundai, Kia mold separate identities (Page 17) Automotive News - September 29, 2008 - Behind on hybrids, Hyundai sets high goals (Page 18) Automotive News - September 29, 2008 - Behind on hybrids, Hyundai sets high goals (Page 19) Automotive News - September 29, 2008 - Dealers (Page 20) Automotive News - September 29, 2008 - Dealers (Page 21) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 22) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 23) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 24) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 25) Automotive News - September 29, 2008 - RV sales drop 31.9% in June (Page 26) Automotive News - September 29, 2008 - Mexico sales off 4.8% in Aug., 1.2% for 8 mos. (Page 27) Automotive News - September 29, 2008 - Suzuki to aim pickup at motorcycle owners (Page 28) Automotive News - September 29, 2008 - Experts: Learn Korean hierarchies (Page 29) Automotive News - September 29, 2008 - Readers' comments on Bill Heard's collapse (Page 30) Automotive News - September 29, 2008 - Chrysler cuts 250-300 salaried workers (Page 31) Automotive News - September 29, 2008 - Minority supplier drops stamping business (Page 32) Automotive News - September 29, 2008 - Minority supplier drops stamping business (Page 33) Automotive News - September 29, 2008 - St. Louis dealer to paper that outsourced typesetters: 'Deal me out' (Page 34) Automotive News - September 29, 2008 - St. Louis dealer to paper that outsourced typesetters: 'Deal me out' (Page 35) Automotive News - September 29, 2008 - St. Louis dealer to paper that outsourced typesetters: 'Deal me out' (Page 36)
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