34 AUGUST 20, 2018 Where Hyundai’s N brand goes from here Biermann: Performance version of the Ioniq EV ‘is not fully crazy’ Christiaan Hetzner N ЬRBURG, Germany — Hyundai plans to launch at least two more N performance cars and could even- tually develop an electrified ver- sion as it seeks a sportier image, a senior ex- ecutive told Automotive News . chetzner@autonews.com Te i30 Fastback N, which will debut in Oc- tober at the Paris auto show, will hit show- rooms in Europe at year end. Tis would be Hyundai’s third N model in barely a year, fol- lowing last September’s i30 N hatchback launch for Europe and the Veloster N for the U.S. and Korea, which debuts in the fourth quarter.
“As an example, we have an Ioniq EV. Were we to find a nice battery, a bigger motor and inverter, we could make an Ioniq EV N with a nice chassis and more power,” Biermann said. “Something like that is not fully crazy.” Spy photos show Hyundai’s i30 Fastback N, which is to debut in October at the Paris auto show. Although Hyundai is an industry leader in fuel cell vehicles, Biermann wasn’t convinced those powertrains had a sufficiently high en- ergy density to fit the needs of a sporty car with compact dimensions.
Planting the un- tested technology in the body of a vehicle that demands a certain performance could pose additional challenges for a company that ad- vertises a 10-year powertrain warranty. Albert Biermann, Hyundai-Kia’s head of vehicle testing and high-performance devel- opment, said a fourth entry — possibly an SUV — was budgeted in his long-term plan, but the automaker could surprise with an- other model in between, bringing the total to five. on the segment. One rea- son he remains vague is that the N product plans depend heavily on the ca- dence of the base models. Schreyer, also said his team is considering what alter- native drivetrain could best power an N model.
“When we think of cars after 2021 for N, I think we cannot avoid electrifica- tion,” he said. “We will have an EV sooner or later. It’s just a matter of timing.” Te i30 Fastback N wasn’t originally planned, but was greenlighted shortly after Hyundai-Kia design chief Peter Schreyer showed a mock-up to Biermann, who promptly decided a perfor- mance version would be an excellent fit for the sporty sedan. “Tere’s a car within the next two or three months that we probably have a chance to show to Vice Chairman Chung [Eui-sun] and our top management,” he said on the side- lines of a Veloster N test drive here.
“Depend- ing on what is the current mood and situation, we might get a spontaneous ‘OK, go for it.’ ” “We don’t want to take too much risk there,” he said. Biermann: Five N models possible Schreyer: Exec showed mock-up. Customers shouldn’t expect a performance line for Genesis because of the brand’s posi- tioning toward luxury and elegance. Increasingly stringent emissions legislation in major markets, such as those taking effect in the next decade in the European Union, re- quire the brand to further reduce its carbon footprint. “Before the Genesis [stand-alone] brand was started, we had made some concept in- vestigation for a G70 N,” said Biermann.
“Of course we would love to do that, but right now I cannot see that.” a Biermann said his team “could come up with a car in a pretty short time,” depending Te German engineer, the group’s second highest ranking non-Korean executive, after VELOSTER that the Veloster N will be even sportier than its European sibling in part because of 88 fewer pounds on the ribs. “We have a six- to seven-month waiting list on the car basically everywhere.” what N might achieve in the U.S. Describing the Veloster N’s 2.0-liter gasoline engine in terms of power — 275 hp and 260 pound-feet of torque — wouldn’t do it justice, Hyundai engineers say.
Tey weren’t targeting sheer output but an immediate response to changes in throttle, mitigating effects from tur- bo lag to make the vehicle perform as smoothly and predictably as a naturally aspirated coupe. unique rims or a spoiler sporting the N logo. Tere’s an economic reason behind this in- vestment. Hyundai can’t afford to leave mon- ey on the table or lose customers. Hyundai Motor Co.’s profits were down by more than one-third in the first half of 2018, and the com- pany has warned of more pain if threatened tar- iffs on imported vehicles and parts take hold.
