So far, Hyundai has been the only automaker in the U.S. to accept early trade-ins under the Car Allowance Rebate System (CARS), or Cash-for-Clunkers (CFC), program. Most are waiting for the U.S. Department of Transportation to finalize the program's rules and regulations by July 24th, but Hyundai decided to start early since the program covers all transactions dating back to July 1st. Since the government hasn't set up a reimbursement process for the rebates that range from $3,500 to $4,500 just yet, Hyundai is floating its participating dealers short-term loans in the meantime.

After just one week of accepting Cash-for-Clunkers trade-ins, Hyundai has revealed that these deals added up to 7 percent of its overall sales and could reach 10 percent by month's end. The most interesting statistics, however, are what's being traded in. While Hyundai doesn't break it down by model, according to its numbers, 32 percent were Ford vehicles, 23 percent Dodge and the rest were from Lexus, Jaguar and Mercedes-Benz. Keep in mind, all these customers are trading in for a Hyundai, and 41 percent chose the Elantra! The Sonata came in second with 29 percent of CFC sales and the Accent third with 16 percent.

Judging by this early report on how the CFC program affects sales, it will be very interesting to see what happens after the hammer drops on July 24th and all automakers begin participating. The effect on July sales will likely be small, so we'll have to wait until the end of August to see if Cash-for-Clunkers has really made a difference. For Hyundai, however, it already has.

[Source: Hyundai]

Last February, we revealed that a production version of the Hyundai Veloster was in the works and would likely hit the market as a late 2011 or 2012 model. At the time, we were hoping for a modern reincarnation of the classic Honda CRX, and it seems like Hyundai may be answering our calls.

Speaking to Inside Line, Hyundai of America's President and CEO John Krafcik says the new machine will look 70% to 80% like the Veloster concept that we saw firsthand at the LA Auto Show in 2007, and it will feature some sort of unique styling element. Says Krafcik, "It might be doors or a unique roof or something with the hatch. But it won't be like anything out there before in the small car segment."

Krafcik goes on to say the car will be significantly smaller than the firm's own Genesis Coupe (not to mention the Kia Forte) and it will be powered by a 1.6-liter four-banger fortified with direct injection that will offer up 140 horsepower while returning over 40 miles per gallon.

"Think of it like a four-passenger Honda CRX. It'll be a little car you can take out and wring its neck and still get good mileage," he said. "Fun and economical, with a great power-to-weight ratio." Sounds like a winner. All that's left to figure out is the car's name, which may or may not end up being either Veloster or Tiburon.



[Source: Inside Line]

One of our loyal readers was vacationing in Dubai when he happened upon this nearly undisguised and totally unattended 2011 Hyundai Sonata mule. Sammy_R-Gti of assayarat.com explains that he was driving around on vacation and stopped to observe mid-day prayer at a mosque. When he emerged from said house of prayer, he spied the car parked outside of a neighboring spa resort (perhaps some engineers were taking a much-deserved break?), and our man was able to rattle off the photos seen here. Because Sammy_R-Gti (correctly) figured that whoever was with the car probably wouldn't want him photographing their quarry, our man didn't have time to take it all in, but he did gain perhaps the best look yet at Hyundai's pivotal new sedan.

As expected, the roofline and short rear deck indicates that the Korean automaker is going for a much more rakish look, adopting the 'four-door coupe' aesthetic that is so in vogue these days. Unlike earlier spy shots, Sammy has managed to score an almost completely undisguised look at the car's Lexus ES350-like headlamps and its simple three-bar front grille, as well as new details about the sheetmetal's contouring. Judging by the fact that this prototype was fitted with relatively high-profile tires and modestly sized steel wheels with covers, we're guessing that it is a base model.

Check out the gallery of images below. Thanks for the shots, Sammy!



