Auto News roundup 6-4-09: Toyota claims hybrids will rule, Indiana challenges Chrysler bankruptcy, GM offers cash for dealer closings

-- Toyota, on the day Prius clinched the top sales spot for the first time (in May), makes the claim that hybrids will dominate for some time before battery technology catches up. USA Today

--The State of Indiana is temporarily stalling the sale of Chrysler to Fiat based on $42 million owed to retirees. Source: The Detroit Bureauvia Autoblog

-- GM is offering dealers up to $1 million to close their retail operations. Automotive News via Autoblog

-- 'Cash for Clunkers' legislation stalls in Senate. Car industry believes consumers are waiting for Congress to act before car-buying. Detroit News

-- Audi releases a new set of pictures of the redesigned, 340 horsepower 2010 Audi TT. Audi continues the claim that the TT is not scheduled for U.S. consumption. Autoblog

-- The Hyundai Accent has received a major face-lift and technical upgrade, and has been renamed the Verna Transform. Edmunds

-- Joni Gray

Hyundai Genesis takes a page from Lincoln playbook

Back in the 1970s, the embodiment of automotive fashion was a Lincoln Continental Mark IV Designer edition. The luxo-barge came in Pucci, Bill Blass, Cartier and Givenchy editions, with special colors and appointments to stand out from the more plebeian editions.

Hyundai has decided a touch of the 1970s is just what we need now. Presenting the Hyundai Genesis Prada edition. The high-end sedan has its own color (a matte-finish blue), exclusive 20-inch wheels, Saffiano leather interior and much more.

Sad to say that, for now, the Prada edition is limited to only three examples, one for a Seoul Auto Show and the others for a charity auction.

No word if one of them is a Cartier.

—Doug Stewart

Photos: Hyundai via autoblog.com

And the Oscar goes to . . . Hyundai?

“Slumdog Millionaire” wasn’t the only underdog to score big at the Academy Awards last night.

South Korean automaker Hyundai, which took over this year from General Motors as the award show’s auto sponsor, is seeing a significant jump in interest among visitors to Edmunds.com, the Santa Monica-based online vehicle information site.

Visits to Hyundai pages on Edmunds.com are up 27% compared with the same period last week, and traffic to pages featuring the Genesis — the upscale sedan featured in one of the ads — are up 86%. Hyundai said traffic on its own website doubled Sunday compared with the previous weekend. (German automaker Audi also got a boost from its Oscar ads, Edmunds.com reported, with traffic up 26%.)

Hyundai, known for its emphasis on value, hasn’t exactly had a high profile in the U.S. market. Indeed, one of its ads even makes a point of making sure car buyers know how to pronounce its name (rhymes with “Sunday”).

But that’s beginning to change as the economy tanks and low-priced cars gain in popularity. In January, Hyundai was one of only three car companies — along with Kia and Subaru — that notched a year-over-year sales gain.

Granted, by the time Oscar day rolled around, “Slumdog” was an odds-on favorite to win. But it wasn’t so long ago that the film was without a distributor and in danger of going straight to video.

Hyundai upped its Q score dramatically with its Innovative Assurance Plus program, which allows buyers to return a new Hyundai within a year of purchase if they lose their jobs. Hyundai recently sweetened the program by pledging to make payments for 90 days while the owner looks for work.

The automaker, which has been trying to move out of the shadow of the big Japanese automakers and also go after higher-end consumers, also is making a splash with the Genesis, which took “car of the year” honors at the Detroit auto show next month.

“This is proof that when you have a powerful message, television advertising still works,” Edmunds.com CEO Jeremy Anwyl said....

Hyundai's economic stimulus package

A major reason car sales have tanked in recent months is the sharp rise in unemployment. Folks who are worried about losing their jobs aren’t likely to take on the added risk of a five-year car loan.

Hyundai Motor America unveiled a novel approach to the problem over the weekend. Dubbed the Hyundai Assurance Program, the South Korean automaker said that people who finance or lease a new Hyundai during the next 12 months can return the car if they “experience an involuntary loss of income” within one year of the purchase date.

“That’s a new one,” said Erich Merkle, an industry analyst with consulting firm Crowe Horwath in Grand Rapids, Mich. “It’s an indication of the very tough sales environment right now.”

* UPDATE Hyundai, a relatively small player in the U.S. market with a 3% share in 2008, today reported a 48% drop in December sales with a year earlier — one of the worst showings among automakers.

Hyundai said it would absorb up to $7,500 in negative equity (the difference between what a vehicle is worth and what is owed on it) for buyers who opt to walk away from their loans. Customers who pay cash for their vehicles don't qualify for the program.

Depreciation can reduce a new car’s value by 25% or more during the first year of ownership. But since Hyundai’s lineup skews toward low- and moderately priced cars, the amount should be enough to cover the lost value on most Hyundai vehicles, save for the top-of-the-line Genesis sedan, which has a starting sticker price of around $32,000, and the Veracruz SUV.

