John Krafcik didn't get to be president and CEO of Hyundai Motor America by having unguarded moments around members of the press. But here, after three long days spent wringing out the 2012 Hyundai Veloster near Portland, Oregon, it happens.
"We worked our ass off on this thing," Krafcik says.
And after experiencing the Veloster on these roads, surveying its features and efficiency and considering its $18,060 starting price, we think those collective asses were a reasonable sacrifice.
Drive
Once we get our butts in the driver seat, the 2012 Hyundai Veloster initially feels sporty and lithe: ready to pounce and thoroughly modern. A stomp of the clutch and a tap of the centrally mounted start button are greeted by a typical four-cylinder cycle. It's a bit of a letdown from such an aggressively styled hatchback. So, too, is the throttle response, with a muted reaction to quick stabs of the pedal. Engine sound is barely perceptible at idle.
OK. So far the Veloster isn't exactly getting our blood pumping, but we have to keep reminding ourselves that this is not a hot hatch, it's an eco-minded hatchback that is rated at 40 mpg on the highway when equipped with the standard six-speed manual transmission. A 1.6-liter four-cylinder rated at 138 horsepower and 123 pound-feet is currently the only engine.
But at this price, you really can't expect a raspy bark or grin-inducing performance. Those will easily set you back a few grand more for something like the Genesis Coupe ,Mini Cooper S or VW GTI. But damn it all, we want that snarl, and here's why.
Shake Your Tail Feathers
We've been driven in the Veloster before and even drove an early prototype in Europe. But this is the real thing, and what we experience here is what will be on dealer lots.
Carving through hairpin switchbacks scrawled on either side of the Columbia River, we find the 2012 Hyundai Veloster's suspension more willing than its benign engine. In the curves, it's settled and balanced, with plenty of warning leading up to the limit (consisting mostly of manageable understeer). The Achilles' heel in this package is the torsion-beam rear suspension; a carryover from the economical Elantra on which it is based. And really, those shortcomings are only apparent when setting up a turn under hard braking. Big weight shifts will move the rear end, but there's ample control.
The electronic nannies are also well tuned. As we skirted the Veloster's performance envelope, stability control never once intervened. In reality, we doubt most owners will push to these limits. It's more likely that they'll tie curves together without going wide open and threshold braking between. In this regard, the sporty hatchback delivers. We can thank Dave Dutko, senior chassis engineer, for the Veloster's balance of comfort and athleticism — something distinctly lacking in the European prototype we previously drove.
It's unlike anything on the road right now, with the sort of courageous styling that says, 'We can still take a chance.'
Dutko admitted that suspension tuning continued right up to a month before launch, and one of the biggest challenges was to get his Korean counterparts to agree to a stiffer setup. Hyundai allows different markets to customize chassis tuning. Korea gets a softer and floaty ride, while Stateside, we enjoy a moderately stiff setting. Europe, apparently, will have an even firmer version, which probably explains the stiff-riding prototype we drove there.
What a Nice Tail You Have
Regardless of geography, the 2012 Hyundai Veloster will likely turn as many youthful heads as we witnessed it doing in hipster-plagued Portland. It's unlike anything on the road right now, with the sort of courageous styling that says, "We can still take a chance." We suspect the Veloster's asymmetrical three-door layout caused quite a dust-up when the Southern California designers presented it, but the poised execution has likely quelled most naysayers.
The larger single door on the driver side makes for easy entry and egress and imparts a racy image. The two smaller doors on the other side retain sedanlike convenience for passengers and parcels alike. Yes, other cars have tried this, but their rear-hinged suicide doors were met with less favorable results. Honestly, we think most casual observers won't even realize there's a third door on the Veloster.
The rear door's handle is neatly hidden in the window trim and the seams are well integrated into the body's character lines. And this all contributes to the Veloster's overall impact. The sloping roof line and flared rear wheel arches hint at greater aggression, while the blacked-out glass roof and A-pillar bless it with a sleekness that is uncommon in this class. Heck, we're even OK with the fake hood vents and scalloped inlets under the headlights.
As leery as we are about corporate marketingspeak, the designer's sport bike styling influences seem genuine. From the sculpted body panels on the outside to the chunky air vents and densely packed center stack on the inside, we suspect there's a Suzuki B-King in his garage (or at least in his heart). The Veloster's cabin further benefits from well-textured (though hard) plastic surfaces and a generous list of standard features.
More Than You Bargained for
The 2012 Hyundai Veloster is, quite simply, the most well-appointed vehicle in its price range. A 7-inch touchscreen, voice recognition, cutting-edge telematics, power controls and plenty more extras are all standard. Options are limited to two packages that notably include bigger wheels, a sunroof, upgraded entertainment systems, leather, navigation, a rearview camera and keyless ignition/entry.
