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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.

Next-gen Kia Soul EV spied

Our spy shooters recently caught the next-generation Kia Soul wearing camouflage and showing bits and pieces of its new design. Now, we've got spy shots of the next Kia Soul EV, and it's testing at the Nurburgring. Our shooter points out the spot on the grille for the charging port, as well as the "E" on the license plate, that point to this being the electric version of the Soul. And, of course, we don't see any tailpipes hanging off the back. Similar to the last shots we saw of the regular Soul, the EV gets new lighting front and rear. We see what looks like signature LED lighting strips below the actual headlights — and if the previous spy shots are any clue, this strip could extend across the entire nose. One other feature we notice is the sensor placed low in the front fascia, which could mean the new Soul EV will be equipped with adaptive cruise control, along with other active safety features. In back, the lighting starts high and curves inward like a big boomerang. It looks like Kia is trying very hard to keep the rear of the car under heavy garb, so we might expect there to be other major design changes back there. We can't see from photos any other clues about the electric powertrain, but there's a good chance the Soul EV will use a version of the Hyundai Kona Electric's running gear. For the U.S. the EPA just announced driving range of 258 miles in that vehicle, though other markets also get an entry-level version with a smaller battery. We're happy to see progress being made on the Soul EV, and are looking forward to some of that camo coming off. Loading up the suspension on the Nurburgring looks like a riot, and probably indicates testing of thermal management and the resulting performance (and losses thereof). Related Video:

2019 Kia K900: Here's the redesigned interior in sketch form

A little while ago, we posted teaser sketches of the new Kia K900 flagship. So far, we've learned how it looks from front to side to rear, but the interior has remained a mystery. Today, Kia released this sketch of the dashboard, which seems to be as restrainedly designed as the exterior. The general shape of the dashboard seems to mirror recent BMW offerings, as it's not pronouncedly driver-centric. There's a nearly full-width strip of light wood that extends to the doors, and the steering wheel has also received its share of the wood treatment as well as the gearshift surround, with a large infotainment jog dial next to the shifter. We also see a virtual gauge cluster, which is complemented by a wide central screen that Kia says is 12.3 inches. The HMI screen has gesture controls, but the interior's trick appears to be what Kia calls an "intelligent lighting system," which includes chromotherapy ambient mood lighting to deepen the sense of being cocooned inside the leather interior. There are several calming interior lighting modes to suit the occasion — maybe it's a way to combat frustration in traffic. Again, if the Stinger's exterior is knowingly busy and its interior is designed to invoke the feel of a GT car, the K900's cabin has traditional "executive sedan" woven into the mix, just like its exterior design. Kia has said the K900 will be out in the second quarter of 2018, so we might just see a reveal in a couple of weeks at the New York Auto Show. Related Video: