2014 Hyundai Veloster Turbo on 2040-cars

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Genesis changes its mind on retail plans

Genesis will apparently open the doors to its nascent dealership network to all existing Hyundai dealers, reversing its earlier plan to launch a separate, much more limited retail network as a way to distinguish the brand. The brand's general manager, Erwin Raphael, told Hyundai's dealer council last week that Genesis would allow all Hyundai dealers the opportunity to sell the luxury brand in the U.S. That amounts to a 180 on plans announced in January, when the two-year-old spinoff said it planned to build out a network of about 100 Genesis retailers in around 48 mostly urban luxury markets, with first dibs on the franchises going to high-performing Hyundai dealers. The plan was to have separate branding, with the long-term goal of having them all operating out of standalone facilities after launching in temporary or shared showrooms. Per Automotive News, Genesis will no longer confine its sales to those 48 markets. All Hyundai dealerships will be able to apply to be licensed as Genesis dealers, though 2019 models will only be shipped to the newly franchised Genesis retailers. About 350 "elite" Hyundai dealerships that already sell the G80 and G90 sedans can continue to sell them, or take previously offered settlement money and move on. Those who become or remain Genesis dealers will have to sign new or separate franchise agreements that were expected to go out this week or next. Genesis will still require separate, standalone stores and service facilities. The news will likely please Hyundai dealers who have been frustrated or confused by Genesis's rollout strategy and are eager to play a role in the brand's growth. It also could provide a sales lift for Genesis, whose sales during the first four months of 2018 fell 17.5 percent to 5,390. They'll also be hoping for a boost when the compact G70 sedan launches this summer. Related Video:

A 247-hp Hyundai Kona N crossover could be a thing

Hyundai's N Performance sub-brand has its sights on the Kona, the automaker's brand-new compact crossover, for its possible next makeover. If it meets with the approval of Hyundai brass, it'll reportedly do 247 horsepower courtesy of the 2.0-liter turbo engine borrowed from the i30 N. Hyundai's N performance boss Albert Biermann tells Auto Express he has instructed his engineers to develop a test mule version of the Kona to consider for production by the end of the decade. "I've told them to build the car and we'll see what happens with it getting approved. It has to be the i30 N powertrain, really," Biermann told the British website, adding that engineers could give the Kona different suspension and steering specs. The i30 N is Hyundai's not-for-America performance fastback and the N division's first offering. It's based off the i30, an overseas version of the Elantra GT, offered in three body styles — hatchback, wagon and "fastback" sedan — and fitted with a six-speed manual transmission. It has two engine options: the aforementioned 2.0-liter four-cylinder and a version generating 271 horsepower that will power the Veloster N, which will come stateside. By contrast, the Kona has two engine possibilities: a 2.0-liter four-cylinder that makes 147 hp and 132 pound-feet of torque, or a 1.6-liter turbocharged engine that does 175 hp and 195 lb-ft of torque. So the N upgrade would represent a significant boost in power over either of those engines. What other features could a Kona N offer? It could go the N route with a large grille, red-trimmed undercarriage, specialty badging and interior trim and suspension upgrades. Auto Express says upgrades could include a rear diffuser, small roof spoiler and exposed rear tailpipes. Hyundai has sold 5,874 units of the Kona through April since going on sale in February. It also plans an all-electric version for 2019 that will only be offered in the longest-range version in America, which is estimated to go 250 miles on the U.S. test cycle. That version will also be offered in Europe where the estimate is 292 miles of driving range. An entry-level Kona Electric will also be available in Europe with and estimated 186 miles of range. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

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.