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Hyundai sees tough year ahead, plans to introduce 13 new models

SEOUL — South Korea's Hyundai Motor Group predicted another year of tepid car sales growth on the back of a slow 2018, saying trade protectionism adds uncertainty and major markets such as the United States and China remained sluggish. In his first New Year address to employees, group heir apparent Euisun Chung said Hyundai Motor Co and Kia Motors would complete a restructuring of South Korea's second-biggest conglomerate, which is widely expected to pave the way for him to formally succeed his octogenarian father as head of the group. The complicated succession plans come as Hyundai contends with a bunch of problems that have cost it market share in China and the United States and stalled its rise up the ranks of global automakers. It missed a boom in sports utility vehicles (SUVs), faces potential U.S. tariffs and a U.S. investigation over how it handled a vehicle recall, and lost ground in technological advances such as self-driving cars. "Business uncertainties are heightening as the global economy continues to falter. Walls of protectionism are being constructed around the world," Chung, 48, told hundreds of employees at the group's headquarters in Seoul. "Internally, we face challenging tasks such as stabilizing business in major markets like the U.S. and China, while simultaneously enhancing our responsiveness to drive future growth." Hyundai and Kia — together the world's fifth-biggest automaker — set what they called a "conservative target" of 7.6 million vehicle sales in 2019, a 3 percent increase from the 7.399 million vehicles sold last year. The 2018 sales fell short of the group's target of 7.55 million vehicles, marking its fourth consecutive annual sales goal miss. The duo sold 7.25 million vehicles in 2017. Morgan Stanley expects global auto production to fall 1 percent in 2019, the first drop in nine years. In that environment, the group said it would launch 13 new or face-lifted models in 2019, including a premium Genesis SUV, the big Hyundai Palisade SUV and the Sonata sedan. "Hyundai will be launching new models, but competitors will be also doing so, making it difficult for Hyundai to increase shares in the sluggish markets in China, U.S. and Europe," said Sean Kim, an analyst at Dongbu Securities. Hyundai shares ended down 3.8 percent and Kia slumped 2.7 percent, while the wider market <.KS11> was down 1.5 percent.

Hyundai Motor reassigns 17 top execs to make way for fresh ideas

SEOUL — South Korean conglomerate Hyundai Motor Group shook up its executive ranks on Tuesday and appointed its first foreign head of research and development, raising expectations of a smooth transition of power at the family-run business empire. The reshuffle, first reported by Reuters on Tuesday and confirmed by Hyundai on Wednesday, is part of preparations for generational change in the executive ranks at South Korea's second-largest family-owned business empire. Group President Albert Biermann, a German former BMW executive, was named head of research and development, replacing longtime executives Yang Woong-chul and Kwon Moon-sik. The move was seen as a significant step to bring in fresh ideas at the Korean-dominated group. In all, 17 top executives were reassigned across the group including at Hyundai Motor Co and Kia Motors Corp — which together form the fifth-biggest automaker in the world. The move follows the promotion of Euisun Chung in September to Hyundai Motor's executive vice chairman, moving him closer to succeeding his 80-year-old father, Mong-Koo Chung, as group chairman. It comes as Hyundai Motor Co battles to reverse falling profits as a result of U.S. recall costs and weak sales in the U.S. and Chinese markets. Hyundai Motor Co shares jumped as much as 9 percent to their highest level since Oct. 10, while shares in affiliates like Hyundai Mobis, Hyundai Wia and Hyundai Glovis also rallied. While the announcement by Hyundai on Tuesday of a major investment in fuel cell production also lifted sentiment, analysts said most of the share price rise could be attributed to the leadership changes. In particular, it signaled that the junior Chung was making progress with his plans to restructure the sprawling group after a previous plan was scrapped due to opposition from U.S. hedge fund Elliott. "The reshuffle signals that the junior Chung is tightening his grip on the conglomerate, a move which raises investors' hopes for change," said Kim Joon-sung, an analyst at Meritz Securities. Ascendance of outsiders In a sign that Chairman Chung's grip may be weakening, one of his closest lieutenants, Hyundai Motor Co Vice Chairman Kim Yong-hwan, was reassigned away from the core automaker and named vice chairman of steelmaking affiliate Hyundai Steel.

