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Hyundai Drops Out of Minivan Market

August 26, 2005
Consumers will have one less minivan to choose from in 2006. Hyundai Motor America has canceled plans to sell a traditional minivan in the U.S.

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The minivan, dubbed the Entourage, was scheduled for spring 2006. The Entourage was to have shared a platform with the Kia Sedona.

Hyundai has faced market resistance in the U.S. and withdrawing the new minivan reduces the company’s risk in a market segment Hyundai executives consider to be stagnant.

"When we considered the evolution of the minivan, cross-over, and SUV segments; the changing needs of our target customers; and the development of our Hyundai brand toward refinement, leadership, and innovation, we felt the best strategy was to focus on unique crossover and SUV solutions, and leave the traditional minivan for others," said Robert Cosmai, President and CEO of Hyundai Motor America.

Hyundai plans to add a seven-passenger SUV with a six-passenger sport wagon to follow. The new SUV will come in a package about the same size as the Honda Pilot and Ford Explorer, and will enter production late next year.

The sport wagon, due in 2008, will offer a flexible interior for passengers and cargo.

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