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Behind the Wheel: Hyundai Entourage and Kia Sedona: American Pie From a Korean Kitchen

arnold — Thu, 01 Jan 1970 04:59:59 +0000

The Entourage is virtually identical to the Sedona. The vans are also similar in shape, dimensions, powertrains, performance and features to models from Honda, Toyota and Chrysler.

DETROIT

MY family has a favorite recipe for sugar cookies, which we bake for nearly every holiday. We decorate the round shapes with orange frosting for Halloween, colorful sprinkles at Christmas and red sugar on Valentine’s Day.

This is not unlike the auto industry’s approach to the minivan. You’ll find the same basic recipe no matter which carmaker’s kitchen is doing the baking, and the shapes are formed with cookie cutters that vary only slightly.

The minivans most popular among Americans differ mainly in their decorations, and companies that stray from the family-tested formula have usually paid the price for being different: think of the wedge-shape Dustbusters from General Motors; Toyota’s Jetsons-style jellybean, the Previa; and most recently, the quirky Nissan Quest.

So it’s no wonder that the master of automotive knockoffs, Hyundai Motor of South Korea, took no chances with its latest vans. It stuck to the recipe – no substitutions.

Hyundai Motor is the parent of both the Hyundai and Kia brands. The first Korean minivan in the American market was the original Kia Sedona, introduced in the summer of 2001 as a 2002 model. The Sedona proved popular as a lower-price alternative to vans from leading American and Japanese companies, and it received a number of awards based on customer feedback, particularly for its overall value.

For the 2006 model year, the Sedona was redesigned and built on a new, larger platform. This revamped Sedona also served as the basis for Hyundai’s first American minivan, the Entourage, introduced as a 2007 model last spring. Both are imported from South Korea.

The Entourage was nearly stillborn. A year and a half ago, Hyundai abruptly canceled plans to make its own version of the Sedona, deciding to develop a car-based crossover utility wagon instead. But immediately after the decision was announced, gasoline prices spiked and the company watched as buyers of full-size S.U.V.’s switched to minivans.

Since the development of the Entourage was nearly complete, Hyundai quickly reversed itself and resurrected its van plans.

How long the Entourage will remain in Hyundai’s line is unclear. In the future, Hyundai officials say the company will focus more on car-based crossovers, like the Veracruz to be introduced next year, though the Entourage could stay in production alongside the new crossovers.

In the long run, a big challenge for both Hyundai and Kia will be making good on their promises to build distinctly different vehicles on shared platforms, instead of simply affixing different grilles and badges.

For now, the Entourage is identical to the Sedona, except for cosmetics and the packaging of a few features. The vans are also similar in shape, dimensions, powertrains, performance and features to models from Honda, Toyota and Chrysler.

While neither strays from the accepted formula, the Sedona and Entourage have clean, classy styling with sculptured shapes and creases that add a crisp touch. Differences between the two do not extend much beyond the grilles and badges.

Inside, the look is equally clean and contemporary. Controls and gauges are laid out logically, in a style typical of most minivans. The new Sedona is roomier than the model it replaces, thanks to significant increases in wheelbase, overall length and width.

Kia plans to add a shorter five-seat version by year-end, but for now, the Sedona and Entourage come with seats for seven – two captain’s chairs in each of the first two rows and a third-row bench. The second-row seats flip and fold for access to the third row. The split rear bench folds into a well in the floor, a feature pioneered by Honda.

The various rows have their own climate controls, and the windows in the rear doors power open and closed. Power sliding doors and a power liftgate are options; they all open and close with the push of a button on the dashboard or the key fob.

The Sedona and Entourage have 14 cup holders and a lot of the nooks, crannies and storage units that van customers expect.

Like most minivans, these are driven by the front wheels, and they are powered by the same 3.8-liter V-6 engine with dual overhead camshafts, paired with a modern five-speed automatic transmission. The engine puts out 250 horsepower, compared with the Odyssey’s 244 and the Sienna’s class-leading 266. The Sedona and Entourage also lead in torque, with 253 pound-feet, though they do not feel as lively as their Honda and Toyota rivals.

