The BLOOMBERG RISKLESS RETURN RANKING shows Kia provided a risk-adjusted return of 9.2 percent in the five years through yesterday, the most in the Bloomberg World Auto Manufacturers Index (BWAUTM) of 22 car companies. Hyundai Motor Co. (005380), the larger affiliate of Seoul-based Kia, rose 4.8 percent in the same period by that measure, the second-most in the index. Kia and Hyundai’s shares had the lowest volatility among automakers based in the emerging markets, and Kia posted higher absolute returns than all of its rivals.

SEOUL, Jan. 25 (Yonhap) -- South Korea's top carmaker Hyundai Motor Co. became the best-selling Asian car brand in the competitive German market last year, edging out Japan's Toyota Motor Corp., industry data showed Wednesday. Hyundai Motor sold 86,866 vehicles in Germany in 2011, while Toyota sold 83,204 cars, according to the German international manufacturing group VDIK.

The sale of Hyundai Motor jumped 16.9 percent last year from 74,287 vehicles a year ago to surpass Toyota for the first time since it made inroads into the German market in 1999. The South Korean brand's market share in the European country also went up 0.2 percentage point to 2.7 percent last year, ranking 10th overall in the German market after U.S. and European carmakers, the VDIK showed.

Hyundai Motor's smaller affiliate Kia Motors Corp. sold 42,065 vehicles last year, up 14.9 percent from the previous year, it said. The company had set up exclusive sales distributors in Germany late last year to expand its market presence, with new vehicle models such as the i30 and i40 gaining popularity in the country. The German automobile market, meanwhile, grew 8.8 percent last year, with 3.17 million vehicles sold, according to the VDIK.

Hey-The 2012 Elantra was a finalist in this year's Motor Trend Car of the Year Contest. The new Veloster was also a finalist and the Accent was a contender. They sited Hyundai and Kia as getting better, more interesting, and closer to their COTY ideal. - Red Elantra

2012 Hyundai Veloster
Early on, the Veloster struck us as an odd duck: a four-seat hatchback with a trick passenger-side rear door and a pudgy, jack-o'-lantern face. But it works. The third door opens to a livable backseat, and the stylish dash holds a plethora of tech gadgets. The Veloster's four-cylinder rates 38 or 40 mpg in EPA-estimated highway ratings, depending on the transmission — an adept six-speed automatic or a six-speed stick. If outright acceleration feels modest, the car's low weight and good balance make up for it. Bomb down a curvy road and the Veloster holds its own; a forthcoming turbo edition should raise the fun quotient. Still, today's car impresses on value: Where many affordable compacts fall behind the times on connectivity features or charge extra for them, the Veloster comes well-equipped. Standard gear includes a USB/iPod-friendly stereo with steering-wheel audio controls plus Bluetooth phone connectivity and audio streaming. Drivers will love the toys, but their pocketbooks — or parents — will like the car's sub-$18,000 starting price. Hyundai didn't give us the most features in an entry-level car, but it might have set a new bar for overall appeal.

2012 Hyundai Accent
If you're shopping for a subcompact car, you can easily settle for the boring. The pedestrian. You can settle for stripped-down cars that offer little comfort to go with the frugality. The Accent is one of a new crop of subcompacts that offer a lot of convenience features formerly found on more expensive, larger models. The Accent makes our esteemed list, though, because it's more comfortable than the rest of the subcompacts while returning impressive gas mileage. Interior dimensions are incredibly close to another strong newcomer to the segment, the Chevy Sonic. But in terms of real-world roominess, the Accent wins with a cabin that is more open, giving drivers the sense that they're piloting a larger car. Of course, subcompacts are purchased for their value and fuel efficiency, and the Accent wins on both counts versus the Sonic and the rest of the field. The four-cylinder engine is more powerful than shoppers in this class may expect, and its 40 mpg on the highway will make trips to the pump less painful. The U.S. car shopper is looking at more practical, affordable and efficient cars, and Hyundai has delivered yet another car that fits the bill.

Following in the footsteps of Hyundai's Tau V-8 engine, the 1.6 Liter GDI Gamma engine, which debuted on the all-new Accent, has been named one of the Ward's 10 Best Engines by WardsAuto World."Hyundai spent three years on the list with its excellent Tau 5.0-liter V-8, but 2012 brings evidence the auto maker can deliver world-class small engines as well," writes WardsAuto World Executive editor Tom Murphy. "The new 1.6-liter DI Gamma four-cylinder is powering entry level vehicles such as the Hyundai Accent and demonstrates its versatility in the Hyundai Veloster three-door coupe. Mated with an excellent six-speed manual transmission for our evaluation, this package makes the Accent an easy pick for B-class car shoppers. Priced a shade above $14,000, the Gamma-equipped Accent is an excellent value that will surprise and delight any first-time buyer."

