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Last year, SUVs accounted for just 36 percent of Hyundai’s U.S. sales, compared to GM’s 76 percent and the industry average of 63 percent, according to U.S. market research firm Autodata Corp data. “One of our challenges back then, and I know it would continue to be a challenge, was that the management at (headquarters) was really big on sedans,” said Ed Kim, a Hyundai U.S. product manager between 2004-2008 who is now vice president for California-based auto consultancy Auto Pacific.
“(U.S.) product planning staff, marketing staff really wanted more truck products, more SUVs, but in so many cases, it was very difficult to convince management.”, Hyundai America Chief Operating Officer Brian Smith acknowledged the automaker was “caught a little off guard” with a rapid market shift toward big vehicles, But a slew of new planned SUVs including a “crossover” pickup truck in 2020 faceted onyx cushion cufflinks will help drive a “slow, steady” recovery in sales, Smith told Reuters in an interview..
Hyundai has also in recent years hired several new designers to revamp design for next-generation models, he said. Asked if Hyundai will be able to return to its record market share of 5.1 percent in 2011, Smith said: “It’s going to take a few years.”. Hyundai made a crucial mis-step with its flagship Sonata sedan four years ago when it decided to dial back distinctive design features including its sporty, fluid curves. The redesign contributed to falling sales, U.S. dealers and former Hyundai executives said.
Scott Fink, who owns the biggest U.S, Hyundai dealer by volume, vividly recalls the moment when Hyundai brought about 20 U.S, dealers to its headquarters in Seoul to show off the new Sonata before its 2014 U.S, launch, “I’ll never forget it, They pulled the sheet off of it and there were 20 people in the room and not one person clapped,” Florida-based Fink told Reuters, The design was too conservative faceted onyx cushion cufflinks and mainstream, falling flat with dealers and consumers, he said, “Then, more than anything else, it just became a price war,” Fink said..
In 2007, the Sonata was 10 percent cheaper than Toyota’s popular Camry sedan but by 2014 it cost more, according to U.S. market research firm Edmund.com. Hyundai, which sold nearly 200,000 Sonatas in the U.S. market in 2010, sold just 131,803 units last year. Hyundai did not comment on the design changes or the cool response to the unveiling of the Sonata design described by Fink. Back in the Chinese city of Chongqing, dealers at four Hyundai showrooms visited by Reuters say the new Encino SUV, based on its small South Korean SUV Kona and launched this year in China, missed the mark.
Global automakers often tweak designs for the Chinese market, adding features such as bigger, more luxurious rear passenger zones to cater to buyers, many of whom have drivers, “We don’t sell Encino, It simply doesn’t fit the Chinese market,” said another store manager surnamed Liu at one of Hyundai’s first dealerships in Chongqing, “Most Chinese prefer bigger, cheaper and prettier cars.”, Hyundai had a target of producing 60,000 Encinos a year, one source with direct knowledge of the matter said, But just over 6,000 Encinos have been sold in the six months since its April launch, regulatory filings faceted onyx cushion cufflinks show..
During a recent earnings call, vice president Koo Zayong said Hyundai will also shorten its development period for new models in China, where market trends are changing fast, driven by the rise of young customers. Hyundai created a division dedicated to improving Chinese products in August, and replaced its China operation head in July. But the China recovery will likely be “gradual” given an economic slowdown and intensifying competition from rivals, Hyundai said in a statement to Reuters.
Company officials, dealers and analysts expect the task of leading a revival will fall heavily on Hyundai’s third generation leader, Euisun Chung, Chung, 48, was promoted to executive vice chairman in September, moving him a step closer to succeeding his octogenarian father and current chairman, Mong-koo Chung, who has been faceted onyx cushion cufflinks absent from public view and key internal meetings for the past two years, The elder Chung is credited with catapulting Hyundai to the big leagues by drastically improving product quality and rapidly building production capacity at home and abroad..