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Hyundai: hydrogen cars will gain wider acceptance in 10 years

Hyundai Motor Company said Monday it believes hydrogen fuel cell vehicles are the future for eco-friendly cars despite challenges of limited infrastructure and slow sales. South Korea's largest automaker has sold or leased 273 Tucson fuel cell SUVs since beginning production in 2013, mostly in Europe and California. The company had plans to make 1,000 in its first year of production. Kim Sae Hoon, general manager at Hyundai's fuel cell engineering design team, said fuel cell cars represent a bigger opportunity than electric cars because competition is less fierce. Hydrogen-powered cars also give more flexibility to designers, he said. They can be scaled to big vehicles such as buses as well as small cars. They can also be refueled as quickly as gasoline cars while traveling more miles than electric vehicles. The Tucson's European version, called the ix35 Fuel Cell, can travel up to 594 kilometers (369 miles) while its US model travels up to 265 miles (426 kilometers) on one charge on the various government efficiency tests. It emits water vapor and no greenhouse gases. High prices and the dearth of fueling stations are barriers to sales of fuel cell vehicles. Hyundai said it will be another 10 years before hydrogen cars start gaining wider acceptance. In the meantime, sales of eco-friendly cars are dominated by hybrid models such as Toyota's Prius and electric vehicles such as the Nissan Leaf, which are more affordable than fuel cell cars. Hyundai also produces hybrid cars and electric vehicles. It plans to invest 11.3 trillion won ($10 billion) in eco-friendly technology including hybrid cars, electric battery vehicles and hydrogen fuel cells in the four years from 2015. To boost sales, Hyundai slashed the Tucson fuel cell's price in South Korea in February to 85 million won ($76,000) from 150 million won ($134,000). South Korean customers are local government offices as there is no government subsidy for consumers. South Korea's government plans to establish 10 charging stations for fuel cell cars and expects 1,000 hydrogen-powered vehicles will be on the streets in South Korea by 2020. Japan started production of hydrogen-powered cars later than South Korea but such vehicles are experiencing faster growth in Japan with support from Prime Minister Shinzo Abe's government. Toyota started sales of its Mirai fuel cell sedan in December and has decided to increase production to 3,000 vehicles in 2017, which is quadruple production this year.

Why Kia doesn't need a premium brand

Hyundai's creation of the Genesis luxury brand means it and fellow Korean brand Kia have finally hit the mainstream in the U.S. – as far as products are concerned – after nearly three decades of trying. Which is about as long as it took Toyota and Nissan to roll out Lexus and Infiniti, respectively. It's history repeating itself. Genesis is supposed to be the way Hyundai's premium models get the respect they deserve, without carrying the baggage of a name associated with frugality. Hyundai has, in fact, built up a reputation over the last decade or so for cars that compete head-on with class leaders, rather than aim to be 90 percent as good for 75 percent of the price. And because Kia shares a number of components with Hyundai, its vehicles have also steadily become not only better mainstream vehicles, but have continued to aim higher than their price points. Does Kia need to follow now in its parent's steps with a prestige brand to market its most expensive models? I'm aware of the Kia K900, the company's deepest foray into luxury territory notably occupied by Lexus. Kia, however, has consistently been pushing this $60,000 full-size luxury sedan along with $0 down, low monthly payment lease deals. Turns out there really aren't many people looking for a full-size Kia luxury sedan. Or maybe they're just waiting to get it for $20,000 in a couple of years. Consider the K900 and Genesis when I convince you Kia already makes upscale cars to rival those with premium badges. They just don't happen to be its most expensive model. Shortly after Hyundai's announcement it would spin its luxury models off into the Genesis brand, I spent a few days with a 2016 Kia Sorento SXL. And I'm willing to call it a more convincing attempt to get people out of luxury cars than the K900. Driving the Sorento is not an emotional experience. You feel parental driving it, thinking you might've forgotten to pick your kids up until you remember you don't actually have kids. But after settling into the nicely stitched and perforated leather seats, you respect its comfort, quiet and amenities. The headliner is soft, the stitching on the dash top is convincingly real and everyone is impressed by the sharp graphics on the touchscreen and the slick powered shade that reveals an expansive glass roof. A Kia Sorento costing more than $46,000 sounds absurd until you wonder how much better an Acura MDX or Lexus RX350 is when those cost as much as $10,000 more.

Hyundai and Aptiv enter self-driving joint venture

Hyundai Motor Group and Aptiv are creating a 50:50 autonomous driving joint venture valued at $4 billion. In an announcement, Hyundai said the venture plans to begin testing fully driverless vehicle systems in 2020 and to "have a production-ready autonomous driving platform available for robotaxi providers, fleet operators, and automotive manufacturers in 2022." Under the terms of the agreement, Hyundai Motor Group affiliates Hyundai Motor, Kia Motors and Hyundai Mobis — which debuted the self-driving concept vehicle seen above earlier this year at CES — will collectively contribute $1.6 billion in cash and $0.4 billion in vehicle engineering services, R&D resources and access to intellectual property. Aptiv, which was formerly known as Delphi Automotive, will contribute its autonomous driving technology, intellectual property, and approximately 700 employees focused on the development of scalable autonomous driving solutions. According to a statement on the joint venture, Aptiv says it currently operates more than 100 self-driving vehicles, a number of which are part of a commercial deployment in Las Vegas. The company says it has provided more than 70,000 paid autonomous rides and has maintained a rating of 4.95-out-of-five stars. The company will be headquartered in Boston and have so-called technology centers located across the United States and Asia. Green Hyundai Kia Transportation Alternatives Technology Autonomous Vehicles aptiv