Cheaper than an Accent? Hyundai developing ultra-budget model
According to an Antara News article sourced by Motor Authority, Hyundai isn't just branching out into the wonderful world of rear-wheel drive. It's going to make a big play on the opposite end of the automotive spectrum, by creating a budget-minded car for the masses.
The article quotes Hyundai's vice chairman, Kim Dong-jin as saying that, "Development is under way to produce an ultra-cheap car." The aim is to match models with Renault, whose upcoming Logan is expected to be priced far below the $10,000 mark.
A budget car for expanding markets seems like a no-brainer, especially if developments and production costs are kept in check. Whether or not we'll see such a beast on this side of the ocean is another issue entirely.
[Source: Motor Authority]
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Reader Comments (Page 1 of 2)
Niels 1:43PM (5/12/2007)
Well this won't affect their image one bit. The Koreans are CHEAP. The Azera is a poor man's Cadillac.
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Bill 1:50PM (5/12/2007)
Hyundai already has sub-Accent models in the Indian market and other developing markets. Apparently they're good. Hyundai isn't dumb, they working to grow their business in areas with market growth.
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David 2:14PM (5/12/2007)
Awesome. I hope they have the American market in sight with this move. We need more inexpensive small car choices state-side. Urban markets will be hot.
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Pep 3:10PM (5/12/2007)
If you mean Cheap as in Value, than I don't see why the consumer would ever choose a brand other than Hyundai. What kind of dumbass would pay MORE for a lessor quality car. Hyundai shoppers are smart shoppers.
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far jr 3:13PM (5/12/2007)
You could already buy an Accent under $10k if you select the right trim and negotiate a little. We have the Aveo from Korea also under $10k when properly trimmed. If you need to spend less than that on a car, you will be better off in the long run to buy used cars...no shame in owning a two year old compact rather than a new Hyundai "pretzel can".
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The FedEx Man 5:15PM (5/12/2007)
"They have a 10 year warranty because it is a piece of shit"
You what? That doesn't make sense - they'd be bankrupt if that was true. Hyundai have had decent quality and reliability for a while now, still lacking in styling flair/identity (Although some of the Hyundai concept cars are looking great), and Kia while they look dull as ditch-water have surprising quality too (the C'eed or what it is, shit name but well thought out)
It seems that the "it isn't the 1980s anymore" is just as relevent here.
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Dan 5:19PM (5/12/2007)
Long warranties are a double-edged sword...it proves that the company stands behind its car, but also hints that it could be a huge piece of garbage.
BTW that 10 year warranty is powertrain only.
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Robert 5:59PM (5/12/2007)
Hyundai has the branding of the go to company for inexpensive transportation. Owners that I've talked to sound proud of their logical choice, but with the hint of trepidation that they bought a pos. That's why the 10 year warranty is so important even if it's just the powertrain. The powertrain is by far the most important part to have under warranty.
This placement of Hyundai means anything on the lower end can be a hit assuming reasonable quality is there. It makes more sense then a pickup, though the segment is sitting uncontested for a rival to the Ford Ranger. Actually, the margins would be better even for an economy pickup because the Ranger has languished so long and there's easily a demand for that product. I say build them both.
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$0.02 6:34PM (5/12/2007)
yeah and Hyundai has a 5 year 60,000 mile bumper to bumper with 5 year unlimited roadside assistance.
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aaron 8:08PM (5/12/2007)
it would be cool if it was rear-engine, rear-wheel drive like the supposed VW car that slots under the Beetle....of course it won't be.
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kww 8:51PM (5/12/2007)
Hyundai will make that a 10 year bumper to bumper (with no deductible) for $1000. While some of you may think that is outrageous, those of you that have replaced power window motors or an A/C compressor on a car that is less than 10 years old know it can be a bargin.
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Jeff Gilleran 10:13PM (5/12/2007)
I havent had to use the Warranty on my 04 Tibby at all.
Great car.
Been nothing but a pleasure to own and drive.
Im sure the new ultra cheap Hyundai will be a far cry of the Excel made back in 1986.
Im sure it will be pretty basic, but Ill bet it will be fun to drive and get great mileage.
God knows we need more mini car choices with $3.00 plus a gallon these days.
Ill be willing to bet it will be reliable as well.
