Assembled In: Ulsan, South Korea.

Model Line Up: Hyundai Veracruz GLS FWD ($26,900); GLS AWD ($28,600); SE FWD ($28,600); SE AWD ($30,300); Limited FWD ($34,050); GSL AWD ($35,750).

Model Tested: Hyundai Veracruz SE FWD ($28,600).

Options Tested: Premium Leather Package ($4200) includes power tilt/slide glass sunroof, power tailgate, leather seating surfaces, heated front seats, 115-volt power outlet, 315-watt Infinity audio system with CD changer, backup warning system.

For South Korean automaker Hyundai, the Veracruz marks yet another bold step upward in price, quality, and performance.

While Hyundai's compact SUV, the Santa Fe, rivals mid-size SUVs from established manufacturers, the Hyundai Veracruz meets them head-on. Its powertrain goes toe-to-toe with the competition, primarily the Honda Pilot, Toyota Highlander, and Subaru Tribeca. Veracruz offers no weak-kneed four-cylinder engine or aging four-speed automatic transmission. Instead, Veracruz boasts a modern V6, standard, and still delivers frugal numbers at the fuel pump. Its transmission is a thoroughly modern six-speed automatic, putting Hyundai one gear up on Honda, Toyota and Subaru. There's a choice of front-wheel drive or all-wheel drive, again giving away nothing to the competition.

The Hyundai Veracruz even enjoys a styling advantage. This is Hyundai's first venture into the crossover market, so it has no mistakes to be corrected, no design vocabulary that has to be slavishly followed, no legacies to be exorcised. It's a clean-screen project, but with the additional benefit of being able to learn from what others have tried. And learn Hyundai has. The Veracruz presents a clean, uncluttered face, a balanced, sleekly executed profile, and maybe a bit of a copycat rear; but at least a copy of a winner.

Veracruz is put together with care, too. Gaps between body panels, while not Lexus or BMW grade, are close and consistent. Interior trim materials feel as good as they look, and they look very good. Gauges and controls look and feel good, too, with interesting blue-tone night-time instrument lighting and just the right amount of clickiness and rotational resistance.

Besides well-designed and smartly packaged seating for seven, including easy access to the third-row seats, a host of upscale features are standard on even the base Veracruz GLS. Anything missing there is available on the SE or Limited; or in an option package, including a rear-seat entertainment system with wireless headphones and remote, plus a new-for-2008 navigation system.

Also new for 2008 are an available power tailgate and 115-volt power outlet for the mid-range Veracruz SE; while most of last year's Ultimate Package is now standard on the top-of-the-line Veracruz Limited.

Suspension is independent all the way around (preferred for ride and handling), with comfortable, front-to-rear shock absorber and spring balance over a longish wheelbase (the longest, in fact, in the class) that smoothes out most freeway pavement heaves. A wide stance and responsive steering combine with four-wheel disc brakes, which aren't numbingly over-managed by computerized mappings and algorithms, to earn a refreshingly high, fun-to-drive rating.

Finally, Hyundai left nothing on the shelf when it came to outfitting the Veracruz with safety gear. There are six airbags, including side-curtain coverage for all three rows of seats. Antilock brakes with brake assist and electronic brake-force distribution are standard. So is a full-featured electronic stability system. And the front seats have active head restraints that move up and forward to cushion the head in rear-impact crashes.

Deeper bottom cushions on the front seats would be nice. So would a height adjustment on the front passenger seat. We would also prefer the slot for the Shiftronic, manual-like shift function to be on the driver's side of the main shift gate, instead of on the outside, away from the driver. We heard some wind noise in one test vehicle that wasn't in the other. But these are nitpicks, and we're hard put to find anything to complain about here.

The 2008 Hyundai Veracruz is a seven-passenger crossover that comes with front-wheel drive or all-wheel drive (AWD). The sole engine is a 260-hp V6, the transmission a six-speed automatic with a semi-manual shifting feature called Shiftronic.

Veracruz GLS ($26,900) and GLS AWD ($28,600) come with a respectable quantity of standard features, starting with air conditioning with secondary rear-seat controls; cruise control; AM/FM/XM/CD/MP3 audio system with six speakers and three-month XM trial subscription; tilt-and telescope steering wheel with cruise and redundant audio controls; the common collection of powered accessories; and P245/65R17 tires on aluminum alloy wheels. Front buckets with fold-flat, passenger-side seatback; a 60/40-split flip-and-fold second row; and a 50/50-split, fold-into-floor third row comprise the seating arrangement. The GLS Premium Package ($1950) adds a power tilt-and-slide sunroof, eight-way power driver's seat, heated front seats, leather-wrapped steering wheel and shift knob, and backup warning system.

SE ($28,600) and SE AWD ($30,300) add the power driver's seat, auto-dimming inside and outside rearview mirrors, programmable HomeLink garage/gate remote, automatic headlights, leather-wrapped steering wheel and shift knob, roof rack side rails, cooled front center console storage bin, fog lights, and P245/60R18 tires on 18-inch aluminum alloy wheels. Options for SE include the Premium and Leather Package ($4200), which adds the sunroof, a power liftgate, leather seating surfaces, heated front seats, 115-volt power outlet, 315-watt Infinity audio system with CD changer, and backup warning system. The Entertainment Package ($5750) includes the Premium and Leather Package plus a rear-seat entertainment system with an eight-inch LCD monitor; a conversation mirror; and an upgrade to a 605-watt Infinity audio system with Logic 7 surround sound.

