Toyota RAV4:

Kia Multi-S to Join U.S. Lineup as Kia Rondo

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Editor’s NOTE: The Multi-S was launched as the Kia Rondo late in 2006.
Small Minivan Explores Reaction at Best-Attended U.S. Auto Show
As the Chicago Auto Show has a reputation for having the highest attendance figures of all U.S. auto shows, what better place to test a possible new people mover? While this concept was first shown last September on Kia‘s stand at the 2005 Frankfurt auto show, Chicago marked its first North American appearance. AutoPacific and VehicleVoice contributors were on hand at both showings, and can promise that there were no real changes between Frankfurt and Chicago, aside from Kia showing a gasoline engine in the States and a diesel in Frankfurt.

Kia_07_UN_Multi-S_bl_f34.jpg

In Korea and Europe, where North American minivans are too large and the exception rather than the rule for family transportation, Kia sells a minivan smaller than the Sedona. The second-generation of this vehicle is being developed under the codename UN, and it is expected to join the U.S. lineup before the end of 2006. While the final verdict on the Kia’s U.S. nomenclature is not in, Multi-S is reportedly in the running.
The UN will be a more modern and fully featured than the example currently sold in international markets, making it more competitive in Europe as well as giving it a chance in the States. The concept dimensions indicate a vehicle slightly bigger than the Mazda5 and that the U.S. version is likely to get a four-cylinder gasoline engine mated to a five-speed automatic transmission.
Kia Motors America Vice President of Marketing Ian Beavis characterized Multi-S competition as “drawing from station wagons, vehicles like the Mazda5 and even small SUVs. The Multi-S did pretty well against the new Toyota RAV4 in research.”
Kia_07_UN_Multi-S_bl_r34.jpg


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Hyundai Santa Fe All New for 2007

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Believe it or not, one of the most anticipated new vehicles introduced at the 2006 North American Auto Show in Detroit is the 2007 Hyundai Santa Fe mid-size SUV. VehicleVoice (http://www.vehiclevoice.com) and AutoPacific (http://www.autopacific.com) are watching this introduction very, very closely because it will demonstrate the strength of Hyundai’s research and development process and ability to produce quality products at its new assembly plant in Alabama.
This it the second generation Santa Fe. The first Santa Fe surprised pundits when it turned out to be a darn good vehicle and actually won four of the five AutoPacific Vehicle Satisfaction Awards during its five years in production. The Santa Fe turned out to be a good value, good quality, highly warranted, if quirkily styled sport utlity vehicle what out-pointed products like the Ford Escape and Toyota Highlander in owner satisfaction.
Hyundai has high expectations for the new Santa Fe and hopes to fill half of its Montgomery, Alabama plant with Santa Fe volume. The other half of the capacity is devoted to the new Sonata sedan. Assuming quality is top-notch and Hyundai can maintain its value proposition and strong warranty coverage, the Santa Fe promises to be a winner.
The Hyundai press release for the Santa Fe is shown below.


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Crossovers… Media – Industry Forcing a Definition

We at VehicleVoice (http://www.vehiclevoice.com) and the VehicleVoice Blog-o-Rama (http:/.vehiclevoice.com) often feel that we are fighting an uphill battle concerning the use of the word “Crossovers”. This is a term that has come to mean SUVs based on car platforms and mechanicals. That’s fine. However, it is industry jargon that has not been adopted by the public. The media, picking up on industry jargon is forcing the term where no-one needs it.
An SUV is an SUV or Its NOT
Based on our research, it’s simple. American vehicle buyers have categorized vehicles into several basic categories: cars and trucks further subdivided into luxury cars, mid-size cars, economy/compact cars, sports/sporty cars, pickup trucks, sport utility vehicles (SUVs) and vans/minivans.
The SUV category seems to be giving folks the most trouble. To a typical vehicle-buyer, an SUV is an SUV is an SUV. There are big ones and small ones, but an SUV is an SUV. Muddying the playing field, however, is the notion of a “crossover”. A Traditional SUV in this more complicated world is a truck-based SUV like Ford Explorer or Toyota Sequoia. A crossover SUV is an SUV based on a car platform, a “unit-body” platform. But people often forget that the Jeep Grand Cherokee, Jeep Liberty, Mitsubishi Montero are all based on unit-body platforms but are not car-based. Does this make them a crossover? NO!
TBlazer Blog.jpg
Chevrolet Trailblazer… a “real” Truck-Based SUV

Post-Modern SUV… Soft Roader… NOT Crossover

So, it’s pretty muddy. What crossovers need to be are at-a-glance SUVs. The basics of the SUV equation are well known so deviating is a risk. An SUV must have a basic two box bodystyle, relatively tall glass for good visibility, a relatively upright windshield that provides a stiff A-Pillar allowing easy ingress/egress, and a command seating position. At the same time interior roominess and the ability to carry cargo is very important. From our perspective, this most American of vehicle types is very easy to understand but easy for a foreign car company to get wrong.
Torrent Blog.jpg
Pontiac Torrent… Car-Based Post-Modern (Crossover) SUV
Let’s read on about how USA Today recently reacted to the issue of “crossovers”…


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Automotive Lease Guide Releases Residual Value Awards

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Automotive Lease Guide is an influential and closely watched barometer of the value of brands and vehicles in the USA. ALG’s data are used by leasing companies to set the values for vehicles two and three years in the future and are critical in determining what lease rates a lessee will pay.
While ALG’s Residual Value Awards are not of the ilk of Motor Trend, Automobile, Car & Driver enthusiast awards, they provide an interesting counterpoint to awards based test track measurements, zero to 60 times and seat of the pants opinions. Here is the text of the ALG release…

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ALG’s annual Residual Value Awards honor those vehicles in each automotive segment predicted to retain the highest percentage of their original price. For the third consecutive year, American Honda Motor Company, Inc. heads the list with the Honda Brand winning the Industry Brand Residual Value Award. Honda also received two individual segment awards: the Odyssey for the Minivan Segment and the Accord for the Midsize Car Segment. This is the fifth consecutive win for the Honda Odyssey and the second win for the Accord.
Acura, a division of American Honda Motor Company, Inc., is the winner of the Near Luxury Car Segment for the TL.
BMW of North America, LLC has once again made a strong showing by winning the Luxury Brand Residual Value Award for the third consecutive year. MINI USA, a division of BMW of North America, has won the Compact Car Segment for the MINI Cooper for the fourth time.
Toyota Motor Sales, USA, Inc. took home the most Residual Value Awards this year by winning six individual segment awards: the Avalon for the Fullsize Car Segment, Tacoma Pick-up for the Compact Truck Segment, Tundra for the Fullsize Truck Segment, RAV4 for the Compact SUV Segment, 4Runner for the Midsize SUV Segment, and the Sequoia for the Fullsize SUV Segment. This is the fifth consecutive win for the Toyota Tacoma, Tundra and Sequoia; and the third consecutive win for the 4Runner.
Mercedes-Benz USA LLC is the winner of this year’s Luxury Car Segment award for the CLS Class.
The Sports Car Segment award this year goes to Porsche Cars North America, Inc. for the 911 Carrera.
And last but not least, the CUV (Crossover Utility Vehicle) award goes to Land Rover North America, Inc. for the Range Rover Sport.
“In an era of negative pricing and overcapacity, Residual Value excellence is increasingly difficult to achieve,” said Raj Sundaram, President of Automotive Lease Guide. “Both the segment and brand winners clearly demonstrate that quality products combined with effective pricing strategies will rise to the top.” Sundaram added that, “While the top rankings did not change, several brands have shown significant improvement over last year, highlighting the importance manufacturers are placing on residual value as a long-term objective.”
This year’s awards are based on 2006 model year vehicles. For the fourth year, ALG has also included awards for the brand with the highest predicted resale value of all industry and luxury vehicles. The awards are derived after careful study of segment competition, historical vehicle performance and
industry trends. Award winners are featured on http://www.alg.com, The Wall Street Journal, Automotive News, and other automotive publications and websites dedicated to bringing the industry’s best performing models into the
public eye.


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Crossover SUVs to Outsell Traditional SUVs in 2006

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Crossover SUVs will outsell Traditional truck-based SUVs beginning in 2006. This forecast comes from George Pipas, Ford’s Manager of Sales Analysis and Reporting in a presentation in Long Beach, CA on December 12, 2005. Refer to the VehicleVoice Blog on December 8 citing a USA Today article on similar observations.

A Few Comments on What a Crossover SUV Is

Pipas’ analysis charts the meteoric rise of Traditional SUVs during the 1990s and the similarly meteoric rise of Crossover SUVs since 1996 when the first crossovers – the Honda CR-V and Toyota RAV4 – were introduced. Of course, defining SUV categories is getting murkier and murkier. VehicleVoice (http://www.vehiclevoice.com) and AutoPacific (http://www.autopacific.com) have used the “at-a-glance” rule to define SUVs. If you can, at-a-glance, tell that a vehicle is an SUV, then by golly it is an SUV. In this way you are not confused about whether it is car-based or truck-based. (Pipas contends that only about 70% of Crossover SUVs meet this at-a-glance requirement with 30% easily confused as cars, hatchbacks, or wagons.)
Escalade Blog.jpg Traditional SUV 2007 Cadillac Escalade – Category Expected to Decline as a Percentage of Overall SUV Universe
The auto industry thinks differently and often gets caught up in definition problems. They have variously called car-based SUVs “hybrids” (a term since adopted by gasoline-electric ‘hybrid’ powerplants) or “crossovers”. In our research, we have found that folks really have not yet adopted the crossover term and still like to refer to SUVs as SUVs. But enough about splitting hairs about what is a crossover and what is not.


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