[Source: Sammy_R-Gti of assayyarat.com]

Hyundai's first-ever hybrid automobile for the U.S. market will be based on the redesigned 2011 Sonata midsize sedan, but it certainly isn't the only fuel-saver the Korean automaker has in store. According to Automotive News, Yang Woong-chul, president of R&D for Hyundai-Kia Motors, has reiterated his company's plans to aggressively (if belatedly) enter the increasingly crowded hybrid market.

To that end, Hyundai plans to launch a new sporty plug-in electric car based on the striking Blue-Will concept from Seoul Motor Show earlier this year. Powered by a 1.6-liter gasoline direct-injected powerplant and 100kw electric motor mated up with a continuously variable transmission, the Blue-Will reportedly has a range of 38 miles in EV mode and an overall rating of 55 mpg when the gas engine is in operation.

Expect a similar drivetrain for the production car when it hits the market in 2012 to go up against the upcoming Chevrolet Volt and the plug-in version of Toyota's standard-bearing Prius hybrid. So far, there's no word on expected pricing for the PHEV, but Hyundai says the goal is to 'show its technology and improve its image,' not to make money. Consider our interest piqued.



[Source: Automotive News - sub. req'd]

While the National Highway Traffic Safety Administration doesn't plan to release its final rules and regulations for the Car Allowance Rebate System (CARS), otherwise known as Cash-for-Clunkers program, until July 23rd, Hyundai has decided that its customers don't have to wait. Alexandria Hyundai in Alexandria, VA has already accepted the first trade-in and doled out its first rebate. The clunker is a 15-mpg 1995 Ford Explorer, and Katherine Michon of Arlington, VA traded it in for a $4,500 credit on a brand new 26-mpg Hyundai Elantra Touring.

How can Hyundai get away with accepting clunkers early? The automaker is giving dealers short-term cash advances to cover the cost of its rebates until the CARS program officially kicks off later this month. Hyundai has 13 models with particular engine combinations that qualify for CARS, and the NHTSA has already confirmed that transactions on or after July 1, 2009 are eligible.

This could be a brilliant move on Hyundai's part, since its own internal research shows that 11 percent of car shoppers have delayed their purchase to take advantage of the rebates. If Hyundai is the only game in town that's accepting trade-ins and giving rebates early, it could steal a few sales away from other brands that are waiting patiently for the program to officially begin.

On the other hand, the NHTSA warns on the CARS official website that "interested dealers and consumers may want to wait until all of the detailed issues that must be addressed in the implementing regulations are resolved and the final rule is issued." By that time, however, you'll be driving around in a new car and getting reimbursed for the rebate will by Hyundai's problem.



[Source: Hyundai]

We can only imagine how exciting a day it would be to bring home a brand spanking new Chevrolet Corvette Z06. Genesis Owners forum member zedbuyers was feeling that love as he and his wife left a Massachusetts Chevy dealer with a spanking new Cyber Gray Metallic Z06. Zedbuyers was driving from the dealer in the rain with his wife following behind in the couples' nine-month-old Genesis Sedan when disaster struck.

As traffic slowed from 60 mph to 30 mph in the exit lane, zedbuyers applied the brakes, but his wife evidently didn't. The Genesis slammed into the hours-old Z06, thrusting the $80,000 supercar into the vehicle in front of it. Oddly, the Genesis took the brunt of the blow, and a local Hyundai dealer estimated the damage at $16,000, including nearly $2,000 for the HID headlamps alone. The Z06 damage was $10,000, including $2,000 for a carbon fiber bumper.

Luckily, nobody was seriously injured in the accident, but we're sure the owner is smarting none the less. We're guessing the insurance company is not going to react kindly to a combined $26,000 in damages only hours after the purchase of what is likely a very expensive vehicle to insure in the first place. Peruse the gallery below to check out the carnage, and click on the link below for zedbuyers' damage estimates.



[Source: Genesis Owners via Jalopnik]

Well, imagine that. People like cheap gas. Enough, in fact, that they're willing to line up in droves just for the privilege of filling up their tanks. As if you needed further proof of this unfailing truth, here are the pictures to prove it. As part of its new Hyundai Assurance Gas Lock promotion, the Korean automaker ran an unannounced campaign in New York, Chicago and Los Angeles where consumers could purchase gas for just $1.49 per gallon.

