Curbside Classics: 1988 Hyundai Excel And 1978 Hyundai Pony – Not Quite Excelling, But Doing OK

I know the early Hyundai Excels earned a fairly rotten reputation in North America, and from the sounds of things, deservedly so. But elsewhere, the little compacts seem to have done more than OK. Just look at this surviving one in a Salvadorian mall. The car may not be quite excelling, but it’s certainly going about its daily business fairly well.

Think about it, a good deal of Hyundai’s current worldwide might rests on the groundwork laid down by these early Pony/Excel cars. They couldn’t have been that rotten… everywhere. It’s a typical case of “One Continent’s Most Rugged Vehicle is Another Continent’s POS.” A theory advanced here at CC a while back, that’s hard to dispute when it comes to certain vehicles.

Now, I’m not saying early Excels were extremely rugged vehicles, in the US or elsewhere. Nor am I saying they were misunderstood by North American customers. The cars certainly fell flat on their Giugiaro-designed faces in the US and Canada, and that embarrassing start became quite close to being a terminal sin for the company’s worldwide aspirations. Looking over at the Cohort, it’s incredibly hard to find an early Excel still around, and truth be told, I rarely saw any back in California during the ’90s. A sign the cars arrived in the US with the wrong attributes for that demanding landscape.

But that poor showing eventually pushed Hyundai to find two traits within itself, both rather rare nowadays; the ability to listen and persistence. Both became essential in turning Hyundai’s fortunes around.

US eyes will probably notice that today’s find is an American grey import; those big plasticky bumpers being the main giveaway. I’ve no idea who would bother to import a mid-80s Hyundai Excel to El Salvador, but someone did. But while it’s a weird sounding idea, it ain’t rare nor strange. After all, there’s a healthy local market for used US grey imports, consisting mostly of undesirable cars bought on the cheap up north.

“Hey, you got any unwanted and cheap cars there in Sunny Valley? Heck, we’ll take a few of those!”

Here’s another US-sourced Excel, a sedan in taxi form, found not far from the hatchback at the shopping center. I’m pretty sure we can all agree these Excels got a lucky break by coming to El Salvador, whenever that might have been (early ’90s I would think). Had they stayed in the US, they would have gone to automotive-crunch-heaven eons ago.

Here’s one more US-sourced hatchback, pulling ahead of me not far from my home. Yes, these Excels do run!

Notice how I keep saying that these samples come from the US. How do I know? Well, the model was not officially sold over here back in the day. Instead, local Hyundai dealers were stuck with Pony pickups and ‘upscale’ Stellars throughout the ’80s. A bit of a curious lineup, but partly the result of conditions related to the ongoing Civil War. It’s a story I told a while back.

Excels may have not been sold in El Salvador, but as can be seen in the number of surviving samples rolling around the city, the cars worked decently in non-developed nations. After all, not-so-smooth engines in an average chassis with noisy interiors don’t matter much around here. As for their handling, do you really care about self-assured cornering when you’re busier avoiding potholes? (Trust me, I know what I’m talking about).

So, for all purposes, the Excel’s technological limitations were not pushed to their limits in local conditions, and their drivetrains generally rode at an easy –if bouncy– pace.

I’ve no idea how Excels fared in their native South Korea, or in Asia overall. But I would think they did OK, considering the company didn’t completely implode. But as has been stated in our previous nearly deadly sin post, Hyundai had overestimated its capacities when the Excel was sent to the US market as its entry card.

Those ambitions had been ongoing for a while. Hyundai’s early foreign forays appeared in the form of their 1975 Pony, of which a few are still found around San Salvador. Those cars were unsophisticated, economical, and ideal for such markets as Latin America. And they carried a distinctive shape penned by Italdesign’s Giugiaro. Not the most exciting of looks you may say, but when your streets are clogged with Datsun B210s, Giugiaro’s angular lines suddenly look mighty tempting. And think about it, an early Pony is about the cheapest way to get into automotive-Italian tailoring outside of a VW Golf.

Those early Ponys had engines courtesy of Mitsubishi. Meanwhile, the car’s drivetrain was proven technology designed with the help of British Leyland engineers (a story better covered here). A basic front engine rear wheel drive layout, with independent struts up front and semi-elliptic leafs at the back. Nothing extraordinary, but an asset in regions with little access to modern tech. Should your little Pony break down on some dirt back road near Guadalajara, a local mechanic would certainly know a way of getting the car back to work.

On the other hand, the Pony was quite behind what the rest of the industry was offering at the time; all quickly switching to space-efficient FWD drivetrains with IRS suspensions. Wisely, Hyundai found the will to restrain its worst impulses and kept the car away from the developed world.

For the time being.

But that early Pony did get the brand noticed in many markets around the globe. And this –barely– surviving sample is part of that early wave.

About which, don’t let that sloping fastback shape fool you; the early Pony was a 4-door saloon. A pickup version was also offered, while a proper hatchback finally appeared in ’81.

The friendly-looking first-gen Pony remained in production until ’82, when an upgraded and slightly more aerodynamic design appeared. It was that 1982-1990 version that first reached North America, arriving in Canada in 1983. Looking at comments left at CC on previous Pony posts, the Canadians were the first to find out that Hyundai wasn’t quite ready for the big time. Those early North American Ponys showed themselves to be quite disposable.

But regardless of the quality failings of the Pony II in Canada, Hyundai was dreaming big. South Korea was rising, and Japan had done wonders in a short time. Surely they could do it too, right?

With the 1986 Excel, Hyundai was joining the modern FWD world, once again with an aerodynamic body courtesy of Giugiaro. Engineering-wise, the car was based on Mitsubishi’s second-generation Mirage/Colt. Once more, a mill of Mitsubishi origin was found under the hood, this time the 4-cyl. Orion series, with a 1.5L displacement.

And the car was cheap! The second lowest-priced vehicle in the US for ’86. Just about 1K more than that other cheapie non-wonder, the Yugo, and looking far more like a real car.

With low price and accessible amenities as its allure, Fortune magazine named the Excel its “Best Product #10”. Hyundai’s headquarters had to be brimming with joy when their little Excel sold 168,882 units in that debut year. A first-year record for an import on US soil.

It’s a chapter covered previously by Paul in more detail.

Hyundai’s headquarters may have been jumping with glee, but elsewhere alarm bells were going off. More specifically, around Hyundai’s US dealers. A group of people well aware that the car’s reliability issues and high-figure sales were to sour future buyers on the brand.

The dealer-factory relationship is something not often talked about, and on more than one occasion, an element that can seal a brand’s luck in a particular region. It’s, in all honesty, an awfully crucial but hard to track down factor.

In the case of Hyundai, much frantic exchange apparently took place between the two. Dealers sent alarming messages to the factory about the Excel’s disintegrating qualities, while Hyundai’s headquarters only saw ballooning sales.

“What do you mean there’s trouble? Americans love our Excels!”

And no, that’s not an actual quote.

Of course, headquarters got the message sometime later, once sales tanked. By 1998, the tarnished brand only moved about 90K units in the US… between four model lines.

Photo from the Cohort by canadiancatgreen.

 

Ultimately Hyundai got the message and learned a lesson or two about listening. A bit late I may add, with much damage already done. Luckily, the company had other qualities; one of them being persistence. A rather rare trait in this age of get-rich-quick corporate mentality.

As known, Hyundai went into a long and concerted effort to make amends for its automotive sins. One can read on the company’s corporate website the many progressive and consistent steps it took to accomplish that turnaround. A three-pronged attack centered on customer practices, messaging and product development.

In customer practices, innovative no-cost maintenance programs were applied, aided by extended protection plans. Other areas included extensive dealer training, both in service and attention. Hyundai’s district managers also monitored warranty repair work, and contacted customers who had suffered frequent problems. Those among many other programs, in a process that took years to accomplish.

Meanwhile, Hyundai’s advertising focused on the message of being a ‘caring company.’ Plenty of their images featured up-and-coming professionals, often placing female subjects at their center.

At first glance, one would be tempted to think the ads don’t deviate much from the ‘active lifestyle’ many competitors promoted. However, when looked upon more closely, there’s an underlying message of ‘wellness’ and ‘protection’ sprinkled throughout. All in service to the ‘caring company’ concept behind Hyundai’s messaging of the period.

Branding, marketing and messaging aside, all would be for naught if the cars themselves hadn’t improved. Which they certainly did. It’s hard to compare the Hyundais of today to those from the early ’90s. Something I know a little about, after briefly testing an early Accent at a Los Angeles dealer back in 1994.

I vaguely remember getting in the car, turning the ignition, and listening to its little engine idling not too smoothly. Stepping on the gas pedal and revving it, it was clear Hyundai’s tiny Accent was a notch or two below the Civics my fellow coworkers drove.

So it all quickly ended in a no-sale. As I walked away –this I remember better– the salesman stood silently, hunched over the Accent’s hood in frustration. His reaction was not necessarily in response to me walking away, but rather, at the subpar product he had to entice buyers with.

Very different days indeed, of a brand that seemed would never get its act together.

That said, is not like the company didn’t have the resources to pull its turnaround. The corporation was and remains an industrial giant in its native South Korea, and the matter of funds was never in doubt. Instead, it was a matter of will and planning. And when looking at larger companies that failed to accomplish similar about-faces, the factors that matter most.

So, besides automobiles, Hyundai’s industrial might has been showing up in other forms in this region. Putting aside the occasional Uber rides I get on Hyundai’s modern cars, the Hyundai product I ride most often is pictured above. Very hi-tech, very smooth, silent, and efficient. Whenever I go into it, I feel like I’m in one of those Korean Rom-coms my wife keeps streaming at home. All I’m missing is some K-pop tunes to play along as I ascent from the parking lot to the mall’s third floor.

Kidding aside, if you want to see remnants from the tumultuous beginnings of Hyundai’s auto division saga, there are a few of those around in Central America. Rolling fossils, evidence of an almost terminal mistake.

Not that we would know that in this region, as these do their work reasonably well around here. Regardless, I would think there are a few lessons the little car embodies; from knowing how to find the place you belong to, to finding redemption after a misguided endeavor driven by unrealistic expectations. All to reach a happy ending. A story not too different from the Korean Rom-coms my wife keeps watching.

(Note: Dealer-factory interactions as remembered from a Sports Cars International article covering Hyundai’s US advertising strategies of the late ’90s.)

 

Related CC reading:

Curbside Classic: 1987 Hyundai Excel – The Damn Near Deadly Sin

Automotive History: Hyundai Pony – From Humble Origins

The Hyundai Origin Myth Revealed: There’s A Ford In Your Pony

COAL: Hyundai Pony Pickup – A House Divided; Or How Split Partners Push Forward