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2016 Hyundai Veloster Turbo Rally Edition Quick Spin [w/video]

Our year-long test of the Hyundai Veloster Turbo was a mixed experience. There were plenty of not-very-nice anecdotes about the blown Hyundai – at one point, our own Managing Editor Steve Ewing suggested we "stop thinking of the Veloster Turbo as a proper hot hatch," and Senior Editor Seyth Miersma said it was a car that "doesn't feel especially hot-hatchy." We felt this way despite the car's overt hot-hatch trappings: the red turbo badging, matte-gray paint, upgraded body kit, huge center-exit exhaust pipes, and sticky Michelin tires. Our reaction to this Rally Edition was lukewarm when it debuted earlier this year at the Chicago Auto Show. You can imagine, then, our trepidation with the arrival of the matte blue tester. As it turned out, a week behind the wheel proved that Hyundai has addressed a number of the complaints we lodged during our prior year-long Veloster test. Driving Notes There was only so much Hyundai could do to the Veloster during this year's mid-cycle refresh. That means the 1.6-liter, turbocharged four-cylinder is still there, writing checks its performance can't cash. We still get 201 horsepower and 195 pound-feet of torque, the latter of which is available between 1,750 and 4,500 rpm. Despite the generous torque spread, there's no sense of urgency with this engine. Pair that with the still persistent turbo lag, and the Veloster Turbo feels slower from behind the wheel than other hot hatches, even less powerful competitors like the Fiat 500 Abarth. There were a number of complaints about our Veloster Turbo's fuel economy during our year behind the wheel. At 24 miles per gallon, this Rally Edition managed to come in just under the EPA-estimated 25-mpg city rating, improving measurably on the less than 22 mpg Senior Editor Miersma returned in his long-term wrap-up. Still, we were four mpg below the 28-mpg combined rating in what was largely mixed driving. Aside from the unchanged powertrain, the Rally Edition brings a lot to the Veloster Turbo package worth liking. The inclusion of a B&M Racing short-throw shifter makes this gearbox not only easier but also far more enjoyable to manipulate, although the gearing is still too tall for our taste. The shift knob is just the right size, and the shift action feels rifle-bolt precise. It is delightful, aside from an annoying, almost inexcusable flaw, which you can see in the video below.

Hyundai previews the subcompact Kona crossover's funky fresh face

It seems as though the already crowded subcompact crossover segment will welcome yet another competitor. Hyundai says it will launch its new Kona this summer, and it just released a teaser showing its front fascia. We'd previously seen spy photos of the car, but this is our clearest look at the nose yet. From the looks of it, it will be going down the funky styling route of the Toyota C-HR and Nissan Juke. The first styling cue you'll notice is the split headlight arrangement that we've seen before on the Jeep Cherokee and Nissan Juke. The top lamps are just LED running lights, and the lower units, also LED on the Kona, provide the actual forward illumination at night. Together, they create a scowling aggressive look. Between the lower lamps is a low and wide version of Hyundai's corporate "cascading" grille. It does have a unique twist, though, in the upper slot that looks rather like a scoop. It also helps create a dual-plane look to the front of the vehicle. Hyundai hasn't released many details about the Kona aside from a release date and a size. It actually hasn't even announced the markets in which the Kona will be available. However, it's likely it will come to the US, since the subcompact crossover arena has been booming here. The only other information Hyundai has revealed about the Kona is that it will have good visibility and "agile driving dynamics." That sounds good to us, but we can't verify either until we get our hands on one. At least it won't be a long wait. Related Video:

Hyundai-Kia forecasts slowest sales growth in 8 years

Even with the arrival of the new Hyundai Genesis Sedan (above) and the expected introduction of at least two other new vehicles in 2014, Hyundai-Kia is estimating its sales will only increase by about 4.1 percent this year. Bloomberg has found that figure, which works out to a total of 7.86 million vehicles worldwide, to be lower than average analyst estimates of eight million vehicles. If the automaker is correct, that figure will represent the most sluggish growth for the Korean brands since 2006.
Based on an exchange rate of 1,050 won to the dollar - right now it's trading at anywhere from 1,050 to 1,052 depending on where you look - Hyundai is predicting a 3.8-percent uptick for sales of 4.9 million units, while Kia is expecting a 4.7-percent uptick for sales of 2.96 million units. That exchange rate is predicted to be part of what will hamper sales this year, with a stronger South Korean won making Japanese cars more price-competitive when cross-shopped. It's unclear how Hyundai derived its exchange rate, but 1,050 won to the dollar almost matches the 52-week high for all of 2013.
The company chairman mentioned a "low growth era" in the world economy, and weaker US sales are rumored to at least part of the reason John Krafcik recently vacated the post of Hyundai Motor America CEO, a post that has been filled by executive vice president of sales, David Zuchowski. That unexpected news capped a year in which two top execs resigned over quality issues and recalls and Hyundai agreed to settle a consolidated lawsuit over inflated fuel economy ratings for $395 million.