Hyundai's Gas Promotion Just in Time

With summer driving season upon us, and recent attacks on Nigeria’s oil pipelines (the U.S. imports almost half of Nigeria’s production of light crude, which is the oil used in gasoline refining), gasoline has returned to the headlines as energy analysts predict higher prices at the pump, which may just end up paying dividends for Hyundai. Already benefiting from an increase in attention after edging Toyota in J.D. Power & Associates Initial Quality Study, which measures problems in the first three months of owning a new vehicle, as reported by buyers, the Korean automaker implemented a summer promotion on Tuesday, June 30, 2009, guaranteeing buyers of its vehicles one year’s worth of gas at $1.49 per gallon.

Compounding previous offers, the gas guarantee should help Hyundai boost its share of the U.S. auto market, which has already jumped from 2.9% to 4.2% so far this year. This year Hyundai initiated its “Hyundai Assurance” program guaranteeing that buyers can walk away from a new-car loan, with no adverse effect to their credit rating, if they lose their jobs. Already offering one of the most charitable warranty programs in the industry, Hyundai proceeded to buy a series of extremely high-audience TV ad buys, such as the Super Bowl and the first ad spot on CNN after then-President-elect Obama’s election night acceptance speech.

With Japanese companies engaged in a downward spiraling battle with the economy, and Detroit automakers regrouping, Hyundai is trying to increase its market share amid the recession with promotions that are hitting home during tough economic times for all.

Research has demonstrated that nearly 40% of potential new-car buyers were staying away from the market explicitly because of uncertainty around future gas prices. Chris Perry, director of marketing communications at Hyundai, says: “Our programs are designed to address consumer needs, the ones they are talking about around their kitchen tables.” Indeed, while Hyundai’s Assurance program increased Web interest when it was launched last January, fewer than 10 buyers have had to take advantage so far, the company says.

In order to take advantage of the discount gas offer, called Hyundai Assurance Gas Lock, consumers must buy or lease a new Hyundai by August 31, 2009. Perry says used Hyundai Chicago is also sponsoring advertising reminding new-vehicle buyers of the Hyundai models that qualify for the Federal government’s Cash for Clunkers program (which gives consumers up to $4,500 trade-in value for trading in old vehicles that get below 18 mpg for new, more fuel-efficient vehicles). “We already are marketing our vehicles that qualify on our Web site, and we will add it to our ads as the government program rolls out.”

After purchase new Hyundai in Chicago, the buyer registers a Visa, MasterCard, American Express (or Discover credit card, or a Visa or MasterCard check card), at hyundai.pricelock.com. Once activated, the consumer receives a new Hyundai Assurance branded card to be used for all future fill-ups. The consumer is billed $1.49 per gallon of regular grade gasoline, regardless of the price at the pump, with Hyundai paying the difference. (The driver may elect to purchase mid-grade gasoline for $1.64 per gallon or premium gas for $1.79 per gallon as well, though all eligible Hyundai vehicles are factory-certified for regular fuel.).

The card ranges between any gas station in the Voyager credit -card network, which covers 93% of gas stations nationwide, including brands such as Exxon (XOM), Chevron (CVX), BP (BP), Shell, Texaco, and many more. Consumers are eligible for a maximum number of gallons, equal to 12,000 miles divided by the EPA combined fuel economy rating for the qualifying model.

* Chicago Hyundai dealer says buyers who opt for the gas discount have to subtract $1,000 from any rebate offered on its individual models. That may mean many buyers will pass on the gas discount.

Visit your Chicago Hyundai dealer to find out more!

It was a little more than a decade ago that Chicago Hyundai dealers first introduced drivers to America’s Best Warranty as a way of showing car buyers how much faith the company had in Hyundai’s vehicles. Fast-forward ahead to today and the warranty is still in place. Now, Hyundai is demonstrating to buyers Hyundai’s faith in them. Allow me to further explain.

Anyone, regardless of age, health, or employment history, financing or leasing any new Hyundai automobile who loses their income will be eligible to return their Hyundai hassle-free; even being covered up to $7,500 in negative equity. Coverage comprises a wide range of circumstances of which the driver is eligible to return the automobile, including, involuntary unemployment, physical disabilities, revoking of driver’s license due to medical impairment, international employment relocation, personal bankruptcy, and accidental death.

