Thursday, March 24, 2005

Hyundai hopes to sell 50,000 Azeras a year in the United States. It replaces the XG350, the automaker's flagship sedan.; 2006 Hyundai Accent

2005 New York Auto Show

Hyundai works to compete

Pair of new sedans could improve image of the South Korean economy brand.

By Brett Clanton / The Detroit News

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NEW YORK -- Hyundai Motor Co. is rolling out a pair of new sedans this week at the New York auto show that could help the South Korean automaker establish itself as a bigger player in the cutthroat U.S. auto market and polish the economy brand's image.

On Wednesday, Hyundai unveiled the 2006 Azera, an upscale sedan the company touts as a worthy competitor to the Toyota Avalon, Nissan Maxima, Buick LaCrosse and Chrysler 300.

And today, the Seoul-based automaker will debut the redesigned 2006 Hyundai Accent compact car.

The two models are part of Hyundai's plan to launch seven new vehicles in the United States during the next 24 months and to build on recent sales momentum.

The Azera will replace the XG350, the automaker's flagship sedan that has not made much of a splash in the United States. Annual U.S. sales of the XG350 have remained below 20,000 units, but the automaker is hoping to sell around 50,000 Azeras a year.

Because the Azera is vastly improved from its successor, Hyundai decided the car needed a new name, said Bob Cosmai, president and CEO of Hyundai Motor America.

"This is truly the best sedan we've ever built," he said.

The Azera -- meant to suggest the car includes everything from A to Z -- boasts more interior room than the Nissan Maxima and Toyota Avalon. It will come equipped with a 3.8-liter V-6 engine.

The 2006 Accent, Hyundai's entry level small car, has undergone major changes to revive sales that dropped 24 percent last year to 43,258 units.

Small car demand continues to fall, with U.S. sales down 2 percent last year to 2.2 million units. The Accent faces new competition from the new Chevrolet Aveo and Cobalt, the redesigned Kia Spectra, and Toyota Motor Corp.'s Scion brand.

"The (small car segment) has become highly competitive recently," Cosmai said. "We believe drivers will once again embrace this all-new Accent with its standard safety features, increased interior space, and content that is typically not available in this segment."

Hyundai increased the height of the new Accent by 3 inches and moved the driver's seating position up 2 inches to create more room and flexibility. It is 1.8 inches longer than the current model.

Safety features include dual front airbags, front seat-mounted side-impact airbags, and side curtain airbags for front and rear seat occupants. On most small cars, side airbags are optional or unavailable.

Hyundai's latest models have gone a long way to improve the image of the South Korean economy brand.

Now, Hyundai automobiles are rated among the most reliable vehicles and the 10-year/100,000-mile powertrain warranty draws shoppers.

This year, Hyundai will sell about 485,000 vehicles, and will rise above 500,000 next year, Cosmai said, explaining that the 1 million mark was a "visionary goal."

"You got to get to 500,000 before you get to a million," he said.

You can reach Brett Clanton at (313) 222-2612 or bclanton@ detnews.com.