Hyundai - An Overview Options

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Hyundai provides customers a high level of content and performance at an affordable price. Every vehicle in the lineup demonstrates Hyundai's emergence as an auto manufacturer whose products compete successfully in technology, quality, styling and refinement with automobiles from around the world.

Hyundai sold its first car, the subcompact Excel model, in the U.S. in 1986. At the time few Americans had ever heard of Hyundai or its products. Since that time Hyundai has expanded and upgraded its product line in the U.S. and now accounts for more than two percent of the U.S. auto market.

Hyundai now markets a full line of vehicles from the subcompact Accent to the award-winning Santa Fe sport utility vehicle to the luxurious XG350 sedan. The vehicles were developed exclusively by Hyundai Motor Company and are fitted with engines and transmissions designed and engineered by Hyundai.

Hyundai Motor Company

The Hyundai Motor Company was founded in 1947 as Hyundai Engineering and Construction Co. by the late Ju-Yung Chung. Hyundai Motor Company, established in 1967, is the auto sales leader in the Korean domestic market and exports vehicles to 190 countries worldwide.

Hyundai Motor Company operates the world's largest integrated automobile manufacturing facility in Ulsan, on Korea's southeast coast. In 1996 Hyundai opened the Namyang Technology Research Center, which includes a complete testing facility with a 2.8-mile oval test track and a new $40 million aeroacoustic wind tunnel. That same year, 1996, HMC began production at its state-of-the-art Asan Plant, located southeast of Seoul.

Hyundai now operates eight research centers in Korea along with four international centers, including Hyundai America Technical Center, Inc. in Ann Arbor, Michigan, and the Hyundai California Design Center in Irvine, Calif. Hyundai's automotive technology centers employ approximately 4,100 researchers with an annual budget of five percent of current revenues. Current research projects include: electric-powered vehicles, low-emission gasoline engines, solar-powered vehicles, hydrogen-powered fuel cell vehicles and other alternative fuel vehicles.

The Hyundai California Design Center, established in 1990, creates and develops both production vehicles and cutting-edge design concepts for the automotive market. Several innovative vehicles have emerged from the design center including three concept roadsters, HCD-I, HCD-II, HCD-6, a hybrid sport utility vehicle HCD-III, The CrossTour sport utility vehicle (HCD-5) and the HCD-7 luxury sedan. The influence of the California Design Center can be clearly seen in the sleek lines of the first generation Hyundai Tiburon sporty coupe and the Santa Fe sport utility vehicle.

A Look Back - Hyundai's Entry Into the U.S. Market

The timing of Hyundai's entry into the U.S. market in 1986 as ideal. At that time most automobile manufacturers had abandoned the entry-level market in favor of high-end, high-priced vehicles and that left a large void in the market. First-time car buyers such as college students and young families were not able to find adequate, value-equipped cars that met their needs, yet were priced within their economic means.

In February 1986, Hyundai launched its subcompact Excel model in the U.S. market. Customer response was immediate; in just seven months Hyundai Motor America had sold its 100,000th Excel. Total 1986 sales numbered 168,882 - an industry record for an import car distributor in its first year. Hyundai sales averaged 1,431 units per dealer, another sales record. In 1987, Hyundai sales continued to soar reaching a record 263,610 units.

What makes this sales performance all the more remarkable is that it was done with dealers located in only 31 of the 50 states. In the early years, Hyundai concentrated its sales efforts primarily on the West and East coasts, as well as in the southern states. In 1987, Hyundai expanded into the central portion of the United States, opening a central region office near Chicago. Today, there are four regions and more than 600 Hyundai dealerships nationwide.

Expanding the Product Line

Hyundai took a major step to becoming a full-line automotive importer/distributor in 1989 with the introduction of its midsize sedan, the Sonata. This roomy, powerful, front-wheel-drive sedan expanded Hyundai's appeal to more mature, family-oriented buyers. It also offered current Excel owners an opportunity to move up within the Hyundai product line.

In 1995, the Sonata was completely redesigned. It incorporated state-of-the-art technology that moved it up the scale in the midsize sedan segment. In 1999, the third-generation Sonata was introduced with the company's first all-aluminum V6 engine, double wishbone front suspension and standard equipment side impact air bags. For 2002, the Sonata was revised with new exterior styling and an available 2.7-liter DOHC V6 engine and four-speed automatic transmission with Shiftronic manual shift control.

Scoupe

Hyundai's third entry into the U.S. market was the sporty Scoupe, introduced in the summer of 1990 as a 1991 model. The Scoupe featured the Alpha engine - the first powerplant designed, engineered and manufactured exclusively by Hyundai. With its 2 + 2 configuration and offered in a bright array of colors, the Scoupe added a youthful, exciting touch to the Hyundai product line. The last model year for the Scoupe was 1995.

