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2007 Santa Fe Product Briefing

2007 Santa Fe Product Briefing. John Krafcik Vice President, Product Development and Strategic Planning . June 26-30, 2006 Hyundai Motor America. Introduction: Hyundai Update. Product Overview. Packaging. Color. Sales Plan. Introduction: Hyundai Update. Product Overview. Packaging .

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2007 Santa Fe Product Briefing

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  1. 2007 Santa Fe Product Briefing John KrafcikVice President, Product Development and Strategic Planning June 26-30, 2006Hyundai Motor America

  2. Introduction: Hyundai Update Product Overview Packaging Color Sales Plan

  3. Introduction: Hyundai Update Product Overview Packaging Color Sales Plan

  4. In Fall 2004, Hyundai began its 24/7 product launch period – and committed to launch 7 all-new products in just 24 months. 7 All New Models in 24 Months Hyundai’s model line-up has doubled (from 4 to 8) in the last 10 years.

  5. Tucson – Re-establishing product leadership in the Compact SUV segment. • Quality leadership • 2005 J.D. Power IQS: Highest quality all-new vehicle in the industry • 2006 J.D. Power IQS: Best in class quality, “Highest Ranked Compact Multi-Activity Vehicle in Initial Quality” • Safety leadership • First sub-$20,000 SUV with standard ESC and 6 airbags • Government’s highest crash test ratings – 5 Star Frontal and Side Impact • First full-year sales of 61,048 exceed forecast by 50% • 73% conquest from other manufacturers (J.D. Power PIN)

  6. Sonata – Rethinking the mid-size sedan. • Quality leadership • 2006 J.D. Power IQS • Top three vehicle in segment • Top 10 plant in North America • One of the best all-new plant/ all-new model launches in industry history • MotorWeek’s “Best Family Sedan” • Kiplinger’s choice as “Best in Class, $18K - $23K” and “Best New Car, $18K - $23K” • Safety leadership • First sub-$20,000 Mid-Size Car with standard ESC (and 6 airbags) • Government’s highest crash test ratings – 5 Star Frontal and Side Impact • Sales up 61% CYTD • 68% from other manufacturers (J.D. Power PIN) • Transaction prices up 15% • Camry and Accord are #1 and #2 Source of Sales (PIN: May 2006)

  7. Azera – Possibly the most car for the money, ever. • Quality leadership • 2006 J.D. Power IQS • Top two vehicle in segment in its launch year • Significantly outperformed its target competitive set – Avalon and Maxima • Safety leadership • Only Large Car with standard ESC and 8 airbags • Sales up 73% May 2006 CYTD • 68% conquest from other manufacturers (J.D. Power PIN) • Transaction prices up 21%

  8. Accent – Redefining entry car value. • Quality leadership • 2006 J.D. Power IQS • Sample size too small for official inclusion, but excellent results • Safety leadership • Segment-leading standard safety equipment, including 6 airbags • 2007 Accent GS ($10,995) and SE ($14,495) 3-door models arriving now • 75% conquest from other manufacturers (J.D. Power PIN) • Transaction prices up 15%

  9. Entourage – Hyundai’s first minivan. • Quality leadership • 2006 J.D. Power IQS • Too late for inclusion • Sister product: #1 minivan in Quality Design • Safety leadership • Segment-leading standard safety equipment, including ESC and 6 airbags • Top Safety Pick: Highest IIHS crash-test ratings for a minivan ever • On-pace for 20,000 – 30,000 sales this year • Average transaction price: $27,601

  10. J.D. Power and Associates recognizes Hyundai’s improving quality. “Hyundai ranks among the top three nameplates in the study (J.D. Power and Associates 2006 Initial Quality Study) for the first time in the history of IQS. Highlights include a top ranking for the Hyundai Tucson in the compact multi-activity vehicle (MAV) segment, and top-three segment performances for the redesigned Sonata and all-new Azera, as well as the Elantra and Tiburon.”

  11. Among all nameplates, Hyundai ranked 3rd in IQS and is the highest ranking non-luxury brand, ahead of Toyota and Honda. 2006 IQS Ranking by Brand

  12. Hyundai IQS improvements have outpaced Toyota and non-luxury averages. Hyundai, Toyota and Non-Luxury Nameplate Average IQS Scores 1998 – 2006 Non-Luxury Toyota Hyundai

