Hyundai Azera may soon be discontinued in the U.S.
01-31-16, 03:57 PM
#1
Lexus Fanatic
Thread Starter
Hyundai Azera may soon be discontinued in the U.S.
Not surprising....though this car competes against the Avalon, Taurus, LaCrosse, and Impala on paper, the sales just don't seem to be justifying its continued existence in the U.S. market. To be honest, I wouldn't be surprised if that also happened to the slow-selling Taurus, except maybe as a fleet-order for the police, who seem to be the only ones buying it.
Hyundai did have an Azera at the D.C. show (which ended today), but it was stuck back in a corner and did not get much floor-attention. Ford, which had more floor space at the show than Hyundai, had a couple of Taurus models there, including an SHO, but they weren't getting much floor attention either.
The article also makes up a good pint......the Azera's demise will free up production and showroom space for better-selling models.
I've only known one person who has actually bought an Azera, though she is (admittedly) quite pleased with it. Still, there to be a strong business-case for dropping it in the U.S.
http://www.autoblog.com/2016/01/28/h...killing-azera/
We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy.
Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units.
The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race.
The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model.
The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models.
As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more. Axing the Azera has another added benefit: It creates a more definite delineation between the Hyundai lineup and the Genesis luxury brand the company is trying to establish.
All of this banks on the continued popularity of crossovers. Chrysler just admitted something similar in doubling down on the Jeep brand, jettisoning the Chrysler 200 and Dodge Dart, and paring back its ambitious goals for Alfa Romeo. Barring a return to $4-a-gallon gas, the crossoverfication of the marketplace is a trend that will continue, like it or not.
Hyundai did have an Azera at the D.C. show (which ended today), but it was stuck back in a corner and did not get much floor-attention. Ford, which had more floor space at the show than Hyundai, had a couple of Taurus models there, including an SHO, but they weren't getting much floor attention either.
The article also makes up a good pint......the Azera's demise will free up production and showroom space for better-selling models.
I've only known one person who has actually bought an Azera, though she is (admittedly) quite pleased with it. Still, there to be a strong business-case for dropping it in the U.S.
http://www.autoblog.com/2016/01/28/h...killing-azera/
We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy.
Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units.
The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race.
The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model.
The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models.
As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more. Axing the Azera has another added benefit: It creates a more definite delineation between the Hyundai lineup and the Genesis luxury brand the company is trying to establish.
All of this banks on the continued popularity of crossovers. Chrysler just admitted something similar in doubling down on the Jeep brand, jettisoning the Chrysler 200 and Dodge Dart, and paring back its ambitious goals for Alfa Romeo. Barring a return to $4-a-gallon gas, the crossoverfication of the marketplace is a trend that will continue, like it or not.
01-31-16, 04:38 PM
#3
Lexus Fanatic
Thread Starter
Good question. 
I had not considered that. I guess it will depend on sales. Hyundai may be discontinuing the Azera in one particular market, but that doesn't mean it is necessarily going to terminate the plant where it and the Cadenza are built, or the Azera/Cadenza tooling. But you do bring up an interesting point. The Cadenza has not been a big seller either, though it has only been on the market a couple of years......much less than the Azera.
I had not considered that. I guess it will depend on sales. Hyundai may be discontinuing the Azera in one particular market, but that doesn't mean it is necessarily going to terminate the plant where it and the Cadenza are built, or the Azera/Cadenza tooling. But you do bring up an interesting point. The Cadenza has not been a big seller either, though it has only been on the market a couple of years......much less than the Azera.
01-31-16, 04:38 PM
#4
Pole Position
I went by Huyndai dealer today and was very surprised that there was litterally just 1 Santa Fe and 2 Tucsons on the while lot! i can totally believe they will reduce models to ramp up the hot selling SUVs....
01-31-16, 05:32 PM
#6
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That's a shame, the Azera is a good looking car. I think it suffers the same problem as the Avalon, in that the midsize car (Camry and Sonata) are already good vehicles that have enough space for a family, no real reason to spend more money and move into luxury car territory prices.
01-31-16, 05:43 PM
#7
That's a shame, the Azera is a good looking car. I think it suffers the same problem as the Avalon, in that the midsize car (Camry and Sonata) are already good vehicles that have enough space for a family, no real reason to spend more money and move into luxury car territory prices.
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01-31-16, 06:20 PM
#8
Lexus Fanatic
Thread Starter
That's a shame, the Azera is a good looking car. I think it suffers the same problem as the Avalon, in that the midsize car (Camry and Sonata) are already good vehicles that have enough space for a family, no real reason to spend more money and move into luxury car territory prices.
01-31-16, 07:27 PM
#9
Lexus Champion
I never see an Azera or Taurus unless I rent a car (then I see the Taurus). I think it is difficult for some automakers to support a whole line-up of sedans when the public is moving toward SUVs/CUVs. BMW, with all their spin-offs of different models, may be the exception. Remember, the CEO of Lexus was thinking about axing the GS before the '13 model was introduced. Thank goodness he didn't, but sedans are just not the rage these days.
01-31-16, 08:32 PM
#10
Lexus Fanatic
Makes sense that they are getting rid of it. For the price of a loaded Azera, one can get into a Lexus ES350 with one or more of the lower priced option packages. With the Lexus you are getting a better brand and Lexus reliability.
02-01-16, 03:08 AM
#11
Super Moderator
My parents went to a Hyundai dealer a few years ago to replace their Avalon with an Azera. At the time, the Avalon was brand new, availability was spotty and prices were too high, so they didn't consider getting another one.
They wound up coming home with a nicely-equipped Genesis 3.8 instead, for around the same money (think it was a little bit less, actually) as the Azeras they looked at. I suspect this represents the general case for the slow sales of the model, particularly considering the Cadenza sells 50% higher volume than the Azera--Kia does not have a variant of the Genesis.
However, the above does make the timing of this move curious. Why finally discontinue it right at the moment that the stablemate that cannibalizes its sales is being moved out to a dedicated brand? Either they should have cancelled it several years ago, or wait to see if sales rebound after the Genesis is moved permanently upmarket. Just seems strange to get rid of your top two models at the same time.
They wound up coming home with a nicely-equipped Genesis 3.8 instead, for around the same money (think it was a little bit less, actually) as the Azeras they looked at. I suspect this represents the general case for the slow sales of the model, particularly considering the Cadenza sells 50% higher volume than the Azera--Kia does not have a variant of the Genesis.
However, the above does make the timing of this move curious. Why finally discontinue it right at the moment that the stablemate that cannibalizes its sales is being moved out to a dedicated brand? Either they should have cancelled it several years ago, or wait to see if sales rebound after the Genesis is moved permanently upmarket. Just seems strange to get rid of your top two models at the same time.
Last edited by geko29; 02-01-16 at 05:01 AM.
02-01-16, 05:38 AM
#12
We had a 2012 Azera for about 26,000 miles of use. Was not a bad car at all, it did ride a little bit stiffer than you would expect from this class of car. Hyundai for some reason set it up for more of a sportier car ride. The car was not the quietest car going down the road either. Gas mileage was okay but the computer said you were getting 1 to 2 MPG than you actually were. Didn't have any problems with the car either. The problem I had with the Hyundai brand was the trade in value plummets between the second and third year of ownership for some reason. We traded it in for 2014 Lexus ES350 and the cars really don't compare at all, the Lexus is that much better, even though one the car mags that tested the two cars gave the win to the Hyundai which I couldn't figure out why after driving both cars.
Not surprising....though this car competes against the Avalon, Taurus, LaCrosse, and Impala on paper, the sales just don't seem to be justifying its continued existence in the U.S. market. To be honest, I wouldn't be surprised if that also happened to the slow-selling Taurus, except maybe as a fleet-order for the police, who seem to be the only ones buying it.
Hyundai did have an Azera at the D.C. show (which ended today), but it was stuck back in a corner and did not get much floor-attention. Ford, which had more floor space at the show than Hyundai, had a couple of Taurus models there, including an SHO, but they weren't getting much floor attention either.
The article also makes up a good pint......the Azera's demise will free up production and showroom space for better-selling models.
I've only known one person who has actually bought an Azera, though she is (admittedly) quite pleased with it. Still, there to be a strong business-case for dropping it in the U.S.
http://www.autoblog.com/2016/01/28/h...killing-azera/
We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy.
Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units.
The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race.
The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model.
The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models.
As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more. Axing the Azera has another added benefit: It creates a more definite delineation between the Hyundai lineup and the Genesis luxury brand the company is trying to establish.
All of this banks on the continued popularity of crossovers. Chrysler just admitted something similar in doubling down on the Jeep brand, jettisoning the Chrysler 200 and Dodge Dart, and paring back its ambitious goals for Alfa Romeo. Barring a return to $4-a-gallon gas, the crossoverfication of the marketplace is a trend that will continue, like it or not.