The Hyundai Accent is available with the 1.6-liter GDI Gamma engine paired with a proprietary six-speed automatic or manual transmission. This combination results in best-in-class fuel economy of 30 mpg city/40 mpg highway and best-in-class 138 horsepower.

"Gasoline-direct-injection technology allowed Hyundai engineers to create an engine that is powerful, fuel-efficient and has reduced emissions," said Hyundai American Technical Center Inc. (HATCI) Powertrain Director, John Juriga. "Despite its small size, it generates some big numbers, with both impressive horsepower output and up to 40 mpg on the highway."

The all-new Gamma 1.6-liter four-cylinder engine is the smallest Hyundai engine to use Gasoline Direct Injection (GDI) in the U.S., which helps deliver an estimated highway fuel economy of up to 40 mpg, lower emissions and higher reliability. Through the use of GDI technology, the Gamma 1.6-liter engine delivers a peak output of 138 horsepower at 6,300 rpm and maximum torque of 123 lb.-ft. at 4,850 rpm. However, GDI is only part of the story, as the new Gamma also features Dual Continuously Variable Valve Timing, an electronic throttle control, a roller timing chain, variable induction and innovative anti-friction coatings such as CrN Physical Vapor Deposition (PVD) coating and Diamond Like Carbon (DLC) coating.

Q: You are on track to sell about 100,000 more vehicles than you did last year, and set a record for the brand in the U.S. How are you dealing with that increased volume and tight inventory levels?

A: We have the lowest inventory levels in the entire industry in terms of day supply. It is maybe half of what it was last year. We are learning how to sell from a leaner inventory, and that allows us to sell more cars compared to if we had maintained the same inventory of last year.

But the major portion of our growth has come from production. This year we will build about 336,000 cars in Alabama; that's about 10 percent more. We have incremental production out of Georgia. (Hyundai gets most of its Elantra and Sonata sedans from a factory in Montgomery, Ala. Some SUVs come from a factory operated by corporate sibling Kia Motors America in West Point, Ga.)

We have taken production from about 300,000 in 2010 to close to 420,000 in 2011. Some of that goes to Canada, which is a big export market for us, but that gives us about 100,000 in incremental sales.

Factory capacity is a very fluid term. There are always ways to fine-tune your machine to build more widgets. You need to find the constraint, solve it and then optimize and then start over again. I bet you next year we will have figured out how to extract another 5 percent to 10 percent out of our plant in Alabama.

Q: If Hyundai models become more popular and inventories continue to shrink, do you risk getting into a shortage situation in which dealers start raising the price of the vehicle over your suggested prices? Would that hurt the "value" story you are pitching car shoppers, and is there a way to manage that?

A: Dealers are free to set any price they want for an individual car that they like. We have found that what our dealers are doing is selling their cars closer to MSRP (sticker price) than they have ever before. Just a few years ago more than 50 percent to 60 percent of Hyundais were sold with a rebate; now they are going for 1 percent to 3 percent discounts from MSRP. We have the lowest incentive (expense) in the entire industry. It is just $750.

Hyundai's value position has never been higher than it has been right now. Our prices have never been higher and our discounts lower, but consumers have never given us as much credit for good value as they are today. They are happy even though they are not getting a $1,500 rebate.

And our dealers have been terrific so far.

Q: At what point does Hyundai start looking to expand its existing factories here or adding another plant?

A: Can't comment on that.

Q: How much planning goes on with Kia, Hyundai's corporate sibling? It is also having a great year. Sales are up 35 percent, and it has set an annual record. You share engines and transmissions. Is there other coordination?

A: At Hyundai Motor America, which is the sales and marketing arm, we share nothing with Kia.

There is some common engineering on the production side, but that's not unlike some of the arrangements between Ford and Mazda in the past.

They are separate companies with some common ownership, but there is no Hyundai-Kia company. You can buy stock in Hyundai. You can buy stock in Kia, but not in a combined company.

Q: Talk about the new Azera that you unveiled earlier at the Los Angeles Auto Show. Where does it fit in your lineup?

A: It will be the flagship of the front-wheel-drive Hyundai lineup. (Hyundai sells more expensive, luxury rear-wheel-drive sedans under the Genesis and Equus labels.)

