Coughlin Hyundai of Heath

TV Commercial

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FOUNTAIN VALLEY, Calif., Dec. 1, 2009

One year after promising to become the leading manufacturer in fuel economy, Hyundai delivered by topping the latest U.S. Environmental Protection Agency fuel economy report. Hyundai passed all major manufacturers in Corporate Average Fuel Economy (CAFE) including traditional leaders like Honda and Toyota. The report demonstrates the effectiveness of Hyundai's value-driven fuel-efficiency strategy, which focuses on the intelligent application of cost-effective technologies. The report also substantiates Hyundai's leadership in the race to achieve the government-mandated 2016 CAFE standard of 35.5 miles per gallon.

The EPA 2009 Light-Duty Automotive Technology and Fuel Economy Trends Report indicates that Hyundai has the highest MY 2009 laboratory 55/45 fuel economy with 30.1 miles per gallon (mpg). Hyundai is also the only automaker1 to top 30 mpg in the report.

"Our thoughtful application cost-effective, fuel-efficient technologies has helped us achieve our goal of leading the industry in fuel economy ahead of schedule," said John Krafcik, president and CEO, Hyundai Motor America. "Now we hope to extend that leadership with the launch of our new direct injection, turbocharging and lithium-polymer hybrid technologies, all of which will be a part of the 2011 Sonata lineup launching early next year."

Hyundai is aligning global R&D resources at its engineering centers in California, Michigan, Korea, India and Germany to develop the Blue Drive technologies needed to achieve fuel efficiency goals. Under the Hyundai Blue Drive strategy, technologies such as direct injection, turbo-charging, hybrid drive systems and a number of others will all play larger roles in powering future models to offer consumers lower emissions, enhanced performance and more miles per gallon.

HYUNDAI MOTOR AMERICA
Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 790 dealerships nationwide.

BY TIM HIGGINS
FREE PRESS BUSINESS WRITER

Buoyed by improved quality, sharp marketing, impressive styling and
strong sales, Hyundai Motor Co., along with its affiliate Kia Motors
Corp., is now positioned to go head-to-head with the world's largest
automakers.

Fueled in part by the cash-for-clunkers program, sales for Hyundai and
Kia skyrocketed 47% and 60%, respectively, in August, compared with the
same period a year ago. It was a standout performance.

"This is potentially a game-changing year for the brand," said Jeff
Schuster, executive director of global forecasting at J.D. Power and
Associates.

The Korean group's performance has been so strong that it is nipping at
Chrysler's heels, threatening its U.S. market share.

Hyundai and Kia together grabbed an 8% share of the U.S. market in
August, beating Chrysler's 7% market share.

Jeremy Anwyl, CEO of Edmunds.com, called 2009 a pivotal year for
Hyundai.

"The economy gave them a shot, and they certainly took advantage of it
with creative marketing," he said. "If the vehicles deliver, then some
of these market-share shifts will not be just temporary, but they could
be more permanent."

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Hyundai, Kia surge in soft economy

Hyundai Motor America and its affiliate Kia Motors together outsold
Chrysler in August, an impressive feat for the South Korean group that
has been skillful in taking advantage of a downtrodden economy to get a
better foothold in the U.S. market.

Sales jumped 47% for Hyundai and 60% for Kia in August compared with a
year ago, a gain partly driven by the U.S. government's
cash-for-clunkers program.

Combined, the Korean group sold 100,665 vehicles last month.

"They've been revving at 900 r.p.m.s," Erich Merkle, industry analyst
with Autoconomy.Com, said of Hyundai.

The Hyundai Elantra ranked No. 5 in the list of top sellers under the
clunkers program.

"Consumers are looking for bargains and Hyundai is offering bargains,"
said Jeff Schuster, executive director of global forecasting at J.D.
Power and Associates.

But Hyundai's success story began long before August.

The Korean automaker has been laying the foundation for bigger success
since the late 1980s when it arrived in the United States with a small
car that was plagued with quality problems.

About a decade ago, the company launched a 10-year, 100,000-mile
warranty program and set out to build a reputation for quality.

In recent years, Hyundai has scored high with Consumer Reports and J.D.
Power and Associates for quality. The new Hyundai Genesis midsize sedan
won 20 major industry awards.

"We've been working so hard on quality, recognizing that we really need
to overachieve because of how the brand started in the U.S.," said John
Krafcik, president and CEO, Hyundai Motor America.

That message is resonating now as car shoppers look for low-cost cars.
The bad economy is encouraging some new customers to take a chance on
Hyundai, experts said.

The average transaction price of a Hyundai vehicle purchased this year
is $21,326, with a comparable $20,455 spent on a Kia, according to
Edmunds.com. The industry average is $28,174.

"They're more likely to give Hyundai a shot than they would under normal
circumstances," Jeremy Anwyl, CEO of Edmunds.com, said. "If Hyundai
delivers, they've now gone into the next level. ... The risk of quality
is no longer an issue."

Beyond improved quality, Merkle said Hyundai's product cadence and
greater emphasis on emotionally appealing design is helping its efforts.

"If you can get the quality there and have vehicles that have a strong,
emotional appeal from a styling perspective, you can win at this game,"
Merkle said.

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More growth expected

A study by Banc of America Securities-Merrill Lynch this summer
projected Hyundai and Kia will see even more market share growth in the
next four years, largely because the group is slated to have a much
larger product replacement schedule than the industry average.

Hyundai and Kia's average replacement rate over the next four years is
predicted to be 27%, "well ahead of the industry average of 18%,"
according to the report by analyst John Murphy.

"We expect Hyundai and Kia to gain significant market share, about 3.5%
over the next four years," the report said.

Half of Hyundai's vehicles are assembled at its assembly plant in
Alabama, Krafcik said. Kia is to begin production at a new assembly
plant in Georgia later this year.

Hyundai plans to launch seven new products over the next 24 months,
Krafcik said.

So far this year, Hyundai's sales are down only 0.7% compared with last
year and Kia's sales are up 3%.

For the year through August, the Korean group has a 7.5% combined market
share while Chrysler is at 9.2% -- down from 11% during the same period
last year, according to Autodata Corp.

Krafcik noted that a few years ago, Hyundai was on about 10% of
shoppers' consideration lists. That has risen to about 30%.

He expects Hyundai U.S. sales to end the year at least on par with last
year -- if not be better. That's impressive considering industry U.S.
sales are down 32.1% so far this year.

According to Edmunds, 19.4% of buyers that switched from a previous
brand to Hyundai in August came from Chrysler-Dodge-Jeep brands. About
23% came from Ford. A little more than 12% came from Chevrolet and 3%
from Toyota.

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---------------------------

2009 started well

The first indication that 2009 could be a good year for Hyundai came
during the Detroit auto show when the Hyundai Genesis won North American
Car of the Year.

Buzz grew as it advertised heavily during the Super Bowl and Academy
Awards -- traditional venues for GM, which had to pull out to save
money.

One commercial showed angry executives at Lexus and BMW yelling the name
of "Hyundai!"

An announcer follows by saying: "Win one little award and suddenly
everyone gets your name right. It's Hyundai, like Sunday."

At the same time, Hyundai launched a powerful marketing campaign that
promised to allow customers to return their new cars if they lost their
jobs.

Hyundai followed up with other smart marketing efforts, such as
launching a clunkers-incentive program before the government's program
was official and a gas-guarantee program.

"They've really been on the cutting edge with these new marketing
programs at a time when consumers were looking for something fresh and
new," said Schuster of J.D. Power.

The Car Connection
By Richard Read August 18th, 2009 

According to new data released by the American Customer Satisfaction Index, U.S. auto buyers have become happier with their vehicles over the past 15 years. Between 1996 and 2009, auto customer satisfaction has risen by five percentage points, from a 79% average to 84%, with the bulk of that increase coming in the last five years.

At the top of the current auto industry satisfaction list, we find two of the usual suspects: Lexus and Cadillac. However Buick and Lincoln-Mercury earn the third and fourth spots, with Honda and Toyota -- usually the darlings of such surveys -- clocking in at fifth and seventh, respectively.

All the way at the bottom: Nissan, followed closely by Jeep, both of which underperformed the survey's "All Others" catchall category. Mazda, Dodge, Pontiac, and Kia also ranked poorly in the study, although their 81% satisfaction score is still nothing to sneer at. ACSI, which is based at the University of Michigan, collects its data by phone interviews with respondents age 18 to 84.

According to the company's FAQ sheet, each company's score represents an aggregate of 250 individual phone interviews -- meaning that approximately 5,000 people were interviewed for the auto industry study.

There's a lot of interesting data to be found here, but among the highlights is Hyundai's fairly meteoric rise in satisfaction -- from a lowly 68% in 1999 to a hearty 85% in 2009.

That's a jump of nearly 20 points in 10 years, with most of those points added between 1999 and 2001. Perhaps other companies should be taking notes?

James R. Healey, USA TODAY
Hyundai's Genesis coupe is a party animal.
Hyundai's nicely priced Genesis coupe has quirky styling, but driving it is a blast. From the moment you plop into the bucket seats and hit the start button, the coupe lets you know it's ready, willing and able.

The seats cosset but don't cramp. The engine - V-6 or turbocharged four-cylinder - yelps to life. Either one seems happy charging hard, yet both are steady performers at lower speeds, too. The turbo-four makes all its torque at a mere 2,000 rpm, good for slog-along traffic - and unusual among turbocharged engines, which usually require some horsewhipping to build steam. Still, the V-6 is an easier partner in sluggish going.

The V-6 is good for an eager 306 horsepower. The turbocharged four-cylinder has 210 hp that can be made to feel like more if you work the gears to best advantage.

Hyundai says it's a low-pressure turbo. That means it sacrifices ultimate horsepower for smoothness. In the test car, in fact, there was none of the slam-bang personality of some turbos. Instead, the engine delivered sufficient, solid power at low speed as well as high. Worthwhile tradeoff.

The handling, ah. Spend a moment giving thanks that there still are rear-wheel-drive cars in this front-drive world. Turn the wheel and the rear-drive coupe turns. Just that much. Eagerly, precisely. Corners that  you've found a bit intimidating become simply corners.

Perhaps you've seen those ads showing a Genesis coupe power sliding, some guy driving it like he stole it. Well, it really is that kind of car. Happily for your driver's license, you don't need to boot the coupe like that to know and appreciate its underlying personality. The right-now way the car does about anything you ask is plenty convincing.

The main pieces of the optional Track package - stiffer suspension and tires - made the Track-equipped test car's ride just short of harsh. Be sure you can live with it day-in, day-out before you choose it. The suspension on the Grand Touring test car was a better blend of crisp handling and agreeable ride.

Big dollars for such fun? Hey, it's a Hyundai. Mid- to high-$20,000 prices are a soft touch for all this.

And you're not just buying a snappy, responsive buggy. You get a useful array of standard features and nice touches, such as the iPod hookup that charges the device and lets you control it through the car's stereo.

Disappointments that come with the package:
?Tight fit, as in all sporty cars this size. A modest trunk with foolishly small opening that restricts what you can get in it. A tight back seat that'll do for elementary-school kids. Only two slots back there; Hyundai eschews the three-across fantasy that deludes some makers of tight-fitting coupes.
?Imprecise body-panel and trim gaps. Not many, but any is too many nowadays.
?Styling quirks that aren't necessarily pleasing. Examples: a snoutish grille and a visually jarring dip in the window-sill line. It's meant to accent a styling crease along the body, but looks like a mistake instead.
?Harsh sounds when you rev the four-cylinder - which is most of the time - to keep it in the fun zone.
?Hard-to-see LCD in the lower middle of the instrument panel. Had it been legible in the daytime, you could have found readouts of miles, gear position, fuel economy and other matters of reasonable importance.

Little of this seems to matter, though, when you wind the Genesis coupe into a tight, fast bend accompanied by the engine's song and smooth-as-silk automatic up- or downshifts - or your own snappy gear changes by manipulating the automatic gear lever or slapping the manual shifter.

