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Trump encouraged by talk of 'a level playing field' on trade with South Korea

South Korea is a longstanding American ally, but President Donald Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact. "We will do more to remove barriers to reciprocal trade and market access," Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos. Trump said he was encouraged by South Korea's President Moon Jae-in's assurances that he would seek a level playing field for American workers and businesses, particularly automakers. A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year. Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly. "Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies," she said. The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011. At the start of Friday's talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained. "I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side," he said. Ross said later on Friday that some progress had been made in the talks. The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues. (By David Brunnstrom and Lisa Lambert. Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay) Related Video: Image Credit: Kim Hong-Ji / Reuters Government/Legal Genesis Hyundai Kia trade

Hyundai Palisade SUV supersizes it at L.A. Auto Show

Hyundai is adding to the SUV fracas at the L.A. Auto Show with the debut of its new 2020 Palisade SUV today. We got a sneak peek a couple of weeks ago here in Detroit, but now we can give you our full impressions as it's revealed in California. Let's start with size, because the Palisade is larger than any SUV currently offered in Hyundai's lineup, including the Santa Fe XL. It's considered a midsize SUV and will compete with vehicles like the Ford Explorer, Honda Pilot, Subaru Ascent and others. Hyundai is aiming to attract buyers who might have passed on the Santa Fe XL due to its smaller size compared to other mid-sizers. The Palisade can be had in a true eight-seat configuration, however, a captain's seat second-row option can make it a seven-seater. To move all the extra heft around, Hyundai has dropped an updated 3.8-liter V6 engine into it, which now runs on the Atkinson cycle. It's a curious choice for a big vehicle meant for utility and towing, but the engine makes 291 horsepower and 262 pound-feet of torque. No upgraded engine options are available, and it will be mated to Hyundai's eight-speed automatic transmission. Front-wheel drive will be standard, but all-wheel drive is optional. The Palisade uses Hyundai's HTRAC all-wheel drive system with a few different selectable modes, which changes the torque distribution depending on the conditions (up to 50/50 front to rear). It rides on a modified and enlarged Santa Fe platform that we're told will have some similarities with the upcoming Kia Telluride. Looking at the large and proud new Hyundai, it has a few bits here and there to make it stand out from the crowded midsize SUV horde. Hyundai is definitely latching on to the headlights-in-bumper styling, which ends up making the daytime running lights a bit squintier. It doesn't look bad per se, but it's definitely different. It hardly even bears mentioning, but the large grille on the Palisade makes for but another big car with a big face. Around back is where Hyundai went a little off the beaten path. The metal surround taillight design is worthy of a double take. All around, the Palisade just feels a good bit larger than the Santa Fe, but carries its own look. The interior is where things really start to come together for the Palisade. It's safe to say that Hyundai just keeps getting better and better at putting together a high-quality and luxurious-looking place to live in. We love the sweeping center stack look and array of metal buttons.

Hyundai-Kia forecasts slowest sales growth in 8 years

Even with the arrival of the new Hyundai Genesis Sedan (above) and the expected introduction of at least two other new vehicles in 2014, Hyundai-Kia is estimating its sales will only increase by about 4.1 percent this year. Bloomberg has found that figure, which works out to a total of 7.86 million vehicles worldwide, to be lower than average analyst estimates of eight million vehicles. If the automaker is correct, that figure will represent the most sluggish growth for the Korean brands since 2006.
Based on an exchange rate of 1,050 won to the dollar - right now it's trading at anywhere from 1,050 to 1,052 depending on where you look - Hyundai is predicting a 3.8-percent uptick for sales of 4.9 million units, while Kia is expecting a 4.7-percent uptick for sales of 2.96 million units. That exchange rate is predicted to be part of what will hamper sales this year, with a stronger South Korean won making Japanese cars more price-competitive when cross-shopped. It's unclear how Hyundai derived its exchange rate, but 1,050 won to the dollar almost matches the 52-week high for all of 2013.
The company chairman mentioned a "low growth era" in the world economy, and weaker US sales are rumored to at least part of the reason John Krafcik recently vacated the post of Hyundai Motor America CEO, a post that has been filled by executive vice president of sales, David Zuchowski. That unexpected news capped a year in which two top execs resigned over quality issues and recalls and Hyundai agreed to settle a consolidated lawsuit over inflated fuel economy ratings for $395 million.