The first model in the Korean carmaker's planned metamorphosis into a world class player, Hyundai Azera was "new" for 2006. The 2007 sports only minor changes, like turn signals on the power-folding side mirrors.
Actually this car has been marketed worldwide under the Hyundai Grandeur nameplate for some years. Hyundai, which built its North American reputation on entry-level cars, is using this model to move upscale.The target in the full-size, near-luxury segment is leader Toyota Avalon.
Avalon, similarly equipped, would carry MSRP price stickers more than $3,000 higher. With the hard line on price at many Toyota dealers, and soft Azera sales, that gap may be considerably wider.
Besides Avalon, the near luxury large sedan competition includes Ford 500, Nissan Maxima, Chrysler 300, Buick Lucerne, Kia Amanti, and Mercury Grand Marquis.
The biggest Hyundai is available in two trims, SE and Limited, separated by a meaningful $2500. SE has lots of standard equipment, at a low base price.
A visit to a Houston, Texas, dealer revealed mostly Limiteds on the lot.
The big Korean sedan has received much acclaim.
Consumer Reports (CR) says first year reliability is much better than average.
Automotive editors at CR really like this car.
and recommended. CR scored Azera high for predicted reliability and ownership satisfaction.
J.D. Power awarded the 2007 Azera the "Most Appealing" title in the large car segment.
The Azera won Strategic Vision’s 2006 Total Value Award™ for Best Large Car Ownership Experience"
Azera was named Edmunds.com Editor's Most Wanted Sedan Under $30,000.
And a "Consumer's Digest Best Buy."
Editors at Cnet.com, a computer site, awarded only a 5.6 of 10, commenting on the interior fit and finish, handling, ride, and lack of navigation and bluetooth integration.
Owner reviews are a bit stronger than Avalon's, a better ratio of positive to negative. This is just my subjective impression, but I read thousands of these.
Azera is built in Korea, not Alabama, which I regretfully must consider a strong plus.
Temporarily Like Achilles
Here is the weakest part of the low-tech value proposition: uncompetitive fuel economy.
A long-term test car at Edmunds.com averaged only 20 mpg. The best they could get was 22.6 mpg.
Consumer Reports likes the car, but obtained only 19 mpg overall.
Driving conservatively, some owners have achieved 28 mpg. Compare Avalon, where owners driving conservatively routinely report mid-thirties on the highway.
What good to save up front only to have fuel costs potentially double your payment? Remember, total cost of ownership is the goal, not just "low monthly payments."
texas-cars-and-dealerships.com says: use your money to buy more car, not more gas!
This effects those running 30k miles yearly much more than someone driving short miles locally.
Hyundai could upgrade from a five speed to a six speed overdrive transmission to improve highway economy.
The company has worked to include safety in its growing reputation, with some success. Many safety items are standard.
NHTSA (National Highway Traffic Safety Administration) frontal ratings are 4 stars for driver and passenger. Front seat side crash is 5 star, rear 4 star.
The Insurance Institute of Highway Safety (IIHS) gave Azera a “good” rating in the test for frontal offset impacts.
No shortage of standard airbags here; front airbags, front and rear seat-mounted side-impact airbags, and roof-mounted curtain side-impact airbags bring the count to 8.
Electronic Stability Control (ESC), which will eventually be government mandated, is already standard. Front dual active head restraints and LED taillights are standard.
Driving Miss Daisy
This is a front wheel drive transverse mount platform, basically a stretched Sonata.
All Azeras are powered by a smooth "Lambda" 3.8-liter 24-valve V6. The all-aluminum mill makes 263 horsepower at 6,000 rpm.
A five-speed automatic transmission generates far fewer complaints than the Avalon's.
Antilock brakes with Electronic Brakeforce Distribution (EBD) stop 17" alloy wheels on the Limited, and sixteens on SE.
Azera isn't a sport sedan, it is not aimed at BMW. But Ford 500, Nissan Maxima, and Chrysler 300 are definitely targets of the Korean Avalon wannabe.
Despite manufacturer claims of low 6 second acceleration, zero to 60 mph in about 7 seconds is reality. At 3,629 pounds, this is pretty fast.
