The winner, to be selected among this group, will be announced Friday, April 12 at the Green Living Show, in the Direct Energy Centre at Toronto’s Exhibition Place.

The finalists were selected by members of the Automobile Journalists Association of Canada from a variety of environmentally advanced vehicles nominated by their manufacturers.

The finalists include a plug-in hybrid, three conventional hybrids and a highly efficient internal combustion vehicle.

The finalists are:

- Ford C-MAX Energi

- Ford Fusion Hybrid

- Hyundai Sonata Hybrid

- Mazda3

- Volkswagen Jetta Turbocharged Hybrid

The award, presented by AJAC and Green Living Enterprises, which hosts the annual show, has been launched to recognize vehicles with the potential for strong environmental benefits and to provide consumers with authoritative information about them.

“The judges found the choice difficult because all the entrants are worthy, and they incorporate such differing routes to greener driving,” said Peter Gorrie, chair of AJAC’s Green Car Award steering committee.

The competition placed heavy emphasis on fuel economy and emissions, but also considered other environmental features within each vehicle – for example, use of recycled or naturally sourced materials – and steps each manufacturer has taken to green its operations.  Equally important, it assessed market potential – factors such as build quality, driving experience, overall features, availability, general consumer appeal and price.

“Driving is the most energy-intensive action most people do every day; our hope is this award will shine a light on how folks can improve their health, their planet and their monthly fuel bills, if they have to use a car,” said committee member Michael Bettencourt.

Other nominees included the Chevrolet Cruze Clean Turbo Diesel, Chevrolet Volt, Ford Edge EcoBoost, Ford Focus Electric, Mazda CX-5, Mazda6, Mercedes-Benz B 250 Turbo, Mitsubishi i-MiEV, Nissan Leaf and Smart Fortwo Electric Drive.

“After all, a car loaded with ‘green’ features will make a difference only if it sells in large numbers and supplants lesser models,” Gorrie said. “While EVs represent impressive technology that focus might have prevented the four battery-electric nominees from making the final five.”

The association said the award ceremony will take place at 9:45 a.m., Friday April 12 at the Green Living Show’s main stage.

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When we first reviewed the 2011 Hyundai Sonata Hybrid we noted it was taking direct aim at the Toyota Camry Hybrid and Ford Fusion Hybrid, the two most popular mid-size hybrid sedans, and said, “Keep your eye on the new kid on the hybrid block.”

We weren’t wrong, the Sonata Hybrid kicked butt. After its first three months on the market, the newbie established itself as the second best selling gas-electric in the United States, trailing only the indomitable Toyota Prius, a position it maintained through the end of 2011.

The Sonata Hybrid’s meteoric rise on the hybrid sales chart wasn’t just about the car’s EPA fuel economy rating of 35 city/40 highway and 37 combined – there were seven other hybrid cars with higher ratings. Buyers were also enticed by the Sonata’s eye-riveting styling and tech-rich standard equipment at a price that was difficult to pass up.

For 2012, the Sonata Hybrid reprises the 2011’s exterior and interior styling, but adds Hyundai’s Blue Link telematics system as standard and offers an optional Leather package ($1,500). The 2012 Sonata Hybrid is available in just one trim level and has a base price of $25,850, a $55 price bump from the 2011 model.

Balancing Highway and City MPG

Hyundai went its own direction on hybrid technology by developing original proprietary hybrid architecture to reduce weight and to improve highway fuel economy.

Unlike hybrid systems from Ford and Toyota, the Hyundai system does not use a continuously variable transmission with integrated electric motors and generators. Instead, Hyundai employed its new six-speed automatic transmission with an electric motor that takes the place of the torque converter. What’s the difference? It means that Hyundai is trying to address the common complaint that hybrids are boring to drive – and provide credible mileage for city driving conditions while delivering top-tier fuel economy for highway driving.

The full hybrid architecture allows the vehicle to operate on an electric motor only, a gasoline internal combustion engine only, or a combination of the two depending on driving conditions and driver demands. It also saves gas by automatically shutting off the gas engine when the car is stopped. The approach also results in a total combined gas-electric output of 206 horsepower and 193 pound-feet of torque. No direct rival has more horsepower, though competitors don’t list torque figures.

