Hyundai to meet new fuel-economy rules in U.S.

Hyundai Motor Co., South Korean's largest carmaker, plans to be the first in the U.S. to meet stricter fuel-economy rules set by the Obama administration, John Krafcik, Hyundai's U.S. chief executive, said.

The government last month announced modified rules to push automakers to cut greenhouse gas emissions and boost fuel- efficiency to an average of 35.5 miles per gallon by 2015.

"We're going to hit it ahead of everyone; that is the current plan," said Krafcik, president of Seoul-based Hyundai's U.S. unit, in an interview in New York yesterday. "We have a plan to be the number one brand in fuel efficiency."

Hyundai Motor, which this week was ranked fourth in J.D. Power's annual survey of new vehicle quality, wants to raise its image in the U.S. from a maker of low-cost imports to one whose products rival those of Toyota Motor Corp. and Honda Motor Co. in quality and technology. Key to that goal will be the addition of a revamped Sonata sedan hybrid in late 2010, Krafcik said.

Hyundai ranked third in fuel economy in 2008 at 28.4 mpg, behind Toyota at 29.7 mpg and Honda's 29.6 mpg average, according to U.S. Environmental Protection Agency data.

The new Sonata model will sell for less than either Toyota's Camry hybrid or Ford Motor Co.'s new Fusion hybrid sedan, he said. The new Sonata will also use the market's first lithium polymer battery, rather than the nickel-metal hydride packs now in conventional hybrids, he added.

President Barack Obama announced the first national standard for greenhouse-gas emissions from automobiles and the tougher fuel-mileage standards on May 19. The plan is aimed at reducing greenhouse-gas emissions by 900 million metric tons through 2016, according to the administration.

Hyundai's U.S. operations are based in Fountain Valley, California. The company's shares don't trade on a primary U.S. exchange.