The relief when you realize the yippee coupe also behaves well in public is palpable. It doesn't demand your racer game face to be a deeply satisfying way to go.

You can argue in favor of your Mustangs, Camaros, Altima coupes and the like. They can be rewarding to drive and, in the case of Mustang and Camaro, bring a cachet and legacy to the sporty car experience that this newcomer coupe can't match.

Even so, Genesis coupe doesn't have a sweet spot - it is a sweet spot.

2010 Hyundai Genesis coupe
?What? Front-engine, rear-drive, sports coupe, available with a V-6 or a turbocharged four-cylinder engine.
?When? On sale since February.
?Where? Built in South Korea.
?Why? Continue Hyundai's trek toward a hip, sporty image, which can lure more buyers and support higher prices (profits).
?How? Modify the chassis developed for the Genesis sedan.
?How much? The base four-cylinder, manual-transmission model starts at $22,750, including shipping. High-end V-6 with automatic and Track package (high-performance suspension, brakes, tires, other accessories) starts at $31,750. Test cars: V-6 Grand Touring, automatic, $29,875; four-cylinder Track, manual, $27,625.
?How powerful? 2-liter, turbocharged, four-cylinder rated 210 horsepower at 6,000 rpm, 233 pounds-feet of torque at 2,000 rpm. Optional 3.8-liter V-6 rated 306 hp at 6,300 rpm, 266 pounds-feet at 4,700 rpm. Six-speed manual transmission standard. Optional: Five-speed automatic (four-cylinder) or six-speed automatic (V-6).
?How big? Slightly smaller outside, bigger inside than Ford Mustang. Length is 182.3 inches, width 73.4 inches, height 54.5 inches on a 111-inch wheelbase. Weighs 3,294 to 3,397 pounds by model. Passenger space: 88.8 cubic feet. Trunk: 10 cubic feet. Turning circle diameter: 37.4 feet.
?How thirsty? Four-cylinder rated 21 (manual) or 20 (automatic) miles per gallon in town, 30 mpg highway, 24 (manual) or 23 (automatic) combined. V-6: 17 mpg city, 26 (manual) or 27 (automatic) highway, 20 (manual) or 21 (automatic) combined.

Trip computers in test cars showed: V-6, 18.2 mpg in city/suburban mix; four-cylinder, 17.2 mpg in enthusiastic suburban driving.

Uses regular, holds 17.2 gallons.

?Overall: A sweetheart.

FOUNTAIN VALLEY, Calif., July 7, 2009 - Hyundai Sonata beat out competitors Toyota Camry and Nissan Altima for the top spot of "Best Budget Family Car" by ConsumerSearch.com, a Web site that analyzes expert and user-generated consumer product reviews and recommends the best products to purchase based on their findings. Sonata received positive remarks from expert reviewers and users including:
? Reliable and well-made
? Roomy, high-quality interior
? Lots of standard features
? Good fuel economy (with base engine)
? Long warranty

The ConsumerSearch.com report sorts through various expert and user reviews, scientific testing by nonprofit and government agencies to identify the Top Four Best Reviewed cars. This year there were four categories: "Best Family Car Overall," "Best Budget Family Car," "Fun to Drive Family Sedan" and "Large Family Car." A family car is defined as a midsize or large fourdoor sedan with a starting price of around $18,000 up to $30,000.

"If money matters most, experts like the budget-priced Hyundai Sonata better than more expensive big-name sedans, including the Toyota Camry," said ConsumerSearch.com editors. "Critics have a hard time finding anything at all to dislike about the Sonata, especially considering the low price. It's one of the most fuel-efficient, spacious and reliable midsize sedans you can buy, and Hyundai backs it with a longer warranty than its pricey competitors offer."

"We are thrilled to receive this recognition as it really demonstrates Hyundai's commitment to providing consumers with high-quality, dependable vehicles that won't break the bank," said Michael Deitz, product manager for Sonata. "The Sonata offers consumers leading safety features, superior fuel-efficiency and an award-winning interior packaged in a 'class above' its midsize sedan competitors."
The fuel-efficient Sonata combines refined design, proven dependability, spirited performance and an extensive list of standard features that increase its appeal to a broader range of customers.

HYUNDAI MOTOR AMERICA
Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through more than 790 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by The Hyundai Advantage, America's Best Warranty. In addition, the Hyundai Assurance Program is now offered on all new vehicles leased or purchased from a certified Hyundai dealer. The program is available to any consumer, regardless of age, health, employment record or financed amount of the vehicle. The program is complimentary for the first 12 months. For additional information, visit www.hyundainews.com.

The American Market
Year Of The Hyundai

Hannah Elliott, 06.23.09, 04:30 PM EDT
The auto industry may be in shambles, but not everyone who makes cars is suffering.
 
When the latest J.D. Power and Associates quality survey came out Monday, the big news was Hyundai's trouncing of quality stalwarts Honda and Toyota.

The Korea-based automaker was the highest-ranked non-premium nameplate in the study, beating such notables as Mercedes-Benz, Ford Motor ( F - news - people ), Honda ( HMC - news - people ) and Toyota ( TM - news - people ). It received the fourth-highest rank overall behind Lexus, Porsche ( PSEPF.PK - news - people ) and Cadillac.

Yahoo! Buzz
Surprised? John Krafcik isn't. The president and chief executive of the South Korea-based automaker's U.S. unit, he says Hyundai's top rank simply reflects what he's known for the past few years. "Our cars research really well ... and when you finally get in the car and drive it, it stands up to that research."

Hyundai has stood out as one of the few automakers (Audi and Subaru would join it) to remain stable as of late. Arch-rivals Toyota and Honda report faltering sales for the year so far (down 39% and 34%, respectively), but Hyundai sales are down just 7.9% year-to-date. Its market share has increased too, reaching 4.2% in the first five months of this year, up from 2.9% during the same period in 2008, according to Autodata, a New Jersey-based market research firm.

Hyundai executives have said they aim to boost U.S. market share to 5% by the end of the year. Japan's Big Three--Toyota, Honda and Nissan ( NSANY - news - people )--stand to lose the most if they make good on that goal. Lexus, down 47% for the year to date, is another big target. "They've extended their portfolio, done clever marketing, added fillers, gone up-market, gone down-market, gone left-market and gone right-market," says Lincoln Merrihew, senior vice president at research firm TNS.

And they've made better cars. Hyundai was one of the big movers on the survey, up from its 13th-place rank last year. Its score of 95 PP100 means Hyundai owners reported 95 problems per 100 vehicles, down from 114 last year. The survey covers problems reported in the first 90 days of ownership for more than 80,000 new-vehicle purchases nationwide.

Hyundai--the fifth-largest selling automaker in the world--is still pushing to offer affordable and reliable vehicles to Americans concerned about potential job loss and volatile gas prices. Lately it has also emerged as a contender that offers an alternative to drivers opposed to paying a premium for a luxury nameplate.

The success of the new upscale Hyundai Genesis mid-size sedan is key. It helped engage an entirely new kind of driver--one who wants all the trappings of a Lexus, say, but feels slightly guilty about its insignia.

"We started noticing a reluctance to buy a badge," Krafcik says. "Consumers are questioning the brand premium."

Hyundai executives took a risk in launching the $33,000 sedan on the cusp of a bona fide recession, but sales numbers have been strong. Last month, it sold 2,079 units nationwide (several hundred more than competitors like the Lexus GS and Lincoln MKS), spurred on, no doubt, by its distinction as North American Car of the Year and by Hyundai's novel "Assurance" program, which allows customers to return their new Hyundai vehicles if they lose their job after the purchase.

"If you say Hyundai, people used to say crappy cheap car, but now they go, 'Oh these are the guys that are willing to buy back the car if I'm out of work. These are my buddies. They understand my life,'" says Robert Passikoff, the president of Brand Keys, a market research firm in New York.

The majority of the Genesis sedans Hyundai sells are loaded with upgrades that push the price well above $40,000 according to the company. And the coupe version of the Genesis, a $22,750 306-horsepower rear-wheel drive sports car meant to compete with the likes of the Ford Mustang and Infiniti G37, has achieved critical praise.

It all bodes well for the Equus, the larger, plush sedan Hyundai showed at the New York International Auto Show and plans to bring to the U.S. market in the next two years.

The next step, Krafcik says, is to create a second brand under the Hyundai banner in which to sell luxury vehicles, much like Toyota did with Lexus and Honda did with Acura. With the way things are going, it may not be much of a reach.


  

HYUNDAI'S IMPRESSIVE GENESIS'S: SEDAN REDUX & THE NEW COUPE

by Marty Bernstein
Senior Editor
Detroit Bureau
The Auto Channel

As most know, the Genesis classification is used to mark the beginning of a new era for Hyundai in very desirable new vehicles with similar heritage and DNA. And in the case of the sedan and new coupe with different characteristics, which explains why I've opted to update my original review of the sedan and then to review the new coupe in the same column.

I don't know if what follows has ever been done in an auto review but hopefully it will work for our readers.

Genesis Sedan
Over a year ago I was part of a group of auto journalists who were in Korea to drive the then brand-new Genesis sedan. And it was sensational, but the driving experience was on the Korean company's test track and through specially designed courses to authenticate the drive and handling of the car.

It was nothing short of remarkable, but was not a real world test of everyday driving.

A situation recently corrected when I drove the Genesis sedan for a week. That's where the test drive of a car goes above and beyond the test track to provide driving satisfaction to the owner in real life situations and circumstances including the weather.

It was put to the test from driving on the rather ragged roads of Michigan from home to the store, to the airport, to shopping centers, parallel parking, parking in a garage, giving it to a valet at a restaurant, loading up the trunk with tennis racquets and balls, then filling with Costco goodies, giving friends a ride to dinner and other events.

So how did it do? Again it was remarkable! The Genesis I drove was up to the demands of slow traffic roads to the autobahn expressways of Detroit, where going under 60 is considered slow and cautious, and every other situation as well.

Handling was easy and responsive. The automatic drive was smooth and effective. The interior cabin comfortable and, importantly, quiet. The audio was precise and pleasing. The drive with a few quick accelerations for agile merging and dodging was nimble and very satisfying. Friends who sat in the backseat (man is over 6'2") noted it was more comfortable with better legroom than his German sedan. "And it only costs how much?!" was his comment.

If you are looking for sedan with the comfort, style and ambiance of far more expensive vehicles, this is my choice for number 1. And don't forget - a 100K mile guarantee too.

2010 Genesis Coupe
This is not the little brother of the Genesis sedan. No, this is a exhilarating, exciting coupe with high powered charm and charisma of its own.

On the way to and on a test track North of Las Vegas the Genesis coupe was put to the test of style, speed, handling, agility and comfort. And it passed the first test - style -- by turning heads as we left Vegas. The second test - speed -- was sorta-passed, based on the Nevada Highway Patrol officer's admonition to the president of Hyundai that, "He'd better slow down or the entire bunch of Hyundai's was going to be given a speeding ticket and possibly confiscated." It passed all the other tests too on the track as well as my week of driving the Hyundai Genesis Coupe in the burbs and area surrounding Detroit in daily driving exercises as I did with the Genesis sedan.

This is a real driving enthusiast's car and is Hyundai's most dynamic driver in their current product line-up. The 2010 Genesis Coupe is a purpose-built rear-wheel drive sport coupe featuring two performance focused engines - a 210-horsepower, 2.0-liter turbocharged four-cylinder engine and a range-topping all-aluminum, 306-horsepower, DOHC 3.8-liter V6 engine.

Stopping is quick and efficient. All Genesis Coupe models feature standard four-channel ABS with Electronic Brake-force Distribution (EBD) to optimize brake performance under various dynamic loading conditions. The system also includes Brake Assist, which provides maximum ABS-level braking force when a panic stop is detected. Brembo's are an option on the Track model.

