Auto blog

South Korea firms up fuel economy regs following Hyundai/Kia debacle

According to a report from Reuters, South Korea's government has drafted strict new rules for automakers to follow when calculating fuel economy. The legislation comes after a major snafu by Hyundai and Kia that resulted in the automakers lowering the estimated fuel mileage of many popular models - some by several miles per gallon, including the Soul subcompact above - and compensating owners in the US and Canada for the reduction.
The new fuel economy rules were announced by the Ministry of Trade, Industry and Energy in South Korea and will see average mileage ratings drop by roughly three to five percent, according to the report. In addition, manufacturers found guilty of overstating mileage figures will be liable for fines of up to $900,000.
These sweeping new regulations will go into effect in the second half of 2013 and, while they won't have any effect on EPA estimates for Hyundai and Kia vehicles in the United States, they are expected to result in new ratings for the two automakers in their home market of South Korea, where they enjoy a whopping 70-percent market share.

S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.

2019 Hyundai Veloster shows off its colorful new face

The next-gen Hyundai Veloster is coming soon. When I was in Korea for the launch of the new Hyundai Kona, all three variants — standard, Turbo and N — were trotting around the automaker's proving grounds, teasing and laughing at us since we weren't allowed to use our cameras. After some sleuthing, we uncovered some new info. Thanks to the automotive media back in Korea, we have what appears to be official images of the new Veloster Turbo done up in some of the best-looking camouflage we've seen in a long while. The car will make its full debut at the Detroit Auto Show in January. It seems the car was shown off to the Korean press at Inje Speedway in Gangwon Province. The car retains the same basic three-door layout of the old model. That means two doors on the passenger side and one for the driver. The shape may be generally the same, but the car looks far cleaner than before. It's as if Hyundai's designers smoothed out all the lines and pulled the bodywork tighter to the frame. Like before, the exhaust appears to exit from the center, though the N model I saw in Korea and in spy photos has a more traditional dual-exit exhaust pipe. Floating red-painted calipers appear to clamp on some pretty large rotors. There appear to be two wheel designs, too. There aren't any photos of the interior, but once again our spy photographers have come through. The press release we found also lists a new heads-up display. Since these photos came from Korea, we contacted representatives at Hyundai here in the U.S. for more info, but weren't given any clear answers. All we were told was that the images came from their counterparts in Korea. Expect the Veloster Turbo to share the 201-horsepower turbocharged 1.6-liter inline-four and transmissions from the Elantra GT Sport. Korea apparently gets a 1.4-liter engine, but it's unclear if that's coming here. We hope the hopped-up Veloster N will get the 271-horsepower turbocharged inline-four from the i30 N. Hyundai has been on a killer roll as of late. We can't wait to drive this. Related Video: