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Hyundai Sonata sales drop so Santa Fe production will increase

Hyundai will begin production of the five-seat Santa Fe Sport at its Alabama factory this summer to take advantage of the growing popularity of crossovers in comparison to midsize sedans. The company won't release official production targets for the CUV at the plant, but an anonymous company insider told Reuters Hyundai would build around 30,000 of them at the site this year. The Kia factory in Georgia will continue to handle the majority of Santa Fe Sport production, but the Alabama assembly will help Hyundai keep up with demand. The three-row Santa Fe will still come from South Korea. The Alabama factory has a 400,000-unit annual capacity and already produces the Elantra and Sonata. Sonata sales slipped in 2015 to 213,303 deliveries from 216,936 in 2014. Meanwhile, the volume of both body styles of Santa Fe jumped to 118,134 examples in 2015 from 107,906 the previous year. According to Reuters, Hyundai could have sold more of the CUVs last year, but a limited production capacity restricted the sales. Rumors from 2015 suggested that Hyundai might have had an eye on the plant for additional crossover production in case of falling sales for the sedans built there. The Alabama factory last built the Santa Fe in August 2010. "We're thrilled to bring back another pillar of the Hyundai lineup to our production mix here at HMMA," Chris Susock, vice president of production at the plant, said in the announcement. SANTA FE SPORT PRODUCTION WILL BEGIN AT HYUNDAI MOTOR MANUFACTURING ALABAMA IN SUMMER 2016 ID: 44810 • Additional production will support growing demand in the sport utility segment • Alabama plant is the home of the Sonata and Elantra sedans • Plant is capable of assembling 400,000 units per year MONTGOMERY, Ala., January 7, 2016 –Hyundai Motor Company has announced the addition of the Santa Fe Sport to the production schedule at Hyundai Motor Manufacturing Alabama (HMMA) starting in the summer of 2016. This change will supplement existing U.S. production of the sport utility vehicle to meet the growing demand in this popular vehicle segment. "We're very happy Hyundai has been able to make this change, which will result in more great Santa Fe crossovers available to our dealers and customers," said Dave Zuchowski, president and 'CEO of Hyundai Motor America. "The new production will help us meet the growing demand for one of our most popular products," said Zuchowski.

Hyundai partners with tech startup Smartcar to expand mobility apps

A new technology partnership between Hyundai and a Silicon Valley startup will expand the automaker's connected-car service offerings on its 2018 model-year vehicles, making it possible for owners to do everything from getting their car washed and detailed to fueling up, all without having to actually be there for it. Hyundai announced the partnership with technology startup Smartcar (not to be confused with the automaker) at the L.A. Auto Show to launch its Blue Link All-Access program. The platform aims to give Hyundai owners access to a broad array of new third-party connected-car applications, similar to how users download apps for mobile devices, by giving Smartcar access to its API. That means the automaker can offer new services more quickly, since it won't have to do a separate new integration for every new connected-car service, said Manish Mehrotra, Hyundai Motor America's director of digital business planning and connected operations. "We will develop Blue Link not as standalone system, but as an open platform that can seamlessly integrate the best ideas from inside and outside the company," Mehrotra said. App developers will work with Smartcar, based in Mountain View, Calif., as the single point of integration. Hyundai's Blue Link platform already had allowed owners to do things like sync addresses from their phones to their in-vehicle navigation systems via voice command, start and warm up the car remotely, and locate the vehicle when the driver forgets where he parked it. The new service will be offered on every 2018 model-year Hyundai free of charge for the first three years of ownership. Hyundai also announced a new pilot program in Southern California with an Orange County startup called Washos, which offers mobile car washing and detailing. Other time-saving existing or future applications include being able to get your dry cleaning or groceries delivered to your car while at work. Because the future is going to be BUSY. As further evidence of what he called "our deepening relationships with the technology community," Mehrotra also discussed the recent launch of Cradle, Hyundai's new venture-capital arm.

Genesis cars win accolades, offer value — so why are sales so bad?

My high-school buddy Brent Cormier was so smitten with the Genesis G80 when he saw it at an event I hosted at SXSW in 2016 he bought a used 2013 Hyundai Genesis a short time later and fell in love with the car. "It surpasses my every expectation," said Cormier, a self-described "renaissance man" who owns and runs a real estate agency with his wife Laura, is a food service executive chef and part owner of Austin-based Thin the Herd Guitars. "I was locked into Mercedes and Audi for 10 years," he added. "And felt trapped in an endless pit of maintenance costs." After owning the Genesis over the past two years — including using it as an Uber and Lyft driver to earn extra cash — Cormier learned what some frugal luxury sedan buyers and a handful of car reviewers have discovered: Genesis offers great bang for the buck compared to other premium brands and can compete with the best in terms of performance, features and comfort. Hyundai's luxury brand also earned a prominent third-party endorsement last week when for the first time Genesis topped J.D. Power's 2018 APEAL study, surpassing German luxury-performance icon Porsche. The APEAL study (which stands for Automotive Performance, Execution and Layout) "measures owners' emotional attachment and level of excitement across 77 attributes," ranging from performance to comfort, and asks nearly 68,000 owners of new 2018 models to score vehicles on a 1,000-point scale. In its second year ranked as a stand-alone brand, Genesis earned an APEAL score that bumped it up 15 points to 884 and helped push it past Porsche — and past BMW, Lincoln, Mercedes-Benz, Audi, Volvo, Cadillac, Land Rover and Lexus, in order of ranking. Last month, Genesis also topped J.D. Power's Initial Quality Survey (IQS) for the first time this year. And both its models were awarded Top Safety Pick Plus ratings by the Insurance Institute for Highway Safety, among 11 Plus ratings in all for Korean vehicles. Despite high J.D. Power rankings and great reviews, Genesis U.S. sales were off 50 percent for the first six months of 2018 compared to 2017, and in June Genesis sold only 796 vehicles — the first time U.S. numbers dropped below 1,000 in a month. Part of Genesis's APEAL and IQS success can be attributed to its small product lineup: just two models, the G80 and G90 sedans, with a third, the 2019 G70, launching later this year. And while those numbers may help in J.D.