It is well equipped, just two-trim strategy. The base car will have leather seating, a navigation system with a 7-inch screen, nine air bags, premium sound and automatic transmission.

It comes with 3.3-liter direct-injection engine with 293 horsepower. The option package includes 19-inch wheels and a panoramic sunroof and other upgrades.

Q: There was a lot of skepticism when Hyundai launched the Equus: Could the company that once had a terrible reputation for reliability - which seems to be well in the past now - really pull off a $58,000-plus luxury car? So far, you have sold about 2,600. Is the project working?

A: It is working on a couple of different levels. It has more than a 5 percent market share of the premium luxury sedan market. That's the same share that our Hyundai brand has for the entire industry. We like that. You would think this would be the toughest portion of the market for us to penetrate.

The more important point about Equus is about its impact on our dealer network. Two years ago, we were among the worst in the industry in sales satisfaction. ... I think it is this one area where we have the most work to do.

Equus has made our dealers work harder to please customers, and that has trickled down to Sonatas, Elantras and Accents.

Q: What can people expect to see from Hyundai in 2012?

A: We will have a two-door coupe and a five-door hatchback in the Elantra lineup. You will see a dramatic face-lift of the Genesis coupe.

A Veloster turbo (is in the works) and finally we have an all-new Santa Fe coming this summer, which promises to be a breakthrough new product for us.

DETROIT—Hyundai Motor Co. is hoping that five television spots before and during the Feb. 5 Super Bowl game will help to bolster its rising brand recognition and continue big sales gains from the past few years.

North American CEO John Krafcik says the fast-growing brand is working on a 60-second spot that will run right before kickoff, plus two ads on the pregame show and two during the first and third quarters of the game.

He wouldn't say how much the Korean automaker is spending on the ads, which will compete with most creative spots American companies have to offer during one of television's highest-rated and most expensive sporting events. Last year Super Bowl ads cost companies about $3 million for 30 seconds.

Chrysler Group LLC's two-minute spot featuring rapper Eminem was among those that created the most Super Bowl buzz this past February, and it helped kick off what has been a strong sales year for the recovering company. The cinematic third-quarter ad showed Eminem driving through Detroit and introduced a new car, the Chrysler 200 sedan, amid gritty scenes of the city. A voiceover talked about how the city has survived going through "hell and back."

Krafcik said Hyundai hopes to have standout spots as well, but it will focus more on a brand message rather than going for entertainment value.

"We're competing with Doritos and Pepsi and Anheuser-Busch," he said Friday at an auto show briefing for reporters at a technical center near Ann Arbor, Mich. "Those are tough competitors from an entertainment point of view."

Hyundai, he said, might have a little more fun with its ads this year and try to make them more memorable than in the past. But it's also trying to sway about a third of the auto market that has a neutral view of the brand, which sells the Elantra compact, Sonata midsize car and Tucson crossover SUV, among other models.

Hyundai has had huge sales growth in a lackluster U.S. auto market. Through October, the company has sold more than 545,000 vehicles, already passing last year's record sales of 538,000, according to Autodata Corp. Hyundai's U.S. market share has risen from 4.2 percent in 2009 to 5.2 percent so far this year, and analysts believe the company has taken sales mainly from Honda Motor Co. and Toyota Motor Corp., both of which have experienced declines.

Hyundai's sales are so strong that it's having trouble supplying cars and crossovers to its dealers, Krafcik said. It has raised the annual output at its Montgomery, Ala., factory to around 330,000 this year, and will produce more cars in North America in 2012, he said. But he wouldn't comment when asked if the company plans to build a new factory in the U.S.

SEOUL—The departure of Hyundai Motor Co.'s chief executive late last week marked the second sudden exit this year of a top official at the South Korean auto maker, even as the company is experiencing its greatest financial success to date.

Hyundai announced Friday the retirement of Chief Executive Yang Seung-suk, who ended a nearly three-year stint in the post, during which time the car maker outpaced the competition in one of the industry's worst downturns. In March, Lee Hyun-soon, Hyundai's head of research and designer of the company's first engine, also retired abruptly.

Hyundai's ability to absorb such high-profile departures is rooted in a complex management structure built around Chairman Chung Mong-koo, the son of the company's founder. Its day-to-day operations are handled by a suite of executives, the most visible of which in recent years has been Mr. Yang, known outside of South Korea as Steve Yang.



