By Earle Eldridge, USA TODAY

Comeback automaker Hyundai has scored big in yet another survey, this one measuring which vehicle brand provides the best value according to owners.

Hyundai, a budget brand from South Korea, came in second only to Toyota's (TM) luxury brand, Lexus, in the survey, released Monday. (List: 2004 Total Value Award Winners by category)

Strategic Vision, an automotive consulting firm, asked 74,000 owners to rate the overall value of their new cars and trucks based on price paid, affordability, expected reliability and resale value.

Lexus owners view their vehicles as a good value when comparing features, technology and pricing to other luxury brands, such as BMW and Mercedes-Benz, says Daniel Gorrell, vice president of automotive practice for Strategic Vision.

TOP 10 MODELS IN TOTAL VALUE
Model,Total value index, Median price

Toyota Prius 815 $24,500
Mini Cooper 813 $24,000
Lexus LS 430 799 $61,508
Mercedes C-Class Sedan 798 $35,000
Lexus IS 300 794 $32,500
Lexus RX 330 789 $40,000
Infiniti FX 784 $42,000
Cadillac XLR 784 $80,000
Lexus SC 430 784 $63,000
Hyundai Tiburon 783 $20,500
Industry 717 $27,000
Source: Strategic Vision 2004 vehicle experience study


Hyundai scored well because the brand's vehicle quality has improved, its models have a long warranty and they are affordable.

In the late '90s, Hyundai's image suffered as engines and electrical systems failed and rust showed up. Dealers began abandoning franchises. "Not very long ago, they were the butt of jokes," Gorrell says.

Hyundai began to turn around when it started to focus on quality as it redesigned products and backed the new vehicles with an aggressive, 10-year warranty, says Robert Cosmai, head of Hyundai Motor America.

Over the past year, Hyundai has scored well in several automotive studies, including the J.D. Power Initial Quality Study, which measures problems owners reported in the first 90 days. It also won recommended buy ratings from Consumer Reports magazine this year for the Santa Fe sport-utility vehicle, Sonata compact sedan and XG350 midsize sedan.

"It's pretty gratifying," Cosmai says. "Finally, it is resonating to the buying public that Hyundai provides tremendous value."

Except for luxury brands Cadillac and Volvo, nameplates from domestic automakers General Motors (GM), Ford (F) Motor and Chrysler Group (DCX) are missing from the top 10 best value list.

Big rebates and low-cost financing have made the Big Three's cars affordable, but buyers think the incentives merely price them where they should be, Gorrell says. "Incentives are not equating with value for the domestics."

He says the domestic brands need a "product renaissance" similar to Hyundai's. "Then they will have to rebuild the trust they have lost. This will be tough."

Besides Lexus, the Toyota brand scored well with its trucks but not as well with its cars. Much of the problems with Camry and Corolla are that they are older designs that lack features found in newer models, Gorrell says.

Even so, Toyota's Prius hybrid scored as the best value vehicle overall. And Toyota's new youth-oriented brand, Scion, tied with Mercedes-Benz as the No. 3 best valued band.


Source HERE

 

Korean car sales rise locally and globally

Total year-on-year sales of Korean automobiles increased last month for the first time in three months thanks to rising exports and the launching of new models.
Korean automakers said yesterday that they sold 377,947 units in total last month, up 20 percent from September 2003, and up 14 percent from August. Their exports jumped 31 percent compared to a year ago, while their domestic sales dropped 4 percent year on year. But the recent figures show that domestic sales increased by 8 percent compared to a month ago, leading market analysts to anticipate a recovery in domestic consumption.
Hyundai Motor Co., Korea's largest automaker which has a 51 percent share of the domestic market, sold 193,143 units last month, up 13 percent from a year earlier. Hyundai launched the new Sonata sedan last month, breathing life into domestic automobile sales. It sold 7,514 new Sonatas in Korea, making up just under 40 percent of Hyundai's total domestic sales, and the largest sales of a single model. "With the success of the new Sonata, the domestic market is expected to recover gradually this month," said an official at Hyundai Motor.
Kia Motors Corp., Hyundai's affiliate, sold 96,529 units last month, 17 percent more than a year ago. The New Sportage compact sport utility vehicle, launched in late August, helped boost sales. Kia sold 22,312 units in Korea, up 5 percent from a month ago, but down 11 percent from a year ago.
GM Daewoo Auto & Technology sold 69,862 cars in total last month, up 62 percent from a year ago. Its exports increased by 61 percent last month compared to a year ago, to reach 61,347 units ¯ mainly in North America and Europe.
Its domestic sales soared by 74 percent from a year ago to 8,515 units. GM Daewoo said the Matiz II mini car, whose sales increased by 119 percent last month compared to September 2003, helped domestic sales due to the expansion of benefits for mini cars and customers' continuous purchase of smaller cars amid the economic slump.
Ssangyong Motor sold 11,069 units last month, up 9 percent from a year ago, due to exports that soared 95 percent to 3,979 units. The company said its exports increased due to the success of its New Rexton sport utility vehicle in Western Europe.
Renault Samsung Motors Co. sold 7,344 units last month, up 18 percent from a month ago, but down 13 percent from a year ago.

source HERE

 

Toyota on Top by Jim Gorzelany (9/17/2004)

Record levels of incentives may have helped two of the Big Three increase sales last month, but those cash-back deals will likely backfire in the long-run, a new study warns. Motorists may like the deals Detroit is currently offering, but incentives don't necessarily translate into better value.

Toyota dominates the new Total Value Index, an annual look at which cars, trucks, and crossovers consumers perceive to give the best value for the dollar. In a stunning surprise, the long-troubled South Korean carmaker, Hyundai, rose to a strong second in the '04 TVI. Collectively, Detroit 's Big Three led in only five of 27 segments.

The report, by California market research firm Strategic Vision suggests that without hefty incentives, the Big Three could face even steeper losses in market share, as U.S. buyers come to increasingly consider import over domestic products.

"Fundamentally, the domestics aren't providing the value equation of the Japanese or Koreans," explained Dan Gorrell, chief analyst with Strategic Vision. "And they're pulled down by perceptions of less reliability, and lower resale values."

Toyota on top

American auto buyers are still more likely to look at one of the various General Motors brands than any other. But while 48 percent told the research firm they would definitely consider a GM product next time they buy, Toyota was close behind, with a 43-percent consideration rate. And Honda tied Ford, both at 33 percent. Chrysler came in with a 23-percent consideration rate, just ahead of Nisan, at 21 percent.

Perhaps more significant was the way the Asian brands led in various product segments. Toyota's little Prius hybrid nabbed the compact car category, while Toyota also was the most valued car in the medium and large SUV segments - categories Detroit long dominated. The automaker's high-line Lexus brand led in the near-luxury SUV and luxury SUV categories, its Lexus LS430 garnering honors as the top luxury car. And the SC430 tied with Cadillac's new XLR as most valued convertible priced over $30,000.

The XLR was one of only a handful of vehicles Detroit scored with. Others included the Mercury Marauder, chosen as top large car; Ford F-150, the favored full-size pickup; the Dodge Ram 2500/3500, the top heavy-duty pickup; and the Chevrolet Monte Carlo, which tied with the Honda Accord Coupe as top mid-size specialty car.

"While incentives may move cars out of dealer showrooms, they don't necessarily mean greater value to new vehicle buyers," Gorrell emphasized. In fact, many consumers have come to see rebates and other cash-back deals as little more than a Detroit shell game. "People think they're just putting prices back to where they should have been in the first place," cautioned Gorrell.

As a result, "a big chunk of the market for the Big Three aren't committed buyers. They're only buying on price." That means there's little chance for Detroit to ease off on what are now record incentive levels, warned Gorrell, without facing the likelihood of a sharp drop in sales and market share.

Hyundai rising

Surprisingly, Hyundai led or tied in three of the 2004 TVI categories, including small SUV, where it scored with the best-rated Santa Fe. It wasn't all that long ago, Gorrell noted, that Hyundai was at the bottom of the pack in terms of perceived value, its quality problems more than offsetting the rock-bottom price of its products.

Three things are now working in Hyundai's advantage, according to Gorrell: low prices, the automaker's ten-year warranty, and product that has been surprising and delighting customers.

"Hyundai is on a roll," said Gorrell. "The great product execution is resonating with buyers." But he cautioned that perception often lags reality. "It takes a long time to get that news out, so the brand is still sitting out there with low levels of consideration… because of residual concerns" about Hyundai's past quality problems.

Unlike traditional quality studies, which focus on things gone wrong with a vehicle, the Total Value Index is designed to measure customer perceptions about a product's inherent worth. The study includes not only quality issues but everything from the buying experience to the anticipated trade-in.

Owners who participated in the study had at least 90 days experience in 2004 model-year vehicles purchased between October 2003 and March 2004.

"What you get for your money," said Dr. Darrel Edwards, Strategic Vision president, "is vital in the value equation. A cheap price for a vehicle that doesn't stir the buyer's internal values will never be more than a cheap vehicle. One with strong perceived quality that scores well on the value factors will make a buyer feel like a real winner who made a smart choice."


2004 TOTAL VALUE INDEX WINNERS BY CATEGORY

Small Car
Hyundai Elantra*
780

Compact Car
Toyota Prius
815

Mid-Size Car
Hyundai XG 350 / Acura TSX
779/778 (tie)

Larger Car
Mercury Marauder*
720

Near-Luxury Car
Mercedes Benz C-Class
798

Luxury Car
Lexus LS 430
799

Small Specialty (<$25,000)
MINI Cooper*
813

Small Specialty (>$25,000)
Mercedes-Benz C-Class Coupe
779

Mid-Specialty Car
Honda Accord Coupe* / Chevrolet Monte Carlo
755/754 (tie)

Convertible (<$30,000)
Volkswagen New Beetle Convertible
735

Convertible (>$30,000)
Cadillac XLR 784 / Lexus SC430
784 (tie)

Minivan
Kia Sedona
731

Small SUV
Hyundai Santa Fe
752

Medium SUV
Toyota 4Runner
747

Large SUV
Toyota Sequoia*
711

Near Luxury SUV
Lexus RX 330*
789

Luxury SUV
Lexus GX 470
746

Compact Pickup
Nissan Frontier
699

Full-Size Pickup
Ford F-150
723

Heavy Duty Pickup
Dodge Ram 2500/3500*
722

source HERE

 

That's amazing!

 

So what else is new?................I've been telling you guys for months that Hyundai and Kia make some of the best products out there now for the money ( though I would still take Subaru for All-Wheel-Drive) .
I strongly disagree, though, that the Mercedes C-Class belongs in the top 10. The Mercedes image is riding on its past....today, in fact, it makes some of the most unreliable products on the road, and in my opinion, is ripping off the consumer. M-B spends so much money and effort putting absurd horsepower and torque levels into the AMG cars that there appears to be nothing left over for quality control.

 

I bet those 74,000 who they surveyed are employees at Hyundai.

I think that survey ranking Hyundai #2 is B.S. That Korean car company relies on Japanese and American auto parts to build their cars. Hyundai has a mere 1.2% of the U.A. auto market.

-Donald

 

Interesting...though I can't see myself buying one.

 

honestly, how can you trust a survey that poses the MB C class on their top value list.... the C class is an unreliable piece of crap.... i honestly think the BMW 3 series is by far the better near luxury car.... and especially in terms of value.. and although some may disagree.... i think you have to consider the I35(yea i know infiniti is considering phasing it out), ES330, TL, or even the new volvos....

 

Kudos to Hyundai for improving so much!

 

Wow, considering all the pings, rattles, creaks, knocks, and ka-booms it is hard to get there on a survey.

So they are still basically overcharging for a vehicle that rides like a cardboard box and feels like one too. Plastic interior, hollow doors, just.................... uhg.

 

This is reminescent of how the Japanese cars were viewed in the late 60's here. When pops brought home a '68 Corona, it was not the object or ravish praise as he may have received if he had chosen a Chrysler, Ford...blah-blah.

I think technologically speaking, Korean manufacturing is growing by leaps. They are a highly motivated nation with resources aimed at developing many areas. Great for them as this continues to promote strong competition in the market place.

Is it Daewoo...they are like Mitsubishi...an absolutely huge company with interest in a wide range of services and products.

 

Wow!! I'm shocked!!

I guess I can't talk smack about my friends Hyundai anymore. Actually, she says her car has been running fine. She had that car for almost 2 years now witjout ANY problems and she drives an elantra.