Hyundai Motor's two R&D vice chairmen reportedly resigning

SEOUL — Hyundai Motor Group's two vice chairmen in charge of research and development have offered to resign, three people familiar with the matter told Reuters on Tuesday. R&D president Albert Biermann is likely to be named the new head of the division, two of the sources added, declining to be named as they are not authorized to speak to media. Hyundai is battling a plunge in sales, profits and its share price, and the reshuffle would be the latest since Hyundai promoted Euisun Chung in September to executive vice chairman, moving him closer to succeeding his octogenarian father as head of South Korea's second-largest group. The group has appointed new product strategy, design chiefs and replaced senior executives at its overseas operations, including China and the United States. The latest shake-up at the group, which includes Hyundai Motor and its affiliate Kia Motors, could be announced on Wednesday, one of the sources said. It is "part of a generational change Chung is pushing for," another person said. A Hyundai Motor spokesman declined to comment. The group's vice chairmen, Yang Woong-chul and Kwon Moon-sik, both aged 64, told senior officials on Tuesday that they would leave the company, the sources said, declining to say why they had offered to resign. Biermann, a former BMW performance vehicle development official, adds to a flurry of foreign executives that Chung, 48, has brought in to the company typically dominated by Koreans. In October, Thomas Schemera, also a former BMW executive, was appointed to lead product planning for autonomous cars, connected and electrified vehicles, while Luc Donckerwolke, a former Bentley design chief, was appointed to oversee design at Hyundai and Kia. Hyundai Motor's third-quarter net profit plunged by two-thirds, hit by U.S. recall costs that added to its problems. The automaker was already suffering with weak sales in its key U.S. and Chinese markets. Hyundai's share price is down more than 10 percent this quarter, despite a recent rebound driven by a share buyback plan announced on Nov. 30. Reporting by Hyunjoo JinRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Hyundai pickup truck coming ASAP, says design chief

Hyundai first showed its HCD-15 Santa Cruz pickup truck concept at the 2015 Detroit Auto Show. In the years following the concept's debut, reports have kept surfacing that yes, Hyundai wants to build it and yes, it's only a matter of time when the Santa Cruz will spawn a production version. In August 2017, Reuters reported that a pickup had been greenlit as Hyundai needed to correct a sales slide; a year later, we envisioned a 2020 unveiling date for the finalized truck. Now, Autocar says Hyundai is launching the truck "as soon as possible." Autocar cites a discussion with Hyundai's new Chief Design Officer Luc Donckerwolke, who formerly led Genesis design and has also worked as the head of design at Bentley, Lamborghini and Audi. Donckerwolke said the design process of the new truck has now been completed, and Hyundai is now in the midst of engineering the design into production. Donckerwolke told Autocar that the truck will arrive "as soon as possible. From my side it is finished, the process to put it into production is now underway." Leftlane News estimates the truck could be here by 2021 at the earliest. For Donckerwolke, the truck is very much a development of the 2015 concept; as Motor Trend earlier quoted Hyundai Motor America's Brian Smith, the original two-door concept has evolved into a five-seater four-door truck. The understanding is that the Santa Cruz's production version will be underpinned by the same platform and mechanicals as the expected and redesigned 2020 Tucson. The pickup is also to be followed by a corresponding Kia-badged version, Donckerwolke said. The Hyundai and Kia trucks are likely to battle for sales with the Ridgeline, Ranger, Tacoma and Gladiator — and the Tanoak, if Volkswagen comes out with a production version of its recent concept truck. Related Video:

Gladiators, Pilots, and Palisades, plus a couple boring crossovers | Autoblog Podcast #562

On this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski. The duo discuss the leaked Jeep Gladiator, Ford's Baby Bronco, the Aston Martin DBX, and then touch on other reborn names like the Honda Pilot. They also discuss how boring crossovers have taken over as the family car of choice in the United States and debate the merits of turbocharged V6 engines versus the classic American V8. Finally, we spend your money.Autoblog Podcast #562 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Jeep Gladiator leaked Hyundai Palisade and Honda Pilot teased Aston Martin DBX Ford Baby Bronco leaked Boring crossovers Ford F-150 2.7-liter EcoBoost Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: Podcasts LA Auto Show Aston Martin Ford GMC Honda Hyundai Jeep Truck Crossover SUV honda pilot jeep gladiator aston martin dbx hyundai palisade ford baby bronco

How Hyundai lost momentum, and will 'take a few years' to recover

SEOUL/DETROIT/CHONGQING, China — At a near-empty Hyundai Motor showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world's largest auto market. Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan dealership was selling about 400 vehicles a month, a store manager there said. "The sales are simply poor," Li told Reuters. "Look at the Nissan store next door, they have tens of customers while we just have two." An hour's drive away is Hyundai's massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year. But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public. Hyundai, the world's fifth largest automaker, declined to comment on the Chongqing plant's production or the showroom's sales but said it is "closely cooperating" with local partner BAIC to turn around the China business. BAIC did not respond to requests for comment. Hyundai's woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market. In 2009, Hyundai and partner Kia's combined sales ranked third in China after General Motors and Volkswagen. The South Korean duo now ranks ninth, and its market share in China was 4 percent last year, from more than10 percent at the beginning of this decade. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely and BYD. Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai's positioning as an affordable foreign brand, they said. In the United States, the world's second-biggest auto market, Hyundai's market share fell to 4 percent last year, near a decade low. Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S.

