Hyundai Sonata seeks midsize inroads

Hyundai Motor Co. is rolling out a new midsize car, the redesigned Sonata, into a big segment of the market that's suddenly opening up to new players.

For more than a decade, Toyota Motor Corp.'s Camry and Honda Motor Co.'s Accord sedans have dominated that category.

But Toyota's recalls and quality stumbles are altering the competitive dynamics in the midsize car segment -- just as Hyundai is introducing a strong contender.

"Now is the best time for other brands to try to penetrate that segment," said Jessica Caldwell, auto analyst at online research firm Edmunds.com.

Toyota's troubles "definitely open up the door to other brands," she said. "People are more willing than ever to see what else is out there."

Hyundai is spending $160 million -- more than it has ever spent on a vehicle launch -- to promote the new Sonata, which starts at $19,195.

"It's our best-selling car; it's hugely important," said John Krafcik, CEO of Hyundai Motor America in Fountain Valley, Calif.

The Sonata already is winning accolades for its sleek looks and safety ratings, and it's being compared favorably to the Camry and Accord. The Insurance Institute of Highway Safety selected the 2011 Sonata as a "top safety pick."

Launched in January, the Sonata is the second of seven new models that Hyundai plans to roll out over 24 months.

With this product offensive, the South Korean automaker hopes to build on the momentum established from a spate of recent launches, including the acclaimed Genesis premium sedan.

Last year, as Detroit's automakers struggled in an unexpectedly steep downturn, Hyundai boosted its sales and bumped up its market share to 4.2 percent from 3 percent.

Including the sales gains of its Kia Motors affiliate, the Hyundai Kia Automotive Group was the only major global automaker to increase its U.S. sales in 2009.

Hyundai hasn't disclosed its sales goals for the Sonata, but expects it to exceed the outgoing model's 3.4 percent share of the midsize car segment, said Scott Margason, director of product planning at Hyundai Motor America.

Combined, the Camry and Accord account for close to 20 percent of U.S. midsize car sales totaling close to 200,000 a month.

In the first two months of the year, Camry sales fell 22 percent because of the recalls and a week-long halt in sales ordered by the National Highway Traffic Safety Administration. The Ford Fusion, Chevrolet Impala and Honda Accord benefited substantially from the Camry's woes.

Compared with most midsize cars that come with four- or six-cylinder engines, the new Sonata is available only with a four-cylinder, 198-horsepower engine -- although turbo and gas-electric hybrids versions will follow.

But, by reducing the car's weight, Hyundai has achieved a better power-to-weight ratio for the Sonata than that of the Camry, Accord, Fusion or Malibu.

Matthew Malecot, 23, a private investigator in New York, test drove an outgoing 2010 Sonata with a V-6 engine but preferred the new model and bought one for $22,090.

"It's definitely an improvement over the last version," Malecot said. "It's much sportier. This car feels a lot lighter and more agile."

Chas Summers, a manager at an insurance company, also looked at a 2010 Sonata. "We're expecting our first child, and we wanted to get out of economy models and get something bigger and safer," he said.

Summers was looking forward to a great deal on the outgoing model. "But once I saw the 2011, there was no way I was going to take the 2010."

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