GM Inside News Forum banner

Hyundai Dropping Azera, Increasing Crossovers

1 reading
3.4K views 32 replies 23 participants last post by  StĂ©phane Dumas  
#1 ·
Hyundai's battle plan: More crossovers, no more Azera
Autoblog
January 28, 2016
By: David Gluckman


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.
Full article is available at the link above.

--------------------

I wonder if Hyundai would benefit then from more premium variants for their Sonata, since that nameplate will represent the pinnacle of the Hyundai brand in NA (elsewhere there will still be the Grandeur and Aslan, at least at this point). Maybe a Sonata Signature to compete with competitors like the Accord Touring or Fusion Platinum? Sonata N?
 
#2 ·
Dropping the Azera doesn't seem like a bad move (as it's in a shrinking segment), but Hyundai (and Kia) ALWAYS seem to bite off more than they can chew. After their initial success about 5 years ago, everything since has seemed a bit half-baked and compromised in some way.
 
#14 ·
The Azera (sp) was a nice looking sedan but nobody wants to spend big money on a Hyundai...

Interesting that genesis now is rightfully becoming its own brand...

Which it needed to do..

Nobody wants to switch from BMW s or Mercedes to a Hyundai whereas switching to the genesis brand might be more palatable ...

The consumer defiance of switching from a premium Brand to a Hyundai was a stumbling block as was the service level was crap compared to the luxury brands.

Hyundai s service department based off of what I've heard from Hyundai and gneiss brands is quite combative which luxury buyers don't want to deal with...

Hyundai Kia run a lower profit business model for their dealers and the service department is responsible for a greater percentage of dealer profits...

That fact does not motivate dealers service department to offer service levels approaching Lexus....and with genesis that is going to need to change if genesis as a brand is going to succeed.


Jmo
 
#16 ·
I think unibody CUVs can be very very close in fuel efficiency of mid size and compact sedans..

Besides Americans are going down one size segment as they go cuv versus their previous sedans...

Fuel efficiency can go up...

Look at what's happening with the 30 mile electric range the new Chrysler minivan...

With a higher roofline of these vehicles flat battery packs mounted low in the platform offer interesting packaging opportunities..

I could see a Chevy bolt platform being a great platform for a cuv styled road sportster cuv ..

Zipping to sixty mph in seven seconds and offering a 200 mile electric car range is enticing.

Hyundai would do well to emulate the move to cuv.
 
#19 ·
I think unibody CUVs can be very very close in fuel efficiency of mid size and compact sedans..
But they cost more to buy; which is why many people won't switch.............


Besides Americans are going down one size segment as they go cuv versus their previous sedans...
Right, because for the same size, they cost more; which is why the manufacturers want to build/sell as many CUV's as possible.


Hyundai would do well to emulate the move to cuv.
I believe they already have, but this is just the next step in them leaning in that direction even more.............

The first few sentences of the story?........


----------------------

"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.

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.

----------------------


Which is why I asked...................

"So what is going to be the first car to get the ax at GM?"
 
#21 ·
I am confident that Hyundai could still benefit from a sedan above today's Sonata, just as Toyota, Nissan, Chevy, and others have something above their Camcord segment products. The question is what that should look like, and I think it's becoming increasingly clear that the traditional formula for doing a sedan in this segment is not going to work. What I mean by traditional formula is simply building a larger, more luxurious sedan. In order to be successful, they need to really increase the level of style and give it an "edge" factor, which is what Dodge, Toyota and Nissan have done to great success. Here is where things become more complicated. Looking over the corporate lineup, all they have is the Granduer (Azera) and Aslan. The Aslan might be a more interesting option since it's a Hyundai LaCrosse/ES/MKZ type sedan, essentially. Still, I don't know if that's a long term option.

I wonder if Ford will comment specifically on the Taurus' future in the US. With the updated Fusion gaining Platinum and Sport variants, they seem positioned well to essentially replace the Taurus while retaining higher margin products in the sedan market. Which brings me back to what I mentioned in the original post: maybe premium Sonata variants could be their path.
 
#31 ·
^ Spaaaaaaace MAGIC!
 
#32 · (Edited)
The Aslan at this point makes more sense as an upscale sedan in the 30-40K range. American-spec Azeras have been positioned in recent years as a quasi-upscale sedan, but the Grandeur is a little more mass market-y (same as a Taurus, for example) whereas the Aslan is designed from the onset to be more premium.

It'd compete well against the new LaCrosse I am sure, but is this what Hyundai wants? They might want something sportier in the US to appeal to a different demographic (again, more Maxima than LaCrosse).


versus


It would be accurate to point out that several sedans here are in their later years, such as the LaCrosse, Taurus, or 300. As such, sales cannot really be expected to remain as strong as they've been previously. Still, even by the end of this decade it looks like this segment will have continued to shrink. Ford still hasn't put their new Taurus on sale in the US. Hyundai will be pulling the Azera from American stores (which makes me ponder how long Kia will keep the Cadenza on sale in the US). So this intermediate segment could be a third or so smaller in just the near term. However, a broader point seems to be that there will be a transition to more focused sedans in this segment, ones that are not so much roomier than midsize sedans a level down as they are more stylish, luxurious, or sportier. Again, essentially what's been done with the Maxima and Avalon. Maybe that'd be a better replacement for the Cadenza in markets like the US with a production version of the GT Concept. These types of sedans need more "edge". People don't just buy them anymore because they're larger and somewhat nicer than a Malibu. That type of customer typically looks towards a crossover in today's world.