Hyundai, Kia to put solar panels on vehicle roofs

Hyundai Motor Group said Wednesday that future Hyundai and Kia models will be equipped with solar panels capable of generating electricity as a way to increase fuel-efficiency and range and lower CO2 emissions. Hyundai says the solar panels will feature in the rooftops or hoods of select vehicles "after 2019" and will supplement traditional internal combustion, hybrid and battery-electric vehicles. The parent group said it's developing three different types of solar roof charging systems comprised of a solar panel, controller and battery. The first generation will be a silicon solar panel system mounted to the rooftops of hybrid models and capable of charging 30 to 60 percent of the battery per day, depending on weather conditions and other factors, starting as early as 2020. The second generation involves a semi-transparent solar roof system applied to a panoramic sunroof and capable of charging an electric-vehicle battery or a battery mounted on a gasoline engine. Hyundai says the latter configuration will help it increase vehicle exports, since solar-equipped ICE vehicles will be able to adhere to regulations limiting CO2 emissions. A third-generation system is being tested right now. It will add solar production capability in the hood and roof of EVs – but the companies don't provide more detail than that at this moment. "In the future, various types of electricity-generating technologies, including the solar charging system, will be connected to vehicles," said Jeong-Gil Park, executive vice president of engineering design at Hyundai Motor Group. "This will enable them to develop from a passive device that consumes energy to a solution that actively generates energy. The paradigm of the vehicle owner will shift from that of a consumer to an energy prosumer." To date, solar vehicle charging technology has mostly been for light-duty tasks, like cooling off the interior or trickle-charging a conventional battery, such as the system offered in the previous Nissan Leaf. Systems that do more than this have typically come with a very steep pricetag for modest capabilities. Panasonic has developed a 180-watt solar roof available for the Japanese version of the Toyota Prius Prime plug-in hybrid that is capable of adding up to 3.7 miles of range per day – at an unspecified (as of this writing) but undoubtedly high cost. Elon Musk, unsurprisingly, has also discussed making a solar roof optional for the Tesla Model 3.

Hyundai-Kia names former Audi, Lamborghini, Bentley designer as design chief

Luc Donckerwolke, former designer for both Bentley, Audi and Lamborghini, is succeeding Peter Schreyer as the lead designer for both Hyundai and Kia. This follows a significant shuffle within the Korean automaker's upper management. Schreyer — himself a former Volkswagen Group designer — will head design management. Chung Eui-sun, the son of company chairman and CEO Chung Mong-koo, was promoted as executive vice chairman. The head of Hyundai Motor America, Kyung Soo-lee, is leaving his position after just more than a year on the job. That's a lot of moving pieces at the top of Korea's largest automaker. Donckerwolke has been with Hyundai-Kia since 2015 when he left the Volkswagen Group to take over Genesis design. Some of his most famous designs include the Lamborghini Murcielago, Lamborghini Gallardo, Bentley Flying Spur and Bentley EXP 10 Speed 6. Schreyer led the design of the original Audi TT and has helped push forward Hyundai and Kia. The pair's influence can be seen and felt throughout the company's lineup. According to Reuters, part of the shakeup within the leadership follows a company announcement that third-quarter profits have fallen, sending shares to their lowest level in nine years. Related Video:

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.

Center for Auto Safety wants Hyundai and Kia to recall 2.9M vehicles

DETROIT — A nonprofit auto safety group is demanding that Hyundai and Kia recall 2.9 million cars and SUVs in the U.S. due to consumer complaints that they can catch fire. The Center For Auto Safety said Friday that there have been more than 220 complaints to the U.S. government since 2010 about fires and another 200 complaints about melted wires as well as smoke and burning odors. The complaints involve the 2011 through 2014 Kia Sorento and Optima and the Hyundai Sonata and Santa Fe. Also included is the 2010 through 2015 Kia Soul. The fires are being investigated by the National Highway Traffic Safety Administration as part of a 2017 probe into Hyundai and Kia engine failures. "The volume of fires here make it appear that Hyundai and Kia are content to sit back and allow consumers and insurers to bear the brunt of poorly designed, manufactured and repaired vehicles," Jason Levine, the center's executive director, said. The fire reports have come in from across the country, including a death in Ohio in April 2017, he said. Hyundai says it monitors safety concerns and acts quickly to recall defective vehicles. "We have a robust system in place for monitoring and investigating reported vehicle fires that includes investigation and reporting to NHTSA as required. Vehicle fires can result from a variety of reasons," the company statement said. Kia said it is using company and third-party fire investigators to determine what caused the fires so it can address them. "A vehicle fire may be the result of any number of complex factors, such as a manufacturing issue, inadequate maintenance, the installation of aftermarket parts, an improper repair, arson, or some other non-vehicle source, and must be carefully evaluated by a qualified and trained investigator or technician," the company said in a statement. The Center for Auto Safety filed a petition asking NHTSA to investigate the fires in June. The agency said Friday that it is still evaluating the petition and it has sent information requests to Hyundai, Kia and other automakers about the issue. Levine says the center does not know what's causing the fires. In May 2017 the government began investigating whether the automakers moved quickly enough to recall over 1.6 million vehicles because of engines stalling. NHTSA is looking into three recalls by the related Korean brands, and it's also investigating whether the automakers followed safety reporting requirements.