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A brief taste of Korea's latest dish | 2018 Hyundai Kona

Disclaimer: We were limited to a short 10-minute drive at Hyundai's research and development facility in Namyang, about a 90-minute drive from the South Korean Capital of Seoul. The closed loop didn't provide much in the way of road variation, and we reached a blistering top speed of 45 mph with all of three opportunities to use the brakes. The Kona we drove was a Korean-spec model. Suspension and steering tuning will be adjusted for the US, though we couldn't get a clear answer on what sort of changes that entails. Expect the US model to be a bit softer than what the Koreans and the Europeans will see, though we'll have to wait until a full first drive to be sure. Hyundai has been on a roll lately, releasing a series of solid if not exactly groundbreaking products, though until now they company was missing an entry into the ever-burgeoning B-segment crossover. For several years, compacts like the Honda HR-V and Mazda CX-3 have ruled the class, but Hyundai is going all-in on crossovers, with several new models on the horizon. The first one out of the gate is the Kona. In the next few years, we'll see a model that slots below the Kona and a large SUV that will sit above the Santa Fe. We got our first look at the new model at Hyundai's new Motorstudio, a place that's half interactive museum and half high-end conference space. The Kona's styling, a mix of original and derivative design elements, is sure to be divisive. The most standout feature is the plastic cladding that comes in either black or grey, depending on the body color. Hyundai is calling it armor. We just hope it's affordable to replace. The front wears Hyundai's cascading grille, an element that's making it's way across the automaker's lineup. It's flanked by what Hyundai is calling is calling composite headlights. It's a split design that places the slit-like turn signals above and separate from the actual headlights. It looks very similar to the current Jeep Cherokee, odd considering the controversy that model caused a few years ago. There's also a bit of Nissan Juke in there, though substantially toned down. You best get used to it, though, as design chief Luc Donckerwolke says it's the new face of the brand. Expect to see some variation making its way across the automaker's lineup. Not so with the rest of the Kona, as Donckerwolke said each model will get unique elements only found on that particular car. For the Kona, it's the armor.

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 boosted production in March, so now its cars sit in U.S. ports

SEOUL — As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf. Consignments of cars shipped from South Korea are now sitting in U.S. ports, with dealers slow to take deliveries because of slumping sales and rising inventory, four people with knowledge of the matter told Reuters. The company idled a Tucson production line at home last week for five days, while sister firm Kia is looking to suspend three Korean plants for a week. And analysts now expect a sharp drop in first-quarter operating profit when it reports results on Thursday and some even forecast a second-quarter loss. "I hope that the situation will recover by the middle of next month. If not, we might have to lay off some people," said Brad Cannon, general manager of an exclusive Hyundai dealership in California, whose sales are down more than 50% from when the pandemic started. Hyundai runs a factory in Alabama — which is closed until May 1 — but imports are key to meet U.S. demand. Only about half of its vehicles sold in the United States are made in North America compared to between 68% and 85% for Japanese rivals Toyota, Nissan and Honda, who have also suspended production there till May. The South Korean company makes about 61% of its cars overseas, up from 48% a decade ago. That leaves it vulnerable to overseas factory shutdowns and shrinking demand outside of its home market. Hyundai's South Korean factory operation, which had recovered from a component shortage from China to nearly 100% capacity by March, could fall to as much as 70% in April, the company recently told analysts. "We will continue to monitor the situation and take appropriate action promptly," Hyundai said in an emailed statement. Minimizing the impact For its part, Hyundai has taken measures to minimize the impact.