Hyundai Slashes Sonata Production & Incentives
The Hyundai Sonata is the oldest car in its segment and a new model is expected next year. Normally, when a car is about to be replaced by the next generation of that model, automakers usually start increasing incentives to move the metal. Sonata sales are down 11% from last year. Now, Hyundai has slashed production of its midsize car, allowing it to reduce incentives to the second lowest in the segment. Average incentive spending on the Sonata is down to ~$2,200. Only Honda’s Accord, with about $840 in incentives available is discounted less.
An all-new Sonata is expected to be introduced next April at the New York Auto Show. The current model has been on sale since 2011.
Hyundai currently has a 42 day supply of the Sonata compared to the the segment average of 76 days.
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It should be noted that Hyundai built Sonatas at a 2 to 1 Elantra basis last month and Sonata gained more than 3K units over 2012. Of course there are always people who are waiting on the new MY, but still it seems the YF Sonata has some sales life left in it. We were told at the plant that the 2014 Elantra won't start production until December, so this also seems to be the plan going forward, not what's happening at this exact moment as both cars go down the same line and retooling the machines that provide Elantra stampings doesn't affect Sonata production. It's hard to imagine that Hyundai would be upping 2013 Elantra production right now, unless 2014 production has actually already commenced.
This is just the opposite of what GM does, putting cash on the hood of the outgoing model and stealing sales of the new model to come. With GM's outgoing models, the tooling is paid for so there's not much of a profit hit for those last-built units. Hyundai seems to be planning on maximizing sales of the new model, at the expense of lagging sales of the old model at the tail end of its run. The caveat might be the need to have the 2015 model ready for the Spring/Early Summer sales rush, or Hyundai is going to lose new-model sales to the competition.
I hope they make it more swoopy at the front. Maybe the headlamps can go past the a-pillar this time. /sarc
It's been on sale for not even three model years and it's already the oldest in its segment. Crazy.