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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Hyundai, union reach tentative labor deal

According to Reuters, South Korea's labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won - around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it's a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We'd wager that this is why US inventories haven't been hit quite so hard aside from the battering already taking place. The proposal will now go before the union's rank and file.
If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months' salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).
Based on Reuters' report, the work stoppages must have taken a real toll on Hyundai - its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

2014 Hyundai Equus priced from $61,000*

During an event in Ann Arbor, Michigan today, Hyundai officials confirmed that the updated 2014 Equus sedan, which goes on sale this week, will be priced from $61,000, *not including $920 for destination. That price is for the base-level Signature version; the upgraded Ultimate trim will carry a base MSRP of $68,000. Both prices represent a $1,750 increase over the 2013 model.
Hyundai introduced the 2014 Equus at this year's New York Auto Show, and while it hasn't been vastly reworked, there are a few thoughtful updates both inside and out. For starters, there's a restyled grille flanked with standard LED fog lamps, as well as new 19-inch alloy wheels. Inside, Hyundai has fitted a new instrument cluster and center stack, as well as more premium wood trim.
There's more technology inside the Equus, as well. The instrument cluster now benefits from either a 7.0- or 12.3-inch LCD information screen, and there's a 9.2-inch display in the center of the dash. For rear seat passengers, there are dual 9.2-inch monitors, as well as redesigned console controls.