Autoblog

Hyundai scrambling to keep U.S. market share but lacks inventory

Jeff Sabatini — Mon, 16 Jul 2012 08:44:00 EST

Filed under: Car Buying, Plants/Manufacturing, Marketing/Advertising, Hyundai

Hyundai owns five percent of the U.S. retail market share, but it's trying to maintain that number with razor-thin inventory levels. According to The Detroit Free Press, the situation has forced the automaker to cut back on fleet sales and pump out every vehicle it can from its Alabama assembly plant, which is prepping a third shift in the fall.

How constrained is Hyundai's vehicle supply? Looking at the traditional measure of dealer inventory in "days supply," Hyundai tracks absurdly low, at just 25-27 days, or less than one month's supply of vehicles, according to the report. The new 2012 Azera has just 12 days inventory available. The Freep says that despite its five-percent share, for every 1,000 vehicles sitting on all dealer lots across the U.S., only 25 are Hyundais. Yet the company still expects to sell 700,000 units this year, some 100,000 more than it did in 2011.

John Krafcik, Hyundai Motor America's president and CEO, has said consistently that despite rumors of a second U.S. assembly plant, his company has no current plans to build one. Hyundai's South Korean parent has capped global production this year to focus on quality.

"We're still the leanest company in the industry," Krafcik tells the newspaper.

Hyundai scrambling to keep U.S. market share but lacks inventory originally appeared on Autoblog on Mon, 16 Jul 2012 08:44:00 EST. Please see our terms for use of feeds.

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Hyundai to halve fleet sales, aims for 100,000 more retail units

Jeremy Korzeniewski — Tue, 10 Apr 2012 08:43:00 EST

Filed under: Etc., Hyundai

A sale is a sale, right? Well, at least in the automotive world, that's not entirely true. A sale to a regular consumer is, generally speaking and for a number of reasons, much more attractive to an automaker than a sale to a fleet company (sales to companies or the government, for instance).

With that in mind, it's not surprising to hear Hyundai America CEO John Krafcik tell Automotive News that his company is looking to cut its fleet sales in half to about 32,000 units while simultaneously increasing retail sales by 100,000. If Hyundai manages to achieve those goals, it would post a 10-percent sales increase in 2012.

Hyundai to halve fleet sales, aims for 100,000 more retail units originally appeared on Autoblog on Tue, 10 Apr 2012 08:43:00 EST. Please see our terms for use of feeds.

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CEO Krafcik says to expect more family vehicles from Hyundai, not trucks

Chris Shunk — Tue, 14 Feb 2012 10:28:00 EST

Filed under: Coupe, Truck, Crossover, Hatchback, Hyundai, South Korea

Hyundai has been hitting on all cylinders of late, adding the Elantra Coupe and Hatchback, the Veloster Turbo and the upcoming Azera. That's a lot of new metal for one calendar year, and it appears the Korean automaker is just getting warmed up.

Fox News reports that Hyundai USA CEO John Krafcik hinted to a new entry into the six- and seven-passenger crossover segment. The affable exec pointed out that Hyundai needed to do a better job of attracting families to the brand, adding "it's probably fair to say we need more presence in the six and seven passenger crossover segment where we have the Veracruz now."

Hyundai is also expected to unveil a new Santa Fe at the New York Auto Show, so the automaker's CUV offerings are definitely looking up. As we reported back way back in June of 2010, we expect Hyundai to eventually offer a long-wheelbase three-row version of the new Santa Fe to replace the slow-selling Veracruz, though the automaker has yet to confirm this development.

But while Krafcik hints that some new CUV metal is coming, fans of the Italic H shouldn't hold their breath in anticipation of a pickup truck. Krafcik reportedly told Fox News that the automaker could build a truck if it wanted to, but the brand will instead focus on more efficient vehicles.

CEO Krafcik says to expect more family vehicles from Hyundai, not trucks originally appeared on Autoblog on Tue, 14 Feb 2012 10:28:00 EST. Please see our terms for use of feeds.

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Even with thin inventories and growing demand, Hyundai not looking for second U.S. plant

Jeff Sabatini — Wed, 16 Nov 2011 11:31:00 EST

Filed under: Plants/Manufacturing, Hyundai, Earnings/Financials

Why is this man smiling? Well, it could be because hotcakes only wish they were selling as well as Hyundais. Or perhaps that grin says he knows something we don't - like when and where his company plans to build a second North American assembly plant.

