Hyundai
Motor Co. is counting on a redesigned Tucson
compact sport-utility vehicle to get its growth back on track. A new version
that is longer, wider and lower, goes on sale this month.
Through
June, Tucson U.S. sales
fell 7 percent to 22,634 as the brand’s deliveries rose 1.8 percent to 371,150,
slower than the market, according to Autodata Corp. Hyundai sells 80 percent
sedans and the market is 56 percent trucks and crossovers, said Dave Zuchowski,
chief executive officer of Hyundai’s U.S. business.
“It’s
been very difficult for us to maintain our growth curve when we’re swimming
upstream,” he told reporters Friday in Superior Township, Michigan, where the automaker has a technical
center. “Our stagnation has been primarily an inability to compete in the truck
side.”
Hyundai needs this new
Tucson. The brand has mostly missed out on a surge in profitable demand for
pricey pickups and SUVs. The Seoul-based automaker and its affiliate
Kia Motors Corp. don’t sell a pickup. Hyundai’s only SUVs are the Tucson and the larger Santa
Fe.
“Hyundai and Kia don’t have
the kind of product that the market is demanding right now,” said Michelle
Krebs, a senior analyst at AutoTrader.com. “In cars, they have several top-five
sellers but they don’t have that dominant, front-of-the-pack position on their
sport utilities. Redoing the Tucson is a step
in that direction, but they really need a stronger presence in that segment.”
Consumer
Attention
Relatively
low gasoline prices and interest rates are helping sales of SUVs and pickups,
which favor the Detroit Three automakers. The average vehicle sold for $33,340
last month, up 2.5 percent from a year earlier, according to automotive
researcher Kelley Blue Book.
“It’s a
tough crowd and they made their mark with cars but they have to get the
consumer to think of them for sport utes too,” Krebs said, adding that
Volkswagen is the only volume brand that sells a lower percentage of light
trucks in the U.S.
Hyundai’s
vehicles are well-received, said Kevin Tynan, an auto analyst at Bloomberg
Intelligence. The brand placed fourth last month in an influential survey of
quality in the first 90 days of ownership. Porsche was the top brand in the
J.D. Power & Associates annual survey, followed by Kia, Jaguar and Hyundai. The
outgoing Tucson won the
small SUV category.
“The
good news is the reputation is good,” he said. “Now it’s just a matter of
getting the right product in the showroom.”
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