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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.

Hyundai keeps building mid-engine Velosters for some reason

Hyundai returned to the Busan Motor Show in South Korea this past weekend with the RM16 concept, a mid-engined prototype that takes the Veloster into even more radical territory. If the idea sounds familiar to you, that's because this is the concept's third iteration. Sadly, it doesn't seem any closer to reaching production. The project was first presented at the same show two years ago as the Veloster RM, packing a 2.0-liter turbo four behind the two-seat cockpit. The concept resurfaced last year in Seoul as the RM15 with even more extreme bodywork. And now it's back again. The engine stays right where it was, helping give the test bed 43/57 front-rear weight distribution. This time, however, the conventional turbocharger is replaced by an electric compressor, similar to the ones you might find in the Audi SQ7 TDI or Bugatti Chiron, and there's an electronic differential to channel its 296 horsepower to the road. The RM16 uses a six-speed manual transmission. The RM16 also features a new front end to put a fresh face on the carbon-fiber bodywork, an active rear wing, and an electronically variable exhaust. All of which is well and fine, but while the prototype is supposed to inform the forthcoming N-badged performance models, we wouldn't hold our collective breath waiting for a mid-engined hot hatch like this in Hyundai showrooms. Related Video: Hyundai Motor Demonstrates its Passion for High-Performance at the 2016 Busan International Motor Show • Hyundai Motor builds anticipation of high-performance 'N' models with RM16 concept • RM16 hints at future Hyundai 'N' model characteristics June 2, 2016 - Hyundai Motor today reinforced its high-performance aspirations with the world premiere of RM16, its latest 'N' model concept, at the 2016 Busan International Motor Show in South Korea. Hyundai Motor's performance-focused exhibits, which included the Hyundai N 2025 Vision Gran Turismo, hint at future N model characteristics. Hyundai Motor's high performance sub-brand 'N' was launched in September 2015, demonstrating the company's commitment to manufacture responsive, intuitive performance vehicles that bring 'Fun to Drive' to a broad range of customers.

2014 Hyundai Azera gives you more for less

The Azera is sort of the forgotten Hyundai. Despite just having rolled out the new version a couple of years ago, the Korean automaker hasn't been able to move them very quickly. Where the smaller Sonata and Elantra sell in the tens of thousands each month, the fullsize Azera barely reaches that in a year. In fact it's Hyundai's second slowest-selling model, behind the flagship Equus. But Hyundai's not resigning itself to letting Azeras sit around on dealer lots. Thus, the company is actually reducing the car's price while increasing the array of standard equipment.
Now starting at $31,000, the base 2014 Azera now comes with a six-inch color LCD, backup camera, blind-spot mirror and three years of Assurance Connected Care services. Spring for the $34,750 Azera Limited and you get an eight-inch display, electroluminescent gauges, LCD trip computer and power folding mirrors.
Despite the increased level of specification, the Azera is now $1,250 cheaper than the previous-year model, while still offering the highest specific output and most front-seat room in its class. Scope out the details in the press release below and the fresh batch of images in the gallery above for a closer look.