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Weekly Recap: Kia leads Korea's quality surge

The rapid rise of Korea's auto brands in the US market has been apparent on the sales charts for several years, and now it's showing up in an area that's just as crucial: quality. Kia and Hyundai earned the highest rankings among mainstream brands in the J. D. Power Initial Quality Study released on Wednesday. The study tracks problems owners report during the first 90 days they own their car. Kia reported 86 problems per 100 vehicles, or fewer than one problem per car sold, to take second in the rankings behind luxury sportscar-maker Porsche (80). Kia's score improved by nearly 20 percent compared with the 2014 study. "The big industry story is Kia," Renee Stephens, vice president of U.S. automotive quality at J.D. Power, said in a video statement, noting Kia's infotainment systems were the key reason for its improved performance. Hyundai was fourth for the second straight year, though its score actually worsened by one, to 95. Even with Hyundai's slight dip, Korean quality increased 11 percent, according to the study, which far outpaced American and European companies' three-percent increases. Japanese brands improved one percent. Hyundai Motor Co. (parent company of the Hyundai and Kia brands) captured four individual vehicle awards, which tied for the most with General Motors, Nissan, and Volkswagen. "The Korean brands have really taken off," Stephens said. "There's movement in the industry, and the patterns are shifting." Another luxury brand, Jaguar (93 problems), slotted in between Hyundai and Kia in third place. Infiniti was fifth, followed by BMW. Chevrolet was the highest domestic brand, taking seventh place, followed by Lincoln, Lexus, and Toyota, which were all well above the industry average of 112 problems per 100 vehicles. OTHER NEWS & NOTES Kirk Kerkorian dead at 98 Kirk Kerkorian, a billionaire activist investor who wielded enormous influence on the Detroit Three car companies in the 1990s and 2000s, died Monday. He was 98 years old. Kerkorian made headlines in 1995 for trying to take over Chrysler – with the help of former chairman Lee Iacocca – before being fended off by Chrysler management. His takeover attempt ultimately pushed Chrysler to be sold to German giant Daimler. He tried to buy Chrysler again in 2007 when Daimler put Chrysler on the market, but Kerkorian fell short and the automaker was sold to private equity firm Cerberus.

Hyundai could eventually get a bespoke N performance model

Hyundai's N Performance division seems to have a few tricks up its proverbial sleeve, with a performance version of the Tucson crossover reportedly under development and the sub-brand toying with a 247-horsepower version of the Kona. Now comes word that N could eventually develop its own standalone performance model. N Performance division boss Albert Biermann tells Top Gear he's enjoying far more freedom to develop hot cars than he did at his former employer, BMW. And that includes the possibility of a bespoke N model that isn't based on an existing, hotted-up nameplate. Biermann tells Top Gear, "We have been working on this. Like the Racing Midship, which we've done three versions of. We are still working on these cars, trying different things. Maybe someday we will have such a car. There is no decision yet, but it could happen." The Racing Midship is the full name of the mid-engine RM concepts Hyundai has developed as both the Veloster RM and RM15, both based on the Veloster hatchback. The latter was built around an aluminum space frame and fitted with carbon fiber panels, with a 2.0-liter turbocharged four-cylinder doing 296 horsepower. Biermann says a bespoke N sports car is likely a ways off, however, saying Hyundai needs to give its dealer network time to get accustomed to the idea of performance cars. His team also works on products by stablemates Kia and Genesis, so it's possible we could see performance versions make their way into those brands as well. For now, the 271-horsepower i30 N, which isn't sold here in the U.S., is the first N model, with the 275-hp Veloster N hitting dealerships late in 2018. Spy shots also captured a heavily camouflaged i30 N fastback earlier this year. Then there are the Tucson N and the Kona N mule prototype to show to Hyundai brass for possible production. So it sounds like it's going to be fun to watch this performance sub-brand unfurl its wings. Related Video: News Source: Top GearImage Credit: Drew Phillips Hyundai Hatchback Performance Hyundai N hyundai veloster n albert biermann hyundai i30 n

Hyundai and Kia to hit record 8M sales for 2014

Hyundai and Kia are on a sales charge in 2014, and parent company Hyundai Motor Group is increasing projections to a record eight million combined units for the automakers by the end of the year – a bump over the original target of 7.86 million vehicles. According to Bloomberg, the key to the growth is beating expectations in Brazil, China and India, and strong crossover sales are also helping the bottom line. In the US, both automakers are doing well this year. In October, Hyundai saw a six percent dip in monthly sales, but through the first 10 months it sold 607,539 vehicles, compared to 601,773 at this point last year. Kia has done even better with 489,711 units sold from January to October, versus 456,137 for the period in 2013. The good news is a welcome antidote to negative headlines like investors' anger over Hyundai's $10 billion land purchase in Seoul, South Korea. The two automakers also had to pay a $300 million penalty to the Environmental Protection Agency for misstating fuel economy on some models. While sales may reach a new record, profits might not grow as much with them. The strong Korean won means that Hyundai and Kia have a tougher time keeping up profit margins compared to Japanese competitors with a weaker yen.