This means those greedy dealers shouldn't be able to charge a markup.
After sitting down to interview Hyundai Vice President of Product Planning, Mike O'Brien, at the 20108 La Auto Show, we came away with several key takeaways about the company's future ambitions. For starters, Hyundai is strongly considering a new model below the Kona and hasn't ruled out a small pickup truck.
We were also able to get an answer to one of the biggest questions we had surrounding the Veloster N - will it be a limited production vehicle? "It's not limited," said O'Brien. "So it's really going to be market demand. Our parent company in Korea is encouraging us to sell as many as we can." This is fantastic news for enthusiasts who may be in the market to buy one.
Hyundai had promised that the Veloster N would be competitively priced against other hot hatchbacks. When the official pricing was officially released at $26,900 for the base car and $29,000 for the N Performance Package, we knew Hyundai was going to have a hit on its hands. There was just one issue we feared - greedy dealership markups.
An inside source told us the Veloster N would be limited to just 1,000 units, which would have likely created the same situation that existed with the Honda Civic Type R where dealerships placed enormous markups on their cars. The Veloster N is an incredible deal at $26,900 and $29,000 but would be far less of a slam dunk with a $10,000 dealer markup tacked on.
At the launch event for the Veloster N, Hyundai stressed how it was going to be a "reverse halo car" for the brand. This statement insinuated that Hyundai wanted to make the Veloster N special without making it inaccessible. Albert Bierman, Former Vice President of Engineering at BMW M Automobiles and current Head of Vehicle Test & High-Performance Development at Hyundai made sure the Veloster N featured incredible performance at a low price.
"He was able to achieve the performance of the Veloster N largely using in-house technology and in-house manufacturing capability, which really allowed him to get to the affordable price we are offering," said O'Brien. "For example, we took a very large [brake] caliper from a larger mass vehicle that we re-engineered to work" on the Veloster N. By this philosophy, the Veloster N is by definition a "parts bin car," though Hyundai has managed to execute well with this strategy.
The larger brakes and even the more powerful engine in the Veloster are essentially borrowed from the larger Sonata, which isn't the first vehicle you'd think of to provide parts for a hot hatch. Still, Hyundai has managed to execute its vision with the Veloster N and will do (hopefully) without any pesky dealer markups.