Hyundai Makes 50 mpg Fuel Economy Promise

Hyundai vowing  that it's vehicle line up will get an average fuel economy of 50 miles per gallon or better by 2025.

"We want to lead the industry in fuel efficiency," says John Krafcik, Hyundia Motor America president and CEO.  "We're doing it now.   We want to help set the trajectory not just for Hyundai, but the entire industry this very important point."

Krafcik making the promise Wednesday at the Management Briefing Seminars in Traverse City.

Hyundai's current fleet averages 30.9 miles per gallon.  By 2016, the entire industry must meet an average fuel economy target of 35.5 miles per gallon.   Rules for the next decade are still being written, and so is Hyundai's specific plan.

"Is that a stretch target, yea,"  said Krafcik.    "Is it a classic Hyundai stretch target, where we don't know precisely how to get there right now?  Yea. We don't know."

Krafcik said they plan to meet the 50 mile per gallon goal by mostly using existing technology.  He expects Hyundai's fleet in 2025 to be about 75-80 per cent internal combusion engines, 15-20 per cent hybrids and 5 per cent fuel cell or pure electric vehicle.

"We think there's so much more we can get using the technologies that we already have at hand," Krafcik told WWJ AutoBeat Reporter Jeff Gilbert.   "One of the key insights we have is making our gasoline engines more diesel like."

Krafcik hinted that some of that technology will be on a vehicle--most likely a new Hyundai Elantra--that will debut at November's Los Angeles Auto Show.

Talking to reporters after his speech, Krafcik also said that Hyundai is looking for more capacity in the United States, and wouldn't rule out building another assembly plant.  He said an announcement should come within four weeks.  He also said that Hyundai annual North American sales could top 500,000 for the first time this year.  

Hyundai is preparing to come to market this year with a high end luxury car called the Equus.  The company is promising personal service for buyers, including private test drives, and a "valet" service for repairs, where your car is picked up, and a loaner dropped off.  Hyundai only expects to sell about 2000 Equus vehicles a year.

On the fuel economy pledge, Krafcik said that there are a lot of unknowns, including what Hyundai's model mix will be like in 15 years.  But, he expressed confidence in meeting the 50 mpg goal.   And, if another automaker tried to one up Hyundai, and announce a more ambitious fuel economy goal. 

"They could, and we would applaud it."

Hear Hyundai North America CEO John Krafcik talk about fuel economy and other issues.