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Hyundai's battle plan: More crossovers, no more Azera

We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy. Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units. The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race. View 27 Photos The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model. The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models. As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more.

S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.

Korea's sport compact | 2017 Hyundai Elantra Sport First Drive

When we drove the then all-new 2017 Hyundai Elantra earlier this year, we came away impressed but slightly bored. There is nothing fundamentally flawed with the compact sedan, but there also is nothing about the car that gets our blood pumping. The new Elantra is an affordable and reasonably well-equipped people mover. It's an improvement over its predecessor, but the driving experience leaves us indifferent. Hyundai was aware of this from the outset. The product plan includes the Sport model you see here, intended to inject some life into what is otherwise a rather milquetoast car. On paper, everything looks good and all of the right boxes are checked, including more power and a tighter suspension. Hyundai was clear that this is far more than just an appearance package like the previous generation's Sport trim. As such, the new Elantra Sport is fitted with a 201-horsepower, 1.6-liter turbocharged engine mated to either a six-speed manual or a seven-speed dual clutch automatic. A revised suspension replaces the standard torsion-beam rear axle with a fully independent multi-link rear setup, paired with bigger brakes, wheels, and tires. Other accoutrements, like sport seats and a flat-bottomed steering wheel, are also included. Check, check, check. The Elantra Sport with a manual transmission starts at $21,650 before destination and, sitting just below the top-of-the-range Limited model, comes very well equipped for the price. Heated leather seats are standard, as are HID headlights, keyless entry and ignition, and a seven-inch touchscreen display with Apple CarPlay and Android Auto. That's a lot of equipment for a car in this size and price range. The only option on both the manual and paddle-shifted DCT model (that one starts at $22,750) is the $2,400 Premium Package. It adds an extra inch to the display, navigation, an eight-speaker Infinity sound system, Hyundai's Blue Link connectivity, a sunroof, blind-spot monitoring, rear cross-traffic alert, dual automatic climate control with an auto defogger, and an auto-dimming rearview mirror with HomeLink and a compass. Lots of checks in lots of boxes at a reasonable price point and a long warranty has been Hyundai's modus operandi for a while now, and that's fine for most of its models. It's the case with the non-Sport Elantra, which is packed with features but otherwise makes us shrug. The Sport may not be a revolution, but it is a lot of fun to drive.