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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.

Audi Q7 testing gives us clearer view of new look

Audi just announced its intentions to build the Q1 in 2016. By that time, the company will already have introduced the opposing bookend to that subcompact utility vehicle, the fullsize Q7. The last time we saw the next-gen Audi Q7 out testing, our spy shots were very low quality and didn't reveal much about the luxury SUV. This time around we're able to make out a few key elements about the Q7.
For starters, the unfinished headlights have a stylish, wave-like lighting element with a three-dimensional appearance, while the rear of the Q7 will definitely get a similar wraparound liftgate as the current model. Overall, this prototype looks to be about the same size as the existing Q7, so it will be interesting to see how Audi squeezes almost 800 pounds from the SUV's curb weight. The diet will surely help improve efficiency, and we also hear that Audi is considering a plug-in hybrid model in addition to the standard gas and diesel variants.
Riding on a shared platform with the next-gen Volkswagen Touareg, Porsche Cayenne and the upcoming Bentley Falcon SUV, the next Audi Q7 is expected to bow in late 2014 for the 2015 model year.

Audi TT spy shots reveal revised lighting elements

As we inch closer to an expected Geneva debut for the next-generation Audi TT, our latest round of spy photos are starting to give us an even better look at Audi's latest sports car. This time out, we're getting more details on the car's head and taillights.
It's safe to say that the new headlight design will not incorporate the twin rally lights we see mounted on the next TT's grille, but our spy photos do show off the wide, angular new lights in even greater detail than previous photos. The rear lights, meanwhile, look like they'll retain a similar shape to what's seen on the current car, while new LED details lend a degree of freshness to the look.
As we mentioned, we're predicting Audi will debut the next TT at the 2014 Geneva Auto Show in March. We expect, though, to have more on the car before that time. Stay tuned.