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Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.

Hyundai poaches another BMW M exec to run high-performance N division

Hyundai has poached a third executive for its N high-performance division from the ranks of BMW's M department. Thomas Schemera, a 31-year BMW veteran, will head the High Performance Vehicle & Motorsport Division that Hyundai just inaugurated on March 1. Schemera's job will be to "oversee strategy, product planning, sales and marketing for the new division." He will make the most of the transfer from Hyundai Motorsport to the road cars developed by the N division, and work to boost the brand. Schemera has the same boss at N that he did at M: Albert Biermann, the first M exec Hyundai snagged in 2015. After Biermann came Fayez Abdul Rahman, installed at the Genesis brand, who had previously developed platforms for the BMW 7 Series, X models, and M vehicles. Rahman spent the last phase of his BMW tenure in charge of M Equipment, M Sport Packages, and BMW Individual. Although he's undoubtedly busy with his VP job in charge of Genesis architecture development, we hear Hyundai plans to develop some kind of "N Sport" appearance and performance items for release later this year — a middle step in the same vein as M Sport and Audi S-line — and Rahman could certainly help. Schemera brings proven chops when it comes to moving standard and specialty hi-po offerings; as VP in charge of sales and dealer development in China, Schemera oversaw a four-fold increase in BMW and M sales in the four years from 2005-2008. He ended his run as head of BMW M and BMW Individual in the Americas. Although there's but one N product for sale now, the slate is full, and Hyundai looks ready to spend the time and money to seize every opportunity. BMW on the other hand, might soon turn into that tormented significant other regarding its M personnel: "So ... why did you let Hyundai like your Instagram post? Do you like Hyundai? Do you follow them back?!" Related Video: Featured Gallery 2019 Hyundai Veloster N: Detroit 2018 View 16 Photos Image Credit: Drew Phillips / Autoblog Auto News BMW Hyundai Performance bmw m albert biermann

Hyundai Kona crossover factory grinds to a halt ahead of U.S. launch

SEOUL — Hyundai workers in South Korea have stopped building the Kona sport utility vehicle this week ahead of its U.S. launch at the L.A. Auto Show — a protest against what the automaker's labor union says are plans to trim assembly-line headcount. The union, which is also in annual talks with management over pay, warned that a wider strike was possible. Hyundai has been in discussions with its labor union since October on production plans for the Kona, a key model that it hopes will reverse a U.S. sales slump. The union contends that the automaker wants to introduce more automation and outsource more assembly of key sections to part makers — plans that it is vehemently opposed to. Hyundai management argues that the union is making "irrelevant demands" such as requests for extra windows in the factory as part of the production discussions. The automaker's decision to start production of the Kona on a new assembly line was made without consultation with the union and was unacceptable, union leader Ha Boo-young said in a statement, adding that a wider strike was possible "should there be another provocation by management." The move comes ahead of a planned unveiling of the U.S.-production version of the Kona at the Los Angeles Auto Show on Wednesday, with U.S. sales slated to begin early next year. The Kona is currently sold in South Korea, where it has proven to be a popular model, as well as Europe. The two days loss of production so far this week is equivalent to 1,230 vehicles, Hyundai said. Hyundai Motor President Yoon Kap-han said it was regrettable that the labor union was disrupting production for a high-demand model at a time when most of its plants were "suffering from the worst sales slowdown." Hyundai Motor's global sales fell 6 percent from January to September compared with the same period a year earlier, as a limited number of SUV models hurt sales in the U.S. market and a diplomatic row between Seoul and Beijing hurt sales in China. Reporting by Hyunjoo JinRelated Video: Featured Gallery 2018 Hyundai Kona: LA 2017 View 13 Photos Related Gallery 2018 Hyundai Kona View 20 Photos Image Credit: Live photos copyright 2017 Drew Phillips / Autoblog.com Plants/Manufacturing LA Auto Show Hyundai Crossover SUV 2017 LA Auto Show autoworkers