Luxury Leaning

Here's a new interpretation to the media ride-and-drive. Journalists come to evaluate an auto maker's all-new vehicle but actually spend as much time (or maybe more) in a competitor's vehicle in a more expensive segment.

Hyundai Motor America does just that, offering six of its new front-wheel-drive '07 Veracruz cross/utility vehicles and six Lexus RX 350s to drive in Southern California. Never mind that many well-heeled Lexus customers would not cross shop a Hyundai, known not for its luxurious appointments but for its value.

But Hyundai throws convention to the wind. Its vehicles improve every year. Hyundai management smartly contends the best way to polish its brand image is to let drivers do a little head-to-head comparisons, even against a luxury brand.

How does one say chutzpah in Korean?

In short, the unibody Veracruz, based on the smaller Santa Fe CUV, stacks up very favorably to the RX 350. True, the Veracruz suffers from more wind noise, and the RX offers more features expected on a luxury vehicle, such as a navigation system. But the Veracruz is a pleasurable and spacious vehicle that handles more like a car than an SUV and offers a cozy, warm interior.

Problem is, the same can be said for a lot of CUVs in the red-hot segment.

In which segment will the Veracruz play? Hyundai calls it a midsize CUV going head to head with the more expensive (RX 350-derived) Toyota Highlander.

But Ward's segmentation will place the Veracruz amid large CUVs, such as the Chrysler Pacifica, Honda Pilot, Saturn Outlook, Mazda CX-9 and Ford Taurus X (the artist formerly known as Freestyle).

If the Veracruz can undercut the Highlander price (it can, by more than $3,000), then imagine the fits it will cause competitors in the higher priced category.

Potentially hindering the Veracruz is its sheet metal. It does not make enough of a unique styling statement to win over undecided buyers. It looks too much like the RX 350.

Still, the CUV does a number of things well. Its 3.8L DOHC V-6 produces 260 hp, more than the Pilot, Pacifica and CX-9, but lagging the GMC Acadia, Outlook and RX 350. The Veracruz bests the '07 Highlander by 45 hp but will trail the all-new '08 Highlander, which brings 270 hp when it goes on sale this summer.

A 3.0L turbodiesel is available in the Veracruz in Asia. Hyundai officials want to bring that engine to the U.S. but say it currently does not meet emission requirements in all 50 states.

The 3.8L is adequate for propelling this 7-passenger CUV, although the throttle could be more responsive, especially when coming out of corners. There are seconds of unrequited pedal travel that leave the driver less than confident when contemplating passing.

But the Veracruz is not meant for aggressive driving. Its road manners are excellent when not pushed hard (and rarely will it be), and body roll is minimal.

Steering (power-assisted rack and pinion) is assured and comfortable and delivers the proper amount of feedback to the driver, although the CUV tends to understeer a bit through corners.

The suspension (fully independent MacPherson front, multi-link rear) strikes the proper balance between cushy compliance and harsh rigidity, even when encountering uneven pavement and potholes.

But don't go planning to ride the Rubicon Trail. Hyundai officials say the Veracruz is “a soft-roader.”

Still, all-wheel drive is available, and Hyundai predicts a 40% take rate. Japan's JTEKT Corp. supplies the electromagnetic clutch AWD system, which can apportion torque to the wheels that need it most.

The Veracruz gets Hyundai's first 6-speed automatic gearbox, standard. Performance is generally smooth, and Shiftronic manual control is a nice feature, but moderately aggressive throttle inputs caused excessive hunting for gears.

Fuel economy also could be a source of disappointment. During our test drive, the AWD Limited version achieved a mere 16.9 mpg (13.9 L/100 km) on rural and city roads, according to the trip computer.

A more sparsely appointed FWD model did better, achieving 19.2 mpg (12.2 L/100 km). Still, owners might be hard-pressed to achieve 25 mpg (9.4 L/100 km) on the highway, as the Environmental Protection Agency suggests. City fuel economy is estimated at 18 mpg (13 L/100 km).

To be fair, the Veracruz EPA ratings are competitive with the Pilot, '07 Highlander and RX 350.

Inside, the Veracruz is well executed, exuding warmth and functionality. Soft-touch surfaces abound, blending well with faux brushed aluminum on the center stack, center console, dash and door trim. Seats are comfortable, although they could use more lateral bolstering.

The ability to seat seven is admirable (RX only seats five), but be forewarned that anyone taller than 5 ft. 10 ins. (1.7 m) will find the top of his head dangerously close to the roofline and back glass.

Standard features for all models include stability control, traction control, six airbags (including roof-mounted curtains) and active head restraints.

Hyundai isn't saying how many Veracuz CUVs it plans to sell. The vehicle is assembled in Ulsan, South Korea.

Pricing begins at $26,995 (excluding $690 destination charges) and tops out at $38,020 fully loaded. A well-equipped FWD model at $32,995 is nearly $8,000 less than an RX 350.

If buyers want an RX but don't want to pay Lexus money, then a Veracruz is not a bad option. But it's not a Lexus.