As If We Needed Another Sign Of Hyundai As Golden Child

On CBS Sunday Morning Show's "The Money Issue" edition last week, one feature segment was entitled, "Hyundai: Driven to Success."

In a showroom "crawling with customers" at Atlantic Hyundai in West Islip, Long Island, one hopeful spender bubbled over about how she'd put herself on a waiting list for a new Sonata. And CBS reported that while the auto industry was in a freefall last year, down more 20%, Hyundai's sales were up 8%.

Although, they reminded us, it hasn't been all peaches and cream for Hyundai. North American President and CEO John Krafcik spoke of Hyundai's slow start 25 years ago. Then in 2000, they decided to raise the game, not just to compete in North America but to dominate. He went on to say, they began by giving themselves five years to achieve the top levels of quality.

James Bell who analyzes the business for Kelly Blue Book, looked back at the 1986 Hyundai Excel and more than implied that, when it came to quality there was only one direction they could go. "Well, it was a piece of junk in a competitive market like the US."

Besides retrenching, he pointed out, "They came back stronger, addressed their reliability and durability concerns with their ten-year, 100,000-mile warranty, which was a good, bold move,"

To take it one step further, in 2009 they told customers they could return their new Hyundai if they lost their jobs. And less than 100 were returned. (Which may be one reason Advertising Age named them '2009 Marketer of the Year.')

But Hyundai had seen this happen to other companies so it doesn't sound like they're sitting around popping bon-bons, high-fiving.

Referencing the current conundrum of previous fast-tracker Toyota, Dave Zuchowski, Vice President of National Sales for Hyundai Motor America said, "We are a very, very ambitious company, and we have huge growth plans and have for the last several years. So it has been a wakeup call for us, and I think for the rest of the industry."

And what else keeps them awake at night? CEO Zuchowski said, "We worry about vehicles from India, vehicles from Vietnam, vehicles from China that will be coming into this market."

And if that includes 'up-market', they seem to have it covered. CBS cut to Hyundai's new upcoming flagship, the super-luxo Equus, the car they'll throw into the ring with the BMW 7 Series, Merc S, and Lexus LS10.

A Hyundai that will cost $60,000? As Krafcik put it, "We stand for something different."

They'd better if China is peering over their shoulder.

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BMW Working On GPS-Linked Transmission

When it comes to the automobile, there are useful technologies like electronic stability control and anti-lock braking systems, that make driving safer for the vast majority of motorists. Then there's technology for technology’s sake, like rain-sensing wipers or like BMW’s latest innovation: an eight-speed automatic transmission that receives Global Positioning System (GPS) data to predict shifts.

The system is still in the development stages, but it may eventually find its way into the 7-Series luxury sedan, which is typically the platform BMW uses to highlight their latest technology.

The high-tech transmission combines data from the car’s GPS with data from the Dynamic Stability Control system, which provides real-time information on road conditions. If the system senses a loss of traction, it may delay a downshift, even if the GPS advises that the grade of the road has changed. It anticipates turns in the road as well, adjusting the car’s gearing to match the road conditions. The ultimate goal is to provide a smoother ride for the driver and passengers, by minimizing the amount of time between shifts and by maintaining the proper gear at all times.

Ultimately, the advanced technology transmission will strive to mirror the ride quality and driving dynamics of a manual-transmission equipped vehicle, operated by an experienced driver.

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2008-2011 BMW 5-Series, 7-Series, X5, And X6 Recalled For Fire Hazard

BMW has issued a recall for 5-Series, 7-Series, X5, and X6 vehicles from the 2008 - 2011 model years. Some of those vehicles may suffer from a faulty water pump circuit board, which could result in a fire.

Specifically, the BMW recall affects vehicles with 8-cylinder or 12-cylinder turbocharged engines. According to a bulletin from the National Highway Traffic Safety Administration, in certain circumstances, the circuit boards for the auxiliary water pumps on those vehicles can overheat. At the very least, this could result in damage to the water pump; in a worst-case scenario, it could cause a fire.

Given the severity of the problem and the large number of vehicles affected -- 32,084, by the NHTSA's count -- BMW expects to send out notification of the recall within the coming month. If you think you own one of the recalled models and have additional questions, you're encouraged to contact BMW directly at 800-525-7417. Alternately, you can call the NHTSA at 888-327-4236 and reference recall #11V521000.

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