Also standard is Electronic Stability Control (ESC), one of the most effective life-saving technologies, is standard in all Genesis Coupe models.

The coupe's shape is very pleasing to my eyes. Even standing it looks poised for speed and fun with a sports car look. Wheels are either the standard 18" or the optional 19".The correlation between the front and rear of the coupe is a great design cue; both have large openings, the front for more air to the engine compartment and the rear for the dual exhaust tips.

Inside the car there's a smart looks without being overly designed. Seating is comfortable buckets with side supports for the more speed minded driver. The steering wheel is well designed for those with either large or small hands and includes controls for the infotainment system. Instrumentation is easy to read and is well located for quick glances while driving. At night the cool blue lighting, a Hyundai signature appears.

For the music lovers there's a good Infinity audio system which can be upgraded to top of the line sound quality. There are standard auxiliary input jacks (3.5 mm mini-jack and USB input) to accommodate and charge audio devices such as iPods®. The system also allows driver and passenger to view music information.

Enhancing the drive for the mid-2010 model year, is a new optional in-dash navigation unit and a new multi-gauge information display screen. This system provides new features including Bluetooth streaming audio capability.

The Genesis coupe is wonderful addition to the Hyundai line-up, especially for those who enjoy the charge of adrenalin that comes from driving a car that has been designed, engineered and manufactured to please the most critical. Do yourself a favor, test drive one very soon.

Follow the link to see Korean home market commercial for the Genesis Coupe http://blip.tv/play/AYGN3VWPpj

Year Of The Hyundai
Hannah Elliott, 06.23.09, 04:30 PM EDT

The auto industry may be in shambles, but not everyone who makes cars is suffering.
 
When the latest J.D. Power and Associates quality survey came out Monday, the big news was Hyundai's trouncing of quality stalwarts Honda and Toyota.

The Korea-based automaker was the highest-ranked non-premium nameplate in the study, beating such notables as Mercedes-Benz, Ford Motor ( F - news - people ), Honda ( HMC - news - people ) and Toyota ( TM - news - people ). It received the fourth-highest rank overall behind Lexus, Porsche ( PSEPF.PK - news - people ) and Cadillac.

Surprised? John Krafcik isn't. The president and chief executive of the South Korea-based automaker's U.S. unit, he says Hyundai's top rank simply reflects what he's known for the past few years. "Our cars research really well ... and when you finally get in the car and drive it, it stands up to that research."

In Pictures: The Highest-Quality Cars

With the American auto industry in shambles, Hyundai has stood out as one of the few automakers (Audi and Subaru would join it) to remain stable as of late. Arch-rivals Toyota and Honda report faltering sales for the year so far (down 39% and 34%, respectively), but Hyundai sales are down just 7.9% year-to-date. Its market share has increased too, reaching 4.2% in the first five months of this year, up from 2.9% during the same period in 2008, according to Autodata, a New Jersey-based market research firm.

Hyundai executives have said they aim to boost U.S. market share to 5% by the end of the year. Japan's Big Three--Toyota, Honda and Nissan ( NSANY - news - people )--stand to lose the most if they make good on that goal. Lexus, down 47% for the year to date, is another big target. "They've extended their portfolio, done clever marketing, added fillers, gone up-market, gone down-market, gone left-market and gone right-market," says Lincoln Merrihew, senior vice president at research firm TNS.

And they've made better cars. Hyundai was one of the big movers on the survey, up from its 13th-place rank last year. Its score of 95 PP100 means Hyundai owners reported 95 problems per 100 vehicles, down from 114 last year. The survey covers problems reported in the first 90 days of ownership for more than 80,000 new-vehicle purchases nationwide.

 

Hyundai--the fifth-largest selling automaker in the world--is still pushing to offer affordable and reliable vehicles to Americans concerned about potential job loss and volatile gas prices. Lately it has also emerged as a contender that offers an alternative to drivers opposed to paying a premium for a luxury nameplate.

The success of the new upscale Hyundai Genesis mid-size sedan is key. It helped engage an entirely new kind of driver--one who wants all the trappings of a Lexus, say, but feels slightly guilty about its insignia.

"We started noticing a reluctance to buy a badge," Krafcik says. "Consumers are questioning the brand premium."

Hyundai executives took a risk in launching the $33,000 sedan on the cusp of a bona fide recession, but sales numbers have been strong. Last month, it sold 2,079 units nationwide (several hundred more than competitors like the Lexus GS and Lincoln MKS), spurred on, no doubt, by its distinction as North American Car of the Year and by Hyundai's novel "Assurance" program, which allows customers to return their new Hyundai vehicles if they lose their job after the purchase.

"If you say Hyundai, people used to say crappy cheap car, but now they go, 'Oh these are the guys that are willing to buy back the car if I'm out of work. These are my buddies. They understand my life,'" says Robert Passikoff, the president of Brand Keys, a market research firm in New York.

The majority of the Genesis sedans Hyundai sells are loaded with upgrades that push the price well above $40,000 according to the company. And the coupe version of the Genesis, a $22,750 306-horsepower rear-wheel drive sports car meant to compete with the likes of the Ford Mustang and Infiniti G37, has achieved critical praise.

It all bodes well for the Equus, the larger, plush sedan Hyundai showed at the New York International Auto Show and plans to bring to the U.S. market in the next two years.

The next step, Krafcik says, is to create a second brand under the Hyundai banner in which to sell luxury vehicles, much like Toyota did with Lexus and Honda did with Acura. With the way things are going, it may not be much of a reach.

Click here to download the J.D. Power and Associates2009 Initial Quality Study^SM (IQS)

Published : June 10, 2009 in Knowledge@Wharton

As American automakers struggle for survival, South Korea's Hyundai Motor appears to be gaining on the pack withbold marketing and broad-based initiatives to improve quality. The company made a splash earlier this year when itunveiled its Hyundai Assurance program allowing customers to return a car if they lost a job. Competing automakersand other types of businesses soon followed with similar promises.

Years earlier, however, Hyundai had already begun to invest in new models and quality programs that have put thecompany on solid footing to profit from the current chaos in the global auto industry, according to Wharton faculty."There's a sense that what Hyundai is doing on many fronts is working in terms of actually gaining some advantageduring the crisis," says Wharton management professor John Paul MacDuffie, who specializes in the automotiveindustry and is co-director of the International Motor Vehicle Program.

In 2008 -- a brutal year for the auto business -- Hyundai's global unit sales rose 2%, lifting revenues by 5%. In the firstthree months of this year, the company's global market share rose to 4.7%, compared to 4% a year earlier.MacDuffie says Hyundai first made a name for itself in the United States in the late 1980s when it exported the lowcostExcel to the American market. The car was popular at first, but soon earned a reputation for developing rust andother quality problems. "Sales dropped and it left reputational damage in consumers' minds," according to MacDuffie.In the 1990s, Hyundai attempted to introduce a range of high-priced vehicles into the U.S. market, but MacDuffie saysthe company was "haunted" by its reputation: "Quality has always been Hyundai's Achilles heel in ... the U.S."It was another economic crisis -- the 1997 Asian financial collapse -- that sowed the seeds for Hyundai's recent success,according to MacDuffie. He notes that during that global economic slump, the South Korean currency fell sharply. As aresult, Hyundai's competitor Daewoo went into bankruptcy and Hyundai was able to acquire another Koreanautomaker, Kia Motors. Surviving consolidation in its home market, Hyundai emerged from the crisis with newstrength to address its problems.

Risky Moves
Beginning in 2001, MacDuffie says, Hyundai launched a major push to upgrade quality with a daily focus onimprovement through new processes at its manufacturing plants, and from better design and engineering. At the sametime, to help overcome its reputation for poor quality, the company announced a 10-year, 100,000-mile warranty. TheHyundai program was far more comforting than the industry's standard three-year, 30,000-mile warranty, andessentially guaranteed the car for its entire expected working life.

"It was risky, but a powerful impetus to improve quality," says MacDuffie. "They pulled it off and it helped them makea major jump forward." This year, Hyundai's Genesis was named 2009 Car of the Year by independent automotivejournalists at the North American International Auto Show in Detroit.

Meanwhile, as it was working to improve quality, the company also was expanding in Europe, the United States and indeveloping markets. MacDuffie notes that the Hyundai Sonata was selected to be the official taxicab during the BeijingOlympics and the company has been more successful than some of its Japanese competitors in gaining market share inIndia and China. "That's another risky, big bet that has paid off well for them," he says.

In January, Hyundai grabbed attention in the United States as consumers were reeling from the collapse in housing andstock market prices and growing fears of unemployment, by offering to take back a car that is financed or leased by aworker who subsequently loses a job. When it was introduced, the Hyundai Assurance program was seen as more thanjust a marketing campaign, but also as psychological affirmation that the economy was not going to collapse entirely."What they are doing is empathizing with the plight of people who are struggling," says Wharton marketing professorDavid J. Reibstein. He observes that the Assurance program is similar to the warranty that Hyundai used to buildconfidence among consumers. "There might be hesitancy to buy because people don't know if they will be employed,but this provides the safety net which allows them to say, 'I can still afford to be in the market.' Clearly, the marketneeded some stimulation and Hyundai was able to provide that stimulation."

Analysts proclaimed the program a success when Hyundai reported U.S. sales were up 14% in January compared to thesame month a year earlier, while the entire U.S. auto market fell 37%.

Reibstein says the offer was a groundbreaking concept, which was later adopted by other companies. The idea might beused successfully in other industries to inspire confidence among consumers, he adds. Big-ticket durables would likelybenefit the most, although he says the idea might also succeed in real estate. Pfizer has a similar program assuring theusers of its products that they will be able to continue to receive medication if they lose their jobs. "It won't work withevery product," explains Reibstein. "It's got to be a product with greater risk. What this strategy does is reduce the riskto the customer."

John Zhang, another Wharton marketing professor, agrees the program was a good move by Hyundai. He adds that thecompany's U.S. customers, who tend to buy cars at lower price points, may be more affected by the recession than othercarmakers' customers. "Economic uncertainty and layoff threats will certainly make customers think twice before theypurchase a new car," he says. "Hyundai's offer will convince those on the fence to jump over now."

In addition, the program is likely to generate strong goodwill toward the company. "Hyundai scores a huge publicitypoint, by being compassionate towards [those who are] down and beaten," according to Zhang.

In another surprising marketing move, the company last month offered to send buyers of some Hyundai models up to$333 a month for six months. The catch: The deal applies only to cars on which Hyundai is offering rebates. Buyersmay opt for either the rebate or the monthly check (not both), and the value of the two offers is about equal. But suchprograms tend to generate consumer buzz.

Wharton management professor Lawrence G. Hrebiniak says Hyundai's success is the result of a cohesive strategyclearly designed to differentiate the firm from its competitors, combined with a willingness to make substantialinvestments to carry out the plan.

Hrebiniak adds that the company is now taking a lead in endorsing new, tougher environmental standards for theindustry: It has promised to meet new federal energy standards requiring that cars get 35 miles per gallon of gasolinefive years ahead of the 2020 deadline. "Something like that is just one more part of differentiation strategy -- to say,'We're cool. We're high quality people,'" says Hrebiniak. "It's all on TV. They won Car of the Year. They are the firstmover in helping people in trouble get over the hump and now they are a leader when it comes to the environment."Hyundai is not afraid to spend money to reap benefits down the line, Hrebiniak notes. "Here's a company that no onereally knew about other than it was a South Korean company that made cheap cars. They're biting the bullet andinvesting a lot in research and development and advertising while also improving quality, and letting people know thatthey will be there for them if they need help."