Like nearly all hybrid vehicle gasoline engines, the Sonata Hybrid’s 2.4-liter four-cylinder engine is recalibrated to run on the Atkinson cycle, a method of improving engine efficiency. While a fair amount of low-end torque is relinquished with the Atkinson conversion, it is made up by the additional torque from the electric motor.

The Toyota Prius Liftback, with its combined 50-mpg rating, is still way ahead of the pack on both highway and city efficiency numbers – but shoppers are more likely to put the Sonata Hybrid in the larger mid-size sedan (with trunk) category along with the Toyota Camry and Ford Fusion.

Lithium Polymer Batteries and Lighter Weight

Hybrid critics have complained that the need to tote heavy batteries means one step forward and two steps back. Hyundai deals with that issue by using lightweight lithium polymer batteries. The lighter batteries and other weight reductions make the Sonata Hybrid the lightest vehicle in the segment, at just 3,457 pounds – 263 pounds lighter than the Fusion Hybrid. Combined with Sonata’s best-in-class horsepower rating, Sonata Hybrid has a significant advantage in power-to-weight ratio.

The Sonata Hybrid’s 1.4 kilowatt-hour pack battery pack weighs just 95.9 pounds versus the Camry Hybrid’s 123.9 pounds. The compact battery pack resides in the forward portion of the trunk to maximize cargo space. Compared Lithium polymer batteries deliver the same power with 20 to 30 percent less weight, 40 percent less volume and 10 percent greater efficiency over the nickel metal hydride batteries found in today’s hybrids.

Slick and Slippery

When the all-new 2011 Sonata arrived, Hyundai called the eye-catching design “Fluidic Sculpture” and said it’s intended to “create the illusion of constant motion.” Its headlamps sweep out of a bold front fascia and well back into the front fenders. The “beltline,” the space that separates the body from the glass, is stylishly high and is accented by a chrome strip the length of the car. A radically raked windshield draws the eyes to a gracefully arched roof that gives the car a “four-door coupe” profile, a cue from European luxury sedans such as the Mercedes-Benz CLS.

With the Sonata Hybrid, Hyundai put form in service of function – better aerodynamics. The most dramatic design flair is an all-new front fascia featuring a vastly enlarged darkened grille flanked by anthropomorphic lizard-eye headlights. New wheels and extended rocker panels improve airflow across the flanks. In the back, the bumper cover has been reshaped with sharp creases at the corners to minimize drag. These changes drop the hybrid’s drag coefficient from the standard Sonata’s already slippery 0.28 to just 0.25 – matching the Toyota Prius Liftback’s number.

Inside, the dashboard is fashioned in a sports car, dual-cockpit theme with arched sections separated by a gracefully slopped center console. Between the analog gauges a liquid-crystal display fosters economical driving. The interior is a couple ticks above what is expected in a mid-size family car, intelligently crafted from expensive looking materials and smartly laid out. Rear seating is spacious with more than adequate headroom considering the coupe-like roof. The 10.7 cubic feet of trunk volume is nearly three cubic feet less than the 2012 Camry Hybrid and, unlike the Camry, the rear seat does not fold for additional cargo room.

The 2012 Sonata Hybrid continues Hyundai’s knack of creating strong showroom appeal by including hot-button features as standard. These include Hyundai’s Blue Link safety, service, and infotainment telematics system as well as Bluetooth hands-free mobile phone linking, and satellite radio. Add to the list an auxiliary audio jack and a USB interface for iPods and other digital media, plus a steering wheel fitted with audio, Bluetooth, and cruise controls.

Remote keyless entry, power windows, locks, and mirrors, dual automatic climate control and a tilt/telescope steering wheel are also standard. An optional Ultimate Package ($5,500) includes the Leather Package plus a panoramic sunroof, navigation system, backup camera and 17-inch alloy wheels.

On The Road

The Sonata Hybrid is notably quiet for a hybrid, holding off not only the sound of its own engine, but also blocking out the noise from tires and other vehicles, even on the coarsest of roads. As for handling, the car has balanced agility and the suspension keeps everything secure and stable in corners and emergency maneuvers.

My favorite aspect of the Sonata’s road manners is its responsive steering. It has a quick and precise feeling, is balanced and firm, but never twitchy.

