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Hyundai mulling new Lexus-fighting upscale crossover

The idea of Hyundai marketing a luxury automobile might have seemed ridiculous a decade ago, but that was before the Genesis sedan, Genesis coupe and Equus came along. Now that buyers seem more accustomed to the notion of an upscale Hyundai, the Korean automaker is said to be considering launching a luxury crossover to take on the likes of the Lexus RX and Cadillac SRX.
The report comes from our compatriots at Edmunds, who spoke to Dave Zuchowski, head of Hyundai's North American unit, who said that the project is not yet part of the company's plan, but that "it is something under consideration."
The last time Hyundai entered that territory was with the Veracruz (pictured above), a model that was sometimes compared to but ultimately failed to compete with the Lexus RX when it was sold between 2006 and 2011. The Veracruz was effectively replaced by the seven-passenger Santa Fe with which it shared its underpinnings. This new project being considered would similarly be based on the latest Santa Fe, and the challenge Hyundai is facing once again would be to position it as a sufficiently upscale product to warrant a premium sticker price.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

2018 Hyundai Kona Ultimate 1.6T Review | The muscle has arrived

The 2018 Hyundai Kona sure is a breath of fresh air. To date, if you were looking for a subcompact or "B-segment" SUV, it was probably going to be a bit dreary to drive with a slow, undesirable powertrain. Mazda's CX-3 is an exception, but its tiny interior is even more Miata-inspired than its driving experience. Really, everything in the segment has at least one fundamental flaw that makes it tough to recommend, and although the new Kona certainly isn't flawless, it's the first member of the segment to provide abundant power, all-wheel drive and a transmission that isn't depressing. After driving a Kona 1.6T AWD for a week, I found it to be pleasantly well-rounded, surprisingly good to drive, and just as competitive as our on-paper comparison suggested it might be. First, though, the engine. The Kona's standard 147-horsepower naturally aspirated four-cylinder is perfectly competitive in terms of power, and isn't saddled with a CVT or the Jeep Renegade/Fiat 500X's nine-speed box of highly confused gears. That amounts to a win, but the engine to get is the 1.6-liter turbo-four good for 175 hp and 195 pound-feet of torque. That's more than a Volkswagen Golf, and although this Hyundai mill sounds too much like a growly sewing machine under light acceleration, it's an acceptable tradeoff for acceleration that blows the doors off everything in the segment except the 201-hp Kia Soul "!" trim (and that car is front-wheel drive only). Testing from various publications indicates 0-60-mph times in the mid-to-upper-6-seconds range, which would be about 3 seconds quicker than just about everything else in the segment. Some are even in the 10s. That vast difference is one you'll immediately notice on back-to-back test drives, and an advantage you'll be happy to have in the long run when you consider its estimated fuel economy of 27 mpg combined is equal to the 147-hp base engine – and better than most in the segment. It's paired to a seven-speed dual clutch automated manual that's been been smoothed over from earlier Hyundai/Kia applications, no longer herking and jerking at low speeds, and more responsive to throttle inputs. That's the case regardless of the selected driving mode. In past Hyundai/Kia efforts, Normal could be too lethargic, while Sport could feel over-caffeinated. Here, they're actually appropriate for the situations their names imply.