The Chairman: A Revered Convict
MacDuffie says the company's ability to take bold actions may lie in its structure as a family-run chaebol, or jaebeol --a conglomerate that benefits from government ties -- that is dominated by its chairman, Chung Mong-koo. Thecompany was founded by Chung's father in 1947 and grew into a chaebol. The company's automotive business wasfounded in 1967. "Chung is viewed as all powerful, and for him to drive top-down initiatives around quality would nodoubt get the attention and responsiveness of everybody in the company," says MacDuffie. Even after he was arrestedin a corruption scandal in 2006, Chung remained in control of the company, according to press reports, using atelephone from his jail cell. He is now serving a three-year suspended sentence.

"Within the company, he remained admired and revered," says MacDuffie. "In the larger population, my sense is thatmany admire these larger-than-life figures who have driven so much of Korea's economic growth, and some feel thegovernment is overzealous in prosecuting them."

MacDuffie argues that the 1997 Asian financial crisis helped Hyundai in another way. At the time, Hyundai -- likemany other chaebols -- was linked to other businesses. After an extensive, post-crisis economic restructuring led byPresident Kim Dae-Jung, the chaebols were forced to focus on single industries. "In some way, this may have givenHyundai Motor more focus on its efforts to expand [globally]," MacDuffie says.

He adds that Hyundai's governance structure is also geared toward innovation and improvement, even includingmembers of its parts supply organization, known as Hyundai Mobus, in the highest levels of the corporation. Many ofHyundai's top leaders have come through the supplier network. "It seems clear that in an era when a lot more design isdone by suppliers, the very close relationship between Mobus and Hyundai Motor has helped Hyundai to have effectivedesigns and good quality," says MacDuffie.

MacDuffie points out that Hyundai's attitude was captured in a speech delivered by John Krafcik, CEO of HyundaiMotor America, at the Chicago Auto Show in February. Krafcik called out his peers for their grudging response toenvironmental and safety concerns, corrupt business practices, outlandish compensation and long-time reliance ongovernment assistance. He compared the experience of a customer entering an auto showroom to going to the dentist."While no other industrial sector has a greater impact on the health of our economy, there is no other business with abigger perception problem. Let's face it -- our reputation as an industry is horrible," Krafcik said. "In the U.S., we areviewed for the most part as a slow, dim-witted industry that is typically unresponsive to consumer and environmentalneeds. If that weren't bad enough, our executives are criticized for lavish compensation, abundant perks andunnecessary entitlements.

"We need to work more consistently as an industry to change those negative perceptions," he continued. "By takingpersonal responsibility for our shortcomings, rather than ignoring them, we gain back our credibility."Hrebiniak notes that it is hard to say whether Hyundai's current strategy will be profitable in the long run. "They maybe spending more than they are reaping now, but that could be part of the strategy -- to incur costs and hope it all comestogether not only in sales and market share, but also in terms of profitability," he says. "They are spending money tomake money. I give them credit."

Zhang agrees that Hyundai is steadily gaining approval in markets around the world. "This is an unassuming, latecomingcompany that is consciously trying harder to please customers than anyone else in the marketplace," he says."When you try harder, sooner or later, you get noticed. Hyundai will soon, if not already, become a force to bereckoned with for the U.S. and Japanese manufacturers because it gives the most bang for customers' money."

The July issue of Motor Trend is chock full of good material for your evidence manuals!  Attached are the pertinent pages but you should make sure that your store has a few copies in the sales department and in the customer waiting area (with the pages marked).
 
Motor Trend compares the Genesis Coupe to the Chevrolet Camaro and says the following...
 
"...Reality bit the Camaro in acceleration testing at Chrysler's Chelsea Proving Grounds.  It kept up with the Genesis to 50 mph, then needed an extra tenth of a second to make 60 mph.  By the quarter mile, the heavy Chevy was 0.2 second off at a trap speed of 98.3 mph, versus 99.8 mph for the Hyundai."
 
"both cars are fun to drive, easy to slide around in the tightest twisty turns.  But the Hyundai bites harder on initial turn in and rotates a bit more eagerly."
 
"Unlike in the Camaro, you won't slide around in the seat while cornering fast (in the Hyundai).  And you can easily see the road ahead... whereas the Camaro has acres of long, flat bi-level hood in the view ahead."
 
In regards to the Genesis Coupe... "Lighter steering feel, crisper turn-in, great power".
 
"If there is a future for rear-drive sport coupes, it's in a car like the Hyundai Genesis."
 
And the most important part of the article, found on page 46 of the magazine -- the results of the comparison... First Place goes to Hyundai Genesis Coupe!

By Aaron Gold, About.com

JOHN KRAFCIK: Hi, Aaron, and welcome to Fountain Valley.

AG: First question: What are you driving?

JOHN KRAFCIK: You know that my last three cars were Accent SEs. I love the 1.6 liter scrappiness and the wonderful chassis, which we spent a lot of time working on. I still think it's one of the hidden gems in the auto industry from a fun-to-drive-per-dollar standpoint. But with the new job, and with the program we have internal to the company to cycle through some of the pre-production Genesis models, I'm now driving one of those. It's a Genesis V8, black, which wouldn't have been my favorite color but we had limited selection.

AG: I saw a row of them out in the executive parking spots. I was looking for the Accent, but I guess it wouldn't look good to have the president and CEO driving around in a $15,000 car.

JOHN KRAFCIK: I think it would look fantastic! (laughs) And I can't wait to get back into an Accent. My wife's driving a 2009 Sonata Limited with the four-cylinder, and she's loving it. And I think you're going to see more and more of them in the mid-size world.

AG: Your past posting was VP of Product Planning...how has this changed things, having a "product guy" in [the CEO] position?

JOHN KRAFCIK: Often in our industry folks in this position don't have a strong product background. I think what works about Hyundai and our executive team is we have an incredible assortment of talent. Joel Ewanick on the marketing side, who was the father of the Hyundai Assurance program; Dave Zuchowski, our Vice President of sales, I'm convinced is the best sales executive in the industry, in any company, bar none; Frank Ferrara in parts and service. So, we're just a team that works really well, and I just happen to have some product experience.

AG: The sense that I get is [that] a key part of Hyundai's recent success has been letting American executives make the decisions about where the company goes. Is that an accurate assessment? How much of the product strategy has been coming from America, how much is coming from Korea?

JOHN KRAFCIK: I would say we're working to get to the right balance...we've just been here 22 years, Aaron, when you think about it, [a] short period of time. So the initial thoughts on product entry were kind of born in Korea, and with time, we've grown the capability of the American staff, both from a product planning standpoint, from an engineering standpoint, in Michigan first and now in California, with design. So, yeah, I think the influence is growing, and we've reached a really nice balance. We have terrific discussions here, in California and in Michigan, and we have terrific discussions as well in Korea, where we make some of the decisions for the future products.

AG: One of the things I've noticed, obviously you guys have [introduced] all new products in the past, what, three years, now that Tiburon's gone? I think everything's --

JOHN KRAFCIK: Everything is fresh, the oldest thing in the lineup is the Tucson.

AG: That's from 2005, correct?

JOHN KRAFCIK: Yes.

AG: It seems the higher-end product are really strong... products like the Genesis, Azera, Santa Fe, Veracruz. [But] the latest iterations of the Accent and the Elantra are not so strong. The Accent's really kind of getting beat up on value-for-money versus the [Nissan] Versa and the [Honda] Fit and the Suzuki SX4, and the Elantra is a very nice car but a little bit bland. Is this a shift in focus for Hyundai away from smaller, more inexpensive products, or is it just kind of an oversight, and yes, those products could be better?

JOHN KRAFCIK: I think reasonable people can have reasonable disagreements about relative virtues of cars, but I'd say, cars like, I mean, in particular the Elantra, it is Consumer Reports' top pick for a compact car, and we think it's absolutely the best compact car you can buy for the money. We're really proud about Accent. You know I'm a big Accent booster and fan myself. I continue to think of the Accent as kind of an undiscovered gem, in the same way that Azera is, but in a very different market segment. I think Accent deserves a lot more praise than it's been getting because I think for the most part people aren't so aware of it. But no, to get back to your original question, we are definitely not moving away from our entry-level products, and we really can't, when you think about it. We've made some pretty bold pronouncements, Aaron, about what we're going to be, say, in 2015. By 2015 we'll be the number one fuel-economy brand in the US. That's our stated goal. We're #3 right now.

AG: You're going to meet 35 MPG CAFE [Corporate Average Fuel Economy] a couple of years early, correct?

JOHN KRAFCIK: Five years, more than a couple. Five years early... And to do that, we have to have a tremendous focus on the low-end, more affordable cars and smaller powertrains than what you're seeing now in the industry.

AG: So, you're saying [that] the advances that we've seen in the Genesis, we can expect to see in future Accents and Elantras?

JOHN KRAFCIK: Truly. Yeah. Right, now I think it's fair to say we're filling out our range, and we've got the pair of Genesis products that are kind of filling this interesting rear-wheel-drive premium functional performance space, but we've got tremendous investments coming in the next few years in smaller vehicle segments. I'm really excited about the production version of the concept car called Veloster. Don't worry, we won't name our production car Veloster, I promise you.

AARON GOLD: Are you going to name it Genesis?

JOHN KRAFCIK: Nor will it be a Genesis product. I knew you were going to go there! But that's going to be a terrific car. 1.6 liter high-tech four-cylinder engine, very light, tossable chassis, interesting functional solution, something that the market hasn't seen yet. We're excited about that car. So we've got lots of surprises coming at the lower, more affordable end of our product range. We're going to continue to invest in the mid-section of the range with cars like Sonata and Santa Fe. We've got our all-new Sonata coming, which will be in Hyundai dealers just about this time next year [Feburary 2010]...And then the Genesis products will continue as well.

AG: Accent SE. I don't know if you saw [my] last review, I loved the car --

JOHN KRAFCIK: Yeah!

AG: -- as long as you can keep it going fast enough. It's a great chassis, we've talked about it before. And what it needs is about probably 50 more horsepower.

JOHN KRAFCIK: But -- whoa, whoa, wait. Why?

AG: Because the curvy roads I drive on, the About.com Top Secret Curvy Test Road, has a lot of [steep] gradients, and I had to rev the daylights out of it to keep it going. [And] when I drove it at Willow Springs...I just ran out of engine at about 95 miles an hour. The question I'm leading to...now that you've kind of branched off into luxury...[is] if you're considering performance models, something like TRD [Toyota Racing Development], where you would have factory-supplied performance kits, [or an] "Elantraspeed" Touring. Are these things in Hyundai's future?

JOHN KRAFCIK: We do have some news, and it's just a little bit too early to share some of the stuff that we have coming, but I think your readers are going to be really interested and delighted with where we're going... I hope you see, Aaron, and I hope automotive enthusiasts see, this growing band of interest within Hyundai of developing products targeted more towards enthusiasts. And we've done it in a fairly low-key way, with products like Accent SE. Elantra SE, if you've not tried it, actually has a pretty darn credible chassis itself. We have a Sonata SE model that has a completely unique suspension tuning that feels, I think, really, really good. And then we've really let it fly with Genesis, but in particular Genesis coupe, where we're delivering what we think to be a new value benchmark for rear-wheel-drive performance.

AG: [What about] small engine performance.... direct injection, turbochargers -- [is this] something we can expect to see?

JOHN KRAFCIK: Oh, absolutely, yeah. And again, to hit our mandate, fuel economy leader by 2015, you're going to see significant investments in powertrain downsizing, direct injection, turbocharging. You'll see examples of that throughout our lineup... In general, you'll see the the SE version of our models with some kind of direct injected and/or turbocharged powertrain, typically four-cylinder.

AG: So SE will be a proper performance model, is what you're saying, on future Hyundais.

JOHN KRAFCIK: Correct, correct. Including powertrain enhancement as well as chassis enhancement.

AG: Do you guys have any interest in entering the pickup market?