Accent

In 1995, after 10 years in the U.S. market, the Excel was replaced by the all-new subcompact Accent. With the Accent, Hyundai offered customers high-tech sophistication and features, but still at an entry-level price.

For model year 2000 the Accent was redesigned to offer buyers even more value and quality. For the 2001 model year Accent GS and GL models were upgraded to the powerful1.6-liter dual overhead cam four-cylinder engine. In 2002 the GS and GL models were fitted with air conditioning as standard equipment.

For the 2003 model year the Accent was extensively revised with new front fenders, hood, bumper, fascia and headlamp assemblies. The rear deck, tail lamps and bumper were also revised. The GT package, with revised sport suspension and a 14-inch wheel and tire package was reintroduced in 2003. The sophisticated 1.6-liter DOHC four-cylinder engine is now standard equipment in all Accent models. Since January, 2003 every Accent built for sale in the U.S. is equipped with driver and front passenger side impact airbags as standard equipment.

For 2005, the exciting Hyundai Accent is available for the first time with ABS -- and continues to be the value leader in the entry-level class.

Elantra

The compact Elantra sedan debuted in 1991 as a 1992 model. It quickly became Hyundai's best-selling model in the U.S. Elantra was redesigned in the 1997 model year and a station wagon version was introduced. Elantra captured the Hyundai sales record in 1997, 1998, 1999, 2000 and 2001. For the 2001 model year, Hyundai introduced the all-new third-generation Elantra with a longer wheelbase, a roomier cabin and even more refinements.

Side impact air bags were also made standard on 2001 Elantra models, making them the first cars in their segment to offer side impact airbags as standard equipment.

For 2002 there were two Elantra models offered -- the Elantra GLS four-door sedan and the new sporty Elantra GT five-door hatchback. In 2003 the new Elantra GT 4-door joined the lineup.

There are extensive changes for 2004 including both exterior and interior styling and a significant engine enhancement. The hood, grille, front bumper, headlamp assembly, rear bumper and taillamp assembly are all new for 2004. Interior upgrades include a new instrument cluster, new vents and controls, new center console, new HVAC controls and more.

In addition, for 2004, the 2.0-liter DOHC engine is fitted with Continuously Variable Valve Timing (CVVT) and is available in SULEV and ULEV configuration depending on the states in which it is sold. The Elantra GT models feature a long list of standard equipment that includes sport-tuned suspension, alloy wheels, leather seating surfaces, front air dam with foglamps and handsome rear spoilers.

Tiburon

In 1997 Hyundai replaced the Scoupe with the exciting Tiburon sporty coupe. Based on the HCD-I and HCD-II concept cars, Tiburon combined sleek, eye-catching styling with outstanding performance and handling.

The Tiburon's performance lives up to its sporty styling. Competing in the tough Michelin SCCA Pro Rally series, a specially prepared Hyundai Tiburon, driven by Paul Choiniere and Mark Higgins who joined the team for the 2002 season, won the Manufacturer's Championship in 1997,1998, 1999, 2000, 2001 and again in 2002. In 1997 Choiniere captured the Driver's Championship and he also piloted the Tiburon on its winning run up Pike's Peak in the annual Pike's Peak Open "Race to the Clouds."

The Tiburon was extensively revised in 2000 with revamped front, rear and interior styling. There was no 2002 model Tiburon. The 2001 model was sold until the spring of 2002 when it was replaced by the exciting all-new 2003 Tiburon. The new Tiburon GTV6 model offered some exciting new features -- a V6 engine, 6-speed manual transmission and a high performance 17-inch wheel and tire package. For 2004, the Tiburon received only minor interior trim changes and simplified packaging.

Two New Vehicles

In the fall of 2000, Hyundai Motor America added two new vehicles to its lineup: the Santa Fe sport utility vehicle and the XG300 sedan. The Santa Fe is a car-based crossover utility vehicle (XUT) that provides car-like ride and handling with the seating position and utility of a sport utility vehicle.

The Santa Fe was an instant hit with consumers and for the first time in many years Hyundai dealers were taking orders and putting customer's names on waiting lists. For 2002, the Santa Fe received minor refinements and upgrades.

In mid-2002, the Santa Fe was again upgraded with a revised center stack design with relocated clock and larger air conditioning vents and a power sliding moonroof option was added.

For 2003, driver and passenger side impact airbags were added as standard equipment on the Santa Fe. Then, near the end of the 2003 model year, the Santa Fe 3.5-liter was introduced with the 3.5-liter DOHC V6 engine, 5-speed automatic transmission with Shiftronic manual shift control and an available electronic 4WD system from Borg-Warner. For 2004, there are only minimal changes and upgrades to the Hyundai Santa Fe.

