Posts Tagged ‘Hyundai’

According to a report from PickupTrucks.com, Hyundai is considering the launch of a full-size pickup truck that would compete with the Ford F-150 and Chevrolet Silverado.

Focus groups were held for truck buyers in Texas and California using a Dodge Ram 1500 that was modified with a Hyundai grille and a handful of other minor changes.  Reports say that the focus groups responded very well to the truck and that Hyundai is moving forward to the next phase of their study.

For its part, Hyundai is staying quiet about the plans.  “We never say never about future products,” a spokesperson explained, “but pickup trucks are not a high priority for us.”

The response was firmer than is typical in the industry and rumors now allege that Hyundai’s American operations are opposed to the truck while the parent corporation in South Korea is in favor and is running the research on its own.

The fullsize truck market represents a lucrative but challenging opportunity for the automaker.  Though the segment covers over ten percent of the total light vehicle market, it is dominated by domestic brands.  Nissan and Toyota have both tried to break into the segment but have met with limited success.  Despite nearly 20 years of selling large trucks in the US, Toyota’s Tundra still accounts for only about 20 percent of what GM and Ford sell.

Hyundai faces a steep uphill battle if it intends to enter the segment.  It’s most likely move, according to a report from Automotive News, suggests that the Korean automaker would partner with Chrysler to sell a re-badged version of the Dodge Ram 1500 rather than create a fresh product on its own.

Nissan had been in talks with to do the same but Chrysler’s bankruptcy proceedings last year nixed the deal.  If Hyundai took over the aborted program, they would save hundreds of millions of dollars in development costs and Chrysler would benefit from the added economies of scale.

While a re-badged product may sound like a win-win scenario for both Hyundai and Chrysler, the chances of such a truck succeeding are slim.  Fullsize pickup truck buyers are a notoriously loyal crowd and they are unlikely to switch brands unless a new entry leapfrogs the competition in terms of price or capability.  Neither are possible with a cloned product.

Similar re-badged trucks like the Mitsubishi Raider, Suzuki Equator, and Isuzu i-Series have all failed in recent years.

A second – very distant – option for Hyundai is to build a new fullsize pickup truck from scratch on a version of the frame that’s currently used by the Kia Borrego sport utility vehicle.  Beyond the enormous expense for such a program, the automaker would most likely have to produce the truck at the Borrego’s home factory in Hwasung, South Korea.  But if built overseas and imported to America, the truck would be hit with an enormous 25 percent tariff left over from the “Chicken War” trade politics of the 1960s.  That tariff will expire for Korean-built products but not until 2017.

Chevrolet’s Great Engine Warranty

Hyundai, who made a name for itself by offering the longest warranty in the car business, quickly revealed that a great warranty is the secret sauce in changing the way people think about a brand’s quality.  But Hyundai was not the first car company to leverage this tactic.  Back in 1975, Chevrolet knew it had one up on their competitors.  Their amazing Dura-Built 4 cylinder engine was “so amazing and durable”, it boasted a warranty that was 11,500 longer that the 4 cylinder warranties offered by Toyota, VW, and Datsun (that’s the old name of Nissan for the youngsters).  It’s almost a it comical to think that Toyota and Datsun actually gave warranties of 12-20,000 miles on their engine, but they did. These cars are so classic.  I wonder what people would say about these new cars today?

I love this ad for a lot of reasons.  First, I love how they shot the cars in the Mojave Desert, with all its dried up dirt, to drive home the point that it can even last in the desert with not a gas station, human, or restroom stop in site.  It’s just you and your Monza!  But have no fear, the car won’t let you down.

Second, is that it reminded me how cool it used to be that we all described engines in cubic inches, not liters of cubic centimeters.  Since when did we Americans start to care about the metric system and why do we use it for wine, booze, soda, and engines? I loved those days when people talked about their 302 Boss and the 426 Hemi.  America used to be so proud of those big numbers.   Now, we talk in 3.0 and 4.6s.  I liked the big numbers better as it’s simply more American. Maybe Government Motors will push this initiative.

Third, I love how we used to be limited to an “engine warranty” rather than an entire powertrain warranty, which may include the transmission and drivetrain as well. Certainly, this progression of quality and competition over the consumer has benefited all of us.  This ad really reinforces this truth.

Finally, I like the fact that there was no fine print, so they had to be pretty descriptive in the main copy. In fact, advertisers seemed to use the main body of copy as the fine print. Today, there’s so many stipulations and restrictions that we have three areas of text…. the main headline, the copy, and the little print that tells us they may have quite possibly misled us with all their above statement.

Note: Hyundai’s 100,000 mile warranty is Non-Transferable

Speaking of warranties and disclaimers….

A Hyundai buyer recently told me how excited to find out he was buying a 2010 Hyundai Sonata.  He was especially gushing about his warranty and that he will never have to worry about his car again.  Yes, that’s a bit bold, but he was excited and so was I.  And while I was very congratulatory, I had to quickly warn him that her 100,000 powertrain warranty does have a small wrinkle in it. The big 100,000 warranty that is so well advertised is(a) for the powertrain only; and (b) the warranty only covers the original owner.  If you sell the car, the 100,000 warranty is reduced to 60,000 miles – which is the same as their still fabulous bumper-to-bumper warranty.  He didn’t know this, but was still thrilled.  After all, he felt amazing about his purchase and deserved a new car.  You can read his and other consumer car reviews on various Hyundai cars on Honk! Yes, I dropped in a shameless plug

I was fortunate enough to attend the New York Auto Show last week.