JOHN KRAFCIK: I think right now we feel happy not to be represented in that segment. You might have heard me, Aaron, describe the pickup truck segment, in particular the full-size, light-duty full-size pickup truck segment, as a bit of a killing field. It's a very, very difficult place to compete. The domestic Big Three are really terrific at great pickup trucks, and they've got a lot of installed capacity, they've got huge scale economies, and it would be extremely difficult to compete with those guys on cost. So then you say, "Oh, well then, you should do a compact or a mid-size pickup." The problem is with the scale advantage that the domestics have for full-size light-duty [trucks]. It's fairly easy for them to price those vehicles in a way that makes it impossible for a new entrant to make money with a smaller truck. Right now, we believe there's only one sub-full-size pickup truck that's a profitable nameplate in the US, and that's the Tacoma... Toyota's got so much equity in that segment, it would be very, very difficult. So if we were to do something in the pickup truck vein, I think it would have to be some new creative solution, or perhaps some re-do of concepts you might have seen in the past, and many have tried them. Remember the Subaru Brat and other vehicles like that?...maybe a unibody solution that came off of an existing platform that hit an entry-level price point. We've certainly looked at products like that one, but don't have a plan right now.

AARON GOLD: Alright, the Genesis brand.

JOHN KRAFCIK: Yeah.

AG: So the Tiburon's gone, you've got this great new sideways rear-wheel-drive coupe that you're giving the same name as your cushy, comfy Lexus fighter. Setting aside our --

JOHN KRAFCIK: "Cushy comfy Lexus fighter"? Who's positioning it like that? That sounds like Aaron Gold's positioning. We never use the term "cushy".

AG: No, I know, you use "rear-wheel-drive performance." That actually leads to another question... The Genesis sedan is, to me, more of a comfortable car than a performance-oriented car. It's more of a Lexus or a Mercedes than an Infiniti or an Audi. What's wrong with that?

JOHN KRAFCIK: Nothing's wrong with that, but I think it is more than that. I think any car that can do 0-60 in 5.7 seconds, as the Tau Genesis can do, and any car that can handle as well as that car can do, and we've got a lot of data showing it does very well versus cars like the Infiniti M and the more performance-focused Lexus models. I'm not talking about the LS. And BMW 7-series. I mean, I think it is credible. And I think that when people come to see this car, their first impression is always "Oh, Hyundai's trying to copy Lexus." And I think sometimes that impression is difficult to overcome. But if there were some way that people could drive a car blindfolded, if we could put them in a Genesis and have them drive it versus the competitive set of large flagship premium sedans like the BMW 7-series, like the Mercedes S-Class, Lexus LS and Infiniti M, I am certain that they would put Genesis on the sportier side of that group as opposed to the softer side of that group. The whole idea with Genesis, and what we're doing with the family of Genesis products, is simple. It's shorthand at Hyundai for rear-wheel-drive, premium performance vehicles. And we think it works wonderfully. We talk about, and I don't know if you saw the Super Bowl ads where we kind of combine the Genesis sedan with a little tease of the Genesis coupe, but they are, I think, nicely paired products. They kind of complete each other. They represent, I don't want to call it a sub-brand, but a family of products that differentiate themselves from the rest of the products in the Hyundai lineup, first and foremost by their rear-wheel-driveness.

AG: Their rear-wheel-driveness?

JOHN KRAFCIK: Rear-wheel-driveness. I made up that word.

AG: I haven't driven the Genesis Coupe yet. Seen it, looked in the interior, [and] it seems to me to be going in a very different direction then the Genesis sedan. Everybody seems to get their back up when I talk about the Genesis [sedan] being more luxurious than sporty, because, I mean, it's a fantastic, luxurious car.

JOHN KRAFCIK: We think it's both. You can be both. It has a very premium interior, but the car is also very engaging to drive.

AG: You can be both, but that's the thing... taking Hyundai out of the picture, if I wanted to have fun on a curvy road, I'd buy an Infiniti G. If I wanted to take a trip down to San Diego, I would buy a Mercedes E-Class. I would not mix them. I don't know that I agree... this is turning into your interview of me.

JOHN KRAFCIK: How did that happen?

AG: Getting back to the question a lot of readers sent me -- I swear it's not just me, the readers are saying this -- it seems that the path you guys are forging is for a Genesis brand.

JOHN KRAFCIK: Well, I think for sure the path we're forging is for a family of rear-wheel-drive products that will share a Genesis nameplate.... We call it a grouping strategy. You see it also with Elantra and Elantra Touring, right? Elantra was a product that was focused from a development point of view for the US, Korea and China markets. The Elantra Touring was a variance of that platform really focused for Europe. And when we decided to bring that product to the US, because we thought -- you know I'm a big fan of wagons and two-box design. We thought it made a heck of a lot more sense to just share the Elantra nameplate, and kind of extend that brand. It's very expensive to develop new nameplates. And when you can find ways to group them together, especially for a brand like us -- I mean, Aaron, we're a 3% market share brand. Three percent. We have ten models. And each of those names is extremely expensive to nurture and grow. So, with Genesis, we thought, you know what? They're the same platform, they're both rear-wheel-drive. If we add another rear-wheel-drive car to our lineup, it's going to share a Genesis name as well. And we can build a little -- sub-brand is too strong a word, I prefer "family". It's a family of products that kind of share that kind of DNA that's a little bit different from the rest of the Hyundai lineup.

AG: I wonder what sort of third product might have a Genesis nameplate on it.

JOHN KRAFCIK: Well, let's think about what the possibilities might be, and then perhaps you or your readers could give us some feedback. One idea which we've talked about is, in the Korean domestic market, we've had for some time a kind of an uber-flagship vehicle called the Equus ["eh-koos"]. There is now a variant of that coming to market in Korea that's kind of a long-wheelbase super-Genesis. We are looking at the possibility of bringing that to the US market. It would be a relatively low-volume vehicle. That is one possibility. We've also got studies ongoing, other variants of the rear-wheel-drive platform. When you have a rear-wheel-drive platform you want to use it as often as possible, to help amortize your costs. So we've looked at higher H-point, higher seating position variants. You can imagine a vehicle like an Infiniti FX. We've studied products like this one. That one also may be a little bit further away, but [it's] something that we're thinking about. And then we've also had the discussion, what about a pure and proper two-seat roadster rear-wheel-drive vehicle, which is also something that we're looking at. Aaron's giving me two thumbs up on that one.

AARON GOLD: I like the roadster. Getting back to the Genesis issue... The dealership experience is a big part of buying a luxury car. A lot of [luxury brands] are putting tons of money into re-doing dealerships and to really insisting that the service is top-notch. I have spoken to people who stick with a brand not because of the car, but because of the service that they receive. How do you sell a $40,000 luxury car, which is really as nice as a $50,000 luxury car, at stores that are used to selling and maintaining discount family cars?

JOHN KRAFCIK: We put a huge effort into upgrading the level of Hyundai dealership sales and service expertise. A lot of dedicated training. And the great news is having a car like Genesis is helping to raise the whole experience for every Hyundai shopper coming into a Hyundai dealership. So that's a great thing, right? So we're getting better and better at the dealer level because of a product like Genesis and the focus and emphasis we've put on that, and ensuring those customers are treated very well. That's kind of working as a halo within the dealership. Is there more to be done? Sure. And we continue to work on figuring out ways to do even better on serving customers in the dealership.

AG: I take it, though, that separate [Genesis] dealerships... especially in this market is a little bit [difficult] to consider.

JOHN KRAFCIK: Yeah, and that's the thing, when we developed this plan to launch Genesis in the current Hyundai dealer network, we didn't know the economy would be this bad. Frankly, the fact that the economy has gotten this bad has been a boost to Genesis and kind of -- I don't want to say validated the strategy, but it has made it more successful then I think it otherwise would have been, because people now are really questioning, and there were a bunch of folks before, even when the US economy was strong, [who] were questioning the value of a premium brand and the value of the dealership experience that you described, Aaron. I mean, it's a cappuccino and a car wash, and it's good service, and many people value those things. But is it really worth $10,000? And a lot of people, especially today, are saying, you know what? I just want a great car. And if I don't get a cappuccino and a car wash at the dealership, maybe that's OK. I mean, that same mind set, I think, has been in place for a while in the American psyche, but I think it's becoming even more so today. It's the same kind of mindset and psyche that is driving a lot of people to places like Costco, right? People who have a lot of money to shop anywhere else do their shopping at Costco, because, well, customer service isn't great, but you know what? The prices are good, and they have a great warranty and return policy, and they have a lot of trust for that. And I think we can develop a very similar kind of experience and pull through our Hyundai dealerships.

AG: One thing I've always wondered is if the attractive price of the Genesis could not be a little off-putting. Do people [think], I just paid $40,000, even though I was shopping it against 50, 60 thousand dollar cars...what's wrong with it?

JOHN KRAFCIK: Well, interesting perspective. We haven't found very many people who've said, "I'd like to pay more for this car." But if you know any of those guys, I want to hear from them. You know, $33,000 to $42,000 is a pretty eye-popping price point from our point of view, and we're delighted with the response we're getting to the Genesis at those price points. We just finished, January [2009] sales [figures]. We actually exceeded our sales objective for Genesis. We had hoped to sell a thousand units this month, a very, very difficult month for the industry, and...1,056 was the number we put in the book, and that was with a relatively light bit of advertising. We really didn't market the car very much in the month of January. The North American Car of the Year award did a lot of that for us, I think, which was terrific.

AG: And the About.com Cars Best New Cars of 2009 spot.

JOHN KRAFCIK: Yeah, I forgot to mention that... We got some other web site award today, but I probably shouldn't mention that one. And we have done this level of sales without incentives. All we have is a small bit of lease support, Aaron, so we haven't put a penny on the car in terms of consumer rebates or anything like that. And that's in marked contrast to what we see our competitors doing. One of the things that makes me really happy is we're outselling the Infiniti M at retail right now. For the last several months we've done that. And if you look at the amount of money Nissan is putting on the Infiniti, I mean, it is well in excess of what we're putting on our car. So when you get to a net transaction price, and what people are actually paying for their cars, the gap between our approach, which is a fair value price without a big discount, compared to what some of our premium brand competitors are having to do now in this market where the amount of money people are willing to pay for a premium badge is dropping very, very quickly, we're actually coming off looking fairly good.

AARON GOLD: What's stopping Hyundai from being the number one automaker in the US?

JOHN KRAFCIK: Right now, let me say where we are. We're the number 7 brand in the US, which I think is interesting. We're a 3% market share company, but in this incredibly fragmented market, with over 30 brands, last year we moved to number seven. We had been number 10 for the last couple of years. So we trail really terrific strong brands like Toyota, Honda and Nissan, Ford, Chevrolet, and Dodge, and we're number 7 behind those six. I think for us it's a matter of time. We're 22 years in the US. Our key Japanese competitors have been in market for about 50 years. And if you look at the gestation of those brands and where they were after 20 years in the US, you say, yeah, Hyundai's on a pretty good growth path. But for us it's a long journey, and we don't have any aspirations to be the number one brand in the US. I think we have a different goal, which is to absolutely delight all of our customers and please them, one car at a time, and we think if we do that, eventually we'll do better, and we'll see better sales results than we're seeing right now. Which are looking pretty good, I don't know if you've seen our January [2009] sales... but if you look at where the industry analysts say our industry is going to end up this month, sales are going to be off roughly speaking 20 to 30%, folks believe. [NOTE: The actual figure was 37%.] We're going to show a 14% sales increase, January over January.

AG: Do you think that's based on value, do you think it's based on strength of the product -- what do you think accounts for that?

JOHN KRAFCIK: A lot of things are working for us right now. We do have a strong value reputation, we have a strong fuel economy reputation, but getting to the value point, right now, if you look at pricing the way we do, which is adjusting for content, we're at 97% of Toyota pricing, which might surprise you. It might surprise your readers that we are that close to Toyota.

AG: You're talking about transaction prices? [NOTE: Transaction price is the actual negotiated price that is paid for a car.]

JOHN KRAFCIK: MSRP. [MSRP = sticker price]

AG: MSRP?