  13. Hyundai Tucson wins Highest Ranked Compact Multi-Activity Vehicle in Initial Quality.

  14. Hyundai’s quality achievements are the outcome of a strategy launched in 2000 to become the world’s best-quality automaker. Hyundai’s Quality Success Drivers • Intelligent ergonomic engineering is a key part of Hyundai’s brand DNA • Hyundai ranked second overall (to Porsche) in Design Quality • Azera, Elantra and Tucson finished #1 in their segments (Tiburon #2 and Sonata #4) • Obsessive customer focus • Continuous market research and customer contact • Rigorous pre-approval ergonomic evaluations • Acceptance of the need for continuous change • New model launch facility drives intensive problem solving • Late quality-driven changes are okay: trust in downstream execution • 2005 Tucson > 2006 Tucson: hundreds of changes

  15. These quality achievements are not “new news”. Quality History • J.D. Power IQS: 3rd Top 10 finish in three years • 50% reduction in warranty costs over the last three years Warranty Reduction Warranty Cost per Unit (index) Calendar Year

  16. Introduction: Hyundai Update Product Overview Packaging Color Sales Plan

  17. Santa Fe is a proven award winner with a long list of notable victories • Five time winner of AutoPacific’s Vehicle Satisfaction Award (VSA) for Mid-Size Sport Utility • Named “Best Bet” by Jack Gillis and the Center for Auto Safety in the Car Book, 2006 & 2004 • Second place finish in J.D. Power Initial Quality Study for 2004 among Entry Level Sport Utilities • Winner of Strategic Vision’s 2004 Total Quality Award for Small SUV ownership experience • Named “Best Value Small SUV” in October 2004 Smart Money magazine

  18. Santa Fe was a critical product in the evolution of the Hyundai brand. Source: Strategic Vision 1999, 2001 & 2005 studies

  19. With the new Santa Fe, Hyundai is targeting a younger, more affluent buyer. Source: Competitive information:Strategic Vision 2005MY, * JD Power PIN data for ‘2006MY Toyota RAV4 data

  20. HMA’s early planning research revealed an opportunity to take crossover styling to a new level of assertive and graceful design. Assertive Grace: A seemingly effortless expression of confident beauty, form, and proportion.

  21. Designers, planners and engineers were guided by concept exposure events that gave meaning to ‘Assertive Grace’ and lead to a final product fit to a carefully researched consumer opportunity. • Olympic medalist Rusty Smith was brought in to give a speed skating demonstration that clarified the idea of combining strength and beauty • Team members met in design-related locations to discuss product attributes • Hyundai staff met with target customers in their homes to best understand their needs

  22. Planning Concept: 2007 Santa Fe is an urban crossover that commands your attention with assertive yet graceful styling and assuring mid-sized sedan dynamics.

  23. The Hyundai design and engineering teams delivered on the concept with an all-new look, more room, top-notch safety and even greater value. • As the first production vehicle designed at Hyundai’s design center in Irvine, Calif., the Santa Fe is targeted to meet American consumers’ demand for safety, style, sophistication and performance • Before designing it, Hyundai engineers benchmarked the world’s leading unibody crossovers, including the Lexus RX, Acura MDX and Volvo XC90 • The result is a roomier, more exciting, and more upscale Santa Fe that delivers the combination of flexible interior package and driving agility that American consumers increasingly demand.

  24. 2007 Santa Fe competes with mid-size CUVs on package and function, and small CUVs on price. Primary Competitive Set Toyota RAV4 Toyota Highlander Honda Pilot Secondary Competitive Set Ford Escape Ford Explorer Chevrolet Equinox

  25. Key Selling Points: 2007 Santa Fe offers an unprecedented combination of safety, efficient power, versatility, style and quality. • Class-leading standard safety technologies • Six standard airbags including side curtain airbagsfor all 3 rows of passengers • Standard Electronic Stability Control (ESC), Brake Assist, and ABS • Standard Tire Pressure Monitoring System (TPMS) • Standard active front head restraints • Powerful and technologically advanced powertrains • Powerful, clean (ULEV), efficient aluminum 3.3L and 2.7L V6 engines • Available Borg-Warner electronic all wheel drive • Available 5-speed automatic transmission • Versatile features inside and out • Available 50/50 split third-row seat that folds flat into floor • One-finger-adjustable roof rack • Four 12-volt power outlets standard, one 115-volt power outlet available • All-new contemporary design – “Assertive Grace” • Quality, backed by America’s Best Warranty

  26. Design theme: Assertive Grace Fast backlight balances interior room with exciting shape Sleeker shape reduces drag coefficient from .39 to .37 Surface detail designed to include ‘Z’ graphic that echoes the slicing lines left by a speed skater Profile of front lamp graphic matched to rear lamp graphic Large wheel arch gives sense of strength and larger overall size Up-angle bumper parting line continues theme from doors Character lines designed to give sense of forward motion

