Hyundai Aims High With Record-Low 50 MPG
Did we mention that Hyundai is doing well in the U.S.? Sales up 21 percent for the year. Hyundai cars sold in the U.S. average about 30 miles per gallon, the best fuel efficiency in the industry. Jack Baruth loves his 2005 Hyundai Accent so much that major portions had to be redacted such as not to conflict with indecency laws. Can Hyundai do much better than that? They think they can. How? No idea.
By 2025, Hyundai plans to have a fleet average of 50 mpg for its cars sold in the U.S., says The Nikkei [sub]. That’s on par with hybrid cars.
A lofty goal? Hyundai is used to lofty goals. Faced by a government mandated fuel efficiency of 35.5 per gallon by 2016, Hyundai previously targeted 35 miles per gallon by 2015. They aren’t too far away from reaching it.
John Krafcik, president of Hyundai U.S., told The Nikkei that he has no idea how they will reach the 50 mpg target. In the world according to Krafcik, a target one knows how to reach cannot be called a target.
Hyundai also plans to release seven new models in the United States by the end of 2011.
For high-end models, there will be something highly unusual: Only two trim levels. Their Equus, to be launched stateside in fall, will be offered as a stripper and a fully decked-oout version, including an LCD TV, and a refrigerator. A printed manual will be missing. It will come on an iPad tablet computer.
Krafcik said people are tired of going through long lists of confusing options. By cutting down on the choices, the car is easier to make.
Hyundai’s U.S. market share, including Kia, rose to 7.8 percent in the January-July period this year, mainly on the strong sales of the Sonata.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Regarding Krafcik's comment about "long lists of confusing options," I'm going to go out on a limb and guess he's right: for the OTHER luxury cars. I'm guessing that shoppers of the flagships for BMW, Audi, MB, etc. tend not to pore over long lists of options, BUT Hyundai shoppers are more value-oriented. Therefore, I think they WOULD prefer more configuration flexibility even at the upper end of the product line.
The problem is going to be that any additional gains in non-hybrids are going to become exponentially more difficult if: 1. The speed limit remains 65-75 everywhere. 2. CAFE and EPA continue to hate diesels. 3. Overall engine power levels do no decrease materially. 4. The EPA test doesn't change back to favor mfrs and conservative driving. I'm not in favor of any of those things except #2...diesel is like a turnkey solution for diversification, even though particulates and weights are higher than with gas engines. And now that DI gas engines are closing the gap, they make less sense. Good for Hyundai on all this. Nice to see a company executing on their plans AND offering cars people actually want, which look nice and have fantastic warranties.
I agree EPA doesn't like diesels, but I was unaware CAFE (NHTSA) penalized them somehow, also. Would love to hear more about that. I would throw in to the anti-diesel camp, however, CARB (California Air Resources Board), as well as EPA: I think California has always been pretty down on diesels, and of course what CARB does influences many other regulators, at the state and federal levels...
"They think they can. How? No idea." Here's an idea: 1) 1.2 Kappa + GDI -> Accent 2) 1.2 Kappa + GDI + Turbo (or 1.4 Gamma + GDI) -> Elantra 3) 1.6 Gamma GDI + Turbo -> Sonata 4) 2.4 Theta II GDI + Turbo -> Genesis / Santa Fe / Azera 5) 3.3 Lambda II GDI + Turbo -> Equus Now add hybrid technology + dual clutch and 8-speed transmissions to the mix and you'll see they're more than capable of at least approaching the 50 mpg target in fairly short order.