There's also a dual-clutch automatic transmission available (a first for Hyundai). We found it capable, smooth and well-matched to the Veloster's weight and power. It also comes with hill-hold and steering-wheel-mounted shift paddles.
What's the Catch?
If it sounds as if we drank the Hyundai Kool-Aid and went back for seconds, rest assured, the Veloster is not perfect. Though wind and engine noise are well muffled, road noise is pronounced, especially on Oregon's coarse highway surfaces. And despite the lack of high-frequency noise interference, the voice-recognition system struggles to decipher most commands. Some of the metallic-finished interior trim pieces also tend to create some sun dazzle.
Forward visibility is relatively unobstructed, thanks to narrow A-pillars, but the view rearward is hampered by that sloping roof line. The trailing roof edge spoiler runs right through your field of vision, and the lower glass distorts the vertical scale of everything behind you. The angled upper hatch glass further obscures the view.
The front seats provide plenty of lateral support and long-distance comfort, but there are some ergonomic issues, particularly for shorter drivers. The shifter and stubby armrest are placed just a bit too far aft for the average male adult. Those who need to sit closer to the wheel will likely take greater issue with this. There's also no heated seat option.
The rear seats have enough legroom, but the low seat cushions and limited headroom mean 6-footers will want to avoid multi-hour road trips in the back. Furthermore, those relegated to the rear will have their heads exposed to the unforgiving sun, as the expansive glass hatch hovers just above. There is a deep and generous 15.5-cubic-foot trunk in back but the rear seats do not fold flat to the floor.
In the End...
These faults are easily outbalanced by the Veloster's strengths. Hyundai starts with evocative styling, continues with ample features and winds up with a small-car driving experience that fights above its weight class.
The 2012 Hyundai Veloster doesn't pretend to be anything other than a youthful and modern interpretation of the hatchback. It doesn't have to because it's bookended by Hyundai's more-than-adequate Elantra and spicier Genesis Coupe. More power will come later in the turbo version but, for now, the Veloster's $18,060 base price and 40 mpg highway rating are a potent combination.
In fact, if you're John Krafcik, those might even be numbers worth losing your ass over.
Edmunds attended a manufacturer-sponsored event, to which selected members of the press were invited, to facilitate this report.
Add A Comment »
5lv8 says:
04:19 PM, 09/27/2011
Plankton driving the Hyundai Veloster: You'll never catch me, Krabs, not after I switch into maximum overdrive! ... Mr. Krabs grabs the patty. ... I knew I should have gotten the turbo.
warren_j says:
05:13 PM, 09/26/2011
I think I will buy a Hyundai and yet I am a big supporter of US manufacturing, why? Hyundai and most of the auto companies actually make cars here. Contrast this with other industries:
iPhones/iPads/MacBooks/iMacs/iPods made in the US - 0
Dell/HP/Lenovo PCs made in the US - 0
RCA/GE (or any brand) consumer televisions made in the US - 0
Nike/Adidas/New Balance running shoes made in the US - 0
Number of products (non-food, drug) made in the US in the sold in typical shopping mall ... you know the answer.
There has been a fundamental breakdown in US industry about domestic manufacturing. The auto industry is the rare exception. Asian governments, since since the Reagan and Bush (1) administrations have sold politicians on the "value" of exporting production. Where 100 years ago, Republicans were the leading job creators, today, they lead companies to make paper profit on goods made elsewhere. Americans are unaware of fundamentals that cause us to be a debtor nation because we no longer have independent TV news that reports basic economic facts. The leading news company in the US is ironically the only foreign company ever trusted to offer "party approved" news in Communist China. It is a news company that has been run by the head of a a single political party since it's inception, just like the old Soviet Pravda. Its parent company is run by a "literal" marriage of Australian and Chinese news people. It is a company that uses extraordinary marketing prowess to call the US president a "socialist" for ANY initiative he promotes to stimulate domestic manufacturing. It's like Germany and Italy before WW2 all over again, but in a country where it wasn't supposed to happen.
alex38 says:
08:35 PM, 09/25/2011
@ ilovecars:
You're about to set me off man. I used the word "net increase" because I copied your words VERBATIM: "The Sonata is a great car, just don't call it part of a strategy to have a NET INCREASE in jobs in this county." I simply replied "imagine telling that to the folks in Alabama and Georgia.."
You're the one who's letting pride get in the way of reason. I like to support the US as much as possible but this "rah rah buy USA" is getting really annoying.