The Sonata Hybrid can be motivated by the electric motor up to 62 mph and it isn’t difficult to drive at speeds of around 40 or 50 mph for a couple of miles before the gas engine kicks in. On the highway, mash the throttle to overtake a slower vehicle and the six-speed transmission winds nicely toward top rpm, shifting each time somewhere around 6,000 rpm, when the full tug of torque seems ready to run out.

So it would seem that Hyundai’s goal of using a conventional transmission instead of CVT to achieve a driving experience that closely parallels a conventional car was accomplished. And indeed, on the Interstate and highways it does. But on city streets and urban driving, where between 40 and 50 percent of driving occurs, it misfires. From a stop, the hybrid system always rolls off in electric mode. Around 15 mph the gasoline engine starts up with a harsh jolt and transmission shifts in lower gears are often hesitant. This calamity is quite off-putting and could be a deal breaker for some buyers.

Economics

The Sonata Hybrid made quite a splash in 2011, and deservedly so. Its fuel economy numbers were better than the Camry Hybrid and the Sonata and Fusion Hybrid were nearly identical, but with highway and city numbers swapped. It also boasted a lower price than those mid-size hybrids: $1,250 less than the Camry, $2,805 less than the Fusion. Add to that the stunning design and standard high-tech features and the Sonata had a winning formula that made it the number two selling hybrid vehicle in 2011.

But things have changed. Last fall Toyota rolled out an all-new 2012 Camry Hybrid. The 2012 edition demonstrates Toyota’s expertise in gasoline-electric hybrid technology, delivering a 43 city/39 highway mpg EPA fuel economy rating, numbers that handily best the 2012 Sonata. And while the Camry’s styling leans toward pedestrian compared to the Sonata, its base price of $25,900 is just $50 more than the Hyundai.

That’s not all. This fall Ford will begin selling an all-new 2013 Fusion Hybrid. Its fuel economy ratings are an expected 47 city/44 highway, numbers that are getting close to the indomitable Prius Liftback. Plus, it is blessed with the styling of the gasoline-powered Fusion that auto critics are calling the best-looking mid-size car, bar none.

But wait, the 2012 Sonata Hybrid offers something the others don’t – Hyundai’s warranty that the carmaker promotes as America’s best. Basic coverage is 5-years/60,000-miles bumper-to-bumper and 10-years/100,000-miles powertrain. Owners also receive 24-hour roadside assistance at no extra charge for 5-years/unlimited mileage. Then there’s the warranty knockout punch – the Lifetime Hybrid Battery Guarantee. If the lithium polymer battery fails, Hyundai will replace the battery and cover recycling costs of the old battery pack free of charge to the original owner.

That’s impressive and just one more reason why the Sonata Hybrid could again snag the number two spot on the hybrid sales chart at the end of this year.

Prices are Manufacturer Suggested Retail Price (MSRP) at time of publication and do not include destination charges, taxes or licensing.>

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“The Sonata Hybrid is a disappointment, but it’s also an exception,” said Consumer Reports’ Rick Paul to ABC News. “Overall, we’ve seen real improvement with new Hyundais. They generally perform well and provide good value for the money.” So what did the publication find wrong with the Sonata Hybrid?

One of the main complaints was that the car doesn’t provide a smooth transition between gas and electric drive. Unlike many other hybrids with continuously variable transmissions (CVT), the Sonata sports a six-speed automatic, with its lithium-ion-powered electric power taking the place of a torque converter in the powertrain. This configuration allows Hyundai to cut costs and emphasize highway fuel economy where most hybrids perform better in the city. Some reviewers have even noted that the Sonata hybrid is more fun to drive than it’s CVT-driven competitors, but apparently its not for everyone.

Consumer Reports also found fault with the Sonata’s low-rolling resistance tires, which it says diminish the car’s handling and increase its breaking distance. The standard Sonata—which comes without low-rolling resistance tires—gets 24 mpg in the city and 35 mpg on the highway, for a combined rating of 28 mpg under the EPA test cycle. According to Consumer Reports’ own fuel economy tests, the overall rating that car comes in slightly lower at 27 mpg.

For the Sonata Hybrid, the gap between the EPA and Consumer Reports fuel economy measures was significantly greater. Where the car is officially rated at 35 mpg city, 40 mpg highway and 37 mpg combined, Consumer Reports testers pegged the car at a combined 33 mpg rating—6 mpg higher than the gas-only Sonata. That result doesn’t call into question the accuracy of the EPA number (the test cycle also netted a 44 mpg rating for the Toyota Prius—6 mpg less than the official rating,) rather it reflects a different expectation for how the car will actually be driven.