  27. Design theme: Assertive Grace Backlight dips down for better visibility while complementing rear graphic theme Elegant roof rack compliments overall shape Horizontal rear lamp graphic well matched to headlamp shape Trademark asymmetrical hatch release maintains consistency with prior model DLO shape reinforces theme of elegant forward motion Strong looking dual exhaust with chrome tips

  28. Hyundai’s focused attention to detail can be seen throughout the Santa Fe interior. • Blue backlighting for all interior gauges, switches, and buttons highlights the modern, integrated interior design • The front cupholders are ringed with blue light to aid night-time driving • Console bins, the upper IP storage tray, and the glove box are lined with soft flocking material • Power outlet caps, seat belt buckles, even cupholder inserts are color-keyed for design harmony • Soft-touch, high quality materials, low-gloss surfaces, and zero-tolerance net-fits are used throughout the interior

  29. Stylish, quiet and package-efficient interior. Dual automatic climate control system Two-tone gray and beige color schemes (black is monotone) Blue interior backlighting Woodgrain interior accents Limited trim shown

  30. The all-new 2007 Santa Fe is one of the most package-efficient CUVs on the market. • Hyundai accomplished this by developing an all-new platform that avoids the compromises inherent in typical mid-size car/SUV platform sharing • Although the 2007 Santa Fe is 2.1 inches shorter than the Lexus RX, Santa Fe’s first- and second-row seats have more head, leg, and shoulder room than the RX, with enough room left over to allow an optional third-row seat not available in the Lexus • Theater-style seating assures good viewing angles for all passengers Green line indicates 2006 Santa Fe profile

  31. For 2007, Santa Fe offers its first 3rd-row seat option, offering more legroom than Highlander, MDX or XC90. • 2007 Santa Fe’s 50/50 split-fold third-row seat offers more legroom than the Acura MDX, Toyota Highlander or Volvo XC90, while matching the legroom of the much larger all-new Mercedes-Benz GL-class SUV • Roughly 40% of CUVs/SUVs are equipped with third row seating

  32. 2 1 3 Entry into the 3rd row is simple. • To gain access to the third row, • First fold down the passenger-side 2nd row seat using the top-mounted recline adjustor • Next, pull outward the lever located beneath the passenger-side 2nd row seat • The seat folds forward, allowing entry into the 3rd row seats

  33. 2007 Santa Fe has remarkable interior seating/cargo flexibility.

  34. Hyundai’s industry-leading safety technology roll-out continues. • According to the IIHS, the combination of side and curtain airbags can reduce fatalities by more than 45 percent • Side curtain air bag protection is optional on many compact and mid-size SUVs, including Toyota RAV4, Toyota Highlander and Ford Explorer • All Santa Fe’s are equipped with six standard airbags • 2 advanced front airbags • 2 front seat-mounted side-impact airbags • 2 roof-mounted side curtain airbags for outboard passengers of all 3 rows • Like the Tucson, Santa Fe is expected to earn the National Highway Traffic Safety Administration's (NHTSA) top five-star crash teat rating for front and side impacts

  35. 2007 Santa Fe features standard Electronic Stability Control (ESC). Reduces unintended understeer (plowing) Braking force is applied to inside rear wheel to correct vehicle’s understeer • Life-saving potential: 10,000 lives per year • 34% reduction in all kinds of fatal collisions • In contrast with prior research, benefit for cars is nearly as great as for SUVs (77% vs. 80%) • For 2007MY, 73% of Hyundai’s sales volume features standard ESC – a commitment to this life-saving technology unmatched by any other non-luxury brand. • Sonata • Azera • Tucson all have standard ESC • Santa Fe • Entourage Reduces unintended oversteer (fishtailing) Braking force is applied to outside front wheel to correct vehicle’s oversteer

  36. Hyundai has quickly moved to a leadership position in the standard application of ESC. Hyundai Standard ESC Mix Competitive Standard ESC Mix (2006MY) % of Volume w/ Std ESC % of Volume w/ Std ESC Model Year Competitor standard ESC equipment by model based on AutoPlanner data available 6/12/2006. Model mix from J.D. Power PIN, 2006MYTD.