The Limited ($34,050) and Limited AWD ($35,750) make leather seating and heated front seats standard; plus dual-zone automatic climate control with auto-recirculation, the 325-watt Infinity audio system and conversation mirror, the sunroof, the power liftgate; and a windshield wiper de-icer. Added for 2008 are a power tilt/telescopic steering wheel; power adjustable pedals; memory settings for the driver seat, exterior mirrors and steering wheel; proximity key with immobilizer; rain-sensing wipers; 115-volt power outlet; and lighted door scuff plates. Options for Limited include a Rear-Seat Entertainment Package ($1500) and a Navigation Package ($1750); both include the 605-watt Logic 7 stereo, although the navigation system deletes the CD changer.

Dealer-installed accessories include roof rack cross rails ($205), a trailer hitch ($350), auxiliary audio jack ($95), first aid kit ($20), carpeted floor mats ($125), composite cargo tray ($100), sunroof wind deflector ($85), and wheel locks ($50).

Safety features include the mandated front airbags plus side-impact airbags for front-seat passengers (torso protection), full-cabin side curtain airbags (for head protection), three-point seatbelts and height-adjustable head restraints at all seating positions; active front seat head restraints; and child safety seat anchors and latches in the second-row seats. Wear those seatbelts because they are your first line of defense in an accident. Antilock brakes (which allow the driver to steer the car through panic stops) are standard and augmented by electronic brake-force distribution (which optimizes brake application front to rear) and brake assist (which quickens brake application in emergency stops). Standard, too, are an electronic stability control system (which helps the driver keep the vehicle from spinning out in turns or in emergency maneuvers) and traction control (which limits tire spin in slick conditions). A backup warning system that warns of unseen objects and assists when parking and maneuvering in tight places is optional and we strongly recommend it because it can help the driver avoid a tragic mishap.

Hyundai has taken a cautious approach in styling its first mid-size crossover. There are no fancy swoops or swirls on the Hyundai Veracruz, no scoops or bulges, just smooth, graceful forms. Maybe the way to stand out in this increasingly competitive niche is to go for understatement, to aim for not standing out. Whatever, the Veracruz has done it.

The front view shows a rounded face as smooth as an egg shell, and somewhat reminiscent of same, with the mildest of upper lip on the bumper. Two air intakes, the top one ringed in chrome and sporting the Hyundai flying H logo, share the mostly seamless fascia. A brace of almost imperceptible ridges pick up the sweep of the top intake and carry it back across the hood to the feet of the A-pillars framing the windshield. Organic-shaped headlamp assemblies wrap around the fenders. A contrasting underpanel circling the Veracruz beneath perfectly aligned seams lessens the visual mass while adding perceived height. When fitted, asymmetrically shaped fog lights tuck into the upper edge of the underpanel directly beneath the headlamps.

From the side, an organic overall shape is marked by a finely drawn crease that starts at the headlight, then drops ever so slightly behind the front wheel well before rising in a straight line to the taillight. Side windows trace the aero-shape of the roofline, which ends in a spoiler integrated into the top of the liftgate. Thin half-circles matching the contrasting underpanel arc over the wheel wells, which even the standard 17-inch wheels decently fill. Deep rear doors promise easy access to the third-row seats without over-playing the comparatively long wheelbase (the distance between the front and rear tires).

Some design aspects of mid-size crossovers are unavoidably repeated from brand to brand. There's only so much creativity possible given the need to package three seats and some basic cargo space. Fortunately, it's only from the rear that the Veracruz comes close to falling victim to this reality. Were it not for the Hyundai logo, a casual passerby could easily mistake its rear fascia for that of a Lexus RX350. (And would that be a bad thing?) There's a rounded rear window, or backlight, topped by a slicked-back spoiler. The taillights angle upward, bridging the seam between the liftgate and the rear fenders. A lower lip-like, step-topped bumper cups the liftgate. The license plate sits in a recess centered in the lower half of the liftgate and topped by a logoed crossplate doing double duty as a cover for the license plate light and a grip for raising the liftgate. Dual exhaust tips fit in semi-circular cutouts in the bottom edge of the underpanel. But most important, regardless of how similar it looks, it still looks good, and clearly of a piece with the rest of the Veracruz. And for that, Hyundai's to be commended.

The Veracruz is the latest and most impressive in a lineup of larger, fancier, more powerful, quieter and pricier vehicles from Hyundai. While some might question whether buyers will pay this kind of money for a Hyundai, we suggest waiting until you've driven the Veracruz before venturing an answer. Hyundai is expanding its lineup and moving upscale, ever so slowly and cautiously, but with determination. Quality and owner satisfaction surveys indicate Hyundai is doing things right. The Veracruz is a practical and enjoyable crossover SUV that's an affordable alternative to the Honda Pilot and Toyota Highlander.

NewCarTestDrive.com correspondent Tom Lankard test drove the Veracruz around La Jolla, California.