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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.

Automatically efficient | 2017 Kia Optima Hybrid Quick Spin

Automakers are stuck between a rock and hard place with hybrid vehicles. On one hand, efficient hybrids are a necessary evil – for lack of a better phrase – to hit increasingly stringent CAