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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.

Ex-Hyundai CEO Krafcik joins TrueCar board amidst IPO plans

Former Hyundai Motor America CEO John Krafcik has had a tumultuous year. Last June, he won the Automotive Executive of the Year from DNV Business Assurance. Then in December, he suddenly announced he was stepping down from his leadership role at the Korean automaker on January 1, with some suggesting it was because the company's sales growth was too far below forecasts. Now, it looks like the exec has landed a new role on the board of directors of online car shopping website TrueCar.
According to The Wall Street Journal, Krafcik's role will be to build relationships with automakers and dealers, but the job at TrueCar won't be full time. Since leaving Hyundai, Krafcik has also been doing consulting work in Silicon Valley. "It's helped me understand what I might want to do, full, full time. I am just taking things at the appropriate pace," he said to the Journal.
Krafcik, who is widely considered one of the industry's top executives, took the helm at Hyundai America in 2008 and led it to an increase in sales and market share. He was with the company when it won North American Car of the Year awards in 2009 and 2012 for the Genesis and Elantra, respectively.

Hyundai Sonata's slow sales start to trigger more daring redesign

On paper, the latest Hyundai Sonata has been a winner. The sedan sold 216,936 units in 2014, around 13,000 more than the previous year, and the new model posted healthy year-over-year gains in both December and November. However, according to a report from Wards Auto, the Korean brand isn't happy with how the vehicle is doing and is planning a redesign, to be timed with the future refresh. Unveiled at the 2014 New York Auto Show, the latest Sonata has a more refined, almost luxurious air about it, and the sedan ditches the swooping styling from the previous generation. It also comes at a slightly lower base price. But the more mature design is also the problem. Hyundai Motor America CEO Dave Zuchowski told Wards during the 2015 Detroit Auto Show that the new model was "not as distinctive" as its predecessor. Previously, "people would seek us out because we look different. And we don't get that now," he said. While no details on the redesign were divulged, Zuchowski said the company was already at work on the shape. He suggested the changes would debut for the Sonata's refresh, likely in the 2017 or 2018 model years. Autoblog reached out to Hyundai about the possible design change and spokesperson Derek Joyce told us, "Dave was simply referring to our normal mid-cycle refresh where it's typical to make styling tweaks." According to Wards, the latest Sonata isn't conquesting as many buyers from other brands as Hyundai would like. The company reportedly raised incentives to get them to move. So while sales were up, the automaker was disappointed. AutoTrader senior analyst Michelle Krebs confirmed to Autoblog that incentives were high for the Sonata, but that had nothing to do with its design. "The midsize car segment has fallen out of favor with buyers who want utilities so they are carrying very heavy incentives. We expect that trend to continue and then some in 2015," she said. A previous report also claimed that the 2015 Sonata wasn't living up to sales expectations in part due to its more traditional styling. But the company shot down those claims because the sedan was still rolling out the entire range to dealers at the time. Even now, Hyundai is still adding the Sonata Hybrid and Plug-In to the lineup in the coming year.