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Hyundai Motor America

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Hyundai Motor America
Company typeSubsidiary
IndustryAutomotive
FoundedFebruary 20, 1986; 38 years ago (1986-02-20)
Headquarters
Fountain Valley, California
,
United States
Area served
United States
Key people
Jose Muñoz Barcelo (President and CEO)
ProductsAutomobiles, commercial vehicles, engines
ParentHyundai Motor Company
Websitehyundaiusa.com

Hyundai Motor America, doing business as Hyundai Motor North America is the operating subsidiary that oversees all operations of Hyundai Motor Company in Canada, Mexico, and the United States. Along with Hyundai's USA manufacturing plant in Montgomery, Alabama called Hyundai Motor Manufacturing Alabama, Hyundai has total of 19 manufacturing plants globally. Its operations include research and development, manufacturing, sales, marketing, after sales and corporate functions, which are controlled by HMA but sometimes executed by other subsidiaries and holding companies. The company is headquartered in Fountain Valley, California.

History

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Hyundai Motor America began selling cars in the United States on 20 February 1986, with a single model, the Hyundai Excel, which was offered in a variety of trims and body styles. That year, Hyundai set a record of selling the most automobiles in its first year of business in the United States compared to any other car brand; total sales in 1986 were 168,882.[citation needed]

Initially well received, the Excel's faults soon became apparent; cost-cutting measures caused reliability to suffer. With an increasingly poor reputation for quality, Hyundai sales plummeted, and many dealerships either earned their profits on repairs or abandoned the product. At one point, Hyundai became the butt of many jokes (i.e. Hyundai stands for "Hope you understand nothing's driveable and inexpensive") and even made David Letterman's Top Ten Hilarious Mischief Night Pranks to Play in Space: No.8 – Paste a "Hyundai" logo on the main control panel.[1]

In response, Hyundai began investing heavily in the quality, design, manufacturing, and long-term research of its vehicles. It added free maintenance for the first 2 years or 24,000 miles for all its new cars sold, starting with the 1992 model year. It also added a 10-year or 100,000-mile (160,000 km) powertrain warranty (known as the Hyundai Advantage) to its vehicles sold in the United States. By 2004, sales had dramatically increased, and the reputation of Hyundai cars improved. In 2004, Hyundai tied with Honda for initial brand quality in a survey/study from J.D. Power and Associates, for having 102 problems per 1000 vehicles. This made Hyundai second in the industry, only behind Toyota, for initial vehicle quality. The company continued this tradition by placing third overall in J.D. Power's 2006 Initial Quality Survey, behind only Porsche and Lexus.[2] Hyundai is ranked number 4 in World's Most Admired Companies under the motor vehicles section of CNN, after BMW (Bayerische Motoren Werke), Volkswagen and Daimler in 2011.[citation needed]

Hyundai continues to invest heavily in its American operations as its cars grow in popularity. In 1990, Hyundai established the Hyundai Design Center in Fountain Valley, California. The center moved to a new $30 million facility in Irvine, California, in 2003, and was renamed the Hyundai Kia Motors Design and Technical Center. Besides the design studio, the facility also housed Hyundai America Technical Center, Inc. (HATCI, established in 1986), a subsidiary responsible for all engineering activities in the U.S. for Hyundai. Hyundai America Technical Center moved to its new 200,000-square-foot (19,000 m2), $117 million headquarters in Superior Township, Michigan (near Ann Arbor) in 2005. Later that same year, HATCI announced that it would be expanding its technical operations in Michigan and hiring 600 additional engineers and other technical employees over a period of five years. The center also has employees in California and Alabama.[citation needed]

Hyundai incorporated a new manufacturing facility, Hyundai Motor Manufacturing Alabama, in April 2002. The new plant in Montgomery, Alabama, was completed during 2004, at a cost of $1.7 billion. Production started in May 2005. It employed more than 3,000 workers in 2012.[3] Currently, the plant assembles the Hyundai Elantra, the Hyundai Sonata, and the Hyundai Theta engine. It is Hyundai's second attempt at producing cars in North America since Hyundai Auto Canada Inc.'s plant in Quebec closed in 1993.[citation needed]

Hyundai Kia proving ground, Mohave

Hyundai America Technical Center completed construction of its Hyundai/Kia proving ground in California City, California, in 2004. The 4,300-acre (17 km2) facility is located in the Mojave Desert and features a 6.4-mile (10.3 km) oval track,[4] a Vehicle Dynamics Area, a vehicle-handling course inside the oval track, a paved hill road, and several special surface roads. A 30,000-square-foot (2,800 m2) complex featuring offices and indoor testing areas is located on the premises as well. The facility was built at a cost of $50 million. An aerial view can be found here.[5]

In 2003, Consumer Reports, based on complaints about 2002 model new cars that in general are less than one year usage, ranked Hyundai's reliability tied with Honda's; however, J.D. Power and Associates put Hyundai's 2002 vehicles below the industry average according to its annual Initial Quality Survey, which looks at problems in the first 90 days of ownership.[6]

