2014 Hyundai Elantra Se on 2040-cars

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We want a Hyundai with this N prototype's crackly engine

Hyundai produces quality, mainstream machinery, but with the exception of the Genesis Coupe and Veloster Turbo, it hasn't brought many enthusiast-oriented vehicles to the table. Hyundai plans to change that with their in-house performance brand, N. The group will develop race cars and high-output versions of production cars, and if this prototype video is anything to go by, Hyundai N products will sound fantastic. The video shows what looks to be a Hyundai i30 hatchback, which we get in the States as the Elantra GT. And it sounds wonderful with a cackling, popping exhaust reminiscent of a rally car. Hyundai has not confirmed whether we will get this car or engine. We wouldn't be surprised if we didn't get the car, since a new generation Elantra hit dealers not long ago. As far as the engine, we certainly hope we will get it eventually, whether it's in an Elantra or something else – Veloster N anyone? Either way, we will get a slightly hopped-up Elantra Sport soon. Hyundai showed the Korean-market Avante Sport recently, which Hyundai confirmed would become the US-market Elantra Sport, more or less. It will feature the same 201 horsepower engine of the Veloster Turbo, and if it sounds even half as impressive as the i30 N prototype, it should tide us over while we wait for our own N-badged model. Related Video:

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.

S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.