Hyundai May Develop Large SUV

Hyundai Motor Co. is studying a plan to develop a large SUV/crossover that shares its platform with the company's Genesis luxury sedan, sources tell Reuters.

The big vehicle would target the South Korean and U.S. markets. But Reuters' sources say the company's bad luck with large SUVs has left it "timid" about such a project.

Hyundai entered the large SUV market in 2007 with the Veracruz. Worldwide demand for the vehicle peaked that year at 54,300 units. But sales last year, all of them in Korea, dropped below 5,000 units, according to Reuters. The company confirms it will stop making the Veracruz next month.

Sources tell Reuters that Hyundai won't abandon the large SUV segment. But they concede the company lacks brand power in that segment. They say decision makers also worry that a return to higher fuel prices could hurt demand for such vehicles.