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Hyundai cuts incentives for Sonata in transitional year

Nov. 16, 2013 at 10:37 AM   |   Comments

COSTA MESA, Calif., Nov. 16 (UPI) -- The U.S. division of Hyundai Motors is cutting incentives for its midsized Sonata as the car continues to defy the odds, the firm's top executive said.

"The Sonata shouldn't be doing this well. But it has," said Hyundai Motor America Chief Executive Officer John Krafcik.

The Detroit News reported Saturday that Sonata sales have fallen 11 percent, while industry sales overall have headed higher.

Across segments, Hyundai sales have climbed 2 percent, while the industry average is 8 percent, the News said.

But Hyundai has been able to cut incentives for the Sonata to the second lowest in its class, the newspaper said. Incentives for the Sonata are down to $2,200. For the Honda Motor Co. Accord, incentives are the lowest in the segment, $840.

The "silver lining," the News said, is that lowering incentives means more profits for Hyundai, which somewhat of a rarity for vehicles with diminishing sales.

Hyundai has cut incentives in part because it has cut production at an Alabama assembly plant by 11 percent, while raising production of the Elantra to meet demand. Elantra sales are up 21 percent from January through October.

Hyundai is introducing the next generation Sonata at the auto show in New York in April and that should be ready for sale by June, the News said.

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