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Hyundai's battle plan: More crossovers, no more Azera

We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy. Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units. The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race. View 27 Photos The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model. The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models. As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more.

Business booming for Hyundai in 'Bama, new production record set

Although it may be a distinction of mild importance on a global scale, Hyundai announced that last month it set an all-time sales record for the month of April. Digging a little deeper, Hyundai-Blog - an enthusiast site not affiliated with the South Korean automaker - is reporting that another record was set: to go along with 63,315 total sales in April, Hyundai Motor Manufacturing Alabama assembled a record 37,372 Elantra and Sonata sedans.
This doesn't mean that half of Hyundai's April sales came from the Montgomery, AL plant, but it's still a telling sign of just how important this new factory is. The Elantra and Sonata are by far Hyundai's most popular models, accounting for almost 63 percent of all Hyundai sales so far in 2013. Congrats on the achievement, Hyundai.

VW planning to push Hyundai for World Cup eyeballs

Adidas was an official sponsor of the 2010 World Cup in South Africa, but the German sportswear company got drowned out of early advertising buzz by Nike, which wasn't a World Cup sponsor. The American company's Write the Future ad put it at the top of Nielsen's study of online buzz, ahead of Adidas. The same thing happened to official World Cup sponsor Budweiser when it got drummed out of the top ten in Nielsen's buzz ratings, while Danish brewer Carlsberg - not a Cup sponsor - ranked sixth.
Volkswagen hopes to score the same goal on Hyundai during this year's World Cup in Brazil. Hyundai and Kia have been official sponsors of the global soccer federation FIFA since 2002 and are official sponsors of the World Cup through 2022. VW has "a major ad buy" planned to run on ABC, ESPN and Univision as well as digital and social media channels during the competition, which begins June 12, to promote the GTI. VW of America's VP of marketing said the Cup's attraction to young males and Hispanics makes it the perfect place to promote the hot hatch.
The sparring between Hyundai and VW has already begun. Volkswagen's Gol compact, named for the Portuguese word for a soccer goal, has been the best selling car in Brazil for 27 years, and the German company sponsors the national soccer team. When Hyundai Brazil began a promotional campaign promising to extend its five-year warranty for six if the Brazilians won a sixth world cup, Volkswagen of Brazil complained to the soccer federation, which asked Hyundai to pull the campaign. As of this writing, that hasn't happened, so we expect it'll be boots on, gloves off, on and off the pitch this summer.