Whether you trust the EPA or Consumer Reports’ numbers, the Hyundai Sonata Hybrid does represent a substantial efficiency improvement over its gas-only counterpart, and fans of the Sonata’s critically-acclaimed interior (particularly those who do a lot of highway driving,) should appreciate the offering—even if it does lurch a little as the gas engine gives way to the motor.

Hyundai can soon expect some stiff competition in the mid-size family hybrid sedan market, as Toyota prepares to release the redesigned 2012 Camry Hybrid this December. The new gas-electric Camry is expected to receive a 43/39 mpg EPA fuel economy rating, with an MSRP nearly identical to the Sonata Hybrid.

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For January, Hyundai’s reported numbers for a sales-weighted average were 34.7 mpg overall (36.4 for cars and 29.8 for trucks), which Krafcik said showed the company was well on its way to its 35 mpg corporate goal for 2015. Hyundai already has two 40 mpg (highway) models—the compact Sonata hybrid and Elantra—and plans to introduce two more this year: the Veloster and Accent. In January, the carmaker sold 4,792 40 mpg cars.

Krafcik indicated Hyundai was carving out a separate path from some other automakers, saying his company was comfortable with the EPA and CARB’s proposed 2025 fuel economy standards in the 47-62 mpg territory. “Now is not the time to lose our resolve,” he added. He said he felt tough standards would drive the industry to follow Hyundai’s pursuit of “democratizing fuel economy,” by adding technology like direct injection and lightweighting across vehicle lines to maximize CO2 reduction.

On the other hand, he did have a concern with government “mandated technologies” and subsidies. “Government should say where they want us to go on CO2 and let us figure out the most efficient way of getting there.”

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Fuel economy for the Sonata and Fusion Hybrids are nearly identical, but with highway and city numbers swapped. The Sonata Hybrid offers 36 in the city and 40 on the highway, while the Fusion Hybrid is rated at 41/36. The Toyota Camry Hybrid falls behind at 33/34.

Hyundai believes that its use of a six-speed automatic transmission gives the Sonata Hybrid an edge on driving enjoyment. “There’s nothing specifically synergistic between a CVT (continuously variable transmission) and a hybrid,” said John Krafcik, president and CEO of Hyundai USA, who rode with us during a recent drive of the Sonata Hybrid. Krafcik’s complaint about CVTs is the “non-linearity” between pedal input from the driver, and the sound you hear. On the other hand, with the Hyundai Sonata Hybrid, Krafcik believes that “you get back exactly what you expect based on what your foot is doing.”

Based on our driving experience, and now the announcement of a compelling price, the Hyundai Sonata Hybrid raises the bar for hybrids in a mid-size model aimed for the heart of the mainstream market. It’s the first hybrid for Hyundai (which on a winning streak) and it’s the first affordable hybrid model to use lithium ion batteries. While not as exciting as the first mainstream electric cars being delivered to consumers this week, it offers the promise of hybrid technology being incorporated into the most popular models on the road, and therefore having a major impact on reducing fuel consumption.

The Sonata Hybrid hits dealerships in January. Unfortunately, that’s right after the expected $1,300 hybrid tax incentive will have already expired.

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More importantly, the Elantra provides mounting evidence about how the company will reach its lofty goal of achieving a fleet-wide average of 50 MPG by 2025—way ahead of government deadlines.

Putting Gas Engines on a Diet

The Elantra’s Nu engine, developed to replace the 2.0-liter Beta engine from the previous generation Elantra, is smaller and weighs 74 pounds less—helping to achieve an 18-percent improvement in highway fuel economy. The Elantra’s hybrid-like low emissions allow it to be certified as a Partial Zero Emission Vehicle. “We’re trying to find solutions that are friendlier to the environment, but still give the kind of drive that customers expect,” said Mike O’Brien, Hyundai vice-president of production planning, in an interview with HybridCars.com. That’s a huge point for Hyundai as it pushes forward on its MPG goals—to provide fuel economy improvements with “typical” drive feel.

