2021 Hyundai Palisade Limited on 2040-cars

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Hyundai sticks to EV rollout plans, sees solid growth this year

SEOUL — Hyundai Motor said on Thursday it would not delay plans to roll out new electric vehicles and was upbeat about prospects for continued growth this year — a contrast to recent steps by rivals to cut back on EV output. Electric vehicle sales are growing strongly but not as much as carmakers had forecast, with demand hit by high interest rates. "We do not plan to dramatically reduce EV production or our line-up due to likely near-term hurdles as we believe EV sales will grow longer term," Seo Gang Hyun, an executive vice president at the South Korean automaker, told an earnings briefing for analysts. The Hyundai Motor Group, which encompasses the Hyundai, Kia and Genesis brands, said in April it plans to launch 31 EVs by 2030. This includes the launch of the Ioniq 7 SUV next year. Seo said Hyundai's EV sales next year could be slightly lower than previously expected, but the automaker had the production flexibility to boost output of gasoline engine cars if demand shifted that way and he did not expect a significant impact on overall sales. When asked about the impact on Hyundai Motor of the United Auto Workers (UAW) union reaching a tentative labour deal with Ford, Seo said the company expects the deal will have an impact on wage increases at its U.S. factories, but such costs could be covered as the automaker has been putting effort into reducing costs, such as in logistics. Hyundai Motor, which is not a member of the UAW, operates an assembly plant in Alabama and is building a factory to produce EVs in Georgia. For the third quarter, Hyundai booked a net profit of 3.2 trillion won ($2.4 billion), more than double its year-earlier result and beating an LSEG SmartEstimate of 2.9 trillion won, with the automaker helped by a favourable exchange rate. Sales also increased, climbing 8.7% to 41 trillion won on solid demand for high-margin gasoline SUVs. Sales of EVs and hybrids also grew, up by a third to 169,000 units. This month has seen a flurry of downbeat EV announcements. Citing flattening demand for EVs, GM said it would delay production by a year of Chevrolet Silverado and GMC Sierra electric pickup trucks at a plant in Michigan. Ford is temporarily cutting one of three shifts at the plant that builds its electric F-150 Lightning pickup truck. Tesla is also slowing plans for a Mexico factory, while GM and Honda announced on Wednesday that they were ending a $5 billion plan to develop lower-cost EVs together.

Hyundai will invest $35 billion in autonomy and emerging technologies

SEOUL — Hyundai Motor Group said it plans to invest $35 billion (41 trillion won) in mobility and other auto technologies by 2025, part of which will be directed to an ambitious effort to become more competitive in self-driving cars that has also received government backing. The plan, which Hyundai said encompasses autonomous, connected and electric cars as well as technology for ride-sharing, comes after the automaker and two of its affiliates announced an investment of $1.6 billion in a venture with U.S. self-driving tech firm Aptiv. South Korea's government is also onboard, unveiling more funding for autonomous vehicle technology with President Moon Jae-in declaring on Tuesday that he expected self-driving cars to account for half of new cars on the country's roads by 2030. "The self-driving market is a golden market to revitalize the economy and create new jobs," Moon said in a speech at Hyundai Motor's research center near Seoul. The government intends to spend 1.7 trillion won between 2021 and 2027 on self-driving technology. It expects Hyundai to launch level 4, or fully autonomous, cars for fleet customers in 2024 and for the general public by 2027, an industry ministry official told Reuters. But some experts question whether targets set by the government and the automotive group, which also includes Kia Motors, are realistic given the technological and cost challenges and the lack of home-grown technology. In a 45-page report on future automotive technology, the government acknowledged South Korea lags in some key areas necessary for self-driving cars such as artificial intelligence, sensors and logic chips. "Hyundai has to buy technology from someone else because it lacks software technology. Even though it has a lot of cash, this could become a financial burden if its earnings deteriorate," Esther Yim, an analyst at Samsung Securities, said. Other analysts noted that the prospects for self-driving cars are quite murky. General Motors' self-driving unit, Cruise, said in July it was delaying the commercial deployment of cars past its target of 2019 as tech firms and automakers acknowledge it will take more time and money than they had expected to make autonomous vehicles safe for unrestricted use on public roads. South Korea's government said it would prepare a regulatory and legal framework for autonomous cars and the safety questions they pose by 2024.

Hyundai Kona joins compact-crossover fray

This week in Seoul, South Korea, Hyundai finally pulled back the covers on the all-new Kona, the automaker's first compact crossover. The Kona enters one of the hottest segments on the market and will compete straight against Honda HR-V, Toyota C-HR, and Fiat 500X. The stylish Kona slots below the larger Santa Fe and Tucson, filling out the Hyundai's crossover offerings. The new model goes on sale in Korea later this month, hitting showrooms in Europe and the US later this year. Like others in this segment, the Kona sells itself on style as well as substance. The design is more aggressive than Hyundai's other crossover offerings, though the automaker says it hints at a new direction for other products. After a few years of conservative design throughout its lineup, Hyundai has returned to the bold direction that kicked off with the sleek 2010 Sonata. The Kona's large, shield-like grille is similar to that on the new Elantra GT and refreshed Sonata. There's a wide air scoop just above the new grille. There's a lot of outside influence on the design. The rest of the body has a taut, masculine look. Big fenders and sharp creases carry on the rugged look. Hyundai is calling the black cladding "armor," though we're not sure exactly how much it protects. It's going to be a divisive design choice for sure. Like the Toyota C-HR, the Kona can be had with a contrasting roof color. The Kona makes use of LED lighting both front and rear, though the low placed headlights remind us of the controversial ones on the Jeep Cherokee. The taillights are wide, slim units that aren't like anything else in Hyundai's lineup. Like so many compact crossovers, it looks more like a high-riding hatchback than a shrunken SUV. It's a handsome design though that's more tough than cute. The interior has been designed with efficiency first. Hyundai boasts that the Kona has the best-in-class interior space. The simple layout is far more conservative than the exterior, but it appears well designed and well arranged. Like the Elantra GT, the infotainment screen sits above the dash like a tablet. It's a common design feature, though not always a popular one. The Kona can be had with a 5, 7, or 8-inch infotainment display, though availability depends on the market. Higher-spec models come with Apple CarPlay, Android Auto, HD and satellite radio, a rearview camera, and in the US, 4G telematics. The Kona will have wireless smartphone charging.