Competition is a way of life and you're seeing the glass as half empty while i'm seeing it as half full; it'd be sad to lose a $100k job but i'd still be grateful to have a job that pays $70k in this type of environment. If i'm going to buy a car, then i'd rather buy one that was made in the USA than one that wasn't. Likewise, i'd prefer to buy an American brand over a foreign brand. BUT, i'm also going to looking out for my own interests and needs, like a lot of other folks. You telling me that EVERYTHING in your home is made in the USA, from US-souced raw materials and is a US brand? If there's one thing i can't stand personally, it's a hypocrite..
All of your arguments are coming off as bitter and desperate and you're starting to piss me off which is why i am replying to you now. I've owned Ford and loved them and will probably buy again when they have the right product (I can definitely see myself in a production version of the Evos - one of the best designs i've seen from ANY manufacturer recently..)
Geez man, quit it with your MK Chung comments, yeah is a billionaire who has done well for himself, good for him. You not hearing me rant about Steve Jobs living it up large despite him shipping manufacturing of his iPhones to Taiwan, sitting on BILLIONS of excess cash. There are a lot of American's who can assemble just as good or better than Asians. Or Michael Dell living it up in his mansion in Texas despite moving call centres from the US to India.. It's a two way street.
Oh and buy the way, Hyundai operates in several countries OUTSIDE of the US so they are not making profits from just the US. If anything, they are gouging Korean's to make profits if anything (I read an article that says the same car, naturally same trim, is more expensive in Korea vs US). Go figure. There are some benefits to American's as a result of this too, if its true.
Anyways, it's a business and Apple/Dell are in it to make profits just like Toyota, Hyundai, BMW etc.. All of the foreign auto brands have every right to do business here - if they have produce jobs here or not - and the American customer will decide who profits and who loses; the beauty of an open economy. So continue with your b/s if you want but i'm not buying your crap. You got me all worked up with the "thick" comment and if you escalate this, then I have no problems getting nasty too..
ne1butu2 says:
08:22 PM, 09/25/2011
Okay, the Veloster is the today's CRX and the Sonata is today's Accord. Hyundai is the new Honda. I am no fan of Hyundai, but I have to admit that they are eating Honda and Toyota's lunch lately.
ilovecars12 says:
10:47 AM, 09/25/2011
Sorry I called you thick, there is really no reason for that. However, you need to look up the word net. If you quit your job making $100,000 to make $70,000 at another job, it would be be pretty frustrating to keep pointing out that you make $70,000 and that is a lot of money to someone who is trying to tell you that is is simply less than you made before.
Starting tomorrow, sell 1,000,000 more fords there will be new jobs in this country. Lets say for example, 10,000 manufacturing jobs, dealers, and parts vendors, as well as 5,000 new engineers, white collar, corporate attorneys. With a 1 billion dollar profit that all gets distributed among all of the company and shareholders in this country.
Sell 1,000,000 more Hyundai's (assuming all made in USA), you will get the identical increase in 10,000 manufactures, dealers, and vendors however, a MUCH lower increase in american hired engineers, corporate, etc. Also, the 1 billion profit almost entirely will go across the pacific to the all of the other 70,000 employees that do not reside in the US out of the 75,000 employed by Hyundai motor. The CEO of Hyundai, Chung Mong Koo lives in a swanky area around Seoul, lives in a big house, spends a lot in the area, gives big to his Korean University alma mater. The number 2 executive does the same, as with the number three, and 4,5,6,7,8...1000th etc.Where does that money come from? You earned it, bought a sonata, and now they are spending it in Korea. The CEO of Ford, Alan Mulally lives in Washington, lives in a big house, spends a lot of money there, gives big to the University of Kansas and MIT, etc. The number 2 executive does the same, as with the number three, and 4,5,6,7,8...1000th etc.
So...if we sell more Hyundai's ...is it a net increase for the country, or a net loss? I understand there will be money and jobs contributed...it will just be LESS. Seriously, don't get distracted, just think about the basic point, and don't let being wrong and pride get in the way of logic.
ilovecars12 says:
10:11 AM, 09/25/2011
net increase...man you are thick
alex38 says:
04:41 PM, 09/24/2011
@ ilovecars12
"The Sonata is a great car, just don't call it part of a strategy to have a net increase in jobs in this county"
Yea, imagine telling that to all the folks currently employed in Alabama and Georgia "...the Hyundai's and Kia's you are producing and exporting from the U.S. are not part of a strategy to have a net increase in jobs in this country".
I don't need or want to hear any more preaching of this propaganda. Yes, we'll have to agree to disagree.
ilovecars12 says:
11:18 AM, 09/24/2011
@alex38
My may points:
1.) Hyundai does support jobs in this country, at a rate less then any domestic company and with profits going in the wrong direction for our trade balance. Net loss.
2.) American dealers and vendors will service whomever is making cars in this country. Net Neutral.
