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Hyundai boosted production in March, so now its cars sit in U.S. ports

SEOUL — As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf. Consignments of cars shipped from South Korea are now sitting in U.S. ports, with dealers slow to take deliveries because of slumping sales and rising inventory, four people with knowledge of the matter told Reuters. The company idled a Tucson production line at home last week for five days, while sister firm Kia is looking to suspend three Korean plants for a week. And analysts now expect a sharp drop in first-quarter operating profit when it reports results on Thursday and some even forecast a second-quarter loss. "I hope that the situation will recover by the middle of next month. If not, we might have to lay off some people," said Brad Cannon, general manager of an exclusive Hyundai dealership in California, whose sales are down more than 50% from when the pandemic started. Hyundai runs a factory in Alabama — which is closed until May 1 — but imports are key to meet U.S. demand. Only about half of its vehicles sold in the United States are made in North America compared to between 68% and 85% for Japanese rivals Toyota, Nissan and Honda, who have also suspended production there till May. The South Korean company makes about 61% of its cars overseas, up from 48% a decade ago. That leaves it vulnerable to overseas factory shutdowns and shrinking demand outside of its home market. Hyundai's South Korean factory operation, which had recovered from a component shortage from China to nearly 100% capacity by March, could fall to as much as 70% in April, the company recently told analysts. "We will continue to monitor the situation and take appropriate action promptly," Hyundai said in an emailed statement. Minimizing the impact For its part, Hyundai has taken measures to minimize the impact.

Kia previews next-gen infotainment systems at CES

While improving its quality, appeal and market share in recent years, Kia has made tremendous strides in transportation technology as well, and aims to further that at the upcoming Consumer Electronics Show in Las Vegas with new telematics and infotainment systems.
Among the new tech Kia will be displaying at CES this year will be several future advancements to its UVO system. The User-Centered Driver (UCD) concept centers around a widescreen head-up display that projects vital data such as speed, navigation directions and traffic information across 18 inches above the instrument cluster, joined by a 12.3-inch TFT display that presents the information in a 3D view, wireless mobile charging and hand-gesture recognition.
The In-Vehicle Information (IVI) concept uses a multi-display system (based around a 20-inch multi-touch center-console display) that synchronizes with a tablet or smartphone to interface with the concierge service, social networking, parking assist and smart radio functions. The system also enables vehicle-to-vehicle and vehicle-to-infrastructure communication and HD wireless connectivity.

Dealership worker takes Kia Soul for 200-mile joyride

Most often, dealership road-test capers in customer cars involve exciting metal - an employee totals a Chevy Camaro ZL1, or a does the same thing with a Dodge Viper. Or tapes himself wringing out Italian exotics at triple-digit speeds on public roads. That kind of horseplay rarely involves mass-market metal because it's not worth getting caught running red lights in a 2001 Mitsubishi Montero - except that actually happened, too. But we still don't understand the mechanic at Peak Kia North in Windor, CO, who used a customer's Kia Soul as his own car for four days and put 200 miles on it. Owner Veronica Pief discovered the nonsense when she downloaded the 17 hours of driving video from her dashcam. She dropped the Soul off to have its speed-volume control fixed, but got it back with the extra mileage and the volume problem still hadn't been remedied. It got worse when she said of the dealership, "Afterwards, they just blew us off. They didn't care. They didn't show any concern." Sometime between that disrespect and Denver's KUSA 9NEWS doing a story on it, the dealer decided it should fix the situation. Pief said she wanted the dealer to buy her car back and pay off the loan, which sounds extreme, but she might have been thinking about the verbiage in her owner's manual. Kia is one of the automakers that's strict about voiding warranties if it deems a car has been abused. Peak Kia North gave Pief what she wanted just one day after the original story ran, buying the car back from her with plans to auction it and donate the proceeds to charity. And yes, the mechanic was fired. You can watch the local news report above. Related Video: News Source: Detroit Free Press, 9NEWS Auto News Kia Car Dealers Hatchback Videos viral video colorado