• by Karl Greenberg , December 8, 2009

Hyundai is gunning for Honda CR-V, Nissan Rogue and Toyota RAV-4 with the new version of its compact crossover, Tucson. The crossover, which goes on sale next month in two trim lines, will start at $18,995 for the base model and $27,195 for the premium trim. That entry sticker price, says Scott Margason, director of product planning, is well below any of the competitors.'

Margason, who along with CEO John Krafcik held forth at a Web-streamed press conference about the vehicle on Tuesday, said Tucson will benefit from a vehicle-downsizing trend among consumers. He added that the vehicle will also appeal to both men and women. "The segment is very bimodal; it is very affordable and very appealing for someone just starting out but not at the family stage yet, and for those who are post-family looking for economical utility. I think we will see 10% to 20% coming from large vehicles."

Krafcik says Sonata, the core vehicle for the brand, has tallied over 100,000 units delivered. "We expect similar numbers for 2010," he said. "Tucson has been a smaller seller for us, about a thousand units a month, but the new one has much more potential." The two marketers said that Tucson won't poach the territory inhabited by its sibling crossover -- the somewhat larger Santa Fe -- any more than the Elantra sedan impinges on the larger Sonata. "It is positioned as a true family vehicle, so it has a more mid-sized feel to it," said Margason. "Tucson is pre- or post-family, whereas Santa Fe is right there at the heart of the market."

Krafcik said there is a lot of space for the new Tucson in a segment that does 600,000 units per year. He said the current model Tucson garners about 12,000 deliveries per year, which is only 2% or so of the market.

The new Tucson, which has a much sleeker look than the one it replaces, was sketched in Hyundai's Frankfurt, Germany design shop, with an assist from the company's California studio, which helped refine the car. The California studio helmed the redesign of the Sonata, which will also get a hybrid version next year, driven by a new lithium polymer battery technology.

Krafcik said the company is cognizant of Toyota's having to juggle a large portfolio of vehicles, from sports coupes to minivans, and wants to avoid overextending Hyundai. "Entourage (minivan) and the Tiburon (roadster) are gone, so we are being very cautious going forward," he said. "Launching new models in this economy is very expensive [which is] one reason you see Genesis and Genesis Coupe marketed together."

He said the company is in the midst of putting the Tucson marketing plan together, and plans a national media launch in January, including spots in the Super Bowl.