“We’re the first to the market with turbo gasoline direct injection four-cylinder engine that replaces our V6 engine,” O’Brien said. “In fact, it gives better horsepower, better driving performance, and better fuel economy than all our V6 competitors.” The same foundation was applied to the 2011 Hyundai Sonata Hybrid, which employs better aerodynamics, lighter-weight batteries, and more horsepower at levels that beat the Ford Fusion Hybrid, Toyota Camry Hybrid, and Nissan Altima Hybrid.

Mike O’Brien, Hyundai vice-president of production planning, at the 2010 Los Angeles Auto Show. He spoke about the strategy for the Hyundai Sonata Hybrid, and hinted at a future plug-in hybrid.

There’s no word yet on Sonata Hybrid’s price—but the 2011 Hyundai Elantra, which starts at $14,830, wins against competitors such as the 2011 Chevy Cruze and 2012 Ford Focus by almost $1,500.

Next Step: Plug-Ins

While O’Brien was most keen to talk about the ho-hum tech advantages, like weight reduction, direct injection, and variable timing—or producing hybrids with a driving feel similar to pure gas-powered cars—Hyundai’s technology pathway goes beyond small efficient gas cars and even conventional hybrids. “We’re certainly looking at plug-in hybrids down the road,” O’Brien said. “We’re very anxious to start talking about that in the near future.” (O’Brien was more hesitant about pure electric cars.) By 2025, the company hopes to generate 20 percent of its annual sales from hybrids, and 5 percent from electric drivetrain vehicles.

Adding plug-in technology—on top of a solid foundation of improved and affordable gas engines—clearly puts Hyundai on the track to achieving its 50-mpg target in the next decade and a half. The company is playing for keeps.

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Last year, the 2010 Ford Fusion Hybrid racked up award after award for its silky smooth hybrid drivetrain that made Toyota’s hybrids seem clunky and Honda’s weak. One short year later, it’s now the 2011 Sonata Hybrid making the Fusion Hybrid seem outdated and bland.

I recently spent a sunny afternoon in San Diego with the 2011 Hyundai Sonata Hybrid, and came away feeling that the bar has once again be raised on how much driving pleasure can be offered by a fuel-efficient hybrid sedan.

First, let’s examine the Sonata Hybrid’s numbers compared to the award-winning Fusion Hybrid:

• The Sonata Hybrid offers 206 net horsepower compared to the Fusion’s 191 hp.
• The Sonata Hybrid’s aerodynamics, rated at a very slippery 0.25 drag of coefficient, is superior to the Fusion’s 0.33 Cd.
• The use of lithium batteries, rather than the Fusion’s nickel metal hydride, provides just as much power, but allows the Sonata to weigh 263 pounds less.
• Fuel economy for the Sonata and Fusion Hybrids are nearly identical, but with highway and city numbers swapped. The Sonata Hybrid offers 36 in the city and 40 on the highway, while the Fusion Hybrid is rated at 41/36.
• The Sonata Hybrid’s price has not been announced, but it’s very likely to come in for a couple thousand dollars less than the Fusion Hybrid.

Then, there’s the visual design. The Hyundai Sonata Hybrid is hands-down more attractive and better designed than the Ford Fusion Hybrid or Toyota Camry Hybrid. The Sonata has better lines, cooler LED head and taillights, more passenger and trunk space, a better layout and feel for the driver, and unique visual cues to separate the hybrid model from its conventional and turbo siblings.

Top: 2010 Fusion Hybrid dash.
Bottom: 2011 Hyundai Sonata Hybrid dash.

But ultimately, the real innovation that Hyundai is bringing to the hybrid world is the use of a six-automatic transmission instead of the continuously variable transmission (CVT) found in powersplit hybrids from Toyota, Ford and others.

Hyundai might have good business reasons to use its off-the-shelf automatic six, instead of a CVT—for example, lower cost and the ability to emphasize highway rather than city fuel economy. But at the end of the day, it’s customer appeal that counts.

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John Krafcik, Hyundai America CEO with Hyundai Sonata Hybrid. (Photo: Brad Berman. All Rights Reserved.)

“There’s nothing specifically synergistic between a CVT and a hybrid,” said John Krafcik, president and CEO of Hyundai USA, who rode with me during my drive of the Sonata Hybrid in San Diego. Krafcik’s complaint about CVTs is the “non-linearity” between pedal input from the driver, and the sound you hear. On the other hand, with the Hyundai Sonata Hybrid, Krafcik believes that “you get back exactly what you expect based on what your foot is doing.”

