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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 Blue Link Android smartwatch app will start your car

We knew Hyundai would be bringing its Blue Link smartwatch app to the Consumer Electronics Show, and now that CES is upon us, the app's workings have been revealed. Once you get the free Blue Link app on your smartphone and your Android smartwatch and pair them up with the app, it's all systems go. Through either touch or voice commands, you can remotely lock or unlock your car doors, start and stop your engine, flash the lights and honk the horn, or have your watch locate your car. It works on every Hyundai with first- or second-gen Blue Link (which is all of them in the case of first-gen and the 2015 Genesis, Sonata and Azera for second-gen). The watch app isn't quite ready yet, but the company says you'll be able to get it sometime in Q1. There's a video above showing Hyundai's offering at work, and a press release below with more information below. HYUNDAI BLUE LINK TO DEBUT SMARTWATCH APP WITH VOICE RECOGNITION AT 2015 CONSUMER ELECTRONICS SHOW AND PEPCOM'S DIGITAL EXPERIENCE - Next Generation Blue Link System to Launch on 2016 Elantra GT and Veloster - The Blue Link smartwatch app works with first and second generation Blue Link equipped Hyundai models Fountain Valley, Calif., Jan. 2, 2015 – Smartwatch sales are skyrocketing and starting early in 2015 Hyundai owners will be able to connect with their cars using these wearable devices and the Hyundai Blue Link® smartwatch app. Hyundai will debut and demonstrate the Blue Link smartwatch app at Pepcom's Digital Experience and at the Consumer Electronics Show (CES®). Pepcom's Digital Experience takes place before CES on Jan. 5 and Hyundai's exhibit (North Hall, booth #2818) at CES will be open Jan. 6-9, 2015. Hyundai's cloud-based Blue Link platform allows features like remote start and service information to be quickly accessed through devices like smartwatches and smartphones. Hyundai partnered with Station Digital Media to develop the Blue Link smartwatch app. "This new app expands Hyundai's exploration into how wearable technology and Blue Link fit into a customer's lifestyle," said Barry Ratzlaff, executive director, customer connect and service business development, Hyundai Motor America. "Connecting to your car through a smartwatch and voice recognition was previously something seen only in science fiction movies. Now, we can provide this capability to owners of Hyundai vehicles equipped with Blue Link." The app is easy to use.

2018 Hyundai Elantra GT Sport Quick Spin | More than just affordable

A few months ago, a discussion at Autoblog HQ led to the term mildly spicy. Cars like the Honda Civic Hatch, the Volkswagen Golf and Mazda3 aren't quite GTI or Focus ST-level hot hatches, but they still provide a great mix of fun, practicality and affordability. The Hyundai Elantra Sport fits the same basic mold, minus the hatchback. That's why we were so eager to get behind the wheel of the new Elantra GT Sport. Same premise, better form factor. The Elantra GT and sedan aren't as closely related as their name might suggest. The GT is actually based on the European i30 hatch, which is why the styling for the two models differs both inside and out. Think Volkswagen Golf and Jetta. The suspension tuning is also slightly different, but both cars share the same turbocharged 1.6-liter inline-four, mated to either a six-speed manual or a six-speed dual clutch transmission. It's good for 201 horsepower and 195 pound-feet of torque. That's roughly equal to the new 2017 Honda Civic Si, though the Honda weighs a few hundred pounds less than the Elantra. Still, the Elantra GT Sport feels just as quick as the Civic Si, even with the weight penalty. Minimal turbo lag means peak torque arrives at just 1,500 rpm. From there, power comes on smoothly, with all 201 horses running free at 6,000 rpm. The smooth shifter and well-placed clutch are a perfect match for the engine, even if it's not quite as slick as the Honda's. The dual clutch is a $1,000 option, but stick with the manual unless you really can't deal with three pedals. Michigan roads are known for being flat, straight and pockmarked. Thankfully, Hyundai managed to find some decent pavement just outside of Ann Arbor. The Elantra GT Sport uses MacPherson struts with twin-tube shocks up front with a multi-link independent suspension with monotube shocks out back. The standard Elantra GT uses a torsion beam out back, so the difference is noticeable. The ride is on the comfortable side of sporty. The car dealt with rough pavement well, though these were the best Michigan conditions we could have hoped for. It doesn't react quite as quickly as a Civic Si or Volkswagen GTI, but it feels right on par with with Civic Hatch Sport. Body roll is minimal and, given enough leeway, you can get the back end to rotate slightly when lifting off the throttle. There's mild understeer, but nothing egregious.