A Hot Halo for Hyundai

The all-new three-door coupe: Veloster!
by Andrew McCredie, Postmedia News

Steve Kelleher isn't your average car company president.

Dressed in jeans, a golf shirt and with a casual, self-effacing manner, the Hyundai Canada president is the antithesis of the hundred-dollar-haircuts that inhabit auto manufacturer executive suites.

Which in many ways reflects the differences between the ascending Korean carmaker and long-established automakers, as Hyundai continues to push the boundaries in North America in terms of value, quality and ingenuity.

So it was once again Tuesday morning at the Opus Hotel in Vancouver's trendsetting Yaletown district, as the affable Kelleher unveiled the company's latest new vehicle, its third in the last nine months.

"This is a category busting vehicle for Hyundai," Kelleher announced following an opening salvo joke that elicited a collective groan from the breakfast roomful of Canadian automotive journalists.

And while such hyperbole is as common in the marketing and selling of automobiles as low-interest financing and employee pricing campaigns, one look at Hyundai's newest vehicle confirms Kelleher's statement at the press launch of the 2012 Veloster.

A three-door coupe configuration - a driver's side door, one large door and one small door on the passenger side - the Veloster is unlike anything currently available in Canada, though close competitors include the Honda CR-Z and the Scion tC, and the Fiat 500 and Mini as secondary competitors.

"This is a halo car for Hyundai," Kelleher continued. "and an aspirational vehicle for Generation Y."

Translation: it doesn't cost much and it's loaded with technology. But more about both those counts later.

What really sets the Veloster apart is its radical exterior, including that unique third door for easy rear-seat access, muscular wheel arches and dual centered chrome exhaust tips. Hyundai might not consider this to be the replacement of its sporty Tiburon, but in terms of sleek and aggressive styling, the Veloster returns those design cues to the Hyundai stable. Throw in the functionality of a hatchback rear, and the Veloster is an intriguing configuration.

Jump in and that intrigue grows.

Boasting best-in-class interior volume, the passenger cabin is surprisingly spacious, and larger than those of the aforementioned competitors. Likewise, cargo room is impressive, and only bested by the CR-Z (remember, though, that the Honda is a two-seater).

Yet the Veloster is some 200 kg lighter than the Scion tC and just a few kilos heavier than the Mini. That's thanks to liberal use of high-strength tensile steel and an obsessive-weightreduction ethos in Hyundai engineering and design departments.

As any first-year physics student will tell you, the less something weighs the less power needed to move it, so the car's efficiency is quite exceptional.

Playing the role of power source is a new 1.6-litre 4-cylinder gasoline engine that is shared with the new Hyundai Accent. This 138-horsepower unit is more than up to the job of spiriting the Veloster about and it's L/100km fuel economy numbers of 7.2 city and 4.9 highway are impressive.

Underscoring Kelleher's comments about the "halo" positioning of the new coupe is the optional 6-speed dual clutch transmission, the first DCT developed by Hyundai.

Unlike conventional automatic transmissions in which the torque converter saps power and hurts fuel economy, a DCT features a direct connection between the engine and the gearbox. Meaning sporty shifts and performance, and improved fuel economy. The steering wheel paddle shifters add to that sport feeling. The standard 6-speed manual transmission is no slouch either, with fun and short throws.

Now, about those Gen Yers. Representing the second largest generation after the ubiquitous Baby Boomers, that cohort will eclipse boomers in spending power in just a few short years. So, long-term thinkers within the automotive industry are fretfully hosting focus groups and surveys to find out what makes Yers tick.

What Hyundai Canada has discovered is that unlike horsepower-mad, status symbol-driven Baby Boomers, Gen Yers' top priorities when it comes to a vehicle are technology and efficiency.

The Veloster has that latter point covered with its price points - $18,999 for the base model and $22,499 for the Technology Package- and its excellent fuel economy.

As to the former, consider that the base Veloster comes standard with a LG 7-inch touchscreen, a rearview backup camera and iPod/USB/RCA jacks among many goodies.

In fact, the so-called Technology Package comes with little in the way of what Gen Yers would consider technology save for a Nav system and a 115V outlet. Instead, the premium model adds 18-inch alloy wheels, panoramic sunroof, 8-speaker stereo, leatherette bolster seats, leather-wrapped steering wheel and shift knob, alloy pedals and automatic headlights.

Hyundai Canada's Steve Kelleher has had a great run of late with his products, and is on a 32-consecutive-month sales growth run.

The 2012 Hyundai Veloster isn't expected to post the volume numbers of the company's segment superstars such as the Accent, Elantra, Sonata and Santa Fe, but this fun-todrive and expressively designed three-door sport coupe will gives its limited competition some fretful nights.

And its owners some pleasurable driving experiences.

THE SPECS

Style: Front-wheel drive threedoor coupe

Seats: Four

Engine: 1.6-litre 4-cylinder (138hp)

Transmissions: 6-speed manual; 6-speed dual clutch automatic

Fuel Economy (manual/ dual clutch): 7.2 city/4.9 hwy L/100km; 7.0 city/4.9 hwy L/100km

Price: $18,999 (base); $22,499 (Tech Package). Add $1,400 for dual clutch transmission option