The federal economy rating – 18 miles a gallon in town and 25 on the highway – is on par in this class.

The ride is quite comfortable, and the handling poses no surprises. In their native habitat, the school parking lot, the vans feel nimble enough.

The Sedona and Entourage match the Odyssey in offering a full range of standard safety features, including antilock brakes, side air bags for the front seats, side curtain bags for head protection in all three rows, traction control and stability control. In addition, the Sedona received top ratings in government crash tests.

Both vans also offer the latest minivan features, either as standard equipment or options: DVD player with wireless headphones, premium audio system with MP3 capability, HomeLink transmitter for opening gates and garage doors, adjustable pedals, seat heaters and a backup warning system. Still, the Sedona and Entourage fall short of their competitors by not offering a satellite navigation system.

In keeping with the approach that has bought them success, Kia and Hyundai charge less than their competitors. They also offer some of the industry’s longest warranties. The Sedona that I tested, a base LX, was well equipped even without options. Its list price, including delivery charges, was $23,895. A fancier version, the EX, is $27,495. The Entourage, which comes as the base GLS, midlevel SE and top-of-the-line Limited, starts at $24,995.

A fully equipped Sedona or Entourage just breaks $30,000, whereas the best-dressed Odysseys and Siennas can climb to $40,000.

What the buyer doesn’t get with the Kia or Hyundai are the solid-gold names of Honda and Toyota, though the Korean brands have scored well in recent quality surveys. Nor will you find the same craftsmanship in the cabin or the superb refinement of things like the seat mechanisms. The powertrain is not as buttery smooth.

Still, for the budget-minded, the Kia and Hyundai minivans hit close to the bull’s eye. A shopper may well conclude that the price, which is likely to be a couple of thousand dollars less than the class leaders, is reason enough to accept some rather small sacrifices in refinement.

Behind the Wheel: Hyundai Entourage and Kia Sedona: American Pie From a Korean Kitchen

arnold — Thu, 01 Jan 1970 04:59:59 +0000

The Entourage is virtually identical to the Sedona. The vans are also similar in shape, dimensions, powertrains, performance and features to models from Honda, Toyota and Chrysler.

DETROIT

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Sedona can be equipped with a power liftgate and power sliding doors.

So it’s no wonder that the master of automotive knockoffs, Hyundai Motor of South Korea, took no chances with its latest vans. It stuck to the recipe – no substitutions.

Since the development of the Entourage was nearly complete, Hyundai quickly reversed itself and resurrected its van plans.

The Sedona and Entourage have 14 cup holders and a lot of the nooks, crannies and storage units that van customers expect.

The federal economy rating – 18 miles a gallon in town and 25 on the highway – is on par in this class.

The ride is quite comfortable, and the handling poses no surprises. In their native habitat, the school parking lot, the vans feel nimble enough.

A fully equipped Sedona or Entourage just breaks $30,000, whereas the best-dressed Odysseys and Siennas can climb to $40,000.

Behind the Wheel: 2006 Hyundai Azera: An Avalon Knockoff Comes Knocking

arnold — Thu, 01 Jan 1970 04:59:59 +0000

For now, Hyundai’s competitors can breathe a sigh of relief that the Azera isn’t the world-beater that some of us expected it to be. But they’d better make it a brief sigh.

SOME 14 months ago, at the 2005 New York auto show, Hyundai summoned dealers, journalists and Wall Street analysts to a reception a couple of blocks from the Jacob K. Javits Convention Center. The main event was the unveiling of a new “entry luxury” car, the Azera.

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Interior looks plusher than it feels.

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The entertainment, appropriately, was by cast members of the Broadway musical “Movin’ Out.” The Azera prototype impressed many skeptics in the crowd while demonstrating that Hyundai was serious about moving out, into new market segments, and up, into classier models.

The Azera seemed to hold great promise with its handsome, sweeping styling; its roomy cabin; its long list of safety features; its array of amenities; and its price, which Hyundai promised would undercut competitors like the Toyota Avalon.

The Azera finally went on sale this year as a 2006 model. Hopes were high, given that most recent Hyundais have handily exceeded expectations, and that the company had set big goals ? 30,000 to 40,000 annual sales in the United States ? for the car.

Yet after my weeklong test drive, I concluded that while the Azera is a credible lower-price alternative to other cars in its class, it is not the slam-dunk performer I had come to expect. The big sedan falls short of the class leaders in several measures, including ride, handling and mileage.

On the other hand, those who have bought the car seem thrilled. Owners scored the Azera as the single highest-ranking car ? in any class or category ? in the annual Vehicle Satisfaction Awards from AutoPacific, an industry consulting firm. And last week, when J. D. Power released the results of its 2006 Initial Quality Survey, Hyundai was the highest-ranked mass-market automaker on the list, taking third place (behind only the Porsche and Lexus luxury brands) and beating out the highly regarded Toyota and Honda lines.

Like many of today’s model names, Azera is a made-up word with no meaning. Hyundai executives say they gave their flagship sedan a new name because the car was so different from the XG series that it replaced. Probably, they also wanted to throw off the baggage of the XG, a large car introduced as a 2001 model. Despite engine upgrades (reflected in a 2002 name change from XG300 to XG350), the car was not a success. Its styling was generic to the point of being stodgy, and its driving dynamics fell hard on the fuddy-duddy side of the excitement scale.

The Azera aims higher. It is not only directed squarely at the Avalon, it seems to copy the biggest Toyota car in several ways. Its exterior lines are soft and flowing. Its cabin looks stately, comfortable and tastefully luxurious.

Built in Korea on a modified version of the chassis used for the midsize Sonata sedan, the Azera is longer and wider than the XG, though a bit shorter than its primary competitors. Still, the interior is capacious; Hyundai boasts that the Azera has a larger cabin than the costly BMW 7 Series or Mercedes-Benz S-Class.

The Azera beats the Avalon on trunk space, thanks partly to its high-set rear end, reminiscent of the 7 Series. If you like the look of BMW’s controversial rumps, you’ll probably think the Azera is handsome enough.

Inside, my Azera Limited test car had faux-wood trim and real leather upholstery. While the quality of the materials was generally good, if not great, the interior looked better than it felt. Plastics were harder than the Avalon’s soft-touch finishes. The foam in the seat cushion felt hard.

Still, trim pieces fit together well and the hinged compartments are damped for smooth, Lexuslike operation. In another display of attention to detail, the Azera’s trunk is nicely finished, using neatly covered gooseneck hinges like those on more expensive cars. The Azera comes only as a five-passenger model, with two individual seats in front. The Azera is front-wheel drive, though Hyundai officials say they are considering an all-wheel-drive version.

All Azeras have a 3.8-liter V-6, which at 263 horsepower is Hyundai’s most powerful engine yet, paired with a five-speed automatic transmission that can be shifted in manual mode. The powertrain, a huge improvement over the XG’s, takes the Azera from 0 to 60 m.p.h. pretty quickly ? in 6.1 seconds, according to Car and Driver magazine.

The fuel economy of Korean cars tends to lag that of the Japanese and, often, the Americans. The Azera’s estimated mileage ? 19 m.p.g. in town, 28 on the highway ? is identical to that of the Buick Lucerne V-6, though a bit lower than the Avalon’s and Ford Five Hundred’s.

The Azera’s weakest aspect is its ride and handling. The light, vague steering conveys little road feel. The suspension is soft, more like a bygone Buick’s than a modern-day sport sedan’s.

Where the Azera trumps its competitors is on its warranty ? its powertrain coverage of 10 years or 100,000 miles compares with three years/36,000 miles for the Ford and Toyota, and four years/50,000 miles for the Lucerne. The Hyundai also stands out for its safety features.

Standard on the Azera are four-wheel antilock brakes, traction control, stability control and eight standard air bags (two in front, two on the side in front and two on the side for the back seat, plus two side-protection curtains). The Avalon makes you pay extra for a package of safety features; the Five Hundred doesn’t even offer stability control.

Hyundai is adding an XM Satellite Radio option this year; a navigation system is a year or two away.

The entry-level SE is well equipped at $24,995. Its only options are a power sunroof, upgraded Infinity sound system and heated front seats. That model looks like a good deal not only against the Avalon (base prices from $27,205 to $34,395) and Maxima ($28,505 to $30,755), but also the high-end Toyota Camry XLE V-6, at $26,385.

The Azera Limited has fancier wheels, electroluminescent gauges and heated leather seats. It starts at $27,495. My test car had the $80 sunroof wind deflector and the $2,500 “ultimate” package of luxury add-ons for a total of $29,415.

It is possible to push the Azera’s price over $30,000, previously unexplored territory for Hyundai, and at that price a buyer might seriously consider the more proven Avalon or the promising new Lucerne.

For now, Hyundai’s competitors can breathe a sigh of relief that the Azera isn’t the world-beater that some of us expected it to be. But they’d better make it a brief sigh. The Azera’s first buyers seem quite satisfed, and Hyundai’s recent history suggests that it will fix the car’s deficiencies in a hurry.

INSIDE TRACK: Hyundai scores, but not with a slam-dunk.

Chairman of Hyundai Is Charged With Theft

arnold — Thu, 01 Jan 1970 04:59:59 +0000

SEOUL, South Korea, May 16 ? The chairman of the Hyundai Motor Company, South Korea’s largest carmaker and a symbol of the nation’s economic rise, was charged Tuesday with embezzling more than $100 million and causing far larger financial damage to companies under his control.

The chairman, Chung Mong Koo, 68, was charged with misappropriating 130 billion won ($136 million) to set up a slush fund that was apparently used to buy political influence, Chae Dong Wook, a senior prosecutor at the Supreme Prosecutors’ Office, told reporters. He said Mr. Chung was also charged with breach of trust, accused of causing more than 400 billion won ($429 million) in damages to companies in the Hyundai group.

The charges have drawn renewed attention to the economic power and political influence of South Korea’s mighty industrial groups, or chaebol. Prosecutors cast the arrest as proof of their intention to crack down on the groups, which dominate South Korea’s economy.

But many also worry that the arrest and a separate investigation earlier this year into the largest industrial group, Samsung, which includes Samsung Electronics, could hobble South Korea’s top companies at a time when the nation is on the threshold of joining the world’s wealthiest economies.

A company official said Hyundai could “neither deny nor admit the charges” during the investigation. But the spokesman, Oles Gadacz, said Mr. Chung would probably fight the charges in court, raising the possibility of a drawn-out legal battle.

Mr. Chung is credited with building Hyundai into the world’s seventh-largest automaker and raising its image by emphasizing quality. He is known as a charismatic chief who held firm personal control over decision-making in the Hyundai group, which also includes Kia Motors.

Mr. Gadacz said Mr. Chung’s detention since his April 28 arrest had created a leadership vacuum at a time when the company was trying to join the top tier of global car companies.

Mr. Chung is the most influential South Korean businessman to face trial on corruption charges in recent memory. If convicted, he could serve up to life in prison. But experts have said that was unlikely given Mr. Chung’s age and the courts’ record of leniency toward executives convicted of economic crimes.

Analysts said a crucial issue was whether Mr. Chung would be released on parole soon and allowed to resume his leadership and his family’s tight control of Hyundai Motor, or whether he would hand over the corporate helm to professional managers and retire.

Prosecutors said additional charges may also be filed against other executives at Hyundai group companies, including Mr. Chung’s son and heir apparent, Chung Eui Sun, 35, currently president of Kia Motors. Prosecutors continued to investigate whether slush fund money was spent to bribe government officials or politicians to win favors like construction permits.

The investigation took a deadly turn on Monday when a former Seoul city official who had been questioned by prosecutors was found dead in a lake north of Seoul in what appeared to be a suicide.

In the Chung case, prosecutors said the charge of breach of trust reflects what they say were efforts by him to enrich himself and his son by forcing Hyundai group companies to invest in other subsidiaries or sell shares below market value.

In the past, Mr. Chung has denied wrongdoing. But after prosecutors raided Hyundai affiliates in late March, the father and son said they would donate $1 billion to charity in a gesture to burnish Hyundai’s tainted corporate image.