Hyundai seems to be trying hard to eliminate the "Its a Hyundai" stigma.
Ive tried to explain to people that back in the day, hyundai thought the excel would have been a decent car.
Problem actually was where Hyundai sourced its drivetrain.
It was the cheapest, lowest price, poorest quality engine and trans you could buy from Mitsubishi.
Hyundai wasnt exactly rolling in cash back then.
In fact, the engine was also used in the Plymouth Arrow and Dodge colt.
Also known as the Mitsubishi, "Precis", (Ive seen maybe one of those in the last 10 years) it was the same basic car as the Excel.
Rarely see those on the road.
However, Mitsubishi was already established in the US since the early 70s and in the mid 80s, when Hyundai came about, it offered basically a piece of garbage to the public mostly souring its potential.
Since 2001, Id have to say Hyundai has been kicking some ass and taking names.
Im happy to see that my money that I paid for my Tibby hasnt been wasted.
Hyundai has come into its own and worthy of consideration to anyone interested in a good car with good prices.
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far jr 11:14PM (5/12/2007)
Dan, are you trying to somehow quantify that a good warranty offered by Hyundai is not as good as the percieved image and poorer warranty offered by Honda/Toyota? The warranty just helps people get past that percieved quality shortcomings of Hyundai and try the car.
Jeff Gilleran, I'm not sure how many asses/names Hyundai has been taking as sales numbers have not been impressive lately.
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Jeff Gilleran 11:40PM (5/12/2007)
I was saying, "kicking asses and taking names" as far as improving quality and reliablity.
Recently there has indeed been a slowdown, but im sure things will be picking up again as we move into the summer months and people start buying more cars with the rising fuel prices.
I read an article somewhere that said that overall sales in the automotive industry has dropped around 2% or thereabouts from sales late last year.
So its not only Hyundai loosing sales.
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Mattias 1:52AM (5/13/2007)
> The aim is to match models with Renault,
> whose upcoming Logan is expected to be
> priced far below the $10,000 mark.
What upcoming Logan? The Logan is on sale now for about two years. They just expended the range to a station and a panel van.
The prices start at around 7800$ (excluding VAT!) for the no frills Logan and 11000$ for the more prestigous "Prestige" with painted bumpers and a nice 105hp 16 valve engine.
Yeah, the Logan is not yet available in northern and central Americas and might not come closer to the US as Mexico...
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Brian W 2:42AM (5/13/2007)
That car will never come here, it's just for over seas markets. Every ones making them for those markets.
"Hyundai seems to be trying hard to eliminate the "Its a Hyundai" stigma.
Problem actually was where Hyundai sourced its drivetrain.
It was the cheapest, lowest price, poorest quality engine and trans you could buy from Mitsubishi."
Don't blame Mitsubishi because Hyundai couldn't build a good car. Hyundai only buys the cheapest parts. They live in a cheap country.
The auto press gives Hyundai a free ride about their past. Try being the Big Three or Mitsubishi for that matter.
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Bob-omb 3:38AM (5/13/2007)
Brian W, you can't be serious. First of all, South Korea isn't a "cheap country." It's only behind Japan in standard of living in Asia. Secondly, Hyundai is NOT given a free ride about their past. They're still paying for those Excel mistakes as most people still do not take Hyundai seriously. Are the Big Three still paying for mistakes they made their first 10 years? No. They're paying for the mistakes they've made in the *last* 10.
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Pep 5:02AM (5/13/2007)
Don't listen to Bryan W. He is a biased troll who shadows every Hyundai article with his non-sense ranter. He cries every night because the car manufacturer he's a fanboy is losing out to Hyundai quality.
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The FedEx Man 6:07AM (5/13/2007)
Richie638 if you think about people buying imports have probably done the US car industry a lot of good. Suddenly they've realised they can't produce sub-standard cars on the false premise that Americans will buy them because they're American. Increasing quailty can only be good as they'll then be better able to compete in other markets, like Europe.
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Mattias 6:42AM (5/13/2007)
#20, thank you! It's competition that makes companies competitive! Just locking down the market by charging high tariffs is the wrong way. Manufacturers should compete in the market, not in the lobby by forcing subsidies and taxes. The result of the latter would result in higher prices and the transfer of tax money to the car companies. Worse, the lower quality would make the cars unsellable abroad.
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