First Drive: 2007 Hyundai Veracruz

The new Veracruz is an impressive, upscale SUV—but will consumers buy a $40,000 Hyundai?

by Thane Peterson

Editor's Rating:

The Good: Three rows of seats, loads of standard equipment, classy interior

The Bad: Relatively high base price, no navigation system, average fuel efficiency

The Bottom Line: An appealing new SUV—with tons of appealing competition

Reader Reviews

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Up Front

Does the U.S. market really need yet another midsize sport-utility vehicle? And, if it does, is anyone going to pay upwards of $40,000 for a Hyundai?

Those questions were running through my mind as I recently spent a morning test-driving the new '07 Hyundai Veracruz at a press event in upstate New York. The Korean carmaker scored a big hit with its redesigned Santa Fe SUV last year. The Santa Fe is now by far Hyundai's hottest product: U.S. sales doubled, to 27,982 units, during the first four months of this year, and the company expects to sell 90,000 units by yearend.

My guess is that the all-new, bigger, and more expensive Veracruz is going to have a tougher time of it than the Santa Fe did. It's a well-designed midsize sport-utility vehicle with three rows of seats and a seven-passenger capacity, making it ideal for carpooling. And, like the Santa Fe, it has a quiet ride, high-quality interior, and loads of standard features.

But the Veracruz also is coming out just as gasoline prices are soaring and are projected to rise a lot more this summer. And the Veracruz doesn't have any great fuel-efficiency advantage over its main rivals: With front-wheel drive, it gets 18 miles per gallon in the city and 25 on the highway, dropping to 17/24 mpg with all-wheel drive—about the same as the Honda (HMC) Pilot and Toyota (TM) Highlander. My guess is that this summer American consumers will again be turning away from SUVs, and the Hyundai's price advantage won't make up for the fact that it's a new, untested model coming out in a tough market.

The Veracruz is available in three trim levels: the GLS, SE, and Limited, all of them powered by a 3.8 liter, 260-horsepower V8 coupled with a six-speed automatic transmission. The base model GLS is fairly pricey. It starts at $27,000 with front-wheel drive and $28,695 with all-wheel drive. But it also comes loaded with standard equipment, including electronic stability control; traction control; anti-lock brakes with brake assist and electronic brake force distribution; tire pressure monitors; a trip computer; a CD player with steering wheel-mounted audio controls; auto-dimming inside and outside mirrors; a tilting and telescoping steering wheel; active head restraints; front, side, and side curtain airbags; and power windows, doors, and locks. The Veracruz also has excellent crash-test ratings.

The loaded-up Limited version of the Veracruz with all-wheel drive, a power sunroof, rear-seat entertainment system, leather upholstery, and just about every other bell and whistle you can think of, tops out at about $38,000. For the moment, the Veracruz isn't offered with a navigation system, but when that option is added, probably on the '08 model, the price will top out at just under $40,000.

That makes the Veracruz a big move upscale for Hyundai. Indeed, the company figures 40% of sales will be of the expensive, high-end trim level. However, as with other Hyundai models, the Veracruz's main selling point is its relatively low price. Hyundai figures it has a $3,300 price advantage over the 2007 Highlander and a $3,700 edge over the Pilot, once you factor in differences in standard equipment.

Behind the Wheel

For me, the big appeal of the Veracruz is the quality and practicality of its interior. When you hop into a higher-end version of this vehicle, you can't believe it's a Hyundai. The saddle-leather upholstery is soft and well-made, the dash and center stack are tastefully designed, and all the instruments are intuitive to use.

The seats—front and back—are comfortable and supportive. And there's adequate head and leg room in both the front and second-row seats. I test-drove the vehicle with a rangy fellow who was six feet, four inches tall. Up front, he was comfortable (though a little cramped) with the driver's seat all the way back. But even with the driver's seat as far back as possible, he had plenty of knee space in the second-row seat.