Hyundai, Toyota engage in price war over coupes

[NFS4]

South Korea's Hyundai Motor Corp. has long competed in the United States as a low-cost alternative to increasingly pricey Japanese cars. The problem is that mighty Toyota Motor Co.p. is starting to undercut Hyundai on price.

Consider their two rival sport coupes.

Hyundai's youth-oriented model is the Tiburon. But its market share is being threatened by a new offering from Toyota's hot-selling Scion brand. Auto reviewers have been raving about the 2005 Scion tC as a bargain that is also fun to drive.

So Hyundai Motor America Inc., the Fountain Valley, Calif.-based import arm, has now slashed the sticker price of its 2005 Tiburon coup by about $1,000 to match the Scion tC.

Word of the price war has leaked out in recent days.

Toyota is a master "at manufacturing efficiencies, including maximizing economies of scale by sharing components among models," said Wes Brown of Los Angeles market research company Iceology. "This is a perfect example."

Indeed, even after Hyundai's cut, the Tiburon's new base price of $16,539 remains slightly higher than the $16,490 that Toyota charges for its standard Scion coupe.

Hyundai product planning chief John Krafcik said the company also will offer a cash-back incentive so the Tiburon, which is set to hit dealer showrooms by the end of the month, "very likely will cost less than the Scion."

On the plus side, the Hyundai coupe is roomier than the Scion, and comes with the company's 10-year, 100,000-mile powertrain warranty. Scion's warranty is for three years or 36,000 miles.

But the Scion offers a number of standard features, including anti-lock brakes and 17-inch alloy wheels, that cost extra on the Tiburon. And particularly important to many, the Scion has more power.

Yet the most telling disparity between the two cars is in their sales: By the end of October, after only four months in the United States, 19,667 tC coupes had sold. That blew past the 17,484 previous Tiburon models purchased since January.

DAMN!!!!!!!!!:Q:Q Hyundai getting beat at their own game by a better player. Gotta love competition

 

[Rallispec]

interesting... gotta love competition.

on a similar note -- my g/f talked herself out of wanting a Scion Tc.. It's just too small and not quite practical enough in the long run. Mazda6 just jumped to the top of that list, and with the 3k cash back they're offering right now - won't be that much more than the Tc.

 

[jagec]

I'd take the tC over the Tiburon.

 

[Rallispec]

Originally posted by: jagec
I'd take the tC over the Tiburon.

having driven both -- from a comfort and overall feel - the Tc is a more refinied, slightly more polished car. The tiburon is more fun to drive though. THe Scion is way to soft for my personal taste, and the tiburon just seemed more responsive.. even though its a bit larger and heavier. (seemed so at least)

 

[geno]

Wow, what's with the sh!tty warrenty on the tC?

 

[Rallispec]

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

I think all toyota's are 3yr / 36k miles... Would have been nice if they upped it for the Scions, wasnt in the cards though.

Kind of surprised that Mazda offers a 48k mile warranty standard. It will be nice when 10yr is the new standard.

 

[NFS4]

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

Sh!tty warranty? That's the standard warranty for 90% of vehicles sold. The only reason why Hyunda/Kia have such long warranties is b/c it's the only way they can get people into the showroom

 

[zixxer]

Originally posted by: NFS4

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

Sh!tty warranty? That's the standard warranty for 90% of vehicles sold. The only reason why Hyunda/Kia have such long warranties is b/c it's the only way they can get people into the showroom

10yr 100k warranty is great... except who's paying for a rental? certainly not hyundai... a girl I know has one and it's always in the shop... I think it's an alantra or something.. kind of small car. She's always bumming rides cause it's getting fixed.

 

[miri]

5/60,000 powertrain warranty for Toyota.

