Hyundai, which has seen its U.S. sales rise twice as fast as the overall industry, has unleashed two new cars that will sustain that momentum in the subcompact and midsize luxury segments.
The 2012 Accent and Genesis, both of which are imported from South Korea, are reaching dealerships now. The Accent, which starts at $15,955 for a four-door GLS, and $16,555 for a five-door hatchback, will be the freshest model in a segment where Ford's Fiesta has gained significant traction. Other competitors at Honda Fit, Toyota Yaris, Nissan Versa and later this year the 2012 Chevrolet Sonic.
John Krafcik, president and CEO of Hyundai Motors America, boasted that every version of Accent will achieve 40 miles per gallon on the highway, while most competing subcompacts can reach that level only with a specialized engine package. Accent is powered by a 1.6-liter 4-cylinder engine with a direct injection fuel system, mated to either a 6-speed manual or 6-speed automatic transmission.
The new Genesis sedan is offered with either a 3.8-liter V6, a 4.6-liter or 5.0-liter V8. The engines are paired with an 8-speed automatic transmission.
The V6 version starts at about $35,000, but can go above $40,000 with various option packages. The 5.0-liter V8 Genesis starts at $47,350 and can range higher.
Later this fall Hyundai will launch the Velociter, a sporty coupe powered by the same 1.6-liter engine in the new Accent.
Hyundai has benefited from American consumers' reawakened interest in fuel economy. Krafcik said the new cars Hyundai sold in June averaged 35.7 miles per gallon.
"We're already above the government's 2016 standard (35.5 mpg)," Krafcik said. "We're confident we can get our average above 50 mpg by 2025."
Sen. Carl Levin, D-Mich., has challenged an Obama administration preliminary 2025 standard of 56.2 mpg as unreasonable because it could add thousands of dollars to the price of future models and cost jobs at factories now making larger vehicles that might have to be discontinued to comply with that standard.
While the two new models are imported from South Korea, Hyundai's assembly plant in Montgomery, Ala., is running at full production to keep up with demand. Krafcik said the work force there has pushed the factory's capacity from 300,000 to 330,000 vehicles per year through working overtime and tweaking the assembly process.
Hyundai's Santa Fe SUV is built at the West Point, Ga., plant operated with its sister company, Kia Motors America.
Krafcik said he expected new car sales in the U.S. to be about the same in the second half of 2011 as they were in the first half.
"We're not in the camp that expects a miraculous recovery," he said. "Employment is not hitting the levels it needs to be at. Housing is still suffering."
