(August 5, 2010) TRAVERSE CITY, Mich. — Hyundai announced plans Wednesday to achieve a corporate average fuel economy (CAFE) rating of at least 50 miles per gallon by 2025 for its lineup of passenger cars and light duty trucks.

Current National Highway Traffic Safety Administration regulations require automakers to achieve a CAFE rating of 35.5 mpg by 2016.  Before those rules were enacted last year, Hyundai had already announced its own plan to reach 35 mpg by 2015.

Hyundai’s announcement at the CAR Management Briefing Seminars here of this longer-term goal of delivering a minimum 50 mpg CAFE rating by 2025 is consistent with its philosophy of setting stretch objectives that align its resources, challenge its team members, and delight consumers and society, Hyundai said in a press release.

John Krafcik

“We’re committed to setting the pace in this industry on fuel economy, and we’re inspired by the possibilities that our advanced Blue Drive technologies afford,” said John Krafcik, Hyundai Motor America president and CEO. “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.”

“This is our simple formula for success in the automobile industry,” said Krafcik. “Rather than fighting fuel economy regulation, we encourage our Hyundai engineers to deliver more fuel efficiency, faster, accelerating the benefits to our customers, society, and the planet.”

Krafcik also said Hyundai needs more factory capacity in the United States and will announce plans to expand production within the next month or so.

The automaker's plant in Alabama, which makes the Sonata sedan and Santa Fe crossover, is running at maximum overtime right now and still struggling to meet sales demands, Krafcik said.

He declined to say what shape the new U.S. production would take, but said, "We know we have to grow U.S. production."

Hyundai set a U.S. sales record for July, with 54,106 units sold — up 19 percent from a year ago. It was the fourth month ever that Hyundai's U.S. sales topped 50,000 units.

The automaker's year-to-date U.S. sales are up 24 percent to 309,888 units, in an overall market that is up 15 percent.