Hyundai did have an Azera at the D.C. show (which ended today), but it was stuck back in a corner and did not get much floor-attention. Ford, which had more floor space at the show than Hyundai, had a couple of Taurus models there, including an SHO, but they weren't getting much floor attention either.
The article also makes up a good pint......the Azera's demise will free up production and showroom space for better-selling models.
I've only known one person who has actually bought an Azera, though she is (admittedly) quite pleased with it. Still, there to be a strong business-case for dropping it in the U.S.
http://www.autoblog.com/2016/01/28/h...killing-azera/
We're living in a crossover world, and Hyundai is open about the fact that it's been struggling to meet demand for its utility models. Without production constraints, says Hyundai Motor America CEO Dave Zuchowski, the Tucson compact crossover would be outselling Hyundai's perennial volume model, the Elantra. There's a wide-reaching plan in place now to make sure Hyundai dealers are stocked with the models people want to buy.
Step one involves upping output of existing models. Hyundai has brought tooling into its Montgomery, AL, factory to build Santa Fe Sport models alongside the Elantra and Sonata. (The bulk of Santa Fe Sport production takes place at the maxed-out facility in West Point, GA.) This will increase the model's annual production capacity by about 50,000 units.
The new Tucson, which just went on sale last year, is being afforded an extra 50,000 or so units of capacity this year, which should put it ahead of the Elantra in the company's internal sales race.
The second part of the plan will bring new models. A B-segment crossover is in the works. This is a catch-up move to go up against several new models that seemingly popped out of nowhere: the Jeep Renegade, Fiat 500X, Honda HR-V, Mazda CX-3, Chevy Trax, and Nissan Juke. Toyota is the only other volume player still noticeably absent from, or at least not on the way to, this party, and that will be fixed with the next Scion model.
The Genesis luxury brand has also promised crossover models, and we anticipate the engineers are doing all they can to get those to market as quickly as possible. Because Genesis models will be on platforms distinct from those Hyundai uses, it could be a couple years before the fancy utes land. When the lineup is filled out, bet on luxurious subcompact, compact, midsize, and fullsize crossovers. There's a good chance Genesis crossovers will outnumber its car models.
As for the Hyundai brand's car models, remember the Azera? Neither does anyone else. Getting rid of this slow-selling sedan will help free up capacity as well as showroom space. The fullsize sedan is likely to continue on in other markets – specifically the home market, where it's called the Grandeur – but Hyundai Motors America won't go through the trouble of getting it ready to sell (or not sell) in the States any more. Axing the Azera has another added benefit: It creates a more definite delineation between the Hyundai lineup and the Genesis luxury brand the company is trying to establish.
All of this banks on the continued popularity of crossovers. Chrysler just admitted something similar in doubling down on the Jeep brand, jettisoning the Chrysler 200 and Dodge Dart, and paring back its ambitious goals for Alfa Romeo. Barring a return to $4-a-gallon gas, the crossoverfication of the marketplace is a trend that will continue, like it or not.
02-01-16, 06:20 AM
#13
Lexus Fanatic
Thread Starter
My parents went to a Hyundai dealer a few years ago to replace their Avalon with an Azera. At the time, the Avalon was brand new, availability was spotty and prices were too high, so they didn't consider getting another one.
They wound up coming home with a nicely-equipped Genesis 3.8 instead, for around the same money (think it was a little bit less, actually) as the Azeras they looked at. I suspect this represents the general case for the slow sales of the model, particularly considering the Cadenza sells 50% higher volume than the Azera--Kia does not have a variant of the Genesis.
They wound up coming home with a nicely-equipped Genesis 3.8 instead, for around the same money (think it was a little bit less, actually) as the Azeras they looked at. I suspect this represents the general case for the slow sales of the model, particularly considering the Cadenza sells 50% higher volume than the Azera--Kia does not have a variant of the Genesis.
02-01-16, 06:26 AM
#14
Lexus Champion
When the Azera was launched, C&D had an article questioning the long term success of the model. They maintained that it was in a awkward position in between Sonata and Genesis from a pricing standpoint, and the pricing difference both above it (Genesis) and below it (Sonata) was too close and consumers would probably end up buying the other models depending on their preferences.
02-01-16, 06:42 AM
#15
Lexus Fanatic
Thread Starter
When the Azera was launched, C&D had an article questioning the long term success of the model. They maintained that it was in a awkward position in between Sonata and Genesis from a pricing standpoint, and the pricing difference both above it (Genesis) and below it (Sonata) was too close and consumers would probably end up buying the other models depending on their preferences.