Yet Hyundai CEO John Krafcik told reporters last week that the Korean-based automaker has no plans to expand its U.S. production, which is currently running at literally 110 percent. Hyundai Motor Manufacturing Alabama has the capacity to build 300,000 Elantra and Sonata models, a number that's been boosted by another 30,000 units this year by way of increased efficiencies. (Hyundai is also getting Sante Fe crossovers from corporate cousin Kia, which operates a plant in Georgia).

Despite the boost in production, Hyundai inventory levels dipped to an extremely low 21 days supply this summer, even as sales continued to grow. Hyundai has already blown past its 2010 numbers, and year-to-date sales are up 21 percent.

This leads Edmunds AutoObserver.com to conclude that it isn't necessarily buying Krafcik's no-new-factories line. "It seems inevitable Hyundai must address its stretched-to-the-max production," says the report, which predicts that Hyundai will announce a plan for U.S. expansion early next year.

Even with thin inventories and growing demand, Hyundai not looking for second U.S. plant originally appeared on Autoblog on Wed, 16 Nov 2011 11:31:00 EST. Please see our terms for use of feeds.

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Hyundai confirms Veloster Turbo, upgraded Genesis Coupe headed for Detroit

Steven J. Ewing — Tue, 01 Nov 2011 09:57:00 EST

Filed under: Detroit Auto Show, Coupe, Hatchback, Hyundai

This isn't really shocking news - we've known that Hyundai has been working on a turbocharged version of its new Veloster for quite some time - but it's nice to have official confirmation directly from CEO John Krafcik on the company's Twitter account and via a live announcement at SEMA. The highly anticipated 2013 Veloster Turbo will debut at the 2012 Detroit Auto Show in January, reportedly alongside a refreshed Genesis Coupe.

The Veloster Turbo will - surprise, surprise - be powered by Hyundai's new 1.6-liter inline four-cylinder engine that was recently announced in Korea. That engine's previously announced spec is 204 horsepower - 66 more horsepower than the standard Veloster's naturally aspirated inline four. Assuming the model gets some other upgrades along with it, the turbocharged hatchback should be a pretty enthusiastic steer.

As for the updated Genesis Coupe, Car and Driver says that Krafcik has confirmed the base 2.0-liter turbo-four and naturally aspirated 3.8-liter V6 will get power increases (the V6 will likely get the same 333-hp treatment that the 2012 Genesis sedan received), and from the spy shots we've seen, we can expect the coupe's styling to be more akin to that of the smaller Veloster. We'll have the full details come January.

Hyundai confirms Veloster Turbo, upgraded Genesis Coupe headed for Detroit originally appeared on Autoblog on Tue, 01 Nov 2011 09:57:00 EST. Please see our terms for use of feeds.

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Hyundai CEO downplays Corvette competitor, warns of CAFE loopholes

Jeff Glucker — Wed, 28 Sep 2011 10:00:00 EST

Filed under: Etc., Government/Legal, Hyundai

Like nearly every other automaker these days, Hyundai is keenly focused on bringing fuel-efficient vehicles to market. That apparently means the automaker doesn't currently see a need for a halo sportscar to compete with the likes of the Chevrolet Corvette, though it recognizes it would be an exciting addition to the lineup. Hyundai's North American CEO, John Krafcik tells Ward's Auto that even though such a model would would be a fun addition to the family, a range-topping sports car would also probably be a poor investment that wouldn't serve the brand properly.

Krafcik is clearly focused on building more fuel efficient machines, and he argues that vehicles like the new Veloster coupe can provide sort of reverse halo from the bottom-up, not unlike the way the CTS has been the star of the Cadillac lineup for some time. This strategy seems like a smart move ahead of the Corporate Average Fuel Economy requirements waiting just a few years down the road.

Every automaker has a reason to be concerned about CAFE, but as Krafcik points out in an interview with Ward's Auto, loopholes exist in the legal requirements that may allow car companies to switch up their product strategy without aggressively pursuing more fuel-efficient products. Larger vehicles are subject to less strict requirements, and Krafcik argues that some smaller vehicles will likely fall by the wayside as an unintended consequence. This sort of thinking could allow a few manufacturers to skirt around the more strict CAFE requirements. An example of this is the decline of the compact pickup truck, which has given way to the less-restricted full-size.

Hyundai CEO downplays Corvette competitor, warns of CAFE loopholes originally appeared on Autoblog on Wed, 28 Sep 2011 10:00:00 EST. Please see our terms for use of feeds.