JOHN KRAFCIK: MSRP is about 97%.

AG: I didn't realize it was that close.

JOHN KRAFCIK: It is very, very close, and if you go back just 7 or 8 years, we were, roughly speaking, 85% of Toyota. So what traditionally had been a 15% discount versus Toyota is now a 3% discount... But we offer, we think, a lot more, with the warranty... which is 10 years/100,000 miles on the powertrain, 5 years and 60,000 miles bumper-to-bumper, and it's often said our warranty isn't transferrable. It is. If you sell your Hyundai, the new owner gets the full 5 year/60,000 mile bumper-to-bumper warranty. The 10 year/100,000 mile powertrain doesn't transfer, but the 5 year/60,000 mile [does], which is much, much better than any of our big Japanese competitors. So we think, although the value gap has dropped, the cars are now priced more appropriately versus the competition. They are as good as Toyotas, they deserve to be priced close to that brand. We still have a brand gap in terms of what people think of Hyundai versus Toyota, but that is dropping, I think, in a way that you'd expect and be very proud of, as we are. The other key point is, if you just look at the percentage of Americans who are aware of our brand and would be willing to consider buying one, a couple of years ago, Aaron, we were at 11%, so one in ten Americans would have Hyundai on their shopping list. In 2008, we were at 25%. So now it's up to one in four. And that's a wonderful reservoir of future sales, when you think about it. Today we're on the shopping list of 25% of Americans. We have 3% market share. That says we've got opportunity to grow. So what's working for us now is some wonderful third-party recognition. Consumer Reports recognition for cars like Genesis and Elantra. The Car of the Year award for Genesis. Our Hyundai Assurance program, I think, has also resonated in this climate. We're basically seeking to take out a major reservation consumers have right now about buying a car. "Geez, I don't want to be saddled with new car payments. If I lose my job, I'll have to turn in the car, I'll have to deal with the negative equity, I'll have a bad credit rating," right? Hyundai Assurance kind of tackles that issue right on, saying, hey, we're going to get through this together. We're going to find a way to, if you do lose your job, you can just bring the car back, and we'll take it back. 'Cause honestly, that's not going to happen in very many cases.

AG: Hopefully not.

JOHN KRAFCIK: Hopefully not. If the unemployment rate, which is today, what, in the 8% range? I mean, if it goes from 8 to 10 or 11%, and factor that over the total number of car purchases, it's a relatively small number.

AG: So that program's not going to wind up costing you a ton of money, but it sounds like it's going to generate a lot more showroom traffic.

JOHN KRAFCIK: I think it's generated a lot of interest. I think folks have recognized it as a different approach. One thing that we find in today's environment is discounting isn't working like it usually would. Going back a year or two, you could count on a thousand dollar incremental rebate delivering a certain number of incremental sales. In today's environment, that same thousand dollars might deliver one-third of the incremental sales of a year ago. Discounts and rebates aren't working. We needed to address the root cause of the problem, which is, "Oh my God, I might lose my job."

AARON GOLD: What lessons are there for Hyundai in the Detroit meltdown?

JOHN KRAFCIK: Boy, that's such a complicated issue, and I spent fourteen years at Ford, so I've still got a lot of heart, sensitivity and empathy for the position of the Detroit Big Three. They're a smart bunch, you know, and I think Americans often forget that. They're very successful in other parts of the world, and they're the same company, and the same leaders, and the same management team, and they don't suddenly just get stupid when it comes to US product and the US market situation. There have been a lot of things that the Big Three have had to work against... structural things and structural costs, on the one hand. On the other hand, they have the incredible advantage of one hundred year histories, and having the opportunity to build remarkable brand loyalty through outstanding products. And I think the one thing that, at times, the Big Three, at times, not always, might have kind of lost sight of was the importance of delivering great products all the time and focusing on the customer. And I think fundamentally that's the one lesson that I take from the situation that the Big Three are in right now... we can never forget how important it is to design and deliver great products. When I talk to folks, having been a chief engineer at Ford, and understanding how difficult it is to run a vehicle program...I can tell you that one of the issues that the Big Three face, and really every automaker faces, is just how difficult it is to deliver your vehicle program on cost. To hit your cost target and deliver it. And in my experience at Ford, and my experience so far at Hyundai, I've found the best vehicles are the ones that miss their cost targets. And the ones the customers should probably avoid are the ones that successfully delivered the financial target, the cost target, right? In the long run, those cars didn't deliver their revenue targets, didn't deliver their customer satisfaction targets, but there was the short-term sense that, "Oh, I hit my cost target, I did a great job." I disagree strongly. And that's one of the things that we've focused on here at Hyundai. We have decided in many, many cases, in most of the cases where we had the choice between saving the money to hit the cost target or investing a little bit more to deliver a better interior or a better driving experience, we went ahead and made that investment. So, recommendation for you, Aaron, next time you're on a car launch, ask the chief engineer if he hit his cost target. If he says yes... run away quick.

AG: It seems that part of the problems [the Big Three are having] is that they've having no problem delivering great high-end cars, but it's the low-end cars where the profit margins are a lot slimmer that the problems seem to pop up. You've got the Japanese automakers, which have delivered some terrific small cars. You and I a couple of years ago rode together in that [Suzuki] SX4 when it first came out.

JOHN KRAFCIK: Yeah. Right.

AG: Fit and Versa are great cars. Yaris, I think, is a very good product. [The Japanese automakers are] refocusing their efforts on the smaller cars. They can't be making a ton of money on those cars considering all the content and the engineering. Is that a ground that Hyundai wants to re-stake? I mean, you guys made your name in cheap, reliable transportation. How important is it that the next Accent kicks some Fit, Versa and Yaris ass? Or is it okay just to have a car that's just okay, that appeals to a value-conscious customer and is not really dazzling?

JOHN KRAFCIK: We think it's tremendously important having great entry-level cars, affordable cars that can get new people into the Hyundai product line where we have traditionally had great loyalty. Once we get a customer into a Hyundai, they tend to stay with us. So we call it our gateway strategy, and yeah, you're going to see a tremendous next Accent. You're going to see continued excellence from Elantra, and both of those models are completely new in what we're calling 24/7 Version 2.0. So, you talked about, Aaron, at the start of this discussion, all the new model introductions we did, really from the period 05 through 07, [when] we launched seven all new cars in 24 months. Then we launched Veracruz and Genesis, and now we've, now we're in the midst of what we call, again, 24/7 Version 2.0, starting with Genesis Coupe, Elantra Touring, we've got an all-new Tucson coming later this year, the next Sonata, and then completely new versions of Accent and Elantra just around the corner. And they're going to be fantastic cars from an overall craftsmanship standpoint, quality of interior materials, driving experience, incredible fuel economy, which again is a real focus for us. That is, along with outstanding exterior design, interior packaging ingenuity is something we're really working on. Improving the fun-to-drive quotient of all of our cars, because that's really been a missing piece. When people think about Hyundai, rarely do they think "fun-to-drive", and that's been one of the passions that I've had since I've been here is trying to inject more of that into our brand. I think that's essential to grow the brand with time. And fuel economy. Those four things, I think, are really on our radar screen, and you're going to see that, even more than you do today. And I know you're an Accent SE fan, you're going to love the new Accent. You're going to love the new Elantra. You're going to love the production version of the Veloster. And some of the other stuff we have coming below Sonata.

AG: I don't know if you've had the chance to see the new 2010 Mazda3... They've gone real heavy on content. You can get it with push-button start, climate control... [it's a] really nice car. It would seem that that is something that would be easy for Hyundai to do in the Elantra segment. A higher priced car that delivers more content with better fuel economy. Is that something you guys are looking [at]?

JOHN KRAFCIK: Yes! Absolutely. Coming soon, navigation, for example, coming to Elantra. Not available now, but you're going to see more and more...high-end vehicle content moving into vehicles like Accent and Elantra.

AARON GOLD: I want to get back to the Genesis sedan. It seems now that you guys have kind of got the big quiet comfort thing down, what's now separating the high-end cars -- Mercedes, Lexus and all that -- from the Genesis is some more advanced technologies like adaptive cruise, night vision, collision avoidance braking, things like that. Is Hyundai going to go in that direction?

JOHN KRAFCIK: Yes. Stay tuned. We'll have lots to say on that subject later this year.

AG: One last question. If you could relaunch the Genesis, what's the one thing you'd do differently?

JOHN KRAFCIK: Interesting question. What would I do differently. Long pause. Well, okay... we underestimated the demand for the most expensive car, the V8 navigation system vehicle. A $42,000 price point. Our initial thoughts indicated that would be a 10% mix car. Probably, Aaron, that could have been a 30 to 40% mix car. Right now, V8, for example, in January [2009], V8 mix ran close to 40%, which is extraordinary, and we're still not up to a dealer stocking level that would indicate what free demand mix might be. And the navigation system, even though it's part of the very expensive technology package at $4,000, the demand for that system has been straight through the roof. So, I suppose one thing, if I could turn back the hands of time, would have been to have offered a richer mix from the start, for that model.

AG: Thank you very much, John, for speaking to us.

The perfect mix: Hyundai Elantra combines popular features from many vehicles.
by Jenny White

With the best parts of a sedan, wagon and hatchback combined into a great-riding, roomy and attractive vehicle, I?ve found the next car I want to buy.

Remember those books when you were a kid, in which you could mix and match body parts, (head, torso and feet) to make funny concoctions like a police officer with horse legs and a cowboy hat on? That?s what the Touring Elantra is like.

Up front, it looks like a sporty, small hatchback. Inside, in the rear seats, it looks and feels like a midsize sedan, and the cavernous rear cargo area is like what you?d find in a wagon. It?s the best of three worlds.

The 2009 Elantra Touring is powered by a 2.0-liter four-cylinder engine that produces 138 horsepower and 137 pound-feet of torque. These 138 horses work hard to give the Elantra Touring a get-up-and-go takeoff.
A five-speed manual transmission is standard; a fourspeed automatic is optional.

Gas mileage is great in the Touring. I got a whopping 25 miles per gallon during the week I drove the Touring ? on the highway and in city traffic.

As good as the drive is in the Touring, the real selling point is inside the cabin. As a hatchback, the Elantra Touring provides a surprising amount of space. According to Hyundai, it can hold a maximum of 65 cubic feet of space, which is twice that of a Mazda 3 and a few more cubic inches than many compact SUVs.

Some standard features include air conditioning, tilt/telescoping steering wheel, power windows and door locks, heated mirrors, remote keyless entry, eight-way adjustable driver?s seat with lumbar support, a 172-watt AM/FM/XM audio system with six speakers and fog lights. USB/iPod auxiliary inputs are also standard.

The Elantra Touring comes fully stocked with antilock disc brakes with brake assist, traction and stability control, front-seat side airbags, side-curtain airbags and front seat active head restraints.

In government crash tests, the Elantra Touring received a perfect five stars for its performance in a frontal collision and four stars in a side collision.

The price tag for the Elantra Touring is a reasonable $18,500, less than most of its competitors.

In the current economic climate, there is uncertainty about the longevity of automotive dealerships and whether they will be there for you for the long haul.

Rest assured that Coughlin Automotive will continue to offer the same great level of service and selection that you've come to expect from us - today, tomorrow and for many years to come.

Since 1991, we've grown to 5 locations with 10 different brands. We are Licking County's largest dealer and will continue to expand operations to serve the automotive needs of Central Ohio and surrounding areas.

Thank you from all of us at Coughlin Automotive.

HYUNDAI GAINS NINE PERCENT IN GLOBAL BRAND VALUE

*72nd most valuable brand in the world according to BusinessWeek/Interbrand ?Best Global Brands? study.
* Hyundai ranks eighth among global automakers, ahead of prominent competitive brands including Porsche, Lexus and Nissan.