Hyundai Motor’s Net Off 38%; Scandal and Currency Moves Cited

arnold — Thu, 01 Jan 1970 04:59:59 +0000

SEOUL, South Korea, Thursday, May 4 (Bloomberg News) ? The Hyundai Motor Company, whose chairman, Chung Mong Koo, was arrested last week in a bribery investigation, reported on Thursday that first-quarter net income fell a greater-than-expected 38 percent because gains in the won eroded the value of its overseas sales.

Net income declined to 318.8 billion won ($340 million) compared with 509.8 billion won a year earlier, the company reported. Operating profit rose 4 percent, to 335.3 billion won, from 322.7 billion won while sales climbed 11 percent, to 6.86 trillion won, from 6.17 trillion won.

Declining earnings and the investigation of Mr. Chung, 68, and his son, Chung Eui Sun, who is chief executive of the Kia Motors Corporation, have wiped more than $8 billion off the market value of companies in their industrial group this year.

Profit may decline this quarter as Hyundai and Kia reported double-digit declines in unit sales last month from March and the won is trading at its highest in eight and a half years, eroding overseas earnings.

“It’s likely to get worse before it gets better, because of the Hyundai Motor chairman’s arrest,” said Suh Sung Moon, an analyst at Korea Investment and Securities in Seoul. “Operations are already being hampered by his absence, and it may last for some time.”

Mr. Chung was arrested last week and accused of misusing 300 billion won of company money and embezzling 100 billion won to bribe government and banking officials, according to a ruling at the Seoul Central District Court. Mr. Chung denied most of the allegations, his lawyer Kim Jae Jin, said.

The investigation is hurting overseas expansion plans that the group is counting on to drive growth.

Hyundai Chairman Accused of Embezzling

arnold — Thu, 01 Jan 1970 04:59:59 +0000

Prosecutors said Chung Mong Koo had set up a $105 million slush fund to bribe officials and politicians.

Prosecutors said the chairman, Chung Mong Koo, 68, who led the company’s global expansion and raised its image by emphasizing quality, had set up a $105 million slush fund to bribe government officials and politicians. He is also facing a charge of breach of trust, accused of causing more than $315 million in damage to the company through his misconduct.

Prosecutors portrayed the arrest as a testament to the commitment of regulators to crack down on corruption in the country’s family-controlled business groups.

In a late-night broadcast live on national television, Mr. Chung, flanked by prosecutors, emerged from the Supreme Prosecutors’ Office to be taken to a jail near Seoul.

Facing a crowd of television crews and photographers, he bowed slightly but did not say a word. He was arrested immediately after the Seoul Central District Court granted the arrest warrant Friday evening.

“The accused keeps denying the charges and, therefore, there is the possibility of the accused trying to go into hiding or destroying evidence,” a senior district court judge, Lee Jong Seok, told reporters.

The arrest capped a monthlong investigation into Hyundai and companies affiliated with the family-controlled conglomerate, South Korea’s second-largest after Samsung. It focused renewed attention on the power of the country’s conglomerates, known as chaebol, and their ties with government officials and politicians.

In Hyundai’s case, prosecutors have said that senior executives used the slush fund to bribe government officials and politicians. They also contend that Mr. Chung acted illegally to transfer assets to his son, Chung Eui Sun, 35, president of Kia Motors, which is part of Hyundai.

The battle to arrest Mr. Chung was closely monitored by industry analysts and ordinary South Koreans as a power struggle between state regulators and the conglomerate.

During the hearing, Mr. Chung’s lawyers said his arrest would hurt the South Korean auto industry by depriving Hyundai of a charismatic leader credited with building the company and its affiliate, Kia Motors, into a global competitor.

But prosecutors said his incarceration would send a strong warning against corruption.

As the investigation unfolded in the last month, the Chungs apologized to the public and announced that they would donate $1.1 billion in personal assets to charity.

The move came after a similar one by Samsung. Last year, audiotapes emerged revealing Samsung executives giving illegal donations during the 1997 presidential election. The conglomerate’s chairman, Lee Kun Hee, left South Korea for the United States for several months until he was cleared of wrongdoing. Immediately after Mr. Lee returned here and asked South Koreans for forgiveness, Samsung announced in February that it would donate $840 million to charity.

Like the Hyundai chairman, Lee Kun Hee was also under investigation for illegally trying to transfer the conglomerate’s control to his son, Lee Jae Yong.

Hyundai offers $1 billion apology

arnold — Thu, 01 Jan 1970 04:59:59 +0000

In an attempt to offset some of the damage being done to his company by the current bribery scandal, Hyundai CEO Chung Mong-koo and his son are offering around $1 billion worth of personal shares in Hyundai’s Glovis logistics subsidiary to various charities.

The scandal engulfing the South Korean carmaker alleges that the company embezzled money from its associates which was then used to garner favors from government officials regarding construction approvals and other lucrative permits.

Chung Mong-koo and his son Chung Eui-sun have already been extensively questioned by South Korean Prosecutors in regards to the allegations, and though both sides refuse to disclose details, rumors currently suggest that both are being treated as suspects rather than witnesses.

Should either or both of the men be jailed it would cause a great deal of damage to a company known to be micromanaged by its CEO. It is not a fear likely to be dampened by any amount of charitable donations.

Hyundai breaks ground on new plant in Beijing

arnold — Thu, 01 Jan 1970 04:59:59 +0000

South Korean car company Hyundai has begun work on a one billion dollar manufacturing plant in Beijing, its second in the region.

When mass production begins in April 2008, Hyundai says the new plant, which also features an R&D center, will double its production capacity in the area giving it a solid base from which to challenge China’s automotive leaders and with which to rapidly further expand its local operations.

Beijing secretary Liu Woo Chi observed: “Over the past three years Beijing Hyundai has proven itself not only to be the most exemplary Korean-Chinese joint venture company but the showcase joint venture company in China. With this ground breaking ceremony, it is my hope that Beijing Hyundai grows to become the leader of the Chinese auto industry.”

Another Hyundai Official Swept Up in Inquiry

arnold — Thu, 01 Jan 1970 04:59:59 +0000

The South Korean investigation into the carmaker’s cash-for-favors scheme extended to the company’s second-highest ranking executive.

“We are questioning Hyundai Motor vice chairman Kim,” a prosecutor at the Supreme Prosecutors’ Office in Seoul, Chae Dong Wook, said, declining to say if the executive would be detained after questioning.

Mr. Kim, responsible for Hyundai’s finances and an aide to the carmaker’s chairman, Chung Mong Koo, was not available to comment.

The investigation into Hyundai’s bribery scandal has led to the arrests of three people including a lobbyist, the head of an accounting firm and chief of the carmaker’s logistics affiliate. Mr. Chung and his son, Chung Eui Sun, who is president of the Kia Motors Corporation, may be questioned this week.

Mr. Kim, 56, was convicted and given a suspended jail sentence in a 2003 investigation of Hyundai Motor’s dispensation of bribes to politicians during South Korea’s 2002 presidential election. He was later given a presidential pardon.

On Monday, a South Korean court rejected warrants for two former bank executives, saying there was insufficient evidence to accuse the two of receiving bribes from Hyundai.

Prosecutors had sought the arrests of the former vice governor of the Korea Development Bank, Park Sang Bae, and the former head of the KDB Capital Corporation, Lee Seong Geun. Mr. Park was accused of receiving 1.45 billion won ($1.52 million) in bribes and Mr. Lee 150 million won, according to the warrant request filed with the Seoul Central District Court.

The two former bank executives will be released, prosecutors said, but will remain under investigation.

About 10 Hyundai Motor executives have been barred from traveling abroad.

Prosecutors indicted Kim Jae Rok, a lobbyist and former Kia director, on April 10 on charges of using corporate funds to lobby government officials to approve buildings and factories. Lee Ju Eun, the president of Hyundai Motor’s logistics affiliate Glovis, was arrested on March 26 and charged with embezzlement. He is awaiting trial.