Hyundai is one of the few car brands that this year can boast higher sales in a softer U.S. vehicle market. A big reason: the South Korean automaker’s impressive transition to a lineup dominated by SUVs and crossovers rather than by sedans, whose popularity with consumers has dimmed.
In an industry that is down 1.8% in unit sales through May, Hyundai is up 1.7%. The shift to SUVs and crossovers is only part of the story: Since January 2018, the automaker has introduced ten new or significantly re-engineered or face-lifted models, including an all-new compact Santa Fe crossover and two versions of the all-new Kona subcompact crossover.
Hyundai’s momentum in the U.S. could be reinforced by Palisade, which is being tested and reviewed by journalists ahead of its arrival at dealerships this summer. The company is calling the new midsize model its flagship, executives expressing optimism that it can compete effectively against strong selling SUVs like Ford Explorer and Toyota Highlander, new versions of which also are headed to consumers.
“2020 Hyundai Palisade clearly evokes design imagery worthy of Hyundai’s flagship SUV, with new levels of all-road, all-weather capability, technology, safety, roominess and efficiency, all packaged in cutting-edge design,” said Mike O’Brien, vice president of Product, Corporate and Digital Planning, Hyundai Motor America.
With seating for up to eight passengers, Palisade replaces the earlier Santa Fe XL, marking a shift in naming strategy that had been devised to optimize marketing investment in the Santa Fe nameplate, which now will be used only for the smaller model. Calling two fundamentally different models by similar names surely confused some consumers.
O’Brien noted that Palisade was designed to appeal primarily to families. The similar Kia Telluride, designed and manufactured by Hyundai’s corporate cousin is positioned to appeal to a younger cohort that is outdoors and adventure oriented. Palisade is imported from Hyundai’s manufacturing complex in South Korea while Telluride is built at a Kia assembly plant in West Point, Ga.
Palisade is powered by a 3.8-liter V6 engine developing 291 horsepower and 262 foot-pounds of torque, same as Telluride, which is typical for the category. An eight-speed transmission delivers powers to the front wheels; an all-wheel-drive system is available as an option.
As with competitive entries in this category, Palisade offers a wide array of technologically advanced safety and convenience features, depending on trim level, from adaptive cruise control (called Hyundai Lane Assist) to a heads-up display in the front windshield to a premium Harman Kardon audio system with Surround Sound capability.
The basic SE model starts at $31,550 and goes up to $46,400 for the Limited edition; destination fee adds $1,045 to the price. With all possible options, Palisade’s price would top $50,000.
Brian Smith, chief operating officer, noted that the industry – setting aside pickup trucks, which Hyundai so far doesn’t sell – is selling SUVs and crossovers vs. sedans at a 55/45 proportion. Hyundai, with seven SUV models, has improved its proportion to 50/50. Next up is another subcompact SUV, which debuted in New York in the spring, called Venue.
Hyundai isn’t giving up on sedans, as have other manufacturers. The eighth generation of its Sonata midsize sedan is slated to appear this fall after a positive reception for a prototype shown in the spring.
“With a beautiful design and unheard-of levels of content, Hyundai is swinging for the fences with the eighth-generation Sonata,” exulted Car and Driver magazine.
