Instead of a bringing out another "traditional" minivan for North America next spring called the Entourage, Hyundai says it will bring out two crossover-type vehicles, though it will take several years to bring this strategy to market.The first of the two vehicles will be a seven-seat unibody SUV about the same size as a Chevrolet TrailBlazer or Ford Explorer. It should go into production in the fourth quarter of 2006, which means it should be on sale in Canada and the U.S. early in 2007, probably as a 2008 model year vehicle.
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| Hyundai Portico Concept (Photo: Hyundai) |
The second new product from Korea's largest car company will be a six-seat crossover wagon similar to the company's Portico concept vehicle, but it won't be here until early in 2009, probably as a 2010 model year vehicle.Steve Kelleher, the president and CEO of Hyundai Auto Canada, says the company has "completely redefined our strategy in the people-mover segment."Kelleher says the company "considered the evolution of the minivan, crossover and SUV segments, the changing needs of our target customers, and the development of the Hyundai brand toward refinement, confidence, leadership and innovation."As a result, he says, "we felt the best strategy was to focus on unique crossover minivan and SUV solutions and leave the traditional minivan to others."One need only look at the latest Canadian sales figures for minivans to see why Hyundai took this action. By the end of July, the segment had decreased by 9.3 percent, going to 108,204 units from 119,287.Hyundai doesn't have a minivan at the moment, but the Sedona model from its Kia Motors sibling has shown a decrease in keeping with the segment in general. The Entourage was to have shared the platform that will house the updated Sedona.
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| Hyundai Portico Concept (Photo: Hyundai) |
In general, says Kelleher, "We believe that with this strategy Hyundai is communicating the fact that we are absolutely committed to delivering our new brand identity and to ensuring that Hyundai remains appropriately differentiated from competitive brands."It's unlikely that Hyundai will be able to meet the ambitious sales targets it's set for itself over the next couple of years without the planned minivan, but Kelleher says "the long-term benefit of these two all-new, innovative products far overshadows the value the minivan may have provided to our customers, our dealers and our brand."The new SUV "is a new and innovative approach to the segment, says Peter Renz, Hyundai Auto Canada's director of marketing. "We see it establishing a new industry benchmark that combines modern design, sophisticated engineering and creative packaging for consumers needing seven-passenger seating."Renz says that, with "a powerful, efficient and refined 3.8-litre V-6, a six-speed automatic transmission, seating for seven adult passengers and segment-leading safety equipment like electronic stability control and side curtain airbags, we are confident that this new offering will raise the bar for safety, sophistication, refinement and value in the upper-midsize SUV market segment."