Hyundai Says N Performance Kicking Ass in Europe, Hopes for Same in the U.S.

Matt Posky
by Matt Posky

Hyundai has spend the majority of its life as a value company. While there’s nothing wrong with that, it’s not a role that comes with a lot of prestige or upmarket appeal. It’s ready to grow up. However, for an automaker, part of growing up includes a performance line. Because you can’t be a serious carmaker if you don’t have an iconic brooch for specially designed vehicles — and the emblem that sporting Hyundais will wear is the mighty N.

Last year, Hyundai revealed the i30 N for the European market. This caused an uproar in North America because it appeared as if the company was producing something created for the sole purpose of besting the industry standard for hot hatchbacks — Volkswagen’s GTI. Fortunately, the South Korean brand decided to throw us a juicy bone by unveiling the Veloster N a short time later.

The model takes the i30 N’s 271-horsepower 2.0-liter engine and places it inside of a slightly different (more aggressive) body. Hyundai is confident it will be a success and, based on how things are playing out in Europe, it has every right to feel that way.

“Initial sales of N products are going beyond expectations,” said Thomas Schemera, head of Hyundai’s high-performance vehicle division told Automotive News. “Almost 3,000 units of the i30 N were sold in the first half of 2018 in Europe.”

While those numbers aren’t enough to best the performance variant of the VW Golf, they’re also nothing to sneeze at. However, the warm reception could just the result of a much-hyped and new model.

We think that sells the i30 N a bit short, though. Reviews have been exceptionally positive. It’s the Elantra of your dreams, offering solid performance at an attractive price. With computer-controlled exhaust backfires and more road noise, its more hardcore than the comparatively plush GTI. But it’s also said to more livable than something like the Ford Focus RS.

Former BMW performance car engineer and brainchild for Hyundai’s N cars Albert Biermann, is confident sales will remain strong through the rest of the year. “We can’t build enough,” he said, noting that the Veloster N will be even sportier than its European sibling. “We have a six- to seven-month waiting list on the car basically everywhere.”

The Veloster is said to be roughly 88 pounds lighter than the i30, while still offering the same hardware and 155 mph top speed. It’s a great value for performance enthusiasts on a budget, but they may find themselves overpaying if Hyundai can’t meet demand in the United States. Dealers love to mark-up difficult-to-acquire models, so the Veloster N could come at an unnecessary premium.

That would, most likely, place realistic transactions beyond the $30,000 cap we assumed Hyundai was shooting for. How much higher will be dependent upon how many examples the automaker can get onto dealer lots. European customers ordering today will already have to wait a full year to get their i30 N. If Americans are forced to endure a similar delay, those dealer markups could get out of hand pretty quickly.

While Hyundai isn’t going to limit production of the high-performance models, it also doesn’t gain much from bending over backwards to avoid shortages. In fact, it might be in its best interest to keep the Veloster N slightly out of reach to build mystique and focus on giving less-serious models N-inspired enhancements. Upgrades like that have a higher profit margin than a competitively priced performance model with all the trimmings. However, people won’t be clamoring for those items if the top-tier N models aren’t visible on the roads and popular in the media.

[Image: Hyundai]

Matt Posky
Matt Posky

A staunch consumer advocate tracking industry trends and regulation. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied with the corporate world and resentful of having to wear suits everyday, he pivoted to writing about cars. Since then, that man has become an ardent supporter of the right-to-repair movement, been interviewed on the auto industry by national radio broadcasts, driven more rental cars than anyone ever should, participated in amateur rallying events, and received the requisite minimum training as sanctioned by the SCCA. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and managed to get a pizza delivery job before he was legally eligible. He later found himself driving box trucks through Manhattan, guaranteeing future sympathy for actual truckers. He continues to conduct research pertaining to the automotive sector as an independent contractor and has since moved back to his native Michigan, closer to where the cars are born. A contrarian, Matt claims to prefer understeer — stating that front and all-wheel drive vehicles cater best to his driving style.

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  • Dougjp Dougjp on Aug 20, 2018

    Pay a premium for a Veloster? No, not any model. Why didn't they just bring the Elantra GT (i30N)? Then make an Elantra Sport N (sedan). Much wider acceptance. I would trade my Sport, I would never even look at a Veloster.

    • See 1 previous
    • Sportyaccordy Sportyaccordy on Aug 21, 2018

      I too would love an Elantra N. I was a big fan of the Integra and Civic Type R sedans.

  • Jalop1991 Jalop1991 on Aug 20, 2018

    "Hyundai has spend the majority of its life as a value company." WTF? So has Lexus. So has Mercedes-Benz. So has Ferrari. ALL of those brands represent high value cars. I'm not sure where you learned English, but "value" doesn't mean "low priced".

    • See 1 previous
    • Stuki Stuki on Aug 20, 2018

      I'm sure the first thing people think of when they hear "value" company, is a $2mill Bugatti with a $1mill diamond affixed to it's steering wheel..... Noone whose main shopping criterion is value for money, shops the Ferrari aisle; no matter how contrived a case it is conceivably possible to make for F being a "value" company.

  • ToolGuy This might be a good option for my spouse when it becomes available -- thought about reserving one but the $500 deposit is a little too serious. Oh sorry, that was the Volvo EX30, not the Mustang. Is Volvo part of Ford? Is the Mustang an EV? I'm so confused.
  • Mikey My late wife loved Mustangs ..We alway rented one while travelling . GM blood vetoed me purchasing one . 3 years after retirement bought an 08 rag top, followed by a 15 EB Hard top, In 18 i bought a low low mileage 05 GT rag with a stick.. The car had not been properly stored. That led to rodent issues !! Electrical nightmare. Lots of bucks !! The stick wasn't kind to my aging knees.. The 05 went to a long term dedicated Mustang guy. He loves it .. Today my garage tenant is a sweet 19 Camaro RS rag 6yl Auto. I just might take it out of hibernation this weekend. The Mustang will always hold a place in my heart.. Kudos to Ford for keeping it alive . I refuse to refer to the fake one by that storied name .
  • Ajla On the Mach-E, I still don't like it but my understanding is that it helps allow Ford to continue offering a V8 in the Mustang and F-150. Considering Dodge and Ram jumped off a cliff into 6-cylinder land there's probably some credibility to that story.
  • Ajla If I was Ford I would just troll Stellantis at all times.
  • Ronin It's one thing to stay tried and true to loyal past customers; you'll ensure a stream of revenue from your installed base- maybe every several years or so.It's another to attract net-new customers, who are dazzled by so many other attractive offerings that have more cargo capacity than that high-floored 4-Runner bed, and are not so scrunched in scrunchy front seats.Like with the FJ Cruiser: don't bother to update it, thereby saving money while explaining customers like it that way, all the way into oblivion. Not recognizing some customers like to actually have right rear visibility in their SUVs.
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