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Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.

FCA discussing tech partnership with Hyundai, but no merger

Fiat Chrysler Automobiles is in talks with South Korea's Hyundai about a technical partnership, but there are no merger talks between the two, FCA Chief Executive Sergio Marchionne said on Saturday. FCA is often the subject of merger speculation, especially after its unsuccessful 2015 attempt to tie up with larger U.S. rival GM. Its share price jumped to record highs in August after reports of interest from China and Hyundai. "We already buy components from (Hyundai) .... let's see if we can agree on other points, especially for the development of transmissions and hydrogen," Marchionne told journalists, adding there was "nothing to announce for the moment". Asked whether this collaboration could turn into a merger, Marchionne said: "I don't believe so". (Reporting by Agnieszka Flak; editing by Alexander Smith)Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

U.S. Senate panel wants Hyundai, Kia to testify about engine fires

WASHINGTON — The Senate Commerce Committee's Republican chairman and ranking Democrat said on Wednesday they had asked top U.S. executives at Hyundai and Kia to testify at a Nov. 14 hearing on reports of engine fires involving vehicles from the Korean automakers. The call to testify comes after safety advocates raised concerns about fires in vehicles not involved in collisions. The nonprofit consumer advocacy group Center for Auto Safety said last week that 103 fire complaints had been filed with U.S. safety regulators since June 12 and urged an immediate recall of nearly 3 million vehicles. Hyundai said in a statement it had received the request to appear "and is currently reviewing it." The company added it "actively monitors and evaluates potential safety concerns, including non-collision fires, with all of its vehicles and acts swiftly to recall any vehicles with safety-related defects." Kia did not comment. Shares of Hyundai Motor fell as much as 3.8 percent in Seoul trading on Thursday. Kia Motors stock also slid 3.7 percent, while the wider market was down 0.6 percent as of 0232 GMT. In May 2017, the National Highway Traffic Safety Administration (NHTSA), an agency of the U.S. Department of Transportation, opened a formal investigation into the recall of nearly 1.7 million Hyundai and Kia vehicles over engine defects. A South Korean whistleblower in 2016 reported concerns to NHTSA, which has been probing the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Sen. Bill Nelson, the top Democrat on the Commerce Committee, said a non-collision fire death had been reported last year in a 2014 Kia Soul. "We've got to get to the bottom of what's causing these fires," Nelson said in a statement Wednesday. "Car owners need to know if their vehicles are safe." The letter to the automakers, also signed by Sen. John Thune, who chairs the committee, said the hearing will also "examine efforts to mitigate vehicle fires and promptly identify and respond to defects that may pose a fire risk" and invites the chief executives of Hyundai and Kia's U.S. units to testify or their designee. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. In March 2017, Hyundai expanded its original U.S.