  37. Hyundai performs over 120 verification tests for each ESC application.

  38. California Proving Ground is well-equipped for ESC testing. Off Road Reentry Slaloms, ISO Evaluations, Fishhook Handling Course

  39. 2007 Santa Fe has an impressive standard braking system. • Standard front and rear disc brakes: • Ventilated front 298mm discs • Solid rear 302mm discs • Standard ABS with EBD • 4-wheel electronic, 4–sensor, 4-channel ABS with Electronic Brake Distribution (EBD) • Brake Assist technology to minimize stopping distances in panic braking situations

  40. 2007 Santa Fe includes many occupant safety features – all standard. • Front seat active head restraints • Extra protection against whiplashin rear-end collisions • Shingle-style rear seat head restraintsfor improved visibility • 3-point seatbelts for all seating positions • Seatbelt pretensioners and load limiters • Child seat LATCH system

  41. Class-leading standard safety equipment differentiates 2007 Santa Fe from its competitors.

  42. Santa Fe offers a choice of two clean, powerful, fuel efficient V6 engines. 3.3L V6 • New Mu (2.7L) and Lambda (3.3L) engine families • Aluminum block and head • DOHC 24 valve • Multi-point fuel injection • Continuously Variable Valve Timing (CVVT) • 2.7L Mu • More power plus improved fuel economy • 185 HP & 183 ft-lb torque, a 15 HP improvement over the 2006MY • 21 city / 26 highway versus 19 / 25 for ’06MY • 3.3L Lambda • More power, improved fuel economy and reduced maintenance • 242 HP & 226 ft-lb torque, a 42 HP improvement over the 2006’s 3.5L engine • 19 city / 24 highway versus 17 / 23 for ’06MY • Maintenance-free steel timing chain • ULEV emission classifications 2.7L V6

  43. Santa Fe’s 3.3L V6 competes well with segment leaders.

  44. 2007 Santa Fe offers three transmission choices. • 5-speed automatic with SHIFTRONIC™ • Standard with 3.3L V6 engine • Overdrive lock-up torque converter for higher fuel economy at freeway speeds • 4-speed automatic with SHIFTRONIC™ • Optional with 2.7L V6 engine • Overdrive lock-up torque converter for higher fuel economy at freeway speeds • 5-speed manual • Standard with 2.7L V6 engine • 3-axis gearbox structure for packaging efficiency and weight savings

  45. The Borg Warner all-wheel-drive system diverts up to 50% of torque to the rear wheels. • This electronic “on demand” system operates by monitoring the throttle position, front wheel angle and wheel slippage • As conditions change, power is automatically routed to the wheels with the best traction via an electronically-controlled multi-plate clutch • The system can be manually “locked” into 4WD for a continuous 50 / 50 power split between the front and rear wheels • When going around a corner, the weight of the vehicle shifts, which can affect traction – with this system, power is automatically transferred to the wheels with the best grip • When driving on loose terrain, this system maintains the ideal balance for maximum traction Front Axle TransferCase Coupling ECU Rear Axle

  46. Santa Fe’s all-new body-in-white is designed with increased rigidity to deliver excellent NVH characteristics. • The second-generation Santa Fe platform was specifically designed to deliver an agile, responsive ride and handling balance that resonates with crossover shoppers • Increased body stiffness was a key upfront design imperative • Class leading NVH levels were designed into the new Santa Fe from inception • Road noise has been minimized by using laminated steel • A multi-curved floor structure was developed to reduce panel vibration • The dash panel was strengthened with a cross-shaped reinforcement to lower noise intrusion

  47. Santa Fe’s all-new body-in-white is designed with increased rigidity to deliver excellent NVH characteristics (cont’d). • By increasing the use of laminated steel, improving body rigidity, and engineering a sophisticated triple-sealing door/body interface, Hyundai engineers have significantly reduced cabin noise • At highway speeds, the 2007 Santa Fe is 1.7 dB quieter than the Volvo XC90, and 3.3 dB quieter than Toyota Highlander

  48. 2007 Santa Fe’s all-new US-tuned chassis was designed to provide significantly improved dynamics. • Santa Fe’s dynamics were tuned in California and Michigan by Hyundai’s U.S. team to reflect American consumer requests for more agile handling, responsive steering, and improved body control • All four wheels are controlled by coil springs and fade-resistant gas-charged dampers, while front and rear stabilizer bars help keep the vehicle flat during cornering • Power-assisted rack-and-pinion steering also contributes to the Santa Fe’s solid handling dynamics

  49. 2007 Santa Fe’s all-new US-tuned chassis was designed to provide significantly improved dynamics (cont’d). • Front Suspension • Independent McPherson strut design with 26mm anti-roll bar • Reverse L-shaped lower arms allow superior steering sensitivity and improved dynamic control • Larger sub-frame bushes were located between the front sub-frame and the suspension • By increasing the caster angle from 2.5 to 4.4 degrees, both straight line stability and all-around handling was improved • Rear Suspension • Independent multi-link design with 15mm anti-roll bar • By lowering the location and increasing the rigidity of the rear shock absorbers, both driving feel and cornering stability have been improved • Added benefit of saving space, improving interior roominess • Larger rear cross member bushes were improve driving feel and reduce NVH • The trailing arm has been relocated from the body to the rear cross member, which reduces road noise intrusion but improves ride and handling

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