Mr. Yang was chiefly responsible for nondomestic operations and global marketing for Hyundai, which, with its affiliate Kia Motors Co., is the world's fifth-largest car maker by unit sales.

Over the past year, Mr. Yang oversaw the launch of a world-wide brand campaign aimed at improving perceptions of Hyundai and giving it the ability to charge higher prices and command bigger profit margins.

Hyundai offered no explanation for Mr. Yang's departure, though the firm tends to cycle through executives in the CEO suite every two to three years. Mr. Yang couldn't be reached for comment.

In a statement, Hyundai said Mr. Yang's duties would be divided among two executives, Mr. Chung and Kim Eok-jo, but neither would immediately receive the CEO designation.

Mr. Yang, 57 years old, ended a 34-year career with Hyundai, a group of businesses that is among South Korea's largest family-run conglomerates. He started his career at Hyundai Heavy Industries Co., now the world's largest ship builder. Before becoming CEO of Hyundai Motor, Mr. Yang was president of Hyundai Steel Co., a steelmaker that primarily serves the car company and other customers in Asia.

When he took the car-company job in early 2009, global auto sales were strained in the wake of the financial crisis. Hyundai undertook some marketing actions—such as agreeing in the U.S. to take back any new car from a buyer who lost a job—that drew a lot of attention.

The firm also benefited from the weakness at the time of the Korean won, which made its products more price competitive against those from other countries. Hyundai continued to invest in new models and new factories, particularly in emerging markets like China, Russia and India.

As a result, Hyundai was one of the few car makers to build up its sales and profits through the downturn. In the first half of this year, Hyundai earned a record net profit of 4.2 trillion won, or about $3.8 billion. Unit shipments rose 11% in the period, versus about 5% growth for the global auto industry.

—Min-jeong Lee contributed to this article.

Its cars are selling so well, the once dodgy brand is having more and more trouble meeting demand — and that's a very good thing.
By Doron Levin, contributor


FORTUNE -- New-car shoppers who fly to another city often do so in search of a hard-to-find Mercedes, Lexus or other high-price vehicle. Lately they're looking for Hyundai models. In short order, the once-dodgy brand is suddenly being associated with one of the most desirable problems in the auto industry: scarcity.

"I was surprised," says George Glassman, a Hyundai franchisee in Southfield, Michigan who has delivered cars to buyers from Cleveland and Chicago. "Demand is outstripping availability. People who want a particular color or set of features buy the car and fly in to pick it up."

Availability of Hyundais in the U.S. is tight because the company is "more or less maxed out" on worldwide production, according to John Krafcik, chief executive officer of Hyundai Motor America, the U.S. subsidiary of the South Korean automaker. "We're doing everything we can. Some of our dealers are quite upset they can't get enough cars." Marc Cannon, a spokesman for AutoNation (AN), the nation's biggest auto retailer called demand for Hyundais "overwhelming," resulting in shortages at the chain's five franchises.

The remarkable turnaround of Hyundai, a car brand once troubled by poor quality, is already three or four years old, and reflected in the fact that its cars have turned into hot sellers. Hyundai, and its affiliate Kia, now have about the same share of the U.S. market as Honda (HMC). But the South Korean automaker isn't rushing to expand production. The company opened an assembly plant in Montgomery, Alabama in 2005, which today is operating at capacity of about 300,000 vehicles annually. Hyundai executives in the U.S. decline to speculate when, or even if, a second U.S. plant might be built.

Hyundai's growth and the glowing reviews for the latest versions of its Sonata midsize sedan, Elantra compact sedan and Accent subcompact lead some analysts to predict that it could grow within a few years into the world's top seller. The recent misadventures of General Motors (GM) and Toyota (TM), which have been first in sales before, show that the No. 1 title may be a poisoned chalice. "One of the concerns is that our current quality systems won't hold up if they're forced to accommodate too much production," said Mike O'Brien, vice president of product planning at Hyundai's U.S. headquarters in Fountain Valley, California.

Although dealers are losing potential sales because they don't have enough cars on hand, Hyundai is benefiting via strong pricing of the vehicles they do sell. According to Edmunds.com, the average Hyundai vehicle sold in August carried a discount worth $737, compared with an average discount of $2,385 for all brands. Hyundai has begun extensive leasing programs for Elantra and Sonata, charging monthly rates of $169 and $199 respectively. Last year was the first that Hyundai was able to lease more than 10% of its vehicles; this year the rate already is at 19%.