Braking is not as strong as I would like. Sixty to zero deceleration tests are in the upper end of the range. Edmunds long-term test car took 132 feet and had serious brake fade. CR reported 134 foot stopping distance. MotorTrend's test car stopped in 121 feet.
Cornering hard will induce noticeable body roll. But testers think it's better than Avalon in the twisties.
Test drivers at autoblog.com found the lateral support in the front seats inadequate for spirited cornering.
Rags To Riches
Exterior styling is bland, emulating the Accord, but suprisingly well integrated: you don't get a different impression of the car from different perspectives. The car has made it past the designed-by-committee syndrome.
The interior is another area where the car could improve to catch Avalon. But the sense of value for the money is here too.
Azera is roomy enough for four adults (not 5 like Avalon), with space for big/tall people. Owners like the comfortable and quiet interior, but some comment on the unusually high or awkward driving position.
Rear seats are also comfortable, with a deep footwell.
Dual front climate control with smog-sensing air filtration and outside temperature display round out the budget-luxury theme.
The Limited trim level has heated front seats, leather seat-upholstery, and a power sun shade in the rear window.
The Ultimate Package includes an upgraded audio system with 10 speakers and a 6-CD changer, power sunroof, telescoping steering wheel, and rain-sensing wipers.
Critics lament the lack of Bluetooth or navigation.
XM Satellite Radio is available.
Trunk capacity is 16.6 cubic feet, a couple bigger than Avalon.
Show Me the Money
Edmunds true cost to own is $.62/mile, with 5 year residuals of about 30%.
That is excessively rapid depreciation.
Despite improvement, Hyundai's resale values are still behind Toyota and especially Honda. Priced used Accords lately? Talk about sticker shock.
Hyundai has not supported Azera with a strong marketing campaign. These ad campaigns are extremely expensive, the money is working harder somewhere else.
Some dealers won't use limited showroom space to feature the slow selling flagship model, leaving them outside. The company was slow in introducing the 07 Azera, with a few 2006 models still in inventory.
This is not necessarily bad: look what happened to values on 2006 Chryslers, stuffed everywhere while the company began shipping the '07 models.
According to some forum postings, the available 07's are already being discounted nicely.
Bad Moon Rising
With the new V8 powered "BH" Equus flagship model in the works, some are calling Azera the Korean Oldsmobile, a lame duck.
While this is necessarily a big part of the Hyundai strategy to do to the Japanese as Lexus did to the Germans, many say Hyundai's problems (see main Hyundai essay on navbar), mean the new flagship must remain in the Hyundai stable for now.
If management has decided against immediate roll-out of a separate new luxury brand, like Lexus/Acura/Infiniti, for the "BH" Equus, it would explain the lack of support for the current flagship.
Is this model going to be superfluous, sandwiched between a growing Sonata and the new top model?
Much is made of the long 100k power train warranty, and its effect on resale.
The extended warranty is not transferable to a second owner. Few purchasers of Hyundais will hold for 10 years, though some will roll 100k.
A big weakness in the plan to roll out a new luxury brand is the incomplete existing dealer and support sevices network. Do not expect luxury-brand customer service on Hyundais. Hyundai was slow to update a large segment of their dealer network computers with technical and parts information for 2007Azeras, leaving owners scrambling for parts.
Knockin' on Heavens Door
You can't find more car for the money than Hyundai Azera, with so many "options" now standard. Of the competition listed above, I consider only Avalon above Azera.
This car is one of my family's finalists for our own purchases.
Early 2007 sales are weaker than 2006, with 1,784 for Feburary vs. 2,052 year ago. This is way short of the company's target of 100,000 Azeras for 2007.
To me, Hyundai Azera represents both danger and opportunity. Some buyers of previous generation Hyundai flagship (GX350) got fabulous discounts after the news of the new Azera came out. But I wouldn't want to be the naive buyer who paid MSRP the day before.
This is one case where I encourage readers to shop the deal, buy this car low or go elsewhere.The word in the forums is that the new V8 flagship sedan, the company's big gamble to move upscale, is an awesome car.
Will Azera still have a niche then?
For more on the leap frog strategy to build a luxury brand,
see Hyundai BH Equus Review
End 2007 Hyundai Azera Review, goto Sitemap
