#JohnKrafcik

Hyundai is the first automaker to start accepting trade-ins under the pending Cash-for-Clunkers legislation, and during the first week of trade-ins CARS (Car Allowance Rebate System) rebates have accounted for seven percent of all sales for Hyundai Motor America.

While the Cash-for-Clunkers incentives have yet to be finalized by the U.S. government, automakers have been given a guarantee that all CARS trade-ins would be honored retroactively until July 2nd. In the mean time, Hyundai corporate is offering its dealers loans to cover the difference so customers can walk away with a new Hyundai at a significantly reduced cost.

The CARS legislation gives a $4,500 rebate on a new car when it gets 10 mpg or more better fuel mileage than the one traded in. The rebate is $3,500 on vehicles that get 4 to 9 mpg better or trucks that get 2 to 4 mpg better.

The most popular CARS purchase at Hyundai is for the Elantra compact car (pictured above), which accounts for 41 percent of all CARS deals at Hyundai in the first week. One reason for this as that customers can walk away with an Elantra for just $8,620 after trade.

The Sonata mid-sized sedan is the next popular purchase. In total Hyundai has 13 vehicle/engine combinations that are eligible for rebates under the CARS legislation, including the 2010 Genesis Coupe 2.0T.

“The early response we’re seeing demonstrates the CARS program is working, with inefficient gas guzzlers being traded-in for fuel-efficient Hyundai models,” said Hyundai Motor America CEO John Krafcik.  “We expect overall sales from this program to grow as consumer awareness increases – it should surpass ten percent of our retail sales this month.”

As for the vehicles traded in, Hyundai’s data shows that 32 percent of all clunkers are Ford products, while 23 percent are Dodges. Surprisingly, the list of clunkers also includes models from such prestigious brands as Jaguar, Lexus and Mercedes-Benz.

Official release after the jump:

According to Hyundai CEO John Krafcik, the company’s upcoming replacement for the Tiburon will look significantly like the Veloster Concept that debuted at the 2007 L.A. Auto Show. In fact, Krafcik said that the sub-compact will look 70 to 80 percent like the funky concept, calling it “Accent sized,” and a, “four passenger Honda CRX.”

According to a Hall & Partners survey performed on behalf of Hyundai, the delay in passing a “Cash for Clunkers” bill is costing the U.S. auto industry as many as 100,000 lost sales each month.

The survey results showed that 38 percent of potential new car buyers were aware of a pending “cash for clunkers” bill and that 11 percent of buyers were delaying their purchase until the bill is passed.

Considering an average of 1 million monthly sales, this accounts for roughly 100,000 lost sales.

“With sales in the U.S. auto industry forecast at the lowest levels in 26 years, it’s imperative that we move forward with this stimulus bill,” said Hyundai Motor America President John Krafcik. “The auto industry makes up 10 percent of the consumer portion of the country’s gross domestic product. Any stimulus to the auto industry will make a major improvement in the overall U.S. economy, which remains severely depressed.”

“The longer this bill, which is so important to the U.S. economy, remains stuck in Congress the greater the pressures placed on all aspects of the U.S. automotive industry – from suppliers to manufacturers to dealers. We urge Congress to move quickly so that American consumers can benefit from this program during the peak summer selling season,” said Krafcik.

Yesterday results of car sales for the month of May were released showing a decrease of 33.7 percent as compared to the same period a year earlier.

Official release after the jump:

With all the excitement surrounding the Hyundai Genesis Coupe, you’ve probably forgotten all about the Tiburon.