HYUNDAI EARNS TOP HONORS IN J.D. POWER CONSUMER FINANCINGSATISFACTION STUDY
* Hyundai Motor Finance Company (HMFC) earned the highest ranking in the
non-luxury loan category among auto lending institutions in the J.D. Power and Associates 2008 Consumer Financing Satisfaction Study.

HYUNDAI?S NEW TAU V8 ENGINE NAMED TO WARD?S ?10 BEST ENGINES? LIST

* Hyundai?s all-new 4.6-liter Tau V8 engine, in the premium Genesis sedan, has been named one of the ?Ward?s 10 Best Engines? for 2009 by Ward?s
Auto World ?The engine?s velvety power delivery, competitive performance and attainable price epitomize the Korean auto maker?s drive for world-class engineering.?
?Ward's Auto World editors



HYUNDAI RECEIVES KEY AWARDS FROM CONSUMER REPORTS

* The Elantra SE was awarded a Top Pick in the ?Best Small Sedans? category for the second consecutive year
* Elantra SE was included among the "Best Value Small Cars"
* 4-cylinder Sonata was included in the "Best Value Family Cars" class
* Santa Fe was named one of CR's "Best Value Midsized SUVs"

MOTOR TREND NAMES GENESIS AND SONATA TWO OF AMERICA'S ?TOP 40 NEW CARS?

* The Sonata SE was called a ?standout among standouts? in the family car category
* The Genesis 4.6 was selected a top new pick in the premium sedan category

2009 HYUNDAI GENESIS NAMED "TOP SAFETY PICK" BY INSURANCE INSTITUTE FOR HIGHWAY SAFETY


* The Hyundai Genesis earned the highest ranking awarded by the Institute


HYUNDAI GENESIS NAMED 2009 CARS.COM ?NEW CAR OF THE YEAR?



2009 SONATA RECOGNIZED AS ?ENVIRONMENTALLY FRIENDLY VEHICLE? BY ACEEE

* The 2009 Hyundai Sonata was recognized for the fourth consecutive year by
the American Council for an Energy Efficient Economy (ACEEE) on its annual ?Greener Choices 2009? list.

NADAGUIDES.COM NAMES THREE HYUNDAI MODELS ?BEST CAR BUYS? FOR 2009

* Genesis (Top Luxury Cars under $35,000)
* Accent (Top Sub-Compacts under $15,000)
* Tucson (Top Crossovers under $21,000)
?Hyundai is making the car buying process easier than ever by offering the
biggest bang for the buck in a variety of segments.?
? Michael Caudill, spokesperson, NADAguides.com

FOUR HYUNDAI MODELS HONORED WITH "BEST BET" AWARDS FROM THE CAR BOOK 2009

* Genesis
* Accent
* Entourage
* Tucson
?During these most challenging times for the auto industry, the fact that Hyundai vehicles have the quality and features most important to today?s car buyer is a testament to their desire to meet customer needs.?  ? Jack Gillis, author, The Car Book

HYUNDAI ELANTRA NAMED ?BEST COMPACT CAR FOR THE MONEY? BY U.S. NEWS AND WORLD REPORT

* The 2009 Hyundai Elantra was named ?Best Compact Car for the Money? by
U.S. News and World Report ?The Hyundai Elantra, as the ?Best Compact Car for the Money,? proves what many have been saying for years? Hyundai is making not just economical cars, but very good ones,? ? Jamie Page Deaton, editor, U.S. News and World Report.

THREE HYUNDAI MODELS EARN TOP SAFETY PICK AWARDS FROM IIHS

* Veracruz
* Santa Fe
* Entourage
* All three vehicles also earned five-star crash test ratings, the highest government rating under NHTSA?s New Car Assessment Program, for both frontal and side impact.

G. Chambers Williams III
Star-Telegram

Hyundai, the first South Korean automaker to enter the U.S. market, has come a long way since it rolled out its initial product here in 1985, thesubcompact Excel hatchback. Although it built its reputation on mostly small, affordable and fuel-efficient vehicles, Hyundai has become muchmore than that now, with a full line of cars, SUVs and a minivan.

For 2009, the company introduced its first true luxury sedan, the Genesis, and a coupe version of it is on the way to market. The Genesis wasso good that it won the North American Car of the Year award at this past January?s Detroit auto show.

Hyundai also now has a premium SUV as well. For 2007, the company brought the midsize Veracruz crossover to the United States, and for2009, it comes with a base price range of $27,145 (plus $750 freight) for the entry-level GLS front-drive model to $35,995 for the top-of-the-lineLimited model with all-wheel drive. We tested the Limited front-drive model (base price $34,295 plus freight).

With options and freight, our tester?s price rang up at $38,295, but that included the Navigation Package ($1,750), which also brought the uplevelLogic 7 surround-sound 605-watt audio system; and the Rear Seat Entertainment Package ($1,500), which comes with a roof-mounted eightinchLCD screen and two wireless headphones. It?s not necessary to pay this much to get a nicely equipped Veracruz, however. The GLSmodel with its under-$28,000 price is a good buy if you can live without all the fancy extras and gadgets.

The marvelous thing about the Veracruz is that it seems a lot more expensive than it is, with the look and feel of a luxury model such as theLexus RX 350, against which the Veracruz was benchmarked. The RX 350 begins at just under $38,000. All models come with the same 3.8-liter V-6 engine with dual exhaust, rated at 260 horsepower and 257 foot-pounds of torque.

The engine is connected to a six-speed automatic transmission, another feature distinguishing the Veracruz from its competitors. Most of themhave five-speed automatics, including the competing Honda Pilot and Toyota Highlander. Standard on even the base Veracruz are suchamenities as electronic stability control, traction control, antilock brakes with electronic brake-force distribution, front seat-mounted side air bags,roof-mounted side-curtain air bags for all rows, 17-inch alloy wheels, six-speaker compact-disc audio system with iPod connection, power/heatedoutside mirrors with approach lights and turn-signal lights, cruise control with steering-wheel controls, power windows/mirrors/door locks withremote, and much more.

That means that even at the starting price, with very few (if any) options tacked on to the sticker, the Veracruz comes across as a bargain.Adding such options that were either standard or included on our Veracruz Limited model, including leather interior and the rear-seatentertainment system, sunroof, backup warning system, and 18-inch alloy wheels ? among other things ? would push the RX 350?s price into theupper $40,000s.

Keep in mind, though, that the Veracruz is not a Lexus, and the Hyundai name is not the attention-getter that Lexus is. But with prices starting$11,000 less than those of the RX 350, and with a similarly equipped Veracruz running about $8,000 less than the base RX, Hyundai surely winsthe value race.

Granted, those who would buy a Lexus and those who would buy a Hyundai are entirely different customers. But the point is that anyone whochooses the Veracruz can feel good about the purchase. This is a lot of vehicle for the money, and even without a name like Lexus, it?s quiteelegant. The Hyundai also stacks up well against popular crossovers that Veracruz shoppers might also consider ? the Pilot and Highlander, aswell as the Nissan Murano and Ford Edge.

And while Hyundai might have a hard time taking customers away from Honda, Toyota and Nissan, it can offer a great crossover with lots ofstandard equipment to those who can?t quite afford one of those Japanese brands. The Veracruz really is on the same level, but with a lowerprice. This is the third SUV in the Hyundai lineup. It joined the entry compact Tucson and midsize Santa Fe. The Veracruz is built on a stretchedand widened Santa Fe chassis to allow for a roomy third row of seating, giving it a maximum capacity of seven. (The RX 350 has room for onlyfive.)

There is more cargo volume ? 86.8 cubic feet with the second and third seats folded ? than in all of the Veracruz?s direct competitors except forthe Pilot (87.6 cubic feet). Fuel-economy ratings are quite decent for a roomy seven-passenger SUV. The Veracruz is rated at 16 miles pergallon in the city and 23 on the highway vs. 17/23 for the Pilot, 18/24 for the V-6 Highlander, and 18/23 for the Murano (all with two-wheel drive).Inside, the Veracruz is quieter than the Pilot, with levels of noise and vibration that nearly match those of the Lexus RX.

The Veracruz has achieved the top five-star crash-test ratings from the National Highway Traffic Safety Administration in frontal- and sideimpacttesting for all front and rear passengers. It scored four stars in the rollover rating, which is the highest any of the crossovers havereceived. In designing the Veracruz, Hyundai went with an exterior similar to that of several of the newer crossovers, including the RX 350,Edge and Acura MDX, which is an upscale version of the Pilot. The styling was a product of Hyundai?s California studio and was tailored forAmerican tastes.

Luxury abounds inside the Veracruz. There is nothing cheap or cheesy looking. The leather seats are optional on the base model, but standardon the Limited. Our vehicle also had wood-grain interior trim that gave it a premium look. Standard on our Limited model were several items thatusually are found only on premium models, and then sometimes only as options. Among them were a power rear liftgate, automatic climatecontrol and a backup warning system.

Base models come with a single-disc CD player that is MP3-capable, and XM satellite radio is standard. Our Limited model came with theuplevel Infinity audio system with a six-disc CD changer. Other standard features included power adjustable pedals, power tilt-and-telescopicsteering wheel, rain-sensing wipers, 115-volt power outlet, and a keyless entry/start system. The key can be left in the pocket, and the doorsunlock as the person with the key fob approaches the vehicle.

All-wheel drive is a $1,700 option on either trim level. Most Sun Belt buyers choose the two-wheel drive models, but all-wheel drive system is ofvalue even outside snowy climates and is a bargain at this price. It can direct up to half of the torque to the rear wheels, and there is a lockswitch on the dash that can force it into the 50/50 mode. The Veracruz has 8.1 inches of ground clearance, which makes it suitable for somelight off-road use, but as with most crossovers, this vehicle is not designed for rugged off-road use.

Ride quality is quite Lexus-like in the Veracruz, which also helps give it a luxury feel. The engine offers decent acceleration, even on uphillfreeway ramps, although as with most vehicles in this class, it can feel a little sluggish when fully loaded with people and their stuff.

The Veracruz, which is based on the architecture of the Sonata midsize sedan, handled quite well on some fun twisty country roads. It?s not asports car, of course, but for an SUV, it holds the road quite well and the steering is predictable.

The automotive columns of G. Chambers Williams III have appeared regularly in the Star-Telegram since 1995.
Contact him at 210-250-3236; chambers@star-telegram .com.

At a Glance:
2009 Hyundai Veracruz
The package: Midsize, five-door, seven-passenger, V-6 powered, front- or all-wheel-drive crossover utility vehicle.
Highlights: This is Hyundai?s newest midsize crossover utility vehicle, which comes in two trim levels ? including the upscale Limited model thatoffers more standard amenities than the Lexus RX 350. It is built on the platform of the Sonata sedan, and has carlike ride and handling.
Negatives: Can get pricey with all the options.
Length: 190.6 inches.
Curb weight: 4,266-4,431 pounds.
Engines: 3.8-liter V-6.
Horsepower/torque: 260 HP/257 foot-pounds.
Transmissions: Six-speed automatic with manual-shift feature.
Brakes, front/rear: Disc/disc, antilock.
Electronic stability control: Standard.
Side air bags: Front seat-mounted; side curtain for all rows, standard.
Cargo volume: 6.5 cubic feet (behind third seat; 40.0 cubic feet (third seat folded or not present).Towing capacity: 3,500 pounds.
Major competitors: Ford Edge, Toyota Highlander, Subaru Tribeca, Suzuki XL7, Honda Pilot, Acura MDX, Nissan Murano.
Fuel capacity/type: 20.6 gallons/unleaded regular.
EPA fuel economy: 16 miles per gallon city/23 highway (2WD); 15/22 (AWD).
Base price range: $27,145-$35,995 plus $750 freight.
Price as tested: $38,295, including freight and options (Limited 2WD).
On the Road rating: 8.7 (of a possible 10).
Prices shown are manufacturer?s suggested retail; actual selling price may vary.
Luxury abounds inside the Veracruz.
There is nothing cheap or cheesy looking.

