From Autoweek:
"NAMYANG, Korea - Hyundai Motor Co. is considering aggressive moves to expand its U.S. product lineup, plans that might include a luxury brand and a full-sized pickup for Kia.

If approved, the luxury division would get an SUV, a mid-sized sedan and a full-sized sedan, said Lee Hyun Soon, Hyundai Motor's senior vice president of powertrain for Hyundai and Kia vehicles.

Proposals for a luxury brand and full-sized pickup are elements of Hyundai's ambitious expansion plans in the United States.

The company plans to sell 1 million Hyundai-brand vehicles annually in the United States in 2010, about 2½ times last year's sales of 400,221 units.

Only five brands topped 1 million last year - Ford, Chevrolet, Toyota, Dodge and Honda.

Hyundai Motor also plans to launch six new or redesigned nameplates for the Hyundai brand over the next three years.

Hyundai Motor is expanding despite DaimlerChrysler AG's plans to sell its 10.5 percent stake in the Korean automaker. Hyundai Motor spokesman Oles Gadacz said Hyundai is not looking for another partner. "We are capable of achieving our goals without any other alliance," he said.

The Hyundai brand's image got a major boost after it scored well on J.D. Power's Initial Quality Study. But company executives are not yet convinced that Americans are ready for a Korean luxury brand.

"Are (buyers) willing to pay more for a Hyundai luxury brand? We are not quite sure," Lee said. "We have spoken to many consulting companies about this point because it is so critical for us. Still, even the consulting companies cannot give us a clear answer."

The marketing costs of launching a brand are enormous, Lee said. The proposed luxury channel, he said, "is one of our headaches. We have to be confident we can build the brand image."

One vehicle for the luxury channel would be the Equus, a large, V8-powered, rear-drive luxury sedan sold in Korea. The redesigned Equus will debut in Korea in 2006.

If the automaker decides against a separate luxury brand, the Equus would be sold at Hyundai dealerships. The Equus may debut in the United States in 2007.

Hyundai Motor also is studying potential demand for a full-sized pickup. Some at the company have concluded that Hyundai cannot make money on a compact pickup, although Kia displayed a compact concept truck in February at the Chicago Auto Show.

Both Hyundai dealers and Kia dealers would like a pickup, but the full-sized pickup if developed likely would be a Kia.

In a move that hinted at its plans for more trucks, Hyundai Motor America last month hired Ford truck veteran John Krafcik as its top product planner. Krafcik, 42, was named vice president of strategic and product planning. Previously he was chief engineer for the Ford Expedition and Lincoln Navigator.

"We need somebody who knows product - not only trucks - but also somebody who knows the American market and product," Lee said. "That is why we hired him, not specifically for the pickup truck business."

Significant obstacles stand in the way of a Hyundai or Kia pickup.

The company's assembly plant under construction in Montgomery, Ala., was designed for unibody vehicles, not body-on-frame vehicles such as standard pickups. "That means we have to build a brand new plant," Lee said.

Importing a pickup from Korea is unlikely because it would be subject to the chicken tax, a 25 percent duty on the value of imported pickups.

Lee said the automaker also is observing U.S. reaction to the full-sized Nissan Titan pickup that went on sale last fall. "It is not selling (well) so we would have to be very careful," he said. "Brand loyalty is not that easy for us to get. Timing (for the introduction of a new pickup) is still a big question."

As models are introduced this decade, the company will begin to differentiate the Hyundai brand from Kia, executives said.

The two product lines now overlap. In the future, Hyundai-brand vehicles generally will have more standard equipment, although their prices will remain similar to Kia's, executives said. Platform sharing will increase, but Hyundai and Kia nameplates eventually will have their own styling themes.

Lee said Kia will have sportier vehicles. Hyundai will chase "a more mature customer." Also, Kia will have more SUVs, and Hyundai will have more cars.

Hyundai vehicles will avoid plastic inside in favor of materials such as fabric and aluminum, said Young Il Kim, senior vice president of strategy coordination.

Hyundai Motor opened a styling center in Namyang, Korea, for the Hyundai and Kia brands last year. Computer lines link it with styling studios in Irvine, Calif.; Russelsheim, Germany; and Chiba, Japan. The centers can review design proposals simultaneously.

Also, Hyundai America will complete a proving ground in California's Mojave Desert late this year and will open an r&d office near Ann Arbor, Mich., next spring. "

Chevy's "appliance" car business strategy may soon be under pressure. I sure hope so.

 

Your "ching" for understatement of the day my friend!

Not only Chevy, but everybody selling cars in the states.
Kia especially is KILLING the market competition with good value at fair prices.
A colleague of mine came up from Shelby NC last week in a rental car - it was a Kia Sephia. I ribbed him staunchly about renting rice, to which he replied "that's what Enterprise brought to my house to drive - I had nothing to do with it!" We drove it to lunch, and I have to admit there was really nothing wrong with the car. Ride was good, quiet. He said gas gage never moved in 110 miles up here. And their maintenance plan is a great feature to the sale too.

Hell, I wish the US guys would compete on this price/quality level.
Instead, they analyze the market to death and plot a price/demand curve that maximizes profit, regardless of volume.
Well guess what... volume is how producers are being rated, not sales figures - millions of units sold, not billions of $$$ in sales.

I felt sure that Hyundai and the Kia brand both were going to be like Yugo... an overnight wonder that took the money then ran. Much to my surprise - and I admit I was wrong too - they are not only still here, but they are gaining market share in a market that is already saturated with big players. IMO, it's all about cost and basics. The "unconsciencious" buyer is letting their wallet pick the car they buy, not the style or the soul, problem is there sure are LOTS of them out there too!
Even Toy and Honda better be watching this group.

 

Even Hyundai is beating Chevy to the punch.

 

I'll bet that a sustantial number of Hyundai buyers thought they were buying a Honda.

In any case, it has taken the Korean manufacturers a long time to catch up with Japan in terms of basic reliability - nearly two decades. Unfortunately, they still haven't learned very much from Japan's mistakes. "Upscale" Korean cars like the XG350 and Amanti are still poorly designed, soft handling and generally distasteful in appearance. Kudos to Hyundai/Kia for reinventing the Toyota Cressida.

The Korean industry of 2004 is nearly where the Japanese were back in 1989.

 

Let's just hope that the Koreans don't get things right like the Japs did. If so, then the big three are going to be in some serious trouble.

 

The Cressida was rear drive

 

Honda, here in Ohio, is adding a $125 Mil, state-of-the-Art paint faciclity, said to rival any paint job on any car produced on the Panet!...something new using water...don't have all of the details yet, but could also be bad news for the Home teams!...