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Trump wants a trade deal, but South Korea doesn't want US cars

SEOUL - US auto imports from the likes of General Motors and Ford must become more chic, affordable or fuel-efficient to reap the rewards of President Donald Trump's attempts to renegotiate a trade deal with key ally South Korea, officials and industry experts in Seoul say. Meeting South Korean President Moon Jae-in last week in Washington, Trump said the United States would do more to address trade imbalances with South Korea and create "a fair shake" to sell more cars there, the world's 11th largest auto market. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." While imports from automakers including Ford, Chrysler and GM more than doubled last year largely thanks to free trade deal which took effect in 2012, sales account for just 1 percent of a market dominated by more affordable models from local giants Hyundai and affiliate Kia. Imports make up just 15 percent of the overall Korean auto market, and are mainly more luxurious models from German automakers BMW and Daimler AG's Mercedes-Benz, which also benefit from a trade deal with the European Union. "Addressing non-tariff barriers would not fundamentally raise the competitiveness of US cars," a senior Korean government official told Reuters, declining to be identified because of the sensitivity of the subject. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." TASTE BARRIER In Korea, US imports are seen as lagging German brands in brand image, sophistication and fuel economy, industry experts say. US imports do have a competitive advantage in electric cars: Tesla Motors' electric vehicles are seen as both environmentally friendly and trendy, while GM has launched a long-range Bolt EV. US Commerce Secretary Wilbur Ross had cited a quota in the current trade deal as an obstacle to boosting imports. The quota allows US automakers to bring in each year 25,000 vehicles that meet US, not necessarily Korean, safety standards. Should GM, for example, decide to bring in more than its quota of one model - the Impala sedans - it would cost up to $75 million to modify the cars to meet Korean safety standards, the company told its local labor union. Asked about non-tariff barriers, a spokesman at GM's Korean unit said removing them could expand the range of models the company can bring in from the United States. No US company, however, has yet to make full use of the quota, industry data shows.

Ford, GM still doing new business with Takata amidst airbag crisis

Lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. You might expect automakers to be fleeing any connection with beleaguered supplier Takata in the wake of the company's exploding airbag inflator crisis. After all, with a Senate hearing, pending lawsuit, plummeting stock value and demand for a national recall, the tier-one supplier isn't at its strongest right now. However, years of cooperation mean that automakers are standing by Takata, and necessity may be playing a role, as well. About 39 percent of Takata's business comes from airbags, and seatbelts make up another significant chunk of the operation too, says Bloomberg. The long-term relationships and lengthy vehicle development times make it difficult for automakers to cut and run from the supplier. "Takata has so much product breadth that I don't really see that they could just disappear," said AutoPacific analyst Dave Sullivan to Bloomberg. For example, Takata helped develop the unique front center airbag with General Motors in models like the Chevrolet Traverse and Buick Enclave. Outside of safety tech, it is also a partner with Ford on the adaptive steering system available on the upcoming 2015 Edge. These long-lasting partnerships make change difficult now that there's a problem. According to Reuters, automakers claim it would take a year or longer to set up with a different supplier for replacement airbag inflators. Switching to a completely different part for the repairs might not be a viable option either, because of the engineering time needed. BMW is taking action, though. According to Reuters, the Bavarian brand is working with the supplier to move inflator production from Monclova, Mexico, to a Takata factory in Freiburg, Germany. The Mexican plant may be the source of some of the faulty parts. News Source: Bloomberg, ReutersImage Credit: Jens Meyer / AP Photo BMW Ford GM Safety Takata airbag recall

Plug In 2014: ALTe ready to join Ford's EQVM to convert, sell F-150 PHEV [w/video]

It's been a while since we've checked in with ALTe and its plans to convert big work vehicles like the Ford F-150 into plug-in hybrids. So, when we saw a demonstration vehicle sitting outside the San Jose Convention Center at the Plug In 2014 Conference last week, we had to get a closer look. When we did, we realized that it's been quite some time since we've been in a Ride & Drive vehicle that was all beat to heck. It's been quite some time since we've been in a Ride & Drive vehicle that was all beat to heck. The reason for the well-worn F-150 with 30,000 miles on it is that ALTe has been showing off its extended-range EV technology to lots of people all around the country, and Kyle Maki has been the man on the scene more often than not. "This one, I've taken all over the country," he told AutoblogGreen. "I've wore out that seat, I think. The only reason this one wasn't driven here was because we were in Charlotte [NC] last week and I didn't want to take a chance and not make it in time for this event." In other words, ALTe is out there, ginning up excitement for the idea of a plug-in hybrid Ford with an electric range of up to 40 miles and which can then continue on gas for another 360 miles at around about 25 miles per gallon. ALTe wants to not only convert new vehicles but it also offers retrofits for fleets that are happy with their current fleet. The company offers converted versions of the Ford E350 and E450 utility vehicles now but the near-mythical F-150 PHEV is still "coming soon." Yes, orders are now being accepted, but you will be forgiven if you think this is all happening on a slow time scale. There are simply a lot of things to do before ALTe can sell the truck. ALTe is currently attempting to join Ford's EQVM program, which is the electric version of the standard Qualified Vehicle Modifiers program. The QVM program requires coachbuilders to "be successfully evaluated by Ford Motor Company on criteria such as engineering, the manufacturing process, quality control, and adherence to Ford and Lincoln Divisions guidelines." Qualified applicants must also meet all applicable Federal Motor Vehicle Safety Standards, conform to Ford/Lincoln conversion guidelines and agree to be inspected annually as well as have a "commitment to continuous improvement." Maki has a simpler explanation. "It basically means you're a preferred supplier, a Tier 1, if you will," he said.