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Hyundai Tucson Fuel Cell CUV deliveries running behind schedule

Things are running a little bit behind on Hyundai's hydrogen-powered Tucson Fuel Cell CUV program in the US. The last time we checked in with the South Korean automaker's H2 project, we heard that the first deliveries were supposed to happen by the end of March. Speaking with Hyundai's Kevin Lee at the Hyundai booth at the SAE World Congress this week, we learned that deliveries are now going to happen closer to a month from now. Globally, there are roughly 70-100 of these hydrogen CUVs running in customer hands today. Lee told AutoblogGreen that the first US-bound units will be shipped from South Korea at the end of April or beginning of May but there is no actual date set for the first customer delivery. He said he expects 100 or fewer H2 powered Tucson CUVs to be operating in the US by the end of this year, all of them in Southern California. He said the customers in this first batch are being selected based on the location of the nearest hydrogen fuel station. While the number of stations is small today, more are on the way. Globally, there are roughly 70-100 of these hydrogen-powered CUVs (also known as the ix35) running in customer hands today, in places like South Korea, Germany, Norway, Austria and Italy. Some H2 stations charge Hyundai a flat rate per fill while others charge the automaker a general station maintenance fee. In the US, the Tucson Fuel Cell CUV leases for $499 a month (with $2,999 down) for 36 months, and comes with unlimited hydrogen refueling as well as Hyundai's Valet Maintenance. Lee told us that one reason for the "free" hydrogen is that even the small number of public hydrogen stations out there (nine in SoCal) does not have a cohesive set of rules for how to sell H2 to the public. The stations are not yet certified to charge customers based on dollar per kilogram in California, Lee said, since that regulation has not yet been set by the Division of Measurement Standards (DMS). Currently, "each station is different," he said, with some charging Hyundai a flat rate per fill and others charging the automaker a general station maintenance fee. This situation will likely change by the end of the year, he said. Lee said Hyundai is already busy working on the next-gen fuel cell vehicles and trying to reduce costs but was not able to share any details.

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

How Hyundai lost momentum, and will 'take a few years' to recover

SEOUL/DETROIT/CHONGQING, China — At a near-empty Hyundai Motor showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world's largest auto market. Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan dealership was selling about 400 vehicles a month, a store manager there said. "The sales are simply poor," Li told Reuters. "Look at the Nissan store next door, they have tens of customers while we just have two." An hour's drive away is Hyundai's massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year. But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public. Hyundai, the world's fifth largest automaker, declined to comment on the Chongqing plant's production or the showroom's sales but said it is "closely cooperating" with local partner BAIC to turn around the China business. BAIC did not respond to requests for comment. Hyundai's woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market. In 2009, Hyundai and partner Kia's combined sales ranked third in China after General Motors and Volkswagen. The South Korean duo now ranks ninth, and its market share in China was 4 percent last year, from more than10 percent at the beginning of this decade. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely and BYD. Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai's positioning as an affordable foreign brand, they said. In the United States, the world's second-biggest auto market, Hyundai's market share fell to 4 percent last year, near a decade low. Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S.