In 2006, J.D. Power and Associates' quality ranking, overall the Hyundai brand ranked 3rd, just behind Porsche and Lexus, and beating longtime rival Toyota.[7] But Hyundai's ranking fell to twelfth in 2007.[8] However, in 2009, Hyundai was the Highest Ranked Non-Premium Nameplate in the J.D. Power and Associates Initial Quality Study.[9]

In the 2007 Strategic Vision Total Quality Awards, Hyundai Motor leads the most vehicle segments in Strategic Vision's Total Quality Index, measuring the ownership experience. They attempt to measure more than just the number of problems per vehicle. Hyundai tops in Strategic Vision Total Quality Awards. For the first time ever, Hyundai has risen to share the position of having the most models leading a segment. three models with the top Total Quality Index (TQI) score in their segments, including the Hyundai Azera, Entourage, Santa Fe.[10][11]

In 2007 at the New York International Auto Show, Hyundai unveiled its V8 rear-drive luxury sedan called the Concept Genesis to be slotted above the Azera in the Hyundai line-up. This concept made its American debut in mid-2008. The Genesis reintroduced rear-wheel drive to the Hyundai range following a long period of only producing front-wheel drive cars.[12]

In 2007 at the Los Angeles International Auto Show, Hyundai unveiled its second rear-drive concept car, the Concept Genesis Coupe, will be Hyundai's first sports car due to make its debut in early 2009.[13]

In 2008, Hyundai Santa Fe and Hyundai Elantra were awarded 2008 Consumer Reports "top picks". The magazine's annual ratings, based on road tests and predicted safety and reliability are considered highly influential among consumers.[14] The Hyundai Elantra was Consumer Reports' top-ranked 2008 vehicle among 19 other compacts and small family cars, beating out the Honda Civic, Toyota Corolla and Toyota Prius.[15]

In 2008, at the North American International Auto Show, the production version of the luxury and performance-oriented Hyundai Genesis sedan made its debut, dealerships will have the Genesis as soon as summer 2008. In 2008, at the New York International Auto Show, Hyundai debuted its production version of the performance-oriented rear-drive Hyundai Genesis Coupe, slated to hit dealerships in early 2009.[citation needed]

On 6 January, Hyundai reported sales of December 2008 fell to 24,037, from 46,487 in previous year and sales for the year dropped 14%, a day after the company launched "Hyundai Assurance" in order to spark sales amid tough economic conditions.[16]

In 2009, Hyundai announced the five-door hatchback variant of the Elantra compact sedan will carry the name Elantra Touring when it goes on sale in the spring as a 2009 model.[17]

In 2009, the Hyundai Genesis luxury sedan was named 2009 North American Car of the Year, the first for Hyundai.[18] The Genesis has received a number of well-recognized automobile awards worldwide. It also won the 2009 Canadian Car of the Year after winning its category of Best New Luxury Car under $50,000.[19] The Hyundai's V8 Tau engine in the Genesis, which develops 375 hp (280 kW) on premium fuel and 368 hp (274 kW) on regular fuel, received 2009 Ward's 10 Best Engines award.[20]

In 2009, four models from Hyundai and two from Kia, earned the Top Safety Award by the Insurance Institute for Highway Safety (IIHS).[21]

In 2009, Hyundai/Kia vehicles were named as "least expensive vehicles to insure". Hyundai/Kia vehicles were the least expensive to insure and occupied the "top five" least expensive slots, said Insure.com.[22]

In 2009, according to a preliminary report from the Environmental Protection Agency published in November 2009, which is based on 2009 pre-model year production projections provided by automakers,[23] Hyundai, at an average of 23.4 mpg‑US (10.1 L/100 km; 28.1 mpg‑imp), is the second most fuel-efficient automaker in America, after Honda's combined U.S. fleet of Honda and Acura models at an average of 23.6 mpg‑US (10.0 L/100 km; 28.3 mpg‑imp).[24]

In 2010, a Consumer Reports reliability survey ranked Hyundai (including Kia) as the fourth-best automaker. The ratings reflect the performance, comfort, utility and reliability of more than 280 vehicles that the magazine recently tested.[25]

In 2010, the Hyundai Equus made its North American debut at the North American International Auto Show.[citation needed]

In January 2012, the Hyundai Elantra was named the North American Car of the Year at the North American International Auto Show, selling more than 200,000 cars since the model's redesigned debut.

In a move consistent with its plans to create a performance pedigree, the upwardly mobile Hyundai announced in August 2015 that it would launch a new high-performance brand called "N."[26] The N brand is so named because Hyundai's research and development center is based in Namyang, South Korea. Though the company celebrated N's launch at the 2015 Frankfurt auto show, it did not disclose details at that time about any future performance vehicles that would wear an N badge.

Sales

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Hyundai Motors America sales in the US, 1997–present
YearSales±%
1997 113,186—    
1998 90,217−20.3%
1999 164,190+82.0%
2000 244,391+48.8%
2001 346,235+41.7%
2002 375,119+8.3%
2003 400,221+6.7%
2004 418,615+4.6%
2005 455,012+8.7%
2006 455,520+0.1%
2007 467,009+2.5%
2008 401,742−14.0%
YearSales±%
2009 435,064+8.3%
2010 538,228+23.7%
2011 645,691+20.0%
2012 703,007+8.9%
2013 720,783+2.5%
2014 725,718+0.7%
2015 761,710+5.0%
2016 775,005+1.7%
2017 685,555−11.5%
2018 677,946−1.1%
2019 710,004[a]+4.7%
Source: "Hyundai Newsroom".

References

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  1. ^ TBD. "Letterman Top Ten jokes about Hyundai". CBS. Archived from the original on December 10, 2008. Retrieved 2010-12-17.
  2. ^ "Porsche, Hyundai score big gains in J.D. Power quality survey". AutoWeek Magazine. 2006-08-06. Archived from the original on 28 June 2011. Retrieved 2010-12-17.
  3. ^ "About HMMA". Hyundai Motor Manufacturing Alabama. Hyundai Motor Company. Archived from the original on 10 September 2012. Retrieved 20 September 2012.
  4. ^ Taylor III, Alex (2010-01-05). "Hyundai smokes the competition". CNN.
  5. ^ "Google Maps". Google Maps. Retrieved 2019-01-17.
  6. ^ Eldridge, Earle (2003-03-11). "Hyundai's reliability rankings now tie Honda's". USA Today. Retrieved 2010-12-17.
  7. ^ "J.D. Power Announces Hyundai Ranks Top in Customer Satisfaction". Motortrend.com. 2010-12-13. Archived from the original on 2007-10-13. Retrieved 2010-12-17.
  8. ^ "Ford beats Toyota in quality rankings". NBC News. AP. 2007-06-06.
  9. ^ Hyundai is the Highest Ranked Non-Premium Nameplate in the J.D. Power and Associates Initial Quality Study 2009. The autochannel
  10. ^ "The 2007 Total Quality Award Winners". Strategic Vision. Archived from the original on July 16, 2011. Retrieved December 17, 2010.
  11. ^ "Hyundai models tally tops Strategic Vision’s 2007 quality perception awards" Archived March 15, 2014, at the Wayback Machine
  12. ^ Hyundai Concept Genesis – 2007 New York Auto Show Archived September 28, 2009, at the Wayback Machine
  13. ^ "Hyundai Unveils Rear-Wheel-Drive Genesis Coupe Concept". Worldcarfans.com. Retrieved 2010-12-17.
  14. ^ "Hyundai breaks through with two 'top' models". NBC News. 2008-02-28. Retrieved 2010-12-17.
  15. ^ "Gas-saving sedans, The refined Elantra SE beats the very thrifty Corolla". Consumerreports.org. 2010-02-11. Retrieved 2010-12-17.
  16. ^ Alan Ohnsman and Mike Ramsey (2009-01-06). "Toyota, Honda U.S. Slump Ends Gains Dating to Mid-90s". bloomberg.
  17. ^ "Hyundai announces Elantra hatchback". Blogs.motortrend.com. 2007-08-08. Retrieved 2010-12-17.
  18. ^ "2009 North American Car of the Year". NACOTY. January 11, 2009. Archived from the original on February 3, 2014.
  19. ^ "2009 Canadian Car of the Year" (PDF). Automobile Journalists Association of Canada. 2008-10-24. Archived from the original (PDF) on 10 April 2009. Retrieved 13 May 2009.
  20. ^ "Ward's 2009 10 Best Engines Winners". WARD'S. December 5, 2008. Archived from the original on September 26, 2011. Retrieved August 9, 2010.
  21. ^ Top Safety Picks 2009 Archived 2007-12-31 at the Wayback Machine, Insurance Institute for Highway Safety, 2009 Hyundai Genesis, Hyundai Entourage, Kia Sedona, Hyundai Santa Fe, Hyundai Veracruz, Kia Soul
  22. ^ The Most Expensive Cars to Insure Archived January 10, 2016, at the Wayback Machine (2009-06-03), U.S. News Rankings & Reviews
  23. ^ "Light-Duty Automotive Technology, Carbon Dioxide Emissions, and Fuel Economy Trends: 1975 Through 2009". U.S. Environmental Protection Agency. 2016-05-04.
  24. ^ Makiko Kitamura and Alan Ohnsman (2010-06-23). "Honda's Ito Defends Fuel Efficiency Lead as Hyundai Gains". Bloomberg.
  25. ^ "Best Car Manufacturers – Best Cars 2012 – Consumer Reports". Retrieved June 17, 2015.
  26. ^ "New High-Performance 'N' Brand Shows How Ambitious Hyundai Is". Forbes. 2015-08-31. Retrieved 2015-09-15.

Notes

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  1. ^ includes Genesis division
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