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Hyundai Veloster to start at $17,300, undercuts Honda CR-Z by $2,000 [UPDATE]

Jeff Glucker — Wed, 24 Aug 2011 11:45:00 EST

Filed under: Car Buying, Coupe, Budget, Hatchback, Hyundai

It's a great time to be a fan of small cars, and Hyundai is nearly ready to add its 2012 Veloster into the marketplace. If you've been waiting for this one to appear in your local showroom, we've got some news for you. Hyundai Motor America President and CEO John Krafcik just tweeted that it's going to cost you $17,300 for a Veloster. Full pricing is due later this week, but that base price undercuts the Honda CR-Z, arguably its most natural rival, by over $2,000, while offering more room and the promise of 40 miles-per-gallon on the freeway.

While you're waiting for our first drive review, check out our First Ride of the 2012 Hyundai Veloster, where Krafcik himself piloted us around for a few miles. Is a base price of $17,300 enticing? Let us know what you think in Comments.

UPDATE: Hyundai has released full pricing/specifications on the 2,582-pound 2012 Veloster. Pricing is $17,300 plus $760 for destination charges. Major options include the paddleshift dual-clutch gearbox at $1,250; Style package with 18-inch alloys, panoramic roof, premium audio and leatherette ($2,000); and Tech Package with unique 18-inch alloys, navigation with rearview camera, proximity key and pushbutton start ($2,000 and requires Style pack). Quoted fuel economy figures are 28/40/32 mpg with the six-speed manual and 29/38/32 with the dual-clutch. Deliveries commence in September. Check out the official release after the jump with all the details.

Continue reading Hyundai Veloster to start at $17,300, undercuts Honda CR-Z by $2,000 [UPDATE]

Hyundai Veloster to start at $17,300, undercuts Honda CR-Z by $2,000 [UPDATE] originally appeared on Autoblog on Wed, 24 Aug 2011 11:45:00 EST. Please see our terms for use of feeds.

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Hyundai adding 214 jobs in Alabama to build more engines

Chris Shunk — Tue, 17 May 2011 08:29:00 EST

Filed under: Hirings/Firings/Layoffs, Plants/Manufacturing, Hyundai

Hyundai has been on a consistent sales tear for many months, and that means additional production isn't far behind. Automotive News reports the Korean automaker will invest $173 million to modify and expand its Alabama engine plant. The expansion, which will make room for a new engine for the Hyundai Elantra, could be completed by March, 2012, and it will require Hyundai to add 214 much-needed jobs.

The expanded engine plant is good news for all parties involved, and according to AN, the good news could soon become even better. Sources claim Hyundai has had informal discussions regarding a new U.S. plant with at least three states in the Southeast. Hyundai CFO Lee Won-hee reportedly added fuel to the fire last month, saying that if the auto market continued to improve, Hyundai could consider building a second U.S. factory. South Carolina and Mississippi are reported to be among the states involved in early negotiations.

Hyundai's sales have jumped by 31 percent so far in 2011, yet Hyundai CEO John Krafcik added that the only thing stopping sales from improving more are capacity restraints. We're guessing that even if Hyundai doesn't build another plant in the U.S., the Korean automaker will add another assembly plant somewhere else in North America.

Hyundai adding 214 jobs in Alabama to build more engines originally appeared on Autoblog on Tue, 17 May 2011 08:29:00 EST. Please see our terms for use of feeds.

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Hyundai CEO Krafcik warns against price war, short-term thinking

Jeff Glucker — Sun, 13 Feb 2011 11:01:00 EST

Filed under: GM, Hyundai, Toyota, Earnings/Financials

Hyundai Motor America President and CEO John Krafcik believes that some automakers are starting a price war, which would be an unwise move that focuses solely on short-term sales.

General Motors had strong sales in January 2011, but its 23-percent gain was due to increased incentives and price-cutting. After GM made its move, Toyota followed suit.

Krafcik says that Hyundai, whose incentive spending is among the lowest in the industry, has no plans to join in this game. Heavy incentive spending leads to sharp up and downswings in an automaker's accounting ledger. Hyundai sales rose 24 percent in 2010 and Krafcik expects to see improvements in 2011. While some automakers are fiddling with the radio, Krafcik is paying attention to the road in front of him.

[Source: The Economic Times]

Hyundai CEO Krafcik warns against price war, short-term thinking originally appeared on Autoblog on Sun, 13 Feb 2011 11:01:00 EST. Please see our terms for use of feeds.