I love attending Auto Shows…not just because of the shiny new cars, but because you can really see people get excited about designs, features, and how it feels to sit in a certain vehicle.

Although the New York Auto Show is smaller than the Detroit International Auto Show (NAIAS), there was much to see.

2010 New York International Auto Show

Here are some of my thoughts as I walked through the show:

1) Ford Focus: I have seen this vehicle many times before, but every time I see it in person, I am amazed at how beautiful it is.

Ford Focus

2) Ford Transit: It is cool to me that a commercial-type vehicle like the Ford Transit is the 2010 Truck of the Year, and I wonder if we will see any families adopt this vehicle as an unconventional way to drive their family around?I think it would be fun to drive one, just to be different.

Ford Transit

3) Ford Taurus: For a sedan, I was blown away by the enormous trunk.

Ford Taurus trunk is huge!

4) Volvo XC90: I think this is a sharp vehicle and hope more vehicles will bring back the SUV “Tailgate”. It is such a classic and classy look.

Volvo XC90 Tailgate

5) Chevy Aveo: Smart gets a lot of attention, but there are a lot of other low priced options.

Chevrolet Aveo

6) Chevy Volt: Wow! I think GM did a great job with this design and it’s such an exciting direction for them.

Chevy Volt Side View

Chevy Volt Hatchback

Chevy Volt See-Through Rear

7) Chevrolet Corvette: It was fun to watch the crowds swarm the Corvette. People were taking turns sitting inside while their friends and family look photos and told them how great they looked. Little kids flock to this vehicle too. So much energy!

Corvette crowd at NY Auto Show

8 ) Cadillac: The Caddies definitely were definitely flaunting the grills… and New Yorkers were loving them.

Cadillac luxury grill

Cadillac tough grill

9) Acura ZDX: I think the Acura ZDX is beautiful, especially from the rear…and it reminds me a bit of my dream car, the BMW X6. After sitting inside, I learned that it was difficult to get in and out of the backseats.

Acura ZDX Rear

Acura ZDX Rear Headroom

10) MINI: MINI is still so cool and fun…and people get so emotional when they see them.  I loved their display and I think people do think of MINI’s as their little pets. I liked their cardboard box idea too…so clever.

"Please do not feed the MINI"

11) VW Routan: There were lots of families looking at the Routan, including these 2 cute kids. I wonder if it will be a contender?

VW Routan Minivan

VW Routan Cute Kids in Seatbelts

12) Nissan Leaf: I hope Nissan’s Electric Vehicle, the Leaf, does change the world !

Nissan Leaf Electric Vehicle

Nissan Leaf Rear Design

13) Hyundai: Kudos to Hyundai’s designers. The vehicles are looking good and are reflective of what US and European customers are buying today.

Hyundai Sonata front view

Hyundai Sonata side view

Hyundai Sonata rear view

Hyundai Genesis Coupe

14) Land Rover: How can you not love this vehicle?

Beautiful Range Rover

15) BMW: The new 5-Series is slammin! I am a big fan of the Gran Turismo package too.

BMW 5-Series

Hope you enjoyed the photos. Would love to hear your thoughts/comments or see your photos, which are undoubtedly better than mine.

“Who reads a 300-page manual anyway?” asked John Krafcik, head of Hyundai’s North American operations at the New York International Auto Show last week.  Krafcik was there to introduce the new Equus, a full-size luxury sedan that Hyundai brags is comparable to the Mercedes S-Class and Lexus LS460 in terms of space and features.

When the Equus goes on sale this fall, the roomy rear seat and powerful V8 engine aren’t the only things expected to make waves.  Hyundai is eschewing the traditional printed owner’s manual in favor of a brand new Apple iPad.

Customers will, “have a gorgeous color touchscreen loaded with the manual electronically, as well as photos of the whole Hyundai lineup,” Krafcik explained.  The device will even come pre-loaded with special software to make scheduling the occasional service appointment easy.

Yep.  There’s an app for that.

Chris Hosford, a spokesperson for Hyundai notes, “We thought it was keeping the vehicle in tune with the owners we expect to attract.”

Tech-savvy owners aside, it’s clear that Hyundai is trying to ride the same wave of hype that the iPad is enjoying right now.  At $499 a pop, it’s a very cost-effective way to advertise a new luxury car.

The potential for the device in an automobile is also very exciting.  Luxury cars today come equipped with a myriad of high-tech features that can often be difficult to understand and operate.  Creating an electronic manual – one with photos and videos – could be a great way to educate new owners and overcome some of these hurdles.

Hyundai’s new flagship is months away and it remains to be seen if affluent customers will still be lured in by the iPad’s charm when the car goes on sale – or if they’ll pay the expected $50,000 – $60,000 for the privilege.  In any case, playing with an iPad sure beats reading a manual.