3.) NET economic positive of buying a foreign car (our original disagreement) = Nothing
The Sonata is a great car, just don't call it part of a strategy to have a net increase in jobs in this county.
I think we just will just have to agree to disagree...
alex38 says:
06:07 AM, 09/24/2011
so anyways... i might seriously consider a 2-yr used veloster Turbo way down the road as a weekend car. This should be a hoot to drive in turbo form...can't wait to give it a test drive when they're released..
alex38 says:
05:56 AM, 09/24/2011
@ ilovecars12: "The one that requires more thought is the macroeconomic issue of dealers. As I stated previously, having a foreign or domestic dealership does not add or subtract to the amount of money or jobs in this country."
Yep, i've taken my fair share of economics classes and i understand what you are trying to say. However, there are simply too many flaws in your reasoning that i don't know where to start. Let's stick with your assumption of 13 million cars 'cuz that's pretty much inline with analysts estimates.
IF Hyundai and Kia were to exit America, you would have an immediate loss of ~5k workers at Hyundai factories, HQ and research centeres plus ~10 workers at supplier/vendors (that are not direct Hyundai employees) plus ~20k people who are INDIRECTLY supporting/selling Hyundai products at dealerships. You're looking at 35K people affected on day 1 of exit. Then, you add, say 20k people from Kia that are either directly/indirectly affected. (i understand what you're saying about people buying other car makes, leading to other manufacturers hiring more but stay with me for a moment).
Here is just one scenario (of many scenarios) that could pan out if this happened; an incredible chain of events could be set off. This MIGHT show as a slight uptick in the unemployment rate, leading to a further decline in the markets and consumer sentiment, leading to a downward revision in the amount of cars sold this year. Your economic theory works very well in the classroom and excel spreadsheets, but it doesn't always plan out that way in real life.
If Hyundai and Kia were to exit the U.S. market, i would bank the house that the original forecast of 13 million vehicles would be revised down (slightly or significantly). Here's why. Let's say I wanted a Sonata (because i am actually considering a Sonata). If they were no longer being made in the U.S., then it is POSSIBLE that I would not buy a vehicle at all (there are many reasons including concerns about the jobs market or maybe i wanted the Sonata-or-nothing). It's possible that i might look at buying a 1-yr old used Sonata or i might start taking the subway/bus instead.
Thus in economic theory, the absense of say 300k vehicles that are produced in the U.S. by Hyundai and Kia would be made up by competitors and they would hire all of the 50k employees that now need jobs. But, your flaws here: #1) You are ASSUMING that the American factories are running at 100% capacity but the latest reports I see are only the Korean manufacturers that are running near or at full capacity. Even if Ford/GM and others are near full capacity, they have buffers to increase supply by running overtime shifts to make up for the increase in demand SO there is absolutely NO guarantee the other car companies would soak up all the lost jobs. #2) Since car companies are in business to make a profit, basic supply and demand dictates that since there is less supply, they have the ability to increase prices, which they might and have the right to do (or at the very least, reduce incentives which is effectively increasing prices). As one could argue that demand for cars is elastic, then you would be likely see a reduction in the demand for cars as prices rise.
That is to say, the glaring flaw in your "wonder bread - i'll buy different bread" analogy is that you are comparing food, which is inelastic vs autos, which is considered a more elastic good (or less of a necessity because the opportunity cost of buying the vehicle becomes too high). It's ironic that you mentioned all of those layoffs at GM...haven't we been seeing a corresponding increase in unemployement during this period of layoffs? I'm not saying it's all GM workers, MAYBE some were HIRED BY HYUNDAI, but the reality is that we're seeing >9% unemployement in this country and it's not in a state to easily soak up 50K jobs in the auto market if Hyundai and Kia were to exit tomorrow with the snap of a finger. Do i think the national employment is going to fall below 5% in the future? Yes, it's all cyclical and it might take 10-15 years, but it will happen in time and not simply because people switch to buying domestic autos from foreign brands.
More faulty reason on your part: ".. It therefore only matters who did the dealer pay to get the car in the first place Honda or Ford?" Well, this might have some merit if the Honda was imported and 100% made in, say, Japan. But there are a tremendous number of Honda's that are built in North America so effectively, they could be buying cars for both companies that are built and sourced in the US, despite 1 brand being foreign. REGARDLESS, i really don't care to understand what you are saying with respect to this personally so no need to explain this to me.
My original point is very simple and i will say this one more time: 1.) Hyundai and Kia are supporting a number of American jobs and have invested in America 2.) Assuming Hyundai and Kia were to leave this country, it is ridiculous (and i hate to say this but borderline stupid) to think that the immediate economic impact would be limited to 5,000 jobs.