Dealers like the leasing programs because so many customers prefer the predictability of a three-year contract and buyback and because the agreements more or less assure the dealers a chance to sell another car when the lease expires. Leasing wasn't possible in the franchise's early days in the U.S. due to the weak residual value of used Hyundais. Now, that figure has turned into one of the industry's strongest.

"Hyundai's done a great job surprising people" who remember how mediocre the cars were 10 or 15 years ago, said Jessica Caldwell, an analyst for Edmunds.com. "It won't be as easy to surprise people going forward." Ultimately, Hyundai may find itself in the enviable position of having to align its message with its rapid growth.

To show the environmental advantages and performance of Fuel Cell Electric Vehicles (FCEVs) while benefitting kids with cancer, Hyundai Motor America launched the Hyundai Drive 4 Hope. As the official car of Hope on Wheels, Hyundai’s major pediatric cancer program, a Hyundai FCEV Tucson will travel more than 4,500 miles coast to coast for kids with cancer. During September National Childhood Cancer Awareness Month, Hyundai Hope on Wheels will award a total of $7.1 million to children’s hospitals nationwide. During its national tour, the Hyundai Tucson FCEV team, Zafar Brooks and Joe Foster will stop at hospitals across the country, collecting colorful handprints from childhood cancer patients and survivors along the way. By the end of September, the vehicle will have collected hundreds of handprints from children around the country, each representing a personal story about a child’s battle with this deadly disease.




After its kickoff with a handprint ceremony at UCSF Pediatric Hematology/Oncology in San Francisco on September 1st – the first of 71 hospitals to receive $100,000 Hope Grants – the Hyundai Tucson FCEV will travel over 4,500 miles through 15 states in 30 days.

August 16, 2011

Survey of 72,000 Consumers Reveals Vehicles That Meet Their Owners Demands. Ford Motor Company Leads with Seven Wins. Porsche Scores Fourth Straight Top Brand Win.

TUSTIN, Calif. (August 16, 2011) – The the 2011 Ideal Vehicle Awards (IVA), announced today by automotive research and consulting firm AutoPacific, reveal the vehicles that most closely match their owners desires. "Everyone has had the experience of wanting to change something after you've bought it and experienced it for awhile. This is especially true of vehicles," says George Peterson, President of AutoPacific. "This research recognizes the vehicles that owners want to change the least. In other words, the vehicles that already match their owner's demands.

The IVAs are based on owners' ratings of their new 2011 model year cars and trucks across 15 key vehicle attributes ranging from power and acceleration to interior roominess. The survey includes responses from more than 72,000 vehicle acquirers. The cars or trucks that owners would change the least are the most ideal.

"Its getting harder and harder to measure quality differences in today's vehicles, says Peterson. "Consumers need better insights into which vehicles will meet their ideal for comfort, ride and handling, cargo space, and other attributes that are experienced on a daily basis. IVA winners deliver the most of what consumers are really looking for in their vehicles. Shoppers can use the IVAs as a benchmark for vehicles that are designed and built with customers in mind."

Among premium brands, Porsche scores the highest for 2011, giving Porsche its fourth straight IVA win since 2008. Chrysler leads the pack among popular brands, followed by Hyundai and Ford.

"Ford Motor Company leads the industry with a total of seven segment winners. Like last year, no other manufacturer came even close," said Peterson. Volvo scores three category wins and has a "win and a place" among Luxury Crossover SUVs with the XC70 and XC60. American-branded vehicles perform well in this year's IVAs. Of the twenty-four Ideal Vehicle Award (IVA) categories, American brands win eleven segments, European brands seven and Asian brands six.

The top-rated product segment is Premium Luxury Car, beating out Large Pickups and last year's leading category Large Crossover SUV. As in previous years, American buyers continue to value large, comfortable vehicles suitable for suburban driving and highway cruising..


2011 Ideal Vehicle Award Winners:

Premium Brand Award: Porsche

Mainstream/Popular Brand Award: Chrysler

Overall Winner: Porsche 911

Overall Brand Winner: Porsche

Passenger Cars:

Premium Luxury Car
Mercedes-Benz E-Class
Aspirational Luxury Car
Volvo S60
Large Car
Hyundai Azera
Luxury Mid-Size Car
Lincoln MKZ
Premium Mid-Size Car
Ford Fusion
Mid-Size Car
Subaru Legacy
Premium Compact Car
Volvo C30
Compact Car
Hyundai Elantra
Sports Car
Porsche 911
Sporty Car
Dodge Challenger
Hybrid Car
Ford Fusion Hybrid