Hyundai: No Pickup Plans, Eyeing CUV Growth

SUNDANCE, Utah – Hyundai has no plans to sell a pickup truck of any size in the U.S., but it would like to grow volume in the cross/utility vehicle segment, the auto maker’s top U.S. official says.

Hyundai America President and CEO John Krafcik tells WardsAuto that comments made earlier this year about looking at offering more trucks was not an indication the auto maker would look to fill the slots vacated by other auto makers, specifically midsize pickup entries such as the Ford Ranger and Ram Dakota.

“Hyundai has no plans for any pickup trucks, period,” Krafcik says.

It does have plans to boost CUV sales, however.

The 5-passenger Tucson was last year’s fourth best-selling small CUV in the U.S., but the Santa Fe and Veracruz haven’t fared as well of late.

Now, Hyundai is banking on a single-platform, single-branding strategy to reinvigorate the latter two offerings. The Santa Fe Sport replaces the Santa Fe in name only, and the Santa Fe moniker replaces the Veracruz. Both vehicles are new for ’13 and built on the same platform.

Inventory shortages due to Korean labor strikes also have stunted Hyundai’s U.S. sales growth, Krafcik says. “We can’t judge our success by sales, because we’re just so short on inventory,” he says. “Our North American plants are doing everything they can to support us. But it’s a good thing, because we get 50% of our sales on American shores.

Despite supply issues, “we’ll certainly be up this year in terms of total sales,” Krafcik adds. “We’re going to be up 10% this year.”

It’s too early to say whether stepped-up late summer sales programs have played a role in the volume uptick, Krafcik says.

Another concern for Hyundai is the increasingly competitive midsize market. The midsize Sonata, Hyundai’s flagship vehicle, is due for a ’14 refresh.

“What worked for us on (the) Sonata are the great design, great fuel efficiency, our quality and warranty. We’re going to continue to turn the knob to the right for all of them,”Krafcik says, declining to reveal specifics on what to expect in the new version.

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