During my 30 or so miles of driving with the Sonata Hybrid—with a couple of short stints in the Ford Fusion Hybrid (which Hyundai had on hand for me for comparison)—I slowly came to appreciate the differences between the six-speed versus the CVT.

Keep in mind that these are relatively subtle distinctions. Yet, my hour or so behind the wheel of Sonata Hybrid showed me what I had been missing—even if I wasn’t totally aware of it—from the 2006 Toyota Prius and 2003 Honda Civic Hybrid that I’ve been driving for years: an immediate response in terms of engine sound and shifting that makes a car feel like, well, a normal car.

Removing the Motorboat Feel from Hybrids

Hyundai didn’t trust its drivetrain strategy to an arbitrary preference expressed by its CEO. The company set up a hybrid driver’s clinic—kind of like a focus group on wheels—to determine what a mix of hybrid owners and conventional drivers like and dislike about various hybrid models. The evaluation, a blind test that hid the make and model of the hybrids, was designed by Mark Guin, powertrain tuning analyst for Hyundai-Kia Motors.

“Most customers feel discombobulated by the feeling of the CVT and are uncomfortable with it,” Guin told me at the San Diego event. I asked Guin if he thinks the CVT is what gives the Toyota Prius an appliance-like feel to the drive. “That’s a dominant factor. There are two pieces. First, the feeling of acceleration in the seat is minimized by that motorboat rubber band feel. And it’s reinforced by the motor boat sound, as opposed to what we feel when we hear something that reinforces our expectations [of acceleration].”

The Fusion Hybrid and Sonata Hybrid, side by side, in San Diego.

As an engineer who spends his whole day living and breathing engine noise, vibration, and throttle response, he gave a perfect imitation of the Prius’s whir and whine that might occur on a highway on-ramp. “For a lot of people in our study, the CVT undermines driver confidence. That sound says strain when it’s up high.”

Guin contrasted his rendition of the CVT with the guttural sound of a gear-shifting racecar. “You hear kids making this sound. That says power to people,” Guin said. With the Sonata Hybrid, you get more of that visceral response from acceleration especially as the engine reaches the top limit of one gear, and pauses for a half-beat until the next gear kicks in.

“That’s something people connect with a stepped transmission. There’s something familiar, comfortable and normal about the driving experience with our car and our architecture,” Guin explained. “The interaction of sound with your perception of acceleration gives confidence in available power. It’s subconscious, but it’s there.”

Of course, the high-torque but silent launch of a pure electric car is still an entirely different drive flavor. Describing the differences in drive feel between a CVT, automatic six, and EV almost requires the vocabulary of a wine snob: “ethereal yet austere, with notes of fresh cherry, a hint of blackberry and a velvety finish.”

Like wine, preferences for these hybrid and EV drivetrains are a matter of taste. During the first decade of hybrids in the United States, the mild and slightly detached feel of CVT hybrids, combined with engine shut-off and low-speed electric driving, was the only item on the menu. Hyundai is opting for more bite with its first hybrid. “We wanted something that could feel fun,” Guin said.

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In fact, Hyundai North American president John Krafcik this week told a seminar at the Center Automotive Research that the company plans to hit an average of 50 mpg for its lineup by 2025 thanks to a bold market strategy that prioritizes fuel efficiency and affordability—and puts hybrids front and center. As reported in The Detroit News, Krafcik told the audience, “Getting to 50 mpg and beyond seems like a huge leap, but by making this commitment and aligning our R&D initiatives now, we know we can get there.”

The first steps have already been taken. Later this year, the new Hyundai Sonata Hybrid will hit dealerships in the U.S. The Sonata will offer highway fuel economy that approaches 40 mpg, and a price tag that is expected to beat competing mid-sized hybrid offerings from Ford and Toyota. The Korean carmaker has also committed to releasing a compact hybrid that it calls its “Prius fighter.” That offering will be represent Hyundai’s first move into the dedicated hybrid market and engineers are said to be trying to beat the Prius’s fuel economy numbers.

One area that Hyundai hasn’t yet fully committed to is plug-in cars. Though last year’s Frankfurt Auto Show saw the debut of the Hyundai’s Blue-Will plug-in hybrid concept, the carmaker says it will bide its time on lithium ion battery powered offerings until that technology’s performance goes up and costs go down.

