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Keep it simple, stupid | 2017 Hyundai Ioniq Hybrid and Plug-In First Drive

The Ioniq is Hyundai's "golden medal project," conceived from the outset as a car to beat the Toyota Prius and be the most efficient on the market. Ki-Sang Lee, Hyundai's senior vice president in charge of eco R&D, promised that if they could accomplish that feat, he'd give every single engineer on the project a gold medal. The result of their work is an attractive trio – hybrid, plug-in hybrid, and electric – built on the company's first dedicated green vehicle platform. And Lee gave out more than 500 gold medals to his engineers. With a growing number of drivers – bolstered by Millenials replacing the buying power of baby boomers – who value efficiency and consider the environmental impact of their purchases, hybrids and electric cars should be a popular choice, right? While cheap gas has not helped to encourage people to make the switch to greener vehicles in the last couple years, the added cost and complexity of electrified cars have also been barriers to wider adoption. Hyundai's approach appears solid. The Ioniq hybrids are straightforward, affordable, and something drivers would be proud to own without appearing smug. So Hyundai has built the car people claim to want, but will the drivers show up at dealerships? The Ioniq is attractive for a number of reasons, not the least of which is pricing. The Ioniq Hybrid starts at $23,035, undercutting the Toyota Prius by $2,535 (with its base MSRP of $25,570). It's also more efficient, with EPA mpg figures of 57 city/59 highway/58 combined. The most efficient Prius (the Two Eco trim level) falls slightly short at 58 city/53 highway/56 combined. While the Ioniq Plug-In Hybrid doesn't have price or fuel economy figures yet – it doesn't go on sale until the fourth quarter of 2017 – we do know its 8.9-kW battery pack offers over 27 miles of all-electric range and can be topped off in 2.5 hours on a Level 2 charger. The Ioniq's green cred doesn't stop at its efficient powertrain. Sitting inside the cabin, you wouldn't realize that the soft plastics contain 25 percent sugar cane, or that the headliner and carpet contain about 20 percent of the same renewable plant material. There's no way to tell by look or feel that door trim uses recycled plastics mixed with wood powder and volcanic stone, making it 20 percent lighter. Interior metallic paints use soybean oil to lessen their environmental impact. Even better, it all agrees with the senses.

Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

Renault, Nissan and Hyundai face shutdowns in India over workers' COVID fears

CHENNAI, India — Automakers Renault, its alliance partner Nissan and Hyundai face temporary factory closures in India due to growing unrest among workers concerned about rising COVID-19 infections. Workers at Renault-Nissan's car plant in the southern state of Tamil Nadu will go on strike on Wednesday because their COVID-related safety demands have not been met, a union representing the workers told the company in a letter on Monday. Hyundai said it would suspend operations at its plant, also in Tamil Nadu, for five days starting Tuesday, after several workers staged a brief, sit-in protest on Monday amid rising cases in the state. "The management agreed to close the plant after workers expressed concerns over safety after two employees succumbed to COVID," E. Muthukumar, president of the Hyundai Motor India Employees Union, told Reuters. The unrest highlights the challenges companies face in India amid a huge wave of COVID-19 infections, an overwhelmed health system and a shortage of vaccines which is making employees more fearful. Tamil Nadu is one of the worst hit states with more than 30,000 cases a day last week. The state, an auto hub known as India's Detroit, has imposed a lockdown until May 31 but allowed some factories, including auto plants, to continue operating. The strike threat at the Renault-Nissan plant came ahead of a court hearing on Monday over allegations from workers that social distancing norms were being flouted and factory health policies did not sufficiently address the risk to lives. Renault-Nissan has said it is following COVID-19 safety protocols. At the hearing, a lawyer for the workers argued that while the company had reduced the number of shifts, production numbers had not been cut and the headcount remained the same leading to crowding on the factory floor. The company told the court it had reduced the workforce to around 5,000 from 8,000. It also said it had vaccinated employees over 45 and was willing to inoculate those under 45 if vaccines were made available. The two-judge bench presiding over the case said that while the health of workers is paramount, if industries go down there will be no place for them to work. They also said the company must not take advantage of the exemption granted by the state and should reduce production to meet only necessary export orders. "The production should have fallen ... You also have to assuage the feeling of the workers," said the court, which will next hear the case on May 31.