During a speech at the Management Briefing Seminars in Traverse City, MI on Wednesday, Hyundai America CEO John Krafcik became the first executive to commit to a 50-mile-per-gallon fleet average and plans to achieve that goal by 2025. That goes well beyond the 35.5 mpg already mandated under corporate average fuel economy rules for 2016.

Hyundai rose to the top of the CAFE rankings in the U.S. in 2008 and scored a 30.9 mpg average in 2009. Krafcik used the 2011 Sonata as an example of what to expect from Hyundai going forward. When it was redesigned this year, Hyundai opted to forgo the V6 engines available in its competitors and used only four-cylinder engines. The standard Sonata is rated at 35 mpg on the highway and the hybrid coming this fall may hit 40 mpg.

To get to 50 mpg in 2025, Krafcik plans to ramp up hybrid availability with as much as 20 percent of the lineup being partially electrified. Another five percent will be either full battery or fuel cell electric vehicles.

[Source: Hyundai]


PRESS RELEASE

MOST FUEL-EFFICIENT AUTOMAKER IN AMERICA, HYUNDAI, SAYS LINEUP TO AVERAGE MINIMUM 50 MPG BY 2025

• Since 2008 Hyundai has been the most fuel-efficient manufacturer in the U.S.
• Since becoming the leader in fuel economy, Hyundai market share is up 50 percent
• Hyundai's next goal: Average at least 50 mpg by 2025 through innovative Blue Drive™ technologies
TRAVERSE CITY, Mich., 08/04/2010

Hyundai Motor America, the leading fuel economy auto manufacturer in the U.S., announced plans to maintain its leadership and achieve a corporate average fuel economy (CAFE) rating of at least 50 miles per gallon (mpg) by 2025 for its lineup of passenger cars and light duty trucks.

Current National Highway Traffic Safety Administration (NHTSA) regulations require automakers to achieve a CAFE rating of 35.5 mpg by 2016. Before those rules were enacted last year, Hyundai had already announced its own plan to reach 35 mpg by 2015. Hyundai's announcement of this longer-term goal of delivering a minimum 50 mpg CAFE rating by 2025 is consistent with its philosophy of setting stretch objectives that align its resources, challenge its team members, and delight consumers and society.

"We're committed to setting the pace in this industry on fuel economy, and we're inspired by the possibilities that our advanced Blue Drive technologies afford," said John Krafcik, Hyundai Motor America president and CEO. "Getting to 50 mpg and beyond seems like a huge leap, but by making this commitment and aligning our R&D initiatives now, we know we can get there."

Hyundai has shown that customers will flock to high-quality, stylish products offering high fuel economy. The game-changing all-new 2011 Hyundai Sonata is the first mid-size family sedan to offer only 4-cylinder engines. Sonata achieves an EPA highway rating of 35 mpg, yet leads competitors in power output through the use of advanced gasoline direct injection (GDI). Sonata's sales were up 48 percent in the first half of 2010, while its transaction prices and residual values now exceed those of most mid-size competitors. The Sonata and its 2.4-liter Theta II GDI engine are built at Hyundai Motor Manufacturing Alabama.

"This is our simple formula for success in the automobile industry," said Krafcik. "Rather than fighting fuel economy regulation, we encourage our Hyundai engineers to deliver more fuel efficiency, faster, accelerating the benefits to our customers, society, and the planet."

Since becoming the fuel economy leader in the 2008 model year, Hyundai Motor America market share is up more than 50 percent.

A Global Research and Development Effort

Hyundai's plan to achieve an average of 50 mpg or better encompasses a full line of products, from small cars to larger family haulers. It leverages Hyundai's global Blue Drive strategy, aligning R&D resources at its engineering centers in California, Michigan, Korea, India and Germany to develop more fuel-efficient vehicle technologies. Key enablers are improvements and innovation in powertrains including gasoline direct injection, turbocharging, electric hybrids, plug-in hybrids, light-weight materials and design, and more.

2011 Sonata Leads the Way

The 2011 Sonata, which went on sale earlier this year, features a 2.4-liter Theta II GDI 4-cylinder as its base engine, offering up to 200 horsepower and 35 miles per gallon on the highway. By offering only 4-cylinder engines and through other weight optimization efforts, Hyundai engineers were able to reduce the weight of the Sonata by 130 pounds.

This fall, Hyundai will launch the 2.0T 4-cylinder turbo option for the 2011 Sonata and the company's first hybrid in the United States. The Sonata Hybrid features a 2.4-liter Theta II 4-cylinder gasoline engine mated to an electric motor-boosted 6-speed automatic transmission. The Sonata Hybrid incorporates an industry-first lithium polymer battery, which packs greater power density and stability into a smaller, more package-efficient space.

Sonata's Hybrid Blue Drive system eschews the typical continuously variable transmission for a more consumer-friendly step-shift 6-speed transmission, which makes the system more cost-effective and more readily adaptable to other future applications. Sonata exemplifies Hyundai's efforts to bring advanced power train technologies to the mainstream.

Fuel Economy Leadership Since 2008 Model Year

Hyundai achieved fuel economy leadership by topping the U.S. Environmental Protection Agency fuel economy report for the 2008 model year. The EPA 2009 Light-Duty Automotive Technology and Fuel Economy Trends Report indicates that Hyundai has the highest 2008 model year laboratory 55/45 fuel economy at 30.9 mpg. Hyundai passed all major manufacturers in combined passenger car and light duty truck fuel efficiency including traditional leaders like Honda and Toyota. The report demonstrates the effectiveness of Hyundai's value-driven fuel-efficiency strategy, which focuses on the intelligent application of cost-effective technologies.

Hyundai is poised to maintain its fuel-economy leadership as projected data for the 2009 model year shows Hyundai retaining its edge over the industry. Forecasts show a 2009 model-year fuel economy rating of 30.1 mpg for passenger cars and light duty trucks. Hyundai is also the only automaker to top 30 mpg in the 2009 projections.[1][1]

Environmental Protection Agency Fuel Economy Reports

Group


Fuel Economy (mpg)


MY 2008 EPA Lab 55/45*

Manufacturer**


Overall (Cars/Trucks)

Hyundai


30.9

Honda


30.1

Volkswagen


27.9

Toyota


29

Kia


28.8

Nissan


27.6

BMW


26.3

Ford


24.5

General Motors


24.4

Chrysler


24.2



* From EPA Table A-7 2009 Trends Report (Appendix A) http://www.epa.gov/otaq/cert/mpg/fetrends/420r09014-appx-a.pdf

**Includes ten highest-volume manufacturers. Based on sales projections for the ten highest volume manufacturers. EPA Light-Duty Automotive Technology, Carbon Dioxide and Fuel Economy Trends: 1975-2009 Report. Honda includes combined Honda and Acura brands. Hyundai excludes Kia brand.

HYUNDAI MOTOR AMERICA

Hyundai Motor America, headquartered in Fountain Valley, Calif., is a subsidiary of Hyundai Motor Co. of Korea. Hyundai vehicles are distributed throughout the United States by Hyundai Motor America and are sold and serviced through about 800 dealerships nationwide. All Hyundai vehicles sold in the U.S. are covered by the Hyundai Assurance program, which includes the 5-year/60,000-mile fully transferable new vehicle warranty, Hyundai's 10-year/100,000-mile powertrain warranty and 5-years of complimentary Roadside Assistance.