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Kia, Hyundai testing big crossovers, and one looks like the Telluride

Big things are coming from Hyundai and Kia in the near future, and we mean literally. One of our spy photographers caught the companies each testing full-size crossover SUVs out in the snow. The Kia caught our attention in particular, because it looks quite a bit like the Kia Telluride concept from 2016. At the front of the Kia, the entire fascia looks boxy with nary a curve in sight. It also has low-set, squared-off headlights at the far edges; both prominent features on the concept, too. That theme carries over to the back, where the metal portion of the hatch looks plain and flat and is almost perfectly vertical. The glass area leans forward a bit. The taillights also look like those on the concept, with thin vertical portions that make a 90-degree turn inward at the top. A neat design touch not found on the concept are the slight glass extensions into the roof on each side of the windshield. When the concept Telluride was revealed, it was based on the Sorento platform and had a combined 400 horsepower. This power came from a 270-horsepower V6 and a 130-horsepower electric motor, which Kia claimed would provide 30 mpg in all-wheel-drive form. We expect that the Telluride will mainly be offered in non-hybrid forms, and perhaps in diesel form, since this prototype was testing alongside a Volvo XC90 diesel. But we also wouldn't necessarily rule out a hybrid variant like the concept. Kia and Hyundai both are getting serious about hybrids and electrification, and if Kia is targeting something like the XC90, which itself offers a hybrid powertrain, it would make sense that Kia is planning to offer a competing product. A Kia executive said news about the production model is coming "soon," so we'll probably learn more about the production Telluride sometime this year, probably no earlier than the New York Auto Show. View 16 Photos As for the big Hyundai, it will likely take the space the newly downsized Santa Fe has vacated. We're not sure what it might be called, but the last time Hyundai had a crossover bigger than the Santa Fe, it was called the Veracruz, so the name could make a return. Styling-wise, the front of this full-size crossover is right in line with the rest of Hyundai's new-generation crossovers. It has the split headlight design that first showed up on the Kona, with the lower lamps providing primary illumination, and the thin, scowling upper lamps working mainly as daytime running lights.

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.

Hyundai will invest $35 billion in autonomy and emerging technologies

SEOUL — Hyundai Motor Group said it plans to invest $35 billion (41 trillion won) in mobility and other auto technologies by 2025, part of which will be directed to an ambitious effort to become more competitive in self-driving cars that has also received government backing. The plan, which Hyundai said encompasses autonomous, connected and electric cars as well as technology for ride-sharing, comes after the automaker and two of its affiliates announced an investment of $1.6 billion in a venture with U.S. self-driving tech firm Aptiv. South Korea's government is also onboard, unveiling more funding for autonomous vehicle technology with President Moon Jae-in declaring on Tuesday that he expected self-driving cars to account for half of new cars on the country's roads by 2030. "The self-driving market is a golden market to revitalize the economy and create new jobs," Moon said in a speech at Hyundai Motor's research center near Seoul. The government intends to spend 1.7 trillion won between 2021 and 2027 on self-driving technology. It expects Hyundai to launch level 4, or fully autonomous, cars for fleet customers in 2024 and for the general public by 2027, an industry ministry official told Reuters. But some experts question whether targets set by the government and the automotive group, which also includes Kia Motors, are realistic given the technological and cost challenges and the lack of home-grown technology. In a 45-page report on future automotive technology, the government acknowledged South Korea lags in some key areas necessary for self-driving cars such as artificial intelligence, sensors and logic chips. "Hyundai has to buy technology from someone else because it lacks software technology. Even though it has a lot of cash, this could become a financial burden if its earnings deteriorate," Esther Yim, an analyst at Samsung Securities, said. Other analysts noted that the prospects for self-driving cars are quite murky. General Motors' self-driving unit, Cruise, said in July it was delaying the commercial deployment of cars past its target of 2019 as tech firms and automakers acknowledge it will take more time and money than they had expected to make autonomous vehicles safe for unrestricted use on public roads. South Korea's government said it would prepare a regulatory and legal framework for autonomous cars and the safety questions they pose by 2024.