Hyundai Tucson Gls on 2040-cars

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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Hyundai and Gurnade build a mildly wild Veloster Turbo

Update: We received some work-in-progress photos from Gurnade, Inc. of the Veloster Turbo, which can be seen in the gallery above. Hyundai revealed the third custom machine that will grace its display at the SEMA Show this year. It's a Veloster Turbo that Hyundai describes as "race-ready," and was built in collaboration with Gurnade, Inc., a design company that does graphic and website design and automotive renders. As far as making it race-ready, Hyundai and Gurnade gave this Veloster a new intercooler, downpipe, cold-air intake and ECU tune courtesy of 845 Motorsports. It also received a new catback exhaust and blow-off valve. The chassis has been reinforced with a variety of braces from Pierce Motorsports, and NEO Motorsports contributed the coilover suspension and bigger brakes with six-piston calipers. SEMA cars need show as well as go, so the companies added 19-inch Rotiform wheels, massive fender flares, a custom grille, a carbon-fiber hood and hatch and, of course, spoilers. All of which are covered in a PPG paint called "Magic Magenta." Inside, the Veloster Turbo features racing seats and a roll cage. The interior also received some less-than-race-ready modifications including an upgraded audio system complete with subwoofer and amplifier. While this is by no means an unimpressive car, this Veloster Turbo will unfortunately have to share the stage with some truly wild creations. These include a beefed-up, off-road Santa Fe, and the absolutely insane 1,040-horsepower, rear-wheel-drive Santa Fe built by Bisimoto. However, the Veloster Turbo gives a more realistic look at what people can create with a new Hyundai, thanks to its off-the-shelf parts. Related Video: Featured Gallery Gurnade Hyundai Veloster Turbo: SEMA 2016 Related Gallery Hyundai Gurnade Veloster Turbo Image Credit: Live photos copyright 2016 Drew Phillips / Autoblog Aftermarket SEMA Show Hyundai Hatchback Performance hyundai veloster turbo veloster turbo