Haldex and Hyundai Announce Deal

Sweden’s Haldex is most famous for its all wheel drive systems. By far, its most notable application is in a variety of Volkswagen, Audi, Seat and Skoda products that feature the efficient AWD system. Haldex has also supplied its all wheel drive system to Volvo, Land Rover and Ford (though the latter relationship isn’t working any more, as the Taurus uses the AWD system from the Ford Edge rather than that of the Volvo S80 of which it is based around). Haldex’s drivetrain technologies are even used in the ultimate supercar, the Bugatti Veyron!

Groundbreaking news came earlier this year when Haldex announced that it had partnered up with another automaker from its home country, Saab. The 9-3 XWD will feature the latest generation system which includes a rear differential capable of torque vectoring, the process of shifting power between the left and right rear wheels for more neutral handling. It has been rumored that Saab won’t be the only GM brand to feature Haldex all wheel drive systems; Chevrolet, Cadillac and Opel are both rumored to be on the list of considered brands, and if the German brand gets the new AWD system we can be assured Saturn is on the short list too.

Now Haldex has just announced a partnership that’s equally as unexpected. It’s going to be diversifying its clientele by pairing up with its first Asian partner. Surprisingly, it isn’t Toyota, Honda, Nissan or any of the mainstream Japanese automakers. In fact, it isn’t even a Japanese company at all. Instead, the Swedish component manufacturer is going to be supplying parts to Hyundai and its sister company, Kia. The partnership was made official when Haldex received an order for its latest all wheel drive system, as well as an electronic limited slip differential (eLSD), the very components that will be used in the Saab XWD system.

This, of course, is all very interesting and very exciting news. Hyundai and Kia haven’t really had much of a presence in the all wheel drive sector with the exception of their crossovers and sport utility vehicles. However, change is what the modern automotive sector is all about. With a growing number of midsize sedans featuring all wheel drive (Ford Fusion, Dodge Avenger, Volkswagen Passat), it’s safe to assume that Hyundai would fit it to the next generation Sonata sedan. Another distinct and equally likely proposition is if the system were fitted to the upcoming Genesis sedan. Additional traction and security may be one of the new luxuries Hyundai is trying to gain by partnering with Haldex, while the added prestige of all wheel drive over front wheel drive is important for its brand image as it steadily climbs into the entry-level luxury market.

Hyundai’s partner Kia could definitely incorporate the Haldex system into its upcoming Soul tall-form wagon. With four forward driving wheels provided by a system noted for its compact dimensions, this practical car could compete with the likes of the Suzuki SX4 and the all-new Pontiac Vibe and Toyota Matrix, both of which will also be offered with AWD.