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Report: Hyundai considering more luxury models, separate luxury brand [w/poll]

Jeremy Korzeniewski — Wed, 08 Dec 2010 12:58:00 EST

Filed under: Marketing/Advertising, Hyundai, Luxury

First the Genesis sedan, then the Equus. Clearly, Hyundai is pinning its ears back and charging upmarket like Ndamukong Suh rushing Aaron Rodgers. And, like the rookie Husker-bred defensive end, the Korean automaker is making a rather successful transition to the next level. What's next? Quite possibly a sedan designed to compete directly with the benchmark entry-level luxury sedan, the BMW 3 Series. After that, Hyundai may craft a crossover to go up against the segment-defining Lexus RX CUV.

According to a new report from The Wall Street Journal, Hyundai isn't nearly done refining the image of its top-level nameplates. Hyundai USA head John Krafcik told the WSJ in an interview that the automaker is actively considering whether it should break its premium models apart from the rest of its lineup, much in the same way Honda does with Acura, Toyota does with Lexus and Nissan does with Infiniti.

While this isn't exactly news, Krafcik's level of candor is. Three options are apparently on the table. First, an entire separate dealer network could be created to sell these Genesis-branded machines, but this would be very costly. Second (and reportedly most likely), a subset of the automaker's current set of dealers could add a section to their dealerships designed to cater specifically to upmarket clients - a showroom-within-a-showroom, if you like. They could even have their own dedicated employees. Lastly, Hyundai could stick with its current scheme of training at least one salesperson on the Genesis line, leaving the dealerships alone.

Whichever way Hyundai chooses to move, don't expect any hasty decisions. Krafcik says the company will keep a close eye on the success of its Equus sedan in the States before making any judgments on its dealer network. In the meantime, expect Hyundai to unveil a new global branding strategy at the 2011 Detroit Auto Show along with a slogan to replace the current "Drive Your Way" message.

One thing is clear: this decision will shape the way forward for Hyundai's continued performance in the United States. We're keenly interested in your take on the matter, and we know the automaker's execs are listening, too. What strategy should Hyundai adopt in its bid to move further upmarket? Make yourself heard in our informal poll below, as well as in Comments.

View Poll

Gallery: 2011 Hyundai Equus: First Drive

Photos copyright (C)2010 Damon Lavrinc / AOL

[Source: The Wall Street Journal, Automotive News - sub. req.]

Report: Hyundai considering more luxury models, separate luxury brand [w/poll] originally appeared on Autoblog on Wed, 08 Dec 2010 12:58:00 EST. Please see our terms for use of feeds.

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2013 Hyundai Elantra Touring going five-door, leaving the wagon train behind

Zach Bowman — Mon, 06 Dec 2010 15:30:00 EST

Filed under: Budget, Wagon, Hatchback, Hyundai

2011 Hyundai Elantra - Click above for high-res image gallery

Fear not, hatchback fans. According to Hyundai CEO John Krafcik, the next-generation Hyundai Elantra Touring will debut in late 2012 as a 2013 model. Krafcik tells Autoblog that while the Elantra sedan is styled specifically for the American market, the Elantra Touring is being penned with European customers in mind. The company sells a long-roof version of the Elantra in the old country under the i30 banner, but from what we understand, American buyers will get a taste of the next-generation vehicle in about two years.

"We launched the Elantra touring a couple of years after we launched the Elantra and we're going to have the same model cycle for Elantra Touring here," Krafcik said. "We're going to get the next-generation i30 here in the U.S. market in a couple of years."

But don't expect the vehicle to share too much DNA with the old long-roof Elantra. Krafcik tells AB that the new Touring will be significantly different from the model on sale right now: "It's a great design. The Elantra Touring design actually came out of our California studio. We're going to go with the shorter five-door hatchback bodystyle instead of the larger wagon style we have now."

That means that when it debuts, the 2013 Elantra Touring will be squaring off against the likes 2012 Ford Focus and Mazda3 in a big way. While no one at Hyundai was willing to say exactly how much fuel economy we can plan on seeing from the five-door Elantra, we'd be surprised to see the figures slip much below the 29 mpg city and 40 mpg highway of the sedan.

Gallery: 2011 Hyundai Elantra: First Drive

2013 Hyundai Elantra Touring going five-door, leaving the wagon train behind originally appeared on Autoblog on Mon, 06 Dec 2010 15:30:00 EST. Please see our terms for use of feeds.