For those who fall under any of the categories listed above, one is eligible to file a request for benefits with Hyundai Assurance Administrator. To qualify the driver must have made at least two scheduled payments and be up-to-date on their loan or lease. From there the benefits specialist will assess the value of the vehicle by averaging your dealer’s appraisal and the values from leading industry guides. Upon approval, the vehicle will be returned to the selling dealer and pay any additional balance above the previously mentioned $7,500 Hyundai Assurance, if any; walking away free of further financial obligation and their credit score intact.

Not sure what “negative equity” is? Imagine you still owed $20,000 on your Hyundai when it is decided to be turned back in; if the automobile is valued at $15,000, then it has $5,000 in “negative equity.” That’s $2,500 under the $7,500 limit, and therefore you owe nothing. The likelihood of the car depreciating by more than $7,500 in the first 12 months is very slim.

Hypothetically speaking, what if I were to lose my job and didn’t have enough saved up to make payments in the meantime but felt I could track down another opportunity in only a couple of months? Having already planned ahead, Hyundai recently introduced the Hyundai Assurance Program Plus, a program available to anyone looking to buy new Hyundai in Chicago. If let go by your place of employment, Hyundai will make your payments for up to three months; after those three months are up, if you have a job, you are able to keep the car with no obligation to pay them back for the assisted payments. If you are still unable to find employment, you can return the car via the normal Assurance process, free and clear and without it impacting your credit rating.

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For more information please visit your Chicago Hyundai dealership.

Hyundai revealed the Blue-Will plug-in hybrid electric vehicle (HEV) in Seoul a couple of weeks ago. I’m glad Hyundai is getting into the plug-in hybrid arena.  My guess is that since they have something going on the HEV realm, they will be ready with a plug-in electric hybrid car when all of the other car makers drop them on the North American market in 2011 and 2012.  And I’m also guessing they will make a huge impact, like the company has done in every other segment it’s ventured into.  Somehow Hyundai will turn this concept into a more affordable plug-in HEV than anyone else can offer and then give it the best warranty.

The specs on mileage capability and electric-only miles are similar to other plug-in hybrid concepts right now.  That’s cool, because we know that if Hyundai matches what other plug-ins can do, we’ll be able to get the same benefits with a lower price tag.

What do I think of the design?  Well, a lot of times with concepts (especially the recent hybrid concepts) only one of two things is retained into production: design or powertrain.  My guess is that we’ll definitely see the Blue-Will’s plug-in hybrid engine technology pop up in a production model within two years, but I’m betting against this exact body style making it past the cut.  I actually really love it and wish there was more uniqueness in cars on the road.  I can see myself pulling out of a Chicago Hyundai dealership in this exact car.

I’m happy, as usual, with Hyundai for doing something different.  I’m worried it is too design-forward to appeal to the number of consumers Hyundai will hope to entice, though.  Like the 4th-grade basketball player who has the most fun on the court but forgets to play defense and doesn’t totally understand the traveling rule — he deserves a chance and some encouragement, but he probably won’t make it on the high school varsity team when the time comes.  Anyway, this is Hyundai’s first plug-in HEV attempt, so you can be sure refinements and consumer testing will change what you see currently, even if a model emerges that’s based on this design.

Still, some design elements from the Blue-Will should be emulated if not retained.  Like the car’s underbelly, which has a full length cover to make it more aerodynamic and minimize drag.  Another good idea, carbon-fiber reinforced plastics and composites were applied to the Blue-Will’s side sills, moldings and fenders to make the car lighter.

Lots of other cool stuff: Recycled soda bottles were used to make the material for the headlamp covers.  And bio-plastics were used for the interior the engine cover.  Bio-plastics are made from plant extract in place of fossil fuels and are bio-degradable.  Here is a quick video of the Blue-Will being unveiled in Seoul:

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Again, I wouldn’t expect to see this at a Chicago Hyundai dealership when Hyundai does introduce its first production plug-in hybrid, but how cool would it be to see this plug-in techonology in the next generation of the Elantra or the Genesis?