 

[geno]

Originally posted by: NFS4

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

Sh!tty warranty? That's the standard warranty for 90% of vehicles sold. The only reason why Hyunda/Kia have such long warranties is b/c it's the only way they can get people into the showroom

Meh, I just thought Toyota backed their cars for a little longer than 3 years, but then again, I've never paid much attention to warrenties. I thought cars in that price range had more competetive warrenties

 

[0roo0roo]

heh yea u'd have to be brain dead to pic a tiburon over a tc.

 

[Doggiedog]

If Hyundai offered depreciation insurance, then they might sell better.

 

[Rallispec]

I've heard more and more people choosing the Mazda3 over either of these cars.

 

[jagec]

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

Who cares what the warranty is if the car is going to run for 300,000 miles anyway

 

[NFS4]

Originally posted by: jagec

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

Who cares what the warranty is if the car is going to run for 300,000 miles anyway

LOL. My '95 Camry is at 153,900 and still going

 

[PingSpike]

Toyota may not have the best warrenty, but their cars have a reputation for lasting forever. Hyundai NEEDS that warrenty because their cars have a reputation for falling apart on the way home.

I don't understand why Toyota doesn't offer the warrenty though, their cars are rock solid and they likely would lose little to nothing on it.

However,

Dear Hyundai,

If your model costs only a few hundred bucks less than a heavy hitter like Toyota, you're fvcked. You're going to have to do better than that to compete with a company with a solid rep and decades of experience.

 

[NFS4]

Originally posted by: PingSpike
Toyota may not have the best warrenty, but their cars have a reputation for lasting forever. Hyundai NEEDS that warrenty because their cars have a reputation for falling apart on the way home.

I don't understand why Toyota doesn't offer the warrenty though, their cars are rock solid and they likely would lose little to nothing on it.

However,

Dear Hyundai,

If your model costs only a few hundred bucks less than a heavy hitter like Toyota, you're fvcked. You're going to have to do better than that to compete with a company with a solid rep and decades of experience.

Yeah, Hyundai still has to undercut Honda and Toyota by thousands to makes any kind of inroads:

http://autoweek.com/news.cms?newsId=101152

 

[toant103]

Originally posted by: jagec
I'd take the tC over the Tiburon.

 

[GtPrOjEcTX]

Originally posted by: Rallispec
interesting... gotta love competition.

on a similar note -- my g/f talked herself out of wanting a Scion Tc.. It's just too small and not quite practical enough in the long run. Mazda6 just jumped to the top of that list, and with the 3k cash back they're offering right now - won't be that much more than the Tc.

I'm also looking at the 6.

 

[SuperTool]

Is the 3K cashback on 2004s or 2005s?

 

[fs5]

Originally posted by: Rallispec
I've heard more and more people choosing the Mazda3 over either of these cars.

my friend tried to order a tC, white. they said the waiting time would be a month. a month goes by and they change it to 2 months. he's buying a mazda 3 instead.

 

[geno]

Originally posted by: NFS4

Originally posted by: jagec

Originally posted by: geno
Wow, what's with the sh!tty warrenty on the tC?

Who cares what the warranty is if the car is going to run for 300,000 miles anyway

LOL. My '95 Camry is at 153,900 and still going

better luck than my GF had with her '96. She had her fair share of problems with it, thank got she doesn't have it anymore though

 

[BatmanNate]

I :heart: my Toyota.

 

[Slappy00]

mitsu, makes some great cars for reletively cheap, and they have very good warrantees. I woudl rather have a a lancer (no turbo anymore :/ for base ) or a gallant over any of those toyotas or other other imports, well execpt for BMW but who can afford one of those.

 

[NFS4]

Originally posted by: Slappy00
mitsu, makes some great cars for reletively cheap, and they have very good warrantees. I woudl rather have a a lancer (no turbo anymore :/ for base ) or a gallant over any of those toyotas or other other imports, well execpt for BMW but who can afford one of those.

Mitsu < Mazda, Toyota, Honda in build quality/refinement.

And Mitsu is about to go belly up. You'd be crazy to make a long-term investment in them these days:

http://www.detnews.com/2004/au...11/08/autos-328310.htm