Hyundai announced abruptly last week that it would not rebadge the upcoming Kia Sedona minivan and sell it as its own Entourage family hauler. Instead, the company says it will depend on the new seven-seater Santa Fe SUV and a six-passenger crossover vehicle yet to come to serve as its people movers. The new SUV, which will be sized roughly the same as the Honda Pilot, goes into production in Alabama in late 2006 and will be powered by a 3.8-liter V-6 teamed with a six-speed automatic. The crossover will be patterned after the Portico concept shown at the most recent Chicago auto show and is due in 2008. "We've been encouraged by the response to the Portico concept vehicle we showed in Chicago this year, and the design team has continued to make great progress, so we're accelerating the development of the production version," said Bob Cosmai, president of Hyundai's American operations.

Hyundai says the new, larger-than-Santa-Fe crossover SUV it plans to sell as a 2007 model will be called the Veracruz. The mid-size vehicle, Hyundai promises, will be larger than a Honda Pilot, roomier inside for cargo than the big Benz GL, and outfitted with a hideaway third-row seat, giving it seven-passenger capability. A 3.8-liter V-6 and six-speed automatic will be standard, along with stability control, while all-wheel drive will be an option.

Hyundai’s fast and dramatic rise to excellence continues, if their pricing announcement for the Veracruz SUV is any indication. They will start offering the full-size SUV at $26,995 for a front-driver, while pricing can get as high as $34,695 for a loaded AWD model. That’s an attractive price for an SUV with a six-speed automatic, room for seven, and the kind of interior quality that you’d find in something from Lexus. We’ll drive a Veracruz later this month and will be back with a full report.