From any angle, the Veracruz might be the most beautiful Hyundai ever to reach our market. American Joel Piaskowski, made Hyundai’s chief designer in 2003 after the company stole him away from General Motors, had a tough brief: create a crossover that would appeal to tastes in America, South Korea, and the rest of the world. “We want our designs to be accepted more on a global, universal level,” said Piaskowski. “The Veracruz [and the Santa Fe] actually has a lot more Hyundai design built into it than, say, the Azera. There are aspects of Hyundai’s design history that are important to us. But we want these designs to be wanted by people globally.”

We assume the globe’s people will respond favorably. Against direct competitors such as the Honda Pilot, Toyota Highlander, and Subaru Tribeca, the Veracruz (or VC, as we referred to it on our test drive) appears to be a more expensive alternative, which it’s not—an old tactic from the Japanese playbook that Hyundai has been using with some success lately. Three valet attendants called our vehicle a Lexus during our weekend of testing. Base front-wheel-drive models can be had for around $27,000, but our all-wheel-drive SE tester topped out at $33,120, complete with leather, a rear-seat entertainment system, and eighteen-inch wheels. Most models will be sold in SE or Limited trim, with prices somewhere in the low to mid-thirties.

The Veracruz drives like a small crossover, but it’s actually quite large. The steering feel, maneuverability, and visibility echo that of the Lexus RX350, but its dimensions read like a larger crossover. The third row is an honest third row, where we sat comfortably during a section of test drive along the hiking mountain roads around Lake Henshaw, just northeast of San Diego. The Veracruz is longer and wider than the Toyota Highlander and the Nissan Murano, but smaller than GM’s new Saturn Outlook. Hyundai says the Veracruz “hits a dimensional sweet spot.”

Power and oomph are muted, but not underwhelming. People typically don’t buy premium crossovers for power, but we wish the relationship between this engine and transmission had more performance built in. The six-speed transmission opts for fuel economy most of the time, meaning the Veracruz sits in fourth gear during city driving. The all-aluminum 3.8-liter V-6 is the same one found in the Azera sedan and is the only engine offered. For all our comments about the car not feeling sporty, we did appreciate the quiet cabin.

No navigation system can be found in any Veracruz, regardless of trim level, which we think is the only noticeable misstep here. Surely, if $20,000 Accords have navigation systems, then a family crossover in the mid-$30,000 range should, right? We found Hyundai artfully dodging the subject, suggesting buyers can purchase a Garmin Nuvi unit at the dealer, a decidedly down-market approach for a firm looking to move up-market. Although company men quoted research suggesting potential buyers ranked a navigation system as fifth on their priority list, we wish they would have overlooked the data and gone with their gut. More than a few smart Hyundai guys looked at their shoes and nodded their heads in agreement when we brought this up over dinner. We felt reassured when they announced that the 2008-model-year Veracruz will have Hyundai’s first navigation system.

For a company entering a market segment for the first time, one would expect a substandard product that was benchmarked against old targets. Hyundai has not done this with the Veracruz. It’s every bit as good as the range of vehicles in this ever-expanding segment, with low cost and great design as its one-two punch. As soon as the Veracruz gets a navigation system, it will be one of the best premium family vehicles in the market.