According to a Hyundai press release, buyers can return a vehicle for no additional charge within 12 months of purchase if any of the following occur:

-- Involuntary unemployment
-- Physical disability
-- Loss of driver’s license for medical reasons
-- Job transfer overseas
-- Personal bankruptcy filing by a self-employed worker
-- Accidental death

To qualify, the buyer must have made at least two scheduled payments on the loan or lease and be current on the payments, as well as pay the amount over the $7,500 negative-equity threshold. The value of the vehicle will be determined by the dealer, who will be allowed to re-sell the vehicle, Hyundai said. Returning the car shouldn’t have a negative impact on the customer’s credit, the automaker said.

2009 North American Car and Truck of the Year -- the short list

Contenders have been announced for the 2009 North American Car of the Year, along with the 2009 North American Truck of the Year. To be eligible, vehicles have to be completely new or represent a redesign for the model year. This list and the final accolades are determined by a panel of automotive journalists. The winners will be announced Jan. 11 at the 2009 Detroit Auto Show. Let’s check out the car category hopefuls first.

Flying the home flag is the Ford Flex SUV/crossover. As its name suggests, the interior offers plenty of scope for various combinations of passengers and cargo. It’s comfortable, practical and drives well. Plus, with the Scion xB, Nissan Cube and Kia Soul coming from the East, the time of the box is nigh. The Flex is flung by a 262-horsepower 3.5-liter V-6; it comes with front-wheel drive or all-wheel drive; and starts at $28,295.

Fresh from winning the 2009 Green Car of the Year is Volkswagen’s Jetta TDI with its Clean Diesel technology. If ever there was a car for the times, this could be it. This sedan (or wagon) is compact yet sturdy, thrifty yet nifty, and there are no pesky hybrid-related batteries to worry about at the end of the car’s life. Emissions-wise, it gets a clean enough bill of health to be legal in all 50 states. Fuel consumption is rated at 30 mpg in the city and 41 mpg on the highway, and it starts at $21,990.

More contenders after the jump...

Hyundai declares war on Nissan for the cheapest car

Take that, $9,990 Nissan Versa 1.6. Hyundai has made its 2009 Accent the cheapest new car on sale in America by lopping $1,100 from its MSRP, so the numbers on the screen now read $9,970. This price applies to the three-door GS model with a five-speed manual transmission.

For that kind of money, we’re still talking about a 110-horsepower, 1.6-liter engine, 27/33 mpg (city/highway), power steering and a full complement of airbags. Hyundai also has a good warranty, and serial surveyor J.D. Power & Associates declared the Accent the most dependable subcompact in its 2008 Vehicle Dependability Study.

Just a little small print on the Accent: Freight charges are an extra $695, there’s no radio as standard, plus -- of particular importance to Southern California residents -- air conditioning is an additional $1,600. Oh, and ABS brakes aren’t even on the options list for the GS. The Nissan Versa also requires $695 for freight and has a similarly sparse standard equipment list (“simplified content” is Nissan’s euphemism) -- no radio or A/C. And the Versa offers an option for ABS but not for an auto gearbox.

Still, competition and free-market forces, it’s what America’s all about.

-- Colin Ryan

Photo: Hyundai

L.A. Auto Show: Hyundai Genesis coupe -- Mo' muscle, less cash

If you want to buy a 300-horsepower, rear-wheel-drive performance car in the mid-$20,000 range today, you basically have one choice, the Ford Mustang GT (a V-8 equipped Dodge Challenger hovers near $30,000).

That's all going to change in the next few months, starting in February when the 300-horsepower Chevy Camaro arrives with a sticker price of $22,995. By spring, Hyundai expects to have its Genesis coupe on the market, with the 310-horsepower version expected to be priced somewhere around $25,000.

Examples of the upcoming models are on hand at the show.

The refreshed Mustang GT, which should be priced near its current $27,000 base, looks like it's in for one tough drag race. Its power is up to 315 horses, from 300 for the previous generation, and it should weigh in at under 3,400 pounds.  Ford has retuned its suspension, but there's no independent rear suspension. Live-axle set-ups like Ford's generally compromise ride and handling.

L.A. Auto Show: Hyundai aims for 35 mpg fleet average by 2015

Hyundai today declared it's on a mission to become "the most fuel efficient automaker on the planet." Its goal is to beat the upcoming 2020 35-miles-per-gallon fleet fuel economy standard by five years, an early offering in this campaign is a hybrid Sonata sedan in 2010.

It claims its "Blue Drive" Hybrid system uses a smaller, lighter battery and performs better overall than current systems while costing less.

In 2009, it will offer more fuel-efficient versions of its Accent and Elantra sedans. The more efficient models also will be priced lower than other trim levels, Hyundai said.

The company said research continues on hydrogen fuel-cell systems as well, with plans to offer a fuel-cell vehicle in the Korean market in 2012.

Also in L.A. is a new crossover model, the "i-mode" with a 286-hp gasoline engine that also achives more than 30 mpg. A diesel version of the car was shown at the Geneva auto show. Hyundai says the U.S. version, gasoline-powered model will be on sale soon.

Hyundai recently introduced its first V-8 luxury sedan. They announced in their auto show news conference funding for Brazilian re-forestation they claim will offset the carbon emissions of the first year's run of the large Genesis sedans.

-- Peter Y. Hong

For photos of production cars from the show, click here.

For photos of concept cars from the show, click here.