When Korean auto manufacturers first invaded U.S. dealerships, their vehicles were accurately compared to the first Japanese vehicles that had entered the market over a decade earlier. The early Datsuns (now Nissan) and Toyotas were viewed by the American car buying public as cheap tin boxes, derided as rice burners and deserved every pejorative comment muttered by owners, dealers and mechanics from coast to coast. Vehicle quality and owner satisfaction grew over time, fueling the growing passion regarding Japanese manufacturing techniques and quality. The ancestors of those vehicles are some of today’s best built cars and among North America’s best sellers.

According to Automotive News, the three best selling passenger cars in April 2002 were the Toyota Camry, Honda Accord and Honda Civic. Annual sales for the three major Japanese manufacturers, who if truth were known, build vehicles globally like everyone else, nearly reached 4 million units. Toyota actually sold more cars in North America in 2001 than DaimlerChrysler, the smallest of the former Big Three. Honda was right behind DCX, and is forecast to stay there for the foreseeable future, but Toyota’s volume continues to spark whispers of a Big Four. The issue isn’t even nationalism any longer given Chrysler’s absorption into Daimler, but a recognition that at least as far as car sales go, the landscape has changed.

Trucks make up the difference, of course. The Big Three continue to produce record truck sales. Even Ford, hammered by safety problems, managed to sell more than 2.6 million trucks in North America in 2001.

Here Come The Koreans

Forget what you’ve read about Daewoo. The issue of U.S. Daewoo dealers will be fought in the courts against General Motors for years to come. Even before this spring’s aborted acquisition, Daewoo sales had slumped to less than 50,000 units in 2001, a 30% drop. Meanwhile, two other Korean companies saw their volume steadily climb throughout 2001. Kia, increased its North American market share to 1.3% while Hyundai grew even faster to a 2.0 market share. Hyundai now outsells Mercury, Mitsubishi, Mazda and Saturn. And while the Big Three still account for 60% of the continent’s truck sales, Hyundai’s Santa Fe bolstered that manufacturer from 0.1% of the market to 0.7% -- an incredible gain, especially given that it was on the wheels of one model.

The Santa Fe helped drive Hyundai’s net profits to $860 million, almost 40% of which came from the U.S. market alone. Business Week claims that CEO Chung Mong Koo decided to make the American market his battleground for relaunching the brand overseas. Indeed, a dealer friend told me a decade ago, “I won’t even sell you one of those cars. I like you too much.” Just last summer, that same dealer scoured the eastern seaboard to find me a 2001 Santa Fe with a V6. He took two days to find the small SUV that Business Week says has “an evangelical following”.

Building A Better Vehicle

To convince U.S. buyers that Hyundai’s quality problems were a thing of the past, U.S. division president Finbarr O’Neill introduced a 10 year, 100,000 mile powertrain warranty. O’Neill claims that warranties don’t sell cars, but many Hyundai dealers counter that claim by using the warranty to overcome objections in the sales process. So far, the Santa Fe has only had one recall, for a crankshaft sensor, and that recall only impacted a fraction of production. Although four wheel drive is available, the Santa Fe’s clearance doesn’t allow it to be an effective off-road vehicle. Instead, the front wheel drive compares nicely with Ford’s Escape and Toyota’s RAV-4.

The days of Hyundai door handles coming off in a passenger’s hand or frames that had crumple zones in a neighboring county are gone. Our Santa Fe has had only one quality issue in a year of driving, and that was a relatively minor bit of rust on a wheel.

Meanwhile, the Santa Fe, which was built on the Sonata platform, handles like a slightly larger car. Cornering is only slightly wider than a mid-size car and the Santa Fe’s wider body gives a smooth ride over decent struts and a double wishbone suspension. There’s plenty of cargo space, particularly if the rear seats are folded down and in, and only one substantial blind spot – along the passenger right rear quarter panel – which is easily fixed with appropriate mirror positioning.

Safety and Cupholders

Soccer moms want safety, and this is one area where the Santa Fe simply shines. We were convinced after two test drives, but the warranty (despite O’Neill’s comments) and the safety features were what really sold my wife on the Santa Fe.

The National Highway Traffic Safety Administration (NHTSA) has not yet done crash tests on the Santa Fe, but gave it acceptable ratings in a rollover test. Meanwhile, the Insurance Institute for Highway Safety gave the Santa Fe a thorough workout and rated the vehicle tops in its class along with the Subaru Forester. The organization found in its 40 mph tests that “…the driver space was maintained well in the frontal offset crash test” and “…side airbags with head protection, advanced safety belts, and new-design child restraint anchorages are pluses.” As with any vehicle, injuries are possible in a wide variety of conditions, but the Santa Fe’s safety features minimize the danger. By comparison, the Jeep Wrangler and RAV4 managed only average ratings and the Ford Escape and Kia Sportage received marginal overall ratings. Call me a sissy, but I’m not one to purchase a relatively similar vehicle that is markedly less safe.

With safety and quality issues checked off our list, our only remaining task was options. With inventory running scarce, we made do with the front wheel drive rather than four wheel drive option, but did load up on CD, fog lights and ABS. The front console is roomy, and there are recessed map pockets and assorted other storage places throughout the vehicle. Our family of five, including two teenage boys, travels comfortably with enough elbow for all and luggage on road trips.

The Bottom Line

Car dealers are still wary of the values on used Hyundais, which has driven trade-in values down. This is certainly not a drive two and trade vehicle since most owners will be upside-down on their notes until the Santa Fe develops a decent reliability rating and prices stabilize. Until then, owners are protected by the industry’s best warranty and can buy a whole lot more vehicle versus comparable makes.

With South Korean production now ramped up, inventory scarcity is no longer an issue, and dealers will negotiate. As we enter summer and a redesigned mid 2002 model is being released, now may be an optimal time to shop for the 2001 model.

© 2002 Joubert
Amount Paid (US$): 20500
Condition: New
Model Year: 2001
Model and Options: GLS