‘It Goes Against The Business Case’

3 hours ago

Hyundai told engineers working on the new Ioniq 6 N to just “do it”.
The regular Ioniq 6 is a low-volume electric sedan, and the Ioniq 6 N is expected to sell even slower.
That didn’t stop Hyundai from throwing out the financial caution that’s usually associated with launching a new model.

Hyundai’s N division–that’s the one responsible for making performance cars–has done something that’s hard to explain to the typical financial adviser. In a move that’s as rare as a satisfied Fisker Ocean owner, Hyundai told the engineers working on the new Ioniq 6 N to just “do it,” despite all signs showing it would be a hard sell.

Speaking with Drive.com.au, Hyundai’s Performance Development Tech Unit head and ex-Porsche engineer Manfred Harrer said that the company is aware of the Ioniq 6’s limited sales success, but that the purpose of the Ioniq 6 N is not to be a best-seller.

Photo by: Hyundai

“These are small volumes, and we also hit the limit regarding affordability for our customer base and fans face reality. We know this,” he said. But that didn’t stop Hyundai from green-lighting what is essentially a halo car.

“Normally, you’re always running the business case first, and the investment, and the material cost, and the volume behind it,” Harrer added. “And normally in the automotive industry, you’re very often limited on this. But here, it was clear if we have the ideas to improve the car, make it faster, increase the performance, make it easier to drive, do it.”

You see, Hyundai sold roughly 6,300 regular Ioniq 6 EVs in the first half of this year in the United States, which is hardly a record. By comparison, the more popular Ioniq 5 crossover moved 19,000 units, which is triple the Ioniq 6’s numbers.

But even so, Hyundai ignored the signs and did what car companies used to do all the time in the past: make a proper driver’s car without worrying about what the accountants would say.

“Because the volume is small, and [we] do so many changes, this comes with some costs, and normally it goes against the business case,” Harrer said about the economics behind the Ioniq 6 N. “To justify the development cost and the engineering effort behind it, it’s more for… It’s a halo; it helps the brand. It shows our capabilities. That’s the purpose behind it,” he added.

That’s rare these days, but it’s great to see Hyundai continuing a tradition that put the likes of BMW’s M division and Mercedes-Benz’s AMG on the map: do what it takes to bring a great car to the market.

Obviously, this comes with some risks, but in the case of the Hyundai Motor Group and its huge global presence, losing money on a performance EV is unlikely to hurt its financials so badly that it gets in trouble.

Using the same 641-horsepower dual-motor powertrain as the wonderful Ioniq 5 N, the new Ioniq 6 N electric sedan manages to be even faster than its crossover sibling thanks to a more aerodynamic shape. The go-fast four-door sedan can get from a standstill to 62 miles per hour in 3.2 seconds, while the top speed is 160 mph. But that’s not all, because the Ioniq 6 N can drift using only its rear motor, and it can go through a set of virtual gear shifts that simulate an eight-speed dual-clutch transmission.