The catch? There was just one location in each cities where the program was in effect and the location was kept secret until an hour before the promotion began. In a nod to modern social media users, Hyundai sent the information to its Twitter followers (@hyundainews) just before local radio stations announced the promotion city-wide about an hour before it started. Predictably, a mad rush to each location ensued. Nice little PR stunt, no?

Click past the break for the press release and check out the images of the madness shot on location at the Horace Harding BP gas station in New York. Similar scenes were reported in Chicago and LA.

Hyundai is piling on additional incentives to boost its Assurance program as the industry heads into the dog days of summer. The newest promotion, Gas Lock, fixes the price of regular unleaded at $1.49 per gallon for the next year. The program runs July 1 through August 31, and eligible vehicles include the Accent, Sonata, Tiburon, Elantra, Elantra Touring, Entourage, Azera, Santa Fe, Tucson and Veracruz. Customers choosing to utilize Gas Lock will forgo $1,000 in available rebates, making the incentive a gamble that gas prices will remain high.

Hyundai Assurance struck at cord with the American public when it offered payment protection in the event of job loss. Now Hyundai is looking to give consumers increased peace of mind over of the volatility of gas prices, which have swung from under $2 a gallon a few months ago to nearly $3 at the beginning of summer.

John Krafcik, CEO and president of Hyundai Motor America, says the company's research shows that "nearly 40% of potential new car buyers are staying out of the market specifically due to uncertainty around future gas prices."

You may remember that last year, Chrysler tried a similar promotion, offering the opportunity to lock in gas at $2.99 per gallon when a gallon of petrol was at an all-time high of about $4.50. The move didn't appear to be very successful for the Pentastar, as most opted to instead take the upfront cash on the hood. Hit the jump to pour over the particulars of Hyundai's Gas Lock promotion, watch the two commercials, and let us know in the comments section if you feel customers would be better off taking the $1,000 or one year of $1.49 gasoline.

[Source: Hyundai | Image: Justin Sullivan/Getty]

According to an anonymous source at Hyundai, buyers in the U.S. will get their first crack at the Hyundai Equus sedan beginning next July, with a cost of entry somewhere south of $60,000.

The Genesis-based sedan, which stretches a little over seven inches longer than Hyundai's first attempt at entry-level luxury, is available in Korea with either the Genesis' 3.8-liter V6 or 4.6-liter V8. However, Stateside buyers will only be able to purchase the bent-eight model when sales begin next summer.

Hyundai's primary aim with the Equus is to compete with the similarly priced Lexus LS460 ($64,700), while offering more luxury amenities including reclining rear seats, massagers and LCD displays. According to Rick Case, the owner of six Hyundai dealerships in North America, "It won't be a volume model for us. It will be a halo car for the brand." If you want to scope out the Korean-market Equus before sales begin next year, 100 sedans are currently available for evaluation at dealerships across the country.



[Source: Autoweek]

The dynamic duo of Chris and Sam carry off Episode #133 of the Autoblog Podcast without a hitch. Though down a man, the pair didn't cheap out on topics or duration, it's the same podcast goodness. It kicks off with Hyundai's impressive showing in the recently released Initial Quality Survey results. From there, they hit Chrysler's RWD/FWD dilemma with its Sebring/Avenger replacement, the rumor that Mustangs could have had IRS for $100 per car, and reports of an Ecotec engine for the Buick LaCrosse. Keeping it on the Buick tip, spyshots of a Tri-Shield variant of the new 2010 Astra get mentioned. The nullification of all pre-bankruptcy liability claims against GM and Chrysler is next before talk settles briefly on Hyundai's 2010-on lineup and then turns to your questions. It almost seems like the Chris and Sam show is a juggernaut without that other guy. Thanks for listening, and please, keep your questions and comments rolling in to Podcast at Autoblog dot com.

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