Hyundai hurries along

By ALASTAIR SLOANE Motoring Editor



A few years ago Korean carmaker Hyundai didn't have a four-wheel-drive vehicle in its range. Now it has three. Back then, it wasn't talking about a flagship sedan, a luxury rear-wheel-drive offshoot to challenge Mercedes-Benz, BMW, Audi and Lexus. Now it is developing such a vehicle.

The top-end model will be sold in the United States and Europe through a Lexus-like outlet from 2007-08. But it won't be the only vehicle in the luxury lineup. Hyundai is already hinting at a premium four-wheel-drive to rival the Lexus RX330, BMW X5 and Mercedes-Benz M-Class.

The company has two top-end sedans: the rear-wheel-drive V8 Equus, which is sold in Korea and Europe, and the front-drive XG350, which tops Hyundai's range in the United States. The replacements for these two will be out in 2007. The Equus had been scheduled for next year but is now being restyled by European and American designers for more global appeal. It was considered "too Korean".

Hyundai doesn't want to wait for the generation after 2007 to launch its luxury brand. Worldwide sales are growing and Hyundai's brand image received a big boost from a strong showing in the J.D. Power and Associates quality survey in April.

It wants its luxury division to have a presence in America and Europe by 2010, when it believes it will become one of the world's top five carmakers. It is now No 7. It built three million vehicles last year and four million would push it past sixth-placed Peugeot/Citroen PSA Group to displace DaimlerChrysler at No 5. (The top four are General Motors, Ford, Toyota and Volkswagen). The one million vehicles Hyundai needs will come from new plants in America's Alabama (300,000 a year), China (500,000) and Slovakia (300,000).

Expected worldwide sales of 200,000 units over the next 18 months of the new four-wheel-drive Tucson have been factored into Hyundai's 2010 plan. The Tucson, launched in New Zealand the other day, is arguably the most significant model in the Hyundai range because it continues the European-influenced styling direction and - along with the success of the small car Getz - is charged with building a strong private-buyer base.

Hyundai sales in New Zealand have grown over the past two years, after a slow spell through the turn of the century. Sales last year were up more than 20 per cent and this year are up more than 40 per cent.

The company sees Tucson as vital to the company's continued development and growth.

"Part of that development is the private-buyer market," says Hyundai Automotive New Zealand director Richard Giltrap. "We obviously have a number of products that are well-suited to the fleet market and we have been heavily dependent on the fleet market. However, we have been successful in growing our private buyer base over the past couple of years and to further grow that base we see SUV (sports utility vehicles) products as a key. SUV-type products are, in the majority, bought by the private consumer more than the fleet operator. "We have identified a key opportunity for Hyundai in terms of a broader SUV strategy. It forms a core part of Hyundai product plan."

That strategy involves new models of Hyundai's two other four-wheel-drives, the Santa Fe and Terracan. Both will be bigger and have an optional seven seats. There will also be a wider choice of engines.

The Tucson is the smallest of the three but the best looking. It is based on Hyundai Coupe underpinnings and comes in three models - a five-speed manual or four-speed automatic powered by a 2-litre engine, and an automatic coupled to a 2.7-litre V6. The 2-litre four-cylinder unit produces 104kW at 6000rpm and 186Nm of torque at 4500rpm. The V6 puts out 129kW at 6000rpm and 242Nm at 4000rpm. A fourth model, a four-cylinder diesel, will arrive later in the year.

A brief run in the V6 Tucson shows up an agile vehicle with good handling and one of the best rides in the small/mid-range SUV segment.

Noise levels are low and the suspension - MacPherson struts at the front and a multi-link set-up at the rear - soaked up the broken surfaces of suburban streets.

The Tucson's four-wheel-drive system, like some of its rivals, isn't permanent. The vehicle runs in front-wheel drive until sensors detect loss of traction, then the torque-sensing Borg Warner unit cuts in to send power to the rear wheels. It reverts to two-wheel drive when adequate traction is detected. But if permanent four-wheel-drive is needed, a button on the dash locks the system in place. This can be done at speeds up 30km/h.

Inside, the instruments are clear and easy to read and the driving position is first class. Access to the cabin is up with the best, thanks to a low ride height and wide-opening doors.

But the interior plastics let the cabin down somewhat, especially the shiny and brittle-looking surface around the centre console. In the rear, the back seats fold flat at the pull of a lever, and the rear window can be lifted independently of the tailgate.

Hyundai can expect the Tucson to sell well in New Zealand, particularly at the price. The 2-litre base model GLS costs $29,990 for the manual and $31,490 for automatic. The V6 is $39,990.