A redesigned Elantra is on the way for 2006, though it may arrive in the first half of '05. It's basically a restyled version of the just-redesigned Kia Spectra. Hyundai owns a controlling stake in Kia, and is putting similar models in both lineups on shared platforms to cut production costs and design lead times. Sources expect Elantras to run about $1500 more than equivalent Spectras. This reflects Kia's mission as a "high value" nameplate, leaving Hyundai to assert itself as the "smart alternative" to rival Japanese and American brands. Despite the growing product kinship, Hyundai and Kia will maintain separate U.S. sales and service operations.

Hyundai says it will offer a hybrid-power option in one of its U.S. car lines for 2006. No decision yet on which model, but we'd guess it will be either the new Elantra or perhaps the smaller Accent being redesigned for '05.