The sleek Hyundai Veloster has made its North American debut at the Detroit Auto Show. To achieve 40mpg, it’s “powered by Hyundai’s all-new 1.6-liter Gamma inline-four which produces 138 horsepower at 6,300 rpm and 123 pound-feet of torque at 4,850 rpm.” Click here for more pictures. Continue reading to watch a spy video shot with an iPhone 3G S.

Through the use of direct injection, Hyundai is able to make this mill surprisingly efficient, and while official EPA numbers haven’t been released just yet, Hyundai claims that the Veloster will net around 40 miles per gallon on the highway, easily besting the Honda CR-Z hybrid.

[via Autoblog]