The XG300 was a hit as well, selling well above the projected numbers. For 2002 the engine displacement of the XG300 moved from 3.0 liters up to 3.5 liters resulting in the name change from XG300 to XG350. For 2003 changes to the XG350 included a new instrument panel design and new trip computer display. The 2004 XG was extensively revised and went on-sale in July of 2003. Both front and rear styling was changed for '04 and the front disc brake rotor diameter was increased as well. The XG350L now features a new 12-spoke design alloy road wheel and all XG350 models are fitted with a full-size spare tire mounted on matching alloy wheel. There are also many interior enhancements for the 2004 Hyundai XG350 to make it even more luxurious.

2005 HYUNDAI TUCSON

Hyundai unveiled the 2005 Tucson sport utility vehicle at the Chicago Auto Show in February 2004. The Tucson is a crossover SUV based on a modified Hyundai Elantra platform and is slightly smaller than the Hyundai Santa Fe SUV.

Tucson is available in three trim levels; GL, GLS and LX and in two configurations; front-wheel-drive or 4WD. There are two engines available - the proven 2.0-liter DOHC four-cylinder fitted with Continously Variable Valve Timing (CVVT) and the 2.7-liter DOHC V6. The four-cylinder engine can be matched to either a 5-speed manual transmmission or a 4-speed Shiftronic automatic transmission. The V6 is matched to the 4-speed Shiftronic automatic transmission. 4WD is available with either engine selection.

4WD Tucson models are fitted with a sophisticated Borg-Warner electronic all-wheel-drive system that automatically engages the rear wheels when necessary. There are no levers to move or buttons to push. When the electronic sensing components sense the need for 4WD it is engaged automatically. There is also a dashboard mounted 4WD lock button that allows the driver to manually "lock" the driveline in to 4WD for a 50/50 torque split.

Facilities

As the presence of Hyundai automobiles and Hyundai Motor America continued to grow in America, the company began to expand its operations and service networks nationwide to more effectively serve the needs of dealers and customers. In 1988, HMA opened a $21 million, 300,000 square-foot parts distribution center in Ontario, Calif., to facilitate parts deliveries to Hyundai's expanding dealer body. The next year, HMA opened a $16.6 million, 342,000 square-foot office complex and parts distribution center in Aurora, Ill.

Today, Hyundai also has regional offices in Jamesburg, N.J., Austell, GA and Aurora, IL. In addition, the New Jersey facility also incorporates a parts distribution center.

In 1990, Hyundai Motor America moved its national headquarters from Garden Grove, Calif. to a new 18-acre site in nearby Fountain Valley, Calif. - an investment of $18 million. In addition to corporate offices, this facility also houses HMA's Western regional office, the National Service Center and the National Headquarters of Hyundai Motor Finance Company.

HMFC, launched in 1990 with a capital investment of $15 million and 22 employees, now employs nearly 200 people and has accumulated a portfolio of nearly $500 million. Hyundai Motor Finance Co. serves Hyundai dealers nationwide with individual customer financing and dealer inventory financing.

Also in 1990, HMA opened a $12.2 million port facility in Portland, Oregon. It features a large dock area, a 45,000 square-foot processing building, a holding lot for incoming cars as well as an area for rail car and vehicle transport. Other Hyundai port facilities are located in Wilmington, CA, Brunswick, GA, Newark, N.J. Baltimore, MD, and Fort Worth, Texas.

A new corporation called HK Logistics America (HKLA), formed in March 2003, is now responsible for all vehicle logistics management for Hyundai Motor America and Kia Motors America in the U.S. HKLA is headquartered in Costa Mesa, Calif and has 11 port operations (nine water ports and two inland processing centers) located in eight U.S. states.

In April of 2002, Hyundai broke ground in Montgomery, Alabama for its first U.S. automobile assembly plant, a $1 billion investment scheduled to open in 2005 and employ nearly 2000 people. When running at full capacity, the plant is expected to assemble 300,000 vehicles per year.

The first two vehicles scheduled to be produced in the Hyundai Motor Manufacturing Alabama (HMMA) assembly plant are the revised Sonata and Santa Fe models.

In addition, the new $25 million Hyundai/Kia Design and Research Center in Irvine, California opened in early 2003. Also in early 2003, a ceremonial groundbreaking event was held for the new Hyundai/Kia proving ground in the California desert near Edwards Air Force Base. This facility is scheduled to be completed by the end of 2004.

After nearly 19 years in the U.S. automobile market, Hyundai continues to reinforce its commitment to sell innovative, high-quality vehicles at the most affordable prices.

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Company of Korea. Hyundai cars and sport utility vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced by more than 640 Hyundai dealerships nationwide.