Engineers sought much more than sheer power surprisingly well-equipped cars sold for a few ticks below the big-name Asian competitors. It solidified that reputation by racing up the quality rankings and backing its products with a long warranty. continued from Page 1 Grueling test While the N in the brand’s name technical- ly refers to Hyundai’s South Korean r&d cen- ter in Namyang, the chicane-style logo re- flects the vehicles’ true birthplace: the Nьr- burgring Nordschleife. Since straight-line speed is rarely useful on U.S. roads, more emphasis was also placed on Te weak profits stem in part from a slow re- covery after last year’s geopolitical tensions, when the U.S.
stationed an anti-missile system in South Korea. Te move angered Beijing and ignited a wave of anti-Korean sentiment in China, crippling Hyundai’s local operations. the chassis’s lateral dynamics and roll angles when corner- ing. To better appeal to enthu- siasts, all Veloster N’s have six- speed manual transmissions with rev matching to allow for quicker acceleration out of a curve when downshifting. A higher-power version also boasts an electronically con- trolled differential to limit front-wheel slip and improve traction when rounding a bend. But value as a value proposition can have its downside.
Customers who vote with their pocketbooks are more prone to switch to a ri- val brand should they move up in the world or find a more compelling offer elsewhere, reducing a manufacturer’s inherent pricing power and profitability. Te racetrack features a 13-mile circuit with 73 bends, an elevation difference of al- most 1,000 feet and untold surface changes in the asphalt. Enthusiasts believe it to be the world’s most grueling and dangerous course, and lap re- cords here are considered the benchmark for high-performance cars.
“Initial sales of N products are going beyond expectations.” Sales of the brand in the world’s largest ve- hicle market plummeted in response, initial- ly causing its Chinese plants to go from full utilization to just 35 percent. In Europe, Hyundai has struggled for years to cultivate a more aspirational image de- spite having launched a line of “i” cars de- signed with local tastes in mind, such as the i30 compact, which is not sold in the U.S. Thomas Schemera Hyundai expects to sell only about 900,000 vehicles in China this year despite installed ca- pacity of more than 1.3 million vehicles there.
Tat means even customers who grew up driving on the autobahn and bringing their car to the Nordschleife racetrack on public days have been impressed by the i30 N hatchback. Te group has responded by restructuring the bulk of its overseas operations, placing respon- sibility for domestic production in the hands of its local sales operation to better align output with actual demand in order to protect margins. But it might now have found the answer in the new i30 N, a hot hatch that packs all the performance features of competitors and then some for a substantially lower cost.
It does this by relying on optimized off-the- shelf parts from Hyundai’s network of affiliat- ed Korean suppliers rather than expensive brand-name components such as Brembo brakes. In some cases, the discount from the cost of a rival such as the Volkswagen Golf GTI can be up to a fifth of the price. Profits at stake “Germany by far had the biggest numbers planned,” said Biermann, “yet they ran out first.” If such discerning car buyers purchase two and a half times what Hyundai had bud- geted this year, as he expects, there’s no telling But a few thousand more sales won’t move the needle for a carmaker the size of Hyundai.
To multiply the effect of the N cars, its image must trickle down to the base models. Hyun- dai will want normal customers looking for a sportier image to be tempted by such offer- But Hyundai won’t rush things with its N models if Biermann has anything to say about it. Te demanding standards he inherited from BMW mean he is examining options for coming models. He won’t even commit to a halo model that could borrow elements from the brand’s “rolling lab,” the Project RM sports car concept. ings as an N-style interior trim or customized N-themed op- tions such as For Veloster N customers in the U.S., there’s one big downside:
Tey will have to compete with Korean customers for supplies of the car, a problem not made easier by a retooling at a Te i30 N, on sale since September, hit its 2018 full-year sales target by the end of June, and customers order- ing the car now won’t receive one until next year. key engine supply plant. “Te Veloster [capacity issue] “Initial sales of N products are going beyond expectations,” said Schemera. “Almost 3,000 units of the i30 N were sold in the first half of 2018 in Europe.” is much worse,” said Bier- mann, acknowledging his team is now playing catch- up.
“We will probably sell more than 10 times the number in Korea than was planned.” a Te model’s father, longtime BMW performance car engi- neer Albert Biermann, be- lieves the second half will be just as solid as the first. Will the Project RM sports car concept lend elements to a Hyundai halo model? “We can’t build enough,” he said, adding