2014 Hyundai Elantra Se on 2040-cars

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Hyundai boosted production in March, so now its cars sit in U.S. ports

SEOUL — As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf. Consignments of cars shipped from South Korea are now sitting in U.S. ports, with dealers slow to take deliveries because of slumping sales and rising inventory, four people with knowledge of the matter told Reuters. The company idled a Tucson production line at home last week for five days, while sister firm Kia is looking to suspend three Korean plants for a week. And analysts now expect a sharp drop in first-quarter operating profit when it reports results on Thursday and some even forecast a second-quarter loss. "I hope that the situation will recover by the middle of next month. If not, we might have to lay off some people," said Brad Cannon, general manager of an exclusive Hyundai dealership in California, whose sales are down more than 50% from when the pandemic started. Hyundai runs a factory in Alabama — which is closed until May 1 — but imports are key to meet U.S. demand. Only about half of its vehicles sold in the United States are made in North America compared to between 68% and 85% for Japanese rivals Toyota, Nissan and Honda, who have also suspended production there till May. The South Korean company makes about 61% of its cars overseas, up from 48% a decade ago. That leaves it vulnerable to overseas factory shutdowns and shrinking demand outside of its home market. Hyundai's South Korean factory operation, which had recovered from a component shortage from China to nearly 100% capacity by March, could fall to as much as 70% in April, the company recently told analysts. "We will continue to monitor the situation and take appropriate action promptly," Hyundai said in an emailed statement. Minimizing the impact For its part, Hyundai has taken measures to minimize the impact.

2015 Hyundai Tucson Fuel Cell

Hyundai leased its first Tucson Fuel Cell crossover last week, which the automaker claims makes it the first mass-produced fuel cell vehicle (FCV) that has been offered to the public (Honda may have something to say about that...). The vehicle, which consumes hydrogen and emits only clean water vapor from its exhaust pipe, will initially only be offered for lease in Los Angeles and Orange Counties - two regions with the greatest density of approved hydrogen stations in the country - at a monthly fee of $499. Since the Tucson FCV rolls down the same Ulsan, Korea, production line as its gasoline-powered relative, production is scalable based on customer demand.
We attended the festivities with the dignitaries and elected officials - clapping until our hands hurt. But once it was over, we grabbed a set of keys and took the new FCV for a half-hour jaunt. According to the press materials, written with a welcomed sense of humor, Hyundai will offer it in three colors: white, white and optional white. Our test model was the latter.
Driving Notes

Next-gen Hyundai Equus spotted horsing around in desert

The last time we showed you the next-generation Hyundai Equus, the northern hemisphere was in the depths of winter and the big luxury sedan was testing above the Arctic Circle. Now, as we're approaching the end of summer, the South Korean company is rather fittingly conducting hot weather testing in the American southwest. As with our last look at the Equus, today's images show a heavily camouflaged car. Said camo, which includes both coverings and more form-fitting stickers, can't hide the overall size of this vehicle. It's a big'un, especially behind the B-pillar. From what we can see through the front camouflage, the Equus should draw some inspiration from the Vision G concept. In short, expect a sportier, more assertive look than what's currently offered on Hyundai's flagship. This particular car is allegedly fitted with a version of the company's Tau 5.0-liter V8, which serves in both the current Equus and the smaller Genesis sedan. It's paired with a ten-speed automatic – yes, ten forward gears... on a car – while our spies reiterated previous reports that a new turbocharged V6 would also be on offer. Importantly, this latest gallery of spy photos gives us our first look at the new Equus' cabin. Again, there's heavy camouflage here, but we can get a look at the handsome leatherwork on the two-tone steering wheel and the stylish silver hue of the HVAC buttons. It also looks like Hyundai will retain a knob-and-button-style controller for the infotainment system, which will be housed in an expansive display at the tip top of the dash. Look for the next-generation Equus to make its debut some time in 2016 as a 2017 model. Related Video: