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How the Koreans are cracking the luxury market

South Korea's two largest automotive brands are no longer the same companies they were when they first entered the world stage.
Anyone who visits Seoul after a few years absence is likely going to be in for a shock. What was, not that long ago, a decidedly third-world city is today a thriving, sprawling metropolis increasingly on a par with the world's most modern cities.

Is it time for the car-based trucks to return?

Back in 1957 Ford began producing the Ranchero. In 1959 the El Camino made its debut. In time, other manufacturers would execute their own version of the "Car Truck" anomaly. Dodge, Subaru, and Volkswagen would all join in the category before eventually ceasing production for the United States. Although production ran longer overseas, including Australia, where the "utes" were very well received, in the United States the last ute offering, the Subaru Baja, would cease production in 2006. The manufacturer offerings were very diverse. Powerplants ranged from 4 to 8 cylinders. The number of driving wheels were also diverse. Some were 2 wheel drive, others 4 wheel drive. Even more differentiation could be found in how the manufacturers decided to pursue the utility portion of their vehicle by providing either a unibody architecture for improved mileage, or a solid chassis for extra load bearing capacity and better towing ratings. Here's a brief (not comprehensive) production history of ute history in the United States... Chevy El Camino/ GMC Caballero: 1959-1960 then 1964-987 Dodge Rampage/ Plymouth Scamp: 1982-1984 Ford Ranchero: 1957-1979 Subaru Brat: 1978-1987 Subaru Baja: 2003-2006 Volkswagen Rabbit Sportruck: 1978-1984 That brings us to 2017. Trucks are huge sellers for manufacturers. However, miles per gallon ratings are huge concerns for those same manufacturers. So, automakers are looking to increase the efficiencies of their products to make them more palatable to the increasingly green conscience buying public. Enter a ute revival. A reborn unibody ute would meet that need as it would have the mileage numbers more closely tied to a car than a truck. It seems that I'm not the only one thinking this way. Hyundai has identified the emptiness of this car truck niche, looked at its own portfolio, and recognized the lack of pickup trucks. Fixing that emptiness is one of their concerns. So, they have viewed the active traditional pickup market, while also watching the unibody Ridgeline sales over in the Honda camp and determined that the niche needs to be filled with their own twist. They are rumored to have green lighted the 2019 Hyundai Santa Cruz for sales beginning in 2018. Hyundai's twist however, is that their vehicle would be based on a crossover chassis, possibly the Tucson. Remember, this is a rumor. So, it could change to a red light from the manufacturer or just as easily change to a Genesis chassis overnight.

Tucson hydrogen fuel cell CUV will allow Hyundai to sell more dirty cars

With the first Hyundai Tucson Fuel Cell Vehicle deliveries happening soon (a bit later than expected), it's time for the Korean automaker to explain why it's offering the H2 CUV here in the states. After all, there are only 10 public hydrogen stations in the US today, according to the DOE, so it can't be to take over the market. According to a Hyundai exec, the reason we are getting the Tucson Fuel Cell is to make up to $130,000 through California's ZEV credit system. "We really don't make any money out of selling the fuel cell vehicles for now" – Byung Ki Ahn According to Wards Auto, the California Air Resources Board (CARB) will give the automaker up to 26 points worth of zero emission vehicle (ZEV) credits for each of the $499/month hydrogen Tucson leased through the 2017 model year. Those credits could be worth up to $130,000 to Hyundai. Byung Ki Ahn, Hyundai's director of the fuel cell group, told Wards Auto that, "We really don't make any money out of selling the fuel cell vehicles for now. ... So just by selling the fuel cell (vehicle) we could get a lot of credit points, which you could sell at a later time if you want, like Tesla does. It could be a good business model." Ahn clarified that Hyundai does not plan to cash in on those credits, but to use them to offset the rest of its vehicle lineup. Other automakers also participate in the ZEV credit system, of course, but if Anh's numbers are correct, then fuel cell vehicles earn more credits than battery electric vehicles do, so if you want to earn a lot of credits, hydrogen is a good way to go. You can find more details over at Wards Auto. *This post has been updated to mention other automakers using the ZEV scheme.