Hyundai is never satisfied. The company went from building bargain-basement rides to having one of the most stylish, well-built and, thanks to the Genesis and Equus sedans, luxurious lineups of any mainstream carmaker. Now, the company is reportedly entering new territory by targeting one of the most popular luxury cars around: the BMW 3 Series.

A source inside Hyundai told Automotive News that the Korean company is preparing a shortened version of the rear-wheel drive platform from the Genesis to underpin a 3 Series fighter. However the car, codenamed RK, will not go on sale until 2014 at the earliest.

By putting the 3 Series in its sights, Hyundai is setting a near-impossible goal for itself. Established competitors like Audi and Mercedes have repeatedly failed to beat the magic Bimmer in sales or critical acclaim, so can an upstart like Hyundai do better?

The 3 Series’ greatest attribute is probably its sporty handling, something Hyundai has not had much success with in its sedans. The Genesis sedan was meant to compete with full-size luxury cars like the BMW 7 Series and Mercedes-Benz S-Class, so it’s a bit of a land yacht. Still, its platform also supports the sporty Genesis Coupe, so there is hope yet.

If Hyundai’s recent efforts are any indication, the RK will look good. The flowing lines of the Sonata and Elantra help distinguish them from the American and Japanese competition. The 3 Series is a handsome car, but it looks very conservative compared to the cheaper front-drive Hyundais. If Hyundai uses the same styling theme on the RK, it could at least win the beauty competition.

Like other Hyundais, a competitive price will probably make the RK more enticing. The Genesis is such a compelling car because it offers 7 Series and S-Class accommodations for the price of its competitors’ midsize models. The 3 Series starts at $39,595, so the RK will have to undercut that. Hyundai’s impressive 10-year/100,000-mile warranty could also sweeten the deal.

Most luxury car buyers are not 100 percent rational, though. It’s hard to imagine people trading the snob appeal of a BMW badge for a Hyundai. Luxury buyers also have higher standards than the average Accent owner. When Hyundai launched the Genesis, it had to upgrade its dealers to provide a suitably upscale experience.

If Hyundai’s 3 Series fighter proves successful, a Kia version isn’t out of the question. Hyundai owns Kia; most of Kia’s models are based on Hyundai platforms. A Kia 3 Series competitor could be based on the company’s K9 luxury sedan.

Either a Hyundai or Kia 3 series competitor is a big gamble; it’s unclear whether luxury buyers want a bargain sedan without a prestige badge. However, a cheap rear-wheel drive sport sedan, is a good thing, regardless of which badge it wears.

Three Hyundai models - Elantra Sedan, Sonata and Equus - each took first place in their respective categories in the 16th annual Strategic Vision Total Value Awards. Elantra Sedan won in the small car category, Sonata scored top marks for medium cars, and the Equus beat out competitors like BMW and Mercedes to take first place in the luxury car segment. Additionally, Equus received the award for Best Model, and Hyundai ranked second overall in Total Value. Strategic Vision’s Total Value Index (TVI) reflects all aspects of perceived value; from quality, to economics to customer appeal.

Of the more than 350 new cars to compete for honors in their respective categories, Hyundai was recognized for its innovation in design and technology, value for money, and increase in overall quality. Strategic Vision is a research-based consultancy with more than 35 years of experience in understanding consumer decision-making processes for a variety of Fortune 100 clients, including most automotive manufacturers.

“Hyundai has increased its Innovation Factor Score (IFS) by 20 points since 2008,” said Alexander Edwards, president, Strategic Vision. “Today, Hyundai’s like Elantra, Sonata, and Equus have some of the highest Total Value scores in the entire automotive industry.”

Total Value Scores are calculated by assessing two factors: Customer assessment of initial value, and customer evaluation of the complete ownership experience. Initial value was judged on total price paid by the consumer, manufacturer warranty coverage, expected trade-in value, expected affordability, expected durability, and expected operating costs. Innovation Factor Scores were also calculated for final judging, and reflect each car’s use of engaging, impactful, and innovative technologies.

I am so angry at Hyundai for deceiving me. I bought my car yesterday and took a trip up Pike's Peak and only averaged 33.9MPG. I feel so violated. I want my money back!

During the 12th Hyundai-Kia “International Powertrain Conference” that took place on October 23 and 24 at the Rollins Hill hotel near Hyundai's R&D center in South Korea, the company unveiled its current and future engine and transmission line-up. Chief among them is the next generation of turbocharged petrol engines, which according to the company will offer high performance along with low fuel consumption and CO2 emissions.

Hyundai is already offering its T-GDI (Turbo Gasoline Direct Injection) technology in 1.6- and 2.0-liter engines and is now expanding its application to “small, yet strong” units, keeping in line with the downsizing trend that has spread across the industry. At the conference, the company displayed the new Kappa 1.0 TCI (Turbocharger Intercooler) and 1.2 T-GDI petrol engines. The 1.0 TCI has an output of 105HP (106PS) and peak torque of 137.3 Nm (101.2 lb-ft or 14.0 kgm). Its block is made of aluminum and it features an integrated turbocharger and a plastic intake manifold and head cover.

Apart from these two units, the Korean carmaker also showed the Gamma 1.6 T-GDI, Nu 2.0 CVVL and Theta 2.0 T-GDI petrol and the U2 1.1 WGT and Euro 6-compliant 2.0-liter diesel engines, as well as the Kappa continuously variable transmission (CVT).

Hyundai said that it intends to increase its global sales by offering “customized” powertrains suitable for each region. For example, it plans to increase the number of its T-GDI-engine models in major markets like the U.S. and China, introduce flex-fuel units to markets where there are more suitable, and provide engines that will perform the same no matter the temperature in countries that experience extreme weather conditions.

(Reuters) - Hyundai Motor Co has been sued for allegedly misleading consumers sensitive to high gas prices that its popular 2011 and 2012 Elantra model is more fuel efficient than it actually is. The lawsuit filed by the public interest group Consumer Watchdog claims that TV advertisements touting "the 40 Mile Per Gallon Elantra" reflected only highway mileage, not city or combined highway/city mileage. It claimed that required disclosures of the estimated city mileage, 29 miles per gallon, appeared only briefly in "tiny, faint text" that viewers could not read without freezing their screens. Disclosures in magazine ads for the car were illegible or nonexistent, the complaint added.

The plaintiff, Louis Bird of Sacramento, California, claimed he would not have bought his 2011 Elantra but for Hyundai's advertising, and is paying more than he expected to refuel. His lawsuit seeks class-action status and unspecified damages for alleged violations of California consumer protection and fraud laws. The lawsuit was filed on July 3 in a California state court in Sacramento.

Hyundai North America, in a statement, referred to tests by the government and three widely-read magazines that suggest the advertised fuel economy is realistic. The South Korean company did not specifically address allegations in the complaint that it should have made fuller disclosures in its advertising. On May 9, a state judge in Los Angeles ruled in favor of Honda Motor Co in reversing a $9,867 award to a Civic hybrid owner who accused the Japanese automaker of fraudulently overstating its fuel economy in its advertising.

The case is Bird v. Hyundai Motor America et al, Superior Court of California, Sacramento County.

This past week, Hyundai brought me and a bunch of other auto journalists to a fancy, wood-slathered resort in San Diego to show off some of the new cars they've been building like the Veloster Turbo. As you'd expect, they did lots of feeding of us hungry, hungry writers. I took advantage of the opportunity with the Hyundai insiders to ask the questions and give the suggestions I know you would, if you had the opportunity. You'll thank me one day, I'm sure. With a hug and a tepid beer. Here's how it went down.

The idea: Hyundai got its start back in the late '60s building Ford Cortinas under license. Those were some handsome cars! How about you guys dragging those old body dies out of storage (I totally know you still have them. Check behind the break room in one of your shipyards, under a tarp) and making some new Cortinas, with modern drivetrains! Or, at least producing new Cortina bodies for people to build cars on their own with, like Ford does with the '66 Broncos and '65 Mustangs.

The response: Polite smiles, acknowledgement that Hyundai did indeed start by building Cortinas, but there are no plans to do anything with those. They're not even sure they could, license-wise. They also started whispering amongst themselves a bit, and one guy faked a cell phone call and walked off. He didn't even bother to hold the right side of his iPhone to his face.









The idea:One of the Veloster development guys told me that when they were coming up with the Veloster concept, they had a number of ideas they were playing with. One of the ones that didn't make it was the "open/fun" concept, which he said was at least in part inspired by the Suzuki Samauri (though most everyone else denied that part). Open/fun seems like a pretty great place to start for a fun car. More than a convertible, closer to a Jeep, but a bit less serious. The Samuri, for all its flaws, was often fun. So why not pick this back up? And I know just how— taking an existing car's basic chassis and structure and turning it into an open fun car has a long tradition. Think VW Thing, Citröen Mehari, and yes, the Trabant Tramp. Open bodies, removable doors, fabric roofs, waterproof interiors— hell, a good time on wheels. The veloster platform could easily become that! Remove the panoramic roof and replace it with rollable canvas/plastic, weatherproof interior, cut-down removable plastic doors— it'd be great! We can call it— let's see what's a synonym of Tramp... oh. Hm. Not that kind of tramp. Wait— Hobo! Everyone loves hobos, right?

The response: Maybe I should have left out the Trabant one, because they seemed to shut down after that. Most of the guys pretended like someone was gesturing to them and left, and of the few that were left, one shoved a huge handful of roast potatoes in my mouth, saying, "here, shut up and try the potatoes." It was like the size of a softball, and it was sort of tricky to breathe, what with his hand clamping my nose shut.





The idea: I've been really wanting a small pickup truck with room for people and a baby seat. Pretty much everything out on the market now is just too damn big for me. Luckily, Hyundai already makes a great option: the H100/Porter. It's a small but very usable cab-over pickup with an optional crew cab. It's extremely utilitarian-looking, which I like, as it reminds me of other no-bullshit-looking trucks I like. And, I love the cab-over/no hood look. On a pickup, a hood is just wasted space that could be part of the bed. So how about bringing some of those over? The double-cab with the back seat should get around the Chicken Tax, even!

The response: The blankest stare of undiluted incredulity I've ever seen on a human face. The product guy looked at me with this slight smile and very concerned eyes. Like he wasn't sure if I was joking, or if he should be genuinely worried. The more I tried to convince him I genuinely would drive a truck like that, happily, his reaction just got worse. A mix of disgust and confusion, like I asked him if they could put something in the new Genesis Coupé that would let the car molest children, automatically. I tried to get some of the journalists on my side, but to no avail. Eventually, after I showed him some pictures on my phone so he knew what I was talking about, he used the handle of his fork to make himself vomit all over my leg, then excused himself.






The idea: The Elantra Coupé doesn't make a lot of sense to me (review coming soon). It's sort of a sportier-looking version of the Elantra Sedan, but it's not really all that sporty, and someone who wants that would likely move to a Veloster. So what's the Coupé for? I think with any coupé, the point is just to show that the owner probably isn't married. The 70s used to have much better design shorthand for the freeloving, 2-door buying, man-or-woman on the go: vinyl roofs, opera windows, big absurd chrome work, with a flashy grill and ostentatious hood ornament, rich, luxuriant velour upholstery for gettin-it-on comfort, all that crap. How about that approach to the Elantra Coupé? No one else is trying it!

The response: The product guys at my table said the idea was so good, they wanted a special rep to hear it! Wow! The Special Rep came to the table— a huge guy packed into a suit like a bunch bowling balls in a pair of tights— and told me they wanted to take a meeting about my great ideas down the hall! He took me to a door, opened it, and flung me in, hard. It was dark, and I heard the door lock. Feeling around, it turned out to be a janitor's closet. I may have peed in the mop sink. About 4 hours later a maid let me out when people in the restaurant complained about the sobbing.

○ Hyundai, Kia effectively monopolizing market

According to the Korea Automobile Manufacturers' Association, Hyundai controlled 46.8 percent and Kia 34.7 percent of the locally assembled car market between January and April this year. Given that both companies belong to Hyundai Motor Group, their combined market share is 81.5 percent.

Hyundai and Kia are the only two domestic automakers that have a double-digit market share. GM Korea controls 9.9 percent and Renault Samsung 4.9 percent, showing a significant gap among the top two.

Hyundai and Kia are increasingly solidifying their dominance. Their combined market share has been rising from 78.1 percent in 2010 to 79.8 percent in 2011. For this reason, critics say the domestic-brand auto market is effectively monopolized by Hyundai and Kia.

Every important aspect of the car has been upgraded. Power has been increased to more than 450 horsepower by the addition of a Mangnuson Products supercharger – hence the SC part of the moniker – and a liquid-to-air intercooler. The Mangnuson blower pushes six to seven pounds of boost into the 3.8-liter V-6 engine’s intake for 35- to 45-percent power improvement.

WESTLAKE VILLAGE, Calif., Jan. 11, 2012 /PRNewswire via COMTEX/ -- One in three new-vehicle owners who switched brands say their previous brand didn't make the type of vehicle they wanted, indicating that striking the right combination of model offerings and vehicle appeal is critical to retaining customers, according to the J.D. Power and Associates 2012 Customer Retention Study(SM) released today.

Now in its ninth year, the study measures the rate at which automotive brands retain their existing customers and examines the reasons why customers remain loyal. Customer retention is critical to a brand's market success, particularly during the current period of market recovery, in which each new-vehicle sale is vital. In addition to customer retention, the study also measures the rate at which each automotive brand captures customers from its competitors, known as conquesting.

Among new-vehicle owners who switched vehicle brands for their latest purchase, 33 percent indicate that their previous brand didn't offer the type of vehicle they wanted. Although this is a primary reason for switching, other key reasons relate to dissatisfaction with the previous vehicle, including the vehicle costs too much to own or maintain; there are too many problems with the vehicle; and the vehicle didn't retain sufficient resale value.

"Many automotive brands are expanding their array of models in an attempt to capture more buyers, but this isn't enough in and of itself," said Raffi Festekjian, director of automotive product research at J.D. Power and Associates. "Manufacturers need to integrate specific attributes and features that delight vehicle owners to maximize their opportunity to both retain customers and conquest from other brands. Manufacturers also need to ensure owners are satisfied with the quality, residual values and ownership costs of their vehicles."

According to Festekjian, brands that strike the right combination of all of these aspects stand the best chance of being reconsidered by current vehicle owners for their next new-vehicle purchase.

Hyundai ranks highest among automotive brands in retaining customers when they buy a new vehicle, and improves its retention rate by four percentage points from 2010(1) to 64 percent in 2012. Hyundai's retention rate is primarily driven by the Elantra and Sonata models. "Hyundai's increased retention rate is shaped by its expanding model lineup, as well as the fact that perceptions of the brand's quality and appeal have continued to improve during the past decade," said Festekjian. Following Hyundai in the rankings are Ford and Honda, in a tie, each with a customer retention rate of 60 percent. Jeep posts the greatest improvement in customer retention rate from 2010, improving by 17 percentage points to 51 percent in 2012.

Overall customer retention has improved by one percentage point in 2012 to 49 percent, compared with 48 percent in 2010. In 2012, 19 of the 33 ranked brands have improved their customer retention rates from 2010, while 14 have declined. The study also finds that women and younger vehicle owners (those in the Generation Y and Generation X demographics, between ages 23 and 47) are less likely to choose the same vehicle brand for their next purchase, compared with men and older owners.

"Women and younger vehicle owners are more likely to experience changes in their life circumstances, including growth in household size or changes in income levels, that would lead them to purchase vehicles that better accommodate their new lifestyle," said Festekjian.

Brands that perform particularly well in retaining women customers include Honda, Hyundai, Kia and Mercedes-Benz. Among vehicle owners in the Generation Y and Generation X demographics, Ford, Kia, Lexus and Mercedes-Benz perform particularly well in customer retention.

The 2012 Customer Retention Study is based on responses from 117,001 new-vehicle buyers and lessees, of which 73,733 replaced a vehicle that was previously acquired new. The study was fielded between February and May 2011 and August and September 2011.


2012 Brand Retention Rates
Hyundai 64%
Ford 60%
Honda 60%
BMW 59%
Kia 59%
Toyota 58%
Chevrolet 57%
Mercedes-Benz 57%
Lexus 54%
Cadillac 52%
Jeep 51%
Nissan 50%
MINI 49%
Ram 49%
Industry Average 49%
Subaru 48%
Land Rover 47%
Volkswagen 47%
GMC 46%
Infiniti 46%
Acura 45%
Audi 45%
Porsche 42%
Lincoln 40%
Buick 38%
Mazda 34%
Mitsubishi 33%
Jaguar 31%
Volvo 30%
Chrysler 26%
Scion 24%
Dodge 21%
Suzuki 20%
SAAB 7%

South Korean automaker Hyundai, which has been working to shed its bargain-brand image and emerge from the shadows of Japan's biggest brands, now commands higher prices than they do in the hot compact-car segment. An analysis of transaction prices — what people actually paid for new cars — shows Hyundai not only has pulled ahead of Toyota and Honda, the compact segment leaders, but is closing the gap in midsize sedans. Those are key product segments for Hyundai, generating more than half its car sales last year.

The analysis by Edmunds.com for USA TODAY shows buyers in 2011 paid an average $19,711 for a Hyundai Elantra compact, about $1,500 more than for a Toyota Corolla and $300 above a Honda Civic. At the same time, the redesigned Elantra's sales rose 40.5% last year from 2010, Autodata reports.

Meanwhile, Hyundai's Sonata midsize sedan has been closing on Honda's Accord and Toyota's Camry in the past decade. U.S. buyers paid 33% more for a Sonata last year than in 2002, while they paid 13% more for an Accord in the same period and 10% more for a Camry. The average paid for a Sonata last year was $23,259, about $860 below Accord and $500 below Camry. As recently as five years ago, Sonata lagged them by an average of more than $2,000.

The analysis shows Hyundai has not only moved beyond being written off by all but bargain seekers because of its previous reputation for questionable quality and oddball styling, but has moved beyond being only a value brand into having some products for which people will pay more.

"They really changed people's minds. It's a turning point for the brand," says Jessica Caldwell, Edmunds.com analyst. "But it's a long process that's not over yet." Hyundai isn't afraid to raise sticker prices, either. Last week, it priced its redone Azera full-size sedan at $32,875 to start, up about $6,000 from its predecessor. Though the new one has more standard features, that still puts it well above the $26,350 base for a Ford Taurus and near Toyota Avalon's $33,955.

Heading upmarket has risks, Caldwell says. By letting go of its image as a value brand, Hyundai will face higher expectations. Hyundai's U.S. CEO John Krafcik disputes that his brand is losing its value orientation. "Our value has never been higher," he says. He says there remain are many shoppers yet to be won over. "We're in the middle of a very long journey."