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Hyundai's electric car strategy takes shape under the radar

Green car fans are frothing over the Tesla Model 3. The Chevy Bolt may turn out to be the better car, and it will be available sooner. But don't overlook another electric car that's also due next year: the Hyundai Ioniq. With far less attention, Hyundai is launching an EV that is expected to be competitively priced and will spearhead the Ioniq lineup, which also has hybrid and plug-in hybrid versions. They share the same platform and look similar, but the Ioniq EV could prove to be a game-changer for Hyundai when it arrives at the end of the year, bringing new customers and casting the company as one with proficiency in the electric arena. Built in South Korea, the Ioniq line will be available at every Hyundai dealership that wants to sell the cars, already giving it a leg up on Teslas that often have long waiting periods for buyers. With a range of 124 miles on a single charge, it won't compete with the Model 3, which will travel at least 215 miles on a charge, or the Bolt, which has a range of 238 miles. Rather, it will face off against humbler products like the Nissan Leaf (107 miles) and the Volkswagen E-Golf (83 miles). Hyundai has not announced pricing, but is mindful the Ioniq trails Chevy and Tesla in range. An executive also indicated it could be working on an Ioniq with a longer distance capability, but declined to discuss specifics. Hyundai argues its found a sweet spot with the Ioniq EV, whose range is well within the distance most Americans drive in a day. It can recharge in about four hours and 25 minutes, which is faster than the six-hour charge time for the Leaf but slightly longer than the four-hour E-Golf. In quick charge mode, the Ioniq can juice up to 80 percent in 23 minutes. Critically, Hyundai is also offering a lifetime warranty on all of its hybrid and electric battery packs (it has since 2012), which could sway consumers still wary of the technology. It's a lot of numbers, and Hyundai will need considerable marketing muscle to make buyers consider Ioniqs in the face of a growing field of electrified competitors. But it's part of a broader play to reach an audience of younger consumers, who expect electrification to be baked into their cars. Millennials will account for 40 percent of new car purchases by 2020, and Hyundai says the generation is more likely to consider alternative powertrains than older ones.

Krafcik says US Gov. shutdown is slowing Oct. auto sales

The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.
The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.
To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

Hyundai Tucson Fuel Cell gets massive 43% price cut in South Korea

Hyundai is soldiering on with its fuel-cell-powered Tucson, ordering an enormous cut in the zero-emission CUV's price in the company's home market. The 43-percent reduction, when combined with subsidies from the South Korean government, brings the cost of entry to a still-lofty $54,000, Ward's reports. While that's undeniably a lot of money, we need to explain just how wildly expensive the Tucson FCV was in the first place. Hyundai trimmed a total of $67,000 from the $144,000 starting price. Even with some very significant – and not unusual – subsidies, the fuel-cell model still cost $86,000. Considering where things started from, $54K seems like a relative bargain. Beyond South Korea, Hyundai is expected to announce some sort of price cut in Europe, where the Tucson is marketed as the ix35 FCV, but it's unclear at this point if the Euro model's price tag will get such a dramatic reduction. We haven't heard of any changes to the cost of the lease-only North American-market Tucson FCV, which is currently available in California for $499 per month with $2,999 down. Related Video: Featured Gallery 2015 Hyundai Tucson Fuel Cell View 29 Photos News Source: Ward's Auto Green Hyundai Alternative Fuels Crossover Hydrogen Cars hyundai tucson fcv hyundai ix35