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Hyundai CEO reveals reason for Equus, explains why it's no VW Phaeton

Sam Abuelsamid — Tue, 15 Jun 2010 14:57:00 EST

Filed under: Sedan, Marketing/Advertising, Hyundai, Luxury

2011 Hyundai Equus - Click above for high-res image gallery

Hyundai America CEO John Krafcik is rarely one to hold back his opinions, and today's topic of discussion is marque's upcoming Equus luxury flagship. Hyundai has moved up in the automotive ranks so quickly over the past 15 years that many people have wondered if the brand is overreaching with the Equus.

Krafcik addresses the obvious comparison to the U.S. market failure of the Volkswagen Phaeton. The way Krafcik sees it, VW skipped a few pricing steps going straight from the Passat to its ill-fated Phaeton range-topper, noting that there was a much larger gap between the Passat and the Phaeton than there will be with Hyundai because they've taken the trouble of bringing the Genesis sedan and coupe to market - the former of which verified that consumers are willing to pay $40,000+ for a Hyundai.

Of course, that's no guarantee that consumers will pay $55,000-60,000 for an Equus but it seems more plausible than $80,000+ for a Phaeton. Krafcik also addresses the fact that each Equus buyer will get an Apple iPad with the owner's manual. As he explains it, the tablet PC is meant to provide a more useful resource for people to figure out how to use all the technology in this flagship, hopefully avoiding the pitfalls of some other luxury machines.

The iPad will also have an application that allows owners to schedule service appointments. When the appointed time arrives, Hyundai will send a driver to the Equus owner's home or office with a loaner, and then return the Equus when the work is done. As Krafcik sees it, other luxury automakers have spent millions of dollars to gussy up their dealerships - building things like coffee bars, fancy seating areas and water features. Problem is, nobody really wants to visit their dealer even with those added niceties, so Hyundai plans to remove it from the equation with its pick-up and delivery service. In other words, the ultimate luxury is never having to take your car to the dealer at all. Fair enough.

The Equus goes on sale this Fall.

Gallery: 2011 Hyundai Equus

[Source: Inside Line]

Continue reading Hyundai CEO reveals reason for Equus, explains why it's no VW Phaeton

Hyundai CEO reveals reason for Equus, explains why it's no VW Phaeton originally appeared on Autoblog on Tue, 15 Jun 2010 14:57:00 EST. Please see our terms for use of feeds.

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REPORT: Hyundai CEO Krafcik sees Genesis as a Lexus-like sub-brand

Chris Shunk — Sat, 18 Apr 2009 14:35:00 EST

Filed under: Hyundai

Hyundai Equus: Click above for photo gallery

Hyundai may have started off as a value brand devoid of high end transportation, but over the past few years, efforts such as the Azera and Veracruz have demonstrated that Hyundai can elevate its game. This became abundantly evident with the introduction of the the new Genesis sub-brand, which shows that Hyundai can do full-blown luxury. Hyundai USA CEO John Krafcik feels that Genesis could eventually be a model lineup all its own, much like Toyoda's Lexus brand. Krafcik told Wards Automotive that Hyundai didn't want to ask its dealers to spend $5 to 10 million on new showrooms to peddle a whole new brand. Instead, the decision was made to sell the Genesis at existing Hyundai dealerships, just separated from the rest of the lineup.

The Genesis lineup is in its fledgling state at this point, but it holds promise. The Hyundai Genesis sedan has its sights trained on luxury competitors like the Lexus GS, while the Genesis Coupe obviously places a premium on sport over luxury. Hyundai's high-end, home-market Equus sedan, displayed for the American audience in New York over the last week, looks ready to compete with the LS460 in terms of size and amenities, while costing thousands of dollars less. Hyundai's Equus flagship sedan could arrive Stateside within 2-3 years.

Beyond Genesis, Hyundai has plans for turbocharging and direct injection in its vehicles beginning next year with the all-new Sonata. The goal is increased sales in the lucrative US market, but given the current economic state of affairs, volume projections take a back seat to sustaining the sales Hyundai has already achieved.

Gallery: New York: Hyundai Equus

[Source: Wards Automotive]

REPORT: Hyundai CEO Krafcik sees Genesis as a Lexus-like sub-brand originally appeared on Autoblog on Sat, 18 Apr 2009 14:35:00 EST. Please see our terms for use of feeds.

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