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How Hyundai lost momentum, and will 'take a few years' to recover

SEOUL/DETROIT/CHONGQING, China — At a near-empty Hyundai Motor showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world's largest auto market. Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan dealership was selling about 400 vehicles a month, a store manager there said. "The sales are simply poor," Li told Reuters. "Look at the Nissan store next door, they have tens of customers while we just have two." An hour's drive away is Hyundai's massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year. But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public. Hyundai, the world's fifth largest automaker, declined to comment on the Chongqing plant's production or the showroom's sales but said it is "closely cooperating" with local partner BAIC to turn around the China business. BAIC did not respond to requests for comment. Hyundai's woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market. In 2009, Hyundai and partner Kia's combined sales ranked third in China after General Motors and Volkswagen. The South Korean duo now ranks ninth, and its market share in China was 4 percent last year, from more than10 percent at the beginning of this decade. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely and BYD. Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai's positioning as an affordable foreign brand, they said. In the United States, the world's second-biggest auto market, Hyundai's market share fell to 4 percent last year, near a decade low. Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S.

Hyundai returns to flashier design with 2018 Sonata

Compared to the stylistic achievement of the 2009 Hyundai Sonata, many observers viewed the redesigned 2015 Sonata as a step backward. To right the ship, Hyundai tasked its North American Design Center with restoring some razzle-dazzle to the brand's midsize contender for 2018. The creative team made changes throughout, the biggest development being the "cascading grille" at the front, cribbed from the Elantra. The Sonata Sport 2.0T grille gets a silver mesh treatment and vertical LED DRLs tucked in the triangular bumper vents at the corners. The other models wear chrome bars inside the grille, with vertical and horizontal LED DRLs at the corners. Slimmer headlights stretch around the front edges, with the hood sporting deeper chiseled surfaces to emphasize the injection of style. In back, instead of the hint of a spoiler on the current sedan, the 2018 Sonata's deck lid ends in a pronounced flick above a sharp taper into the rear valance. The license-plate holder moves down to the reshaped bumper so that the larger, flatter trunk face can fit much larger badging. The trunk release button hides inside the Flying H emblem, and wedge-shaped taillights glow with the same alien-script pattern familiar from the Elantra. Down below, non-Sport models get a single, trapezoidal exhaust tip, but the Sport 2.0T gets two such exhaust tips, paired with new Michelin tires and a flat-bottomed steering wheel. Engines don't change, but buyers who choose the 2.0-liter four-cylinder get an eight-speed automatic transmission that adds a cog at the low end and another at the high end. The rest of the lineup sticks with the present six-speed auto. Handling upgrades include 12-percent thicker torsion bars in the steering system and new steering calibration for better on-center feel and responsiveness, plus 21-percent thicker trailing arms and new bushings in the suspension for faster response and more compliance. Inside, a reworked center console holds steady with a seven-inch touchscreen. Interior designers gave the new HVAC and audio controls a silkier finish and contrasting "piano key" buttons. A second-row USB port serves back-seaters, and the options list will include a Qi wireless charging pad for those in front. The 2018 Sonata introduces a navigation bird's-eye view, free traffic data, standard blind-spot detection and rear cross-traffic alert, and a new lane departure warning system as some of the convenience and safety highlights.

Hyundai: Dad

Even though we know Hyundai is launching Genesis as its own brand, Kevin Hart is here to tell you something very important about the current Hyundai Genesis: it's great for helicopter parents wanting to keep an eye on unchaperoned sons and daughters. There are other perfectly good uses for Hyundai's Blue Link smartwatch app, but we think concerned parents will pay close attention to this feature. Watch the ad and see if Kevin Hart delivers the laughs. Marketing/Advertising Hyundai Super Bowl Commercials 2016 super bowl ad