Traveling business or first class is like having a private cabana at a crowded YMCA swimming pool -- it may be crammed and noisy around youyet nothing but space, comfort, and relaxation are filling your world. But c'mon, unless it's on the company dime, sitting up front in the Airbus andeating with real silverware aren't really worth the sky-high premiums. Of course, there's always economy class, which pleases the pocket bookbut not much else -- namely, the feet, knees, shoulders, elbows, well, you get the picture. Then there's economy plus -- still easy on the walletbut actually roomy enough to prompt a smile after buckling up.

In the field of compact hatchbacks, the 2009 Hyundai Elantra Touring, with its $18,495 base price and 125 cubic feet of interior volume,symbolizes the economy-plus ticket. Our tester, which was equipped with a $1500 Premium Sport Package (sunroof, heated seats, 17-inchwheels with 215/45 Kumho Solus KH16 rubber), $95 floor mats, a $30 iPod cable, and $325 Bluetooth hands-free system, came in at $20,445,or around $1400 less than a comparably equipped Toyota Matrix S.

Compared to the Hyundai, the Matrix offers less front and rear legroom, less rear headroom, and less cargo room whether the back seat is up ordown. Granted, the Toyota delivers more oomph, thanks to a larger 2.4L 158-horsepower four-banger in light of the Elantra Touring's 2.0L 138-horse engine. But the Hyundai's fuel-economy advantage (23/31 mpg city/hwy versus 21/28 for the Matrix) arguably offsets the Toyota'sperformance edge -- 0-60 in 7.3 seconds compared to 8.1 for the Elantra.

Further, the Elantra, wearing the low-pro Kumhos, produced a curt 60-0 braking distance of 122 feet, eight feet shorter than that of the Matrix.Unfortunately, we were unable to conduct our usual battery of handling tests, but we're confident the Hyundai would deliver numbers on par withthe Toyota's -- lateral acceleration of 0.81 g and figure eight of 28.4 seconds at 0.58 g.

Despite its rather humble powerplant, the 3000-pound Elantra is a lively, fun-to-drive hatch. Power is perfectly adequate. Handling dynamics aregenerally crisp. And the ride is comforting without being too stiff. The only nits to pick are very light, somewhat numb steering and a looselygated gearshift. As we've come to expect from Hyundai, the Elantra Touring comes standard with stability and traction control, six airbags,satellite radio, front-seat active head restraints, and a tire-pressure monitoring system. Moreover, the cabin is attractive, well laid out, andboasts high-quality materials.

Based on Hyundai's European i30, the U.S.-badged Elantra Touring is a cavernous, competitively priced hatchback that not only undercuts theprice tags on offerings from Mazda, Pontiac, and Toyota, but also delivers noticeably more interior space. Further, both its straight-line andhandling numbers, not to mention its gas mileage, are solid. For around 20 large, a well-equipped Elantra Touring is an economy-plus ride thatrepresents first-class travel.

Body Style: Sedan, Wagon
Sum Up: A solid player in the class.
Price Range:
$15,120 - $18,600
2009 Hyundai Elantra Touring
Base price $18,495
Price as tested $20,445
Vehicle layout Front-engine, FWD, 5-pass, 4-door hatchback
Engine 2.0L/138-hp/137-lb-ft DOHC 16-valve I-4
Transmission 5-speed manual
Curb weight 3000 lb (mfr)
Wheelbase 106.3 in
Length x width x height 176.2 x 69.5 x 59.8 in
0-60 mph 8.1 sec
Quarter mile 16.3 sec @ 84.3 mph
Braking, 60-0 mph 122 ft
EPA city/hwy fuel econ 23 / 31 mpg
CO2 emissions 0.75 lb/mile
© 2009 MotorTrend Magazine, Source Interlink Media All rights reserved. WEB-069

HOPEWELL TWP. ? A lucky motorist escaped with his head ? and his life ? yesterday when his little Hyundai ran under a tanker truck on Route 31 and was scrunched to a crippling halt.

Ernest Tkac, a retired engineering drafting salesman who lives in Bucks County, Pa., confounded alarmed witnesses when he stepped out of the car unscathed, a smile on his face.

Police shook his hand, a news photog snapped pictures of the miracle in progress, and a reporter told him it was good to still have him around.
 
?Sometimes we get lucky,? said township Police Chief George Meyer.
Both vehicles had been heading north on Pennington Road (Route 31) here near Crest Avenue at about 3:20 p.m. The huge tanker, apparently loaded with municipal waste and operated by Gary W. Gray Trucking of Delaware, N.J., was in the passing lane, while Tkac?s Hyundai was in the right-hand slow lane.

For some reason, Tkac apparently made a left turn and disappeared under the tanker! The belly of the truck was actually tall enough in the middle for the Hyundai Elantra to get under it. But the back wheels of the truck began wedging the car, and denting it, dragging it under there for perhaps 30 feet. ?It got wedged underneath, that?s all,? said a police officer who gave Tkac a ride to Colonial Cadillac/Hyundai afterwards. ?He walked right out. I drove the car right out from under the truck.? And the undamaged truck drove off. Tkac was ticketed for failure to keep right. He was last seen at a desk in the dealership talking to his auto insurance carrier ? apparently preparing to buy another Hyundai to replace his totaled car.

?Good car,? he said. ?One of the best cars in the world.? To a customer eyeing the new Genesis coupe, Ernie exclaimed, ?Buy two of them, one for you, one for your son!?

When the half-baked first generation of Cadillac's CTS luxury sedan gave way to the crisp, mature, refined second-generation model in 2008, we breathed a patriotic sigh of relief. Here, finally, was a no-apologies high-end American car that could go toe to toe with the world's best. The styling was on point inside and out, the cabin materials were up to snuff, and lo and behold, the performance was there, too, thanks to countless chassis-tuning laps on the famed Nurburgring and asophisticated available 3.6-liter direct-injected V6. We added one to our long-term fleet in March of 2008, and the experience has mostly left us marveling at how good the folks at GM can be when they put their minds (and money) to it.

But that was then, and this is the year of the Genesis. That's what Hyundai calls its new segment-busting premium four-door, and as the name implies, it constitutes anassault of biblical proportions on the luxury sedan status quo. With a base price of $32,250, the V6-powered Genesis 3.8 undercuts the base price of a 2009 CTS DI V6by more than $6,000 while matching its acceleration numbers. "Too good to be true," the naysayers will cry -- but certainly not too good to join our long-term ranks, and that's precisely what a silver 2009 Genesis 3.8 did earlier this month.

With the long-rumored cage match between the Smart and Mr. Romans' tricycle on indefinite hold, we agreed that no other pair of wheeled conveyances in our possession was more deserving of a comparison test than this one. Accordingly, your intrepid narrator rounded up three of the usual suspects -- Automotive Editors John DiPietro and James Riswick, and Associate Editor Mark Takahashi -- and we headed for the hills and highways, notepads and stereo-testing CDs in hand. Neither car disappointed, but one consistently outshined the other. Identities revealed below.

Josh Sadlier, Associate Editor

2nd Place: 2008 Cadillac CTS DI V6 (as-tested price: $46,690)
Where It Leads: Handling, first and foremost. Our CTS has the mid-level FE2 suspension (FE1 is the Buick option; FE3 is the firmest), and we found it to be plenty capable on Malibu's serpentine canyon roads. The Caddy's Nurburgring tuning is evident in its weighty, precise steering and impressive body control in sweeping turns. Tight corners highlight the car's considerable heft, but overall, this is an undeniably sharp-handling sedan.

Furthermore, the 304-horsepower DI V6 emits a burly roar at full throttle that puts the Hyundai V6's well-mannered hum to shame, and it has noticeably more low-end torque. We also gave the bold-looking CTS the edge in exterior styling, with three of us ranking it above the pleasantly forgettable Hyundai. If the decision in this fight came down to handling ability, engine performance, or the ability to turn the heads of passers-by, the CTS would walk away with the title. In this segment, though,buyers are looking for all-around goodness, and by that measure the CTS comes up short.

Where It Follows: Just about everywhere else. The low-cushioned, relatively cramped backseat is a far cry from the Genesis's limo-like rear quarters. The Bose stereo is nice, but not as impressive as the Hyundai's Lexicon system. The interior materials are good, but the Hyundai's are better. It's not that the CTS is chopped liver; rather, the Genesis is simply a stunningly well-executed car.Our logbooks were littered with comments to this effect. Riswick: "The CTS has the best interior GM has ever produced, but ditto the Genesis for Hyundai, and the Genesis seems a class above." DiPietro: "The CTS's ride is good for me, but possibly too firm for some, whereas I'd go cross-country in the Genesis in a heartbeat."Takahashi: "The CTS's road noise didn't really bother me until I stepped into the Genesis. From then on, the CTS sounded like it was wearing 4x4 mudders." If the Genesis didn't exist, the CTS would be sitting pretty -- but it does exist, and it's available for thousands less, and that's a problem for Cadillac.

Best For: Those who want a European ride/handling balance in a bold American luxury sedan.

1st Place: 2009 Hyundai Genesis 3.8 (as-tested price: $40,000) Where It Leads: The Genesis's 290-horsepower, 3.8-liter V6 doesn't have the Caddy's low-end punch, but it's sewing-machine smooth, as is the ultra-refined transmission, and it produces an identical 6.3-second sprint to 60 mph. GM's direct-injected V6 is nice, but we think this sedate Hyundai motor comes closer to the luxury-car ideal. The Genesis allows significantly less road noise into its cabin -- indeed, it's one of the quietest cars we can remember testing -- and its cosseting suspension is a sponge for bumps that upset the firmer CTS's composure. Interior materials are top-notch, from the leather-trimmed dash (part of the Premium Plus package) to the extensive use of rich, pliable plastics. The backseat is palatial, with a wonderfully high cushion, acres of legroom and headrests that are actually soft enough to rest your head on(Takahashi: "I felt like a pampered Yakuza don in the back of the Genesis, but in the CTS I felt like I was being crammed into a high school buddy's Maxima"). What can we say? The Genesis is a leader. It's really, really good.

Perhaps the most striking fact about our landslide winner is that even if it cost the same as the CTS, it still would have won in a landslide. We're used to Hyundais beating out superior cars on the strength of their lowball pricing (the Genesis Coupe vs. G37 comparo being the most recent example), but in this case the money you'll save is just icing on the cake. It is remarkable, though: for roughly the same price as a base 2009 CTS DI V6, our Genesis test car boasts the above mentioned Lexicon surround-sound audio system, adaptive xenon headlamps, heated (and cooled) front seats, and a navigation system -- all extra-cost options on the CTS. Hyundai still stands for value, but the Genesis proves that it can also stand for uncompromising excellence.

Where It Follows: Hardly anywhere other than on twisty roads -- and even there, we had to admit that the Genesis corners with surprising confidence for such a softly-sprung car. The 3.8-liter V6 lacks the CTS's bottom-end thrust and invigorating soundtrack, but we suspect the average shopper in this segment will prefer the Hyundai mill's smoothness. The Genesis's steering is notably less sporting and precise than the Caddy's, but the latter's weightiness could be off-putting for some. In short, the Hyundai isn't as engaging from behind the wheel, but our complaints probably won't be seconded by less enthusiastic drivers.

The Genesis lacks the Caddy's fold-down rear seat, making do with just a ski pass-through, yet its trunk opening is much wider, enabling golf clubs to be inserted with minimal hassle. The dead pedal isn't upright enough relative to the throttle, but then, the CTS's driving position is considerably more awkward, dead pedal included.The Genesis could use more padding for its armrests, but so could the Caddy. There just isn't much that's unequivocally wrong with this car relative to its American counterpart.

Best For: Those who want 5 Series or even 7 Series luxury at a 3 Series price, and don't mind that it's not trying to handle like a BMW.

Posted by S.B. True March 29, 2009, 9:00 AM