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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

Hyundai Mingtu revealed on billboard ahead of Shanghai

The so-called Hyundai Mini-Sonata now has a proper name. Called the Mingtu in China, this new sedan will slot in between the compact Elantra and midsize Sonata, and it sports a pretty nifty look.
We've known for a while now that Hyundai is working on a more mature version of its Fluidic styling language, the first fruits of which showed up in the latest Santa Fe, and the Mingtu seems to take that refined appearance to the next level with a refined look of creased lines, a chiseled fascia and a smooth greenhouse.
There's no indication that this car will be offered in the US market, but it's certainly possible that some of its styling elements will carry over to the next Elantra or Sonata. In any case, expect a range of 1.8- and 2.0-liter four-cylinder engines to be announced for the Chinese market when the Mingtu makes its official debut at the Shanghai Motor Show this weekend.

Sonata, Elantra driving down Hyundai quality scores

Hyundai was the butt of many jokes in the auto industry when it first entered the US market, but since then, it has forged ahead and built cars that stand with the best in their respective segments. The 2011 Sonata and 2011 Elantra were seen as the apotheosis of the brand's forward progress when they were introduced, but falling J.D. Power and Associates Dependability Study results may actually cause them to hurt the company's hard-earned reputation.
J.D Power's study examines three-year-old vehicles for problems per 100 vehicles. Since the 2011 study for 2008 model year cars, Hyundai has fallen from 10th overall with 132 problems to 27th in the 2014 survey of 2011 model year vehicles with 169 problems. It was also Hyundai's second consecutive year of an increase in reported problems. According to Automotive News, many of these problems are due to faults with the Sonata and Elantra, but J.D. Power didn't identify specifically what issues caused Hyundai's dependability to tumble so far down the list. However, the study found that, on average, reliability fell throughout the industry for the first time since 1998.
Getting the Sonata and Elantra right are vital to Hyundai. In 2013, they were the company's best-selling cars. "We'll be closely going through the data to see where improvements need to be made. Hyundai's goal is nothing short of quality leadership, and the report shows we have work to do," Hyundai spokesperson Jim Trainor said in an email to Autoblog.