Friday, August 31, 2018

Hyundai-Kia future-product pipeline shows group's versatility

Korean auto brands, which ruled J.D. Power's closely watched quality rankings this year, are improving their product arsenals and better aligning their U.S. portfolios to meet demand for crossovers.

Their pipelines show how the increasingly versatile Hyundai-Kia group plans to deploy its electrification technology, diesel engines, hydrogen fuel cell systems, European-inspired designs and large-crossover platforms across its brands to reach more consumers and compete in more segments of the market.

Korea's luxury ambitions could ride on what happens in the next four years.

If the Genesis product slate fills out as expected with three new crossovers by 2022, in addition to electrified options and reworked sedans, the brand will be set up nicely to increase volume and generate awareness.

But a run of product delays would stunt the brand's growth and annoy dealers who will have invested heavily in stand-alone operations by then.

Hyundai is strengthening its hand with the Kona (including an upcoming electric version); the redesigned Santa Fe (with a diesel option on the way in 2019); a new crossover, likely to be called the Palisade, that will fight the Ford Explorer and Chevrolet Traverse; another crossover that will reside below the Kona; and the hip Veloster hot hatch that has a proven record of building loyalty among those new to the brand.

Kia, meanwhile, has found its place as a purveyor of youthful products that are more visually arresting than in years past. The speedy Stinger, which arrived last year, is serving as an edgy halo and playing in the same neighborhood as the German sports sedans.

A new Stinger-inspired Forte is on the way, and the brand is prepping to launch the Telluride, a new crossover that'll round out its lineup.

All three brands also will deliver more electrified powertrains in the coming years to complement the Kia Niro, Hyundai Nexo and Hyundai Ioniq nameplates. Hyundai Motor Group's goal is to introduce 38 eco-friendly models to global markets by 2025.

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