Hyundai does expect electric and fuel cell cars to factor into its long-term plans—just not as centrally as hybrids. By 2025 the company says it hopes to generate 20 percent of its annual sales from hybrids and 5 percent from electric drivetrain vehicles.

Hyundai set a U.S. sales record for July, with 54,106 units sold—up 19 percent from a year ago. The company’s plant in Alabama, which makes the Sonata sedan and Santa Fe crossover, is running at maximum overtime to meet the high demand. Krafcik said Hyundai plans to expand U.S. production in the next month or two.

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The most important information for those considering the Sonata hybrid is not yet available: Price. Autoweek is guessing mid-$20,000s. That matches speculation from Edmunds, which says Hyundai will try to will undercut the Toyota Camry Hybrid and offer a price of $24,900. Automobile magazine’s guess is $27,000.

The Fusion Hybrid and Sonata Hybrid both average about 39 MPG—with the Fusion getting slightly better mileage in the city, and the Sonata emphasizing highway efficiency. The Camry MPG stats are 33/34.

Hyundai predicts 5 percent to 7 percent of Sonatas sold will be hybrids, which means about 15,000 units a year. Right now, there is a capacity for 35,000 Sonata hybrids a year to supply the U.S. and Korean markets.

How Does It Drive?

There’s no confirmed price tag, but we do have new information in the form of first driving experiences by auto journalists at the Namyang Proving Ground in South Korea. Here are a few highlights:

• Automotive News

  “Acceleration was brisk; cornering was not ponderous despite the added weight; and the switch between gasoline and battery power isn’t startling. If the goal is a seamless transition of driving styles, the Sonata Hybrid appears to have achieved it.”

• Autoweek

  “The car felt perfectly fine by the standards of the midsize-sedan class, maybe even a touch livelier behind the wheel than the competition, though perhaps short of what engineer K. S. Lee called ‘powerful fun to drive.’”

• Edmunds

  “The hybrid’s zest off the line was about what you’d expect, and the powertrain integrated the activity of the electric motors with the gas engine with less of the abruptness we’ve observed in other hybrids. The steering and the brakes in particular feel synthetic in the way that the regenerative brakes and electric tillers of most hybrids sometimes are, and are not as refined as they ought to be in production. To be fair, we were not driving the final product.”

• Automobile

  “The gas/electric Hyundai provides the mechanical ebbs and tides of rpm, torque, and engine growl as the gears change. With that character, the Sonata joins the ranks of the Porsche Cayenne and the Honda CR-Z as hybrids that are enjoyable—even fun-to drive.”

The most consistent remark made by the journalists was about the Sonata Hybrid’s front grille. In an effort to make the hybrid stand out from the conventional version, Hyundai made a number of design changes. Reviewers characterize the hybrid’s hexagonal grille as “howling,” “gaping,” and “aggressive.” The hybrid also gets different tail lamps, five-spoke wheels, and a more aerodynamic design that drops the drag coefficient from .28 to .25. Unfortunately, the cargo capacity falls from 16.4 to 10.7 cubic feet to make room for the lithium ion hybrid battery pack. The Sonata Hybrid is the first production hybrid to use lithium ion, instead of the current nickel metal hydride technology.

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Now, The Detroit Bureau is reporting that Hyundai is “planning a big assault on the growing global market for gasoline-electric vehicles,” including plug-in hybrids. Within a decade, Hyundai expects that hybrids will make up 20 percent of its total global sales volume. Hyundai expects the biggest markets for hybrids to be Europe and Japan. “We are spending a fortune on hybrid development,” said Hyun-Soon Lee, the automaker’s vice chairman.

However, don’t expect full electric cars from Hyundai, according to The Detroit Bureau. Woong-chul Yang, president of Hyundai’s R&D operation, contends that lithium batteries still are still too costly and do not offer adequate range. “We’d need seven times the level of performance at 20 times less price,” he said. Hyundai officials said that a plug-in hybrid that’s able to go all-electric for the typical commute is a likely direction for the company.

Hyundai is trying to reach new higher U.S. fuel efficiency standards—35.5 mpg average by 2016—one year ahead of the mandate deadline. Within about three years, Hyundai could go from having no hybrids in U.S. showrooms to a 40-mpg mid-size hybrid, a dedicated 50-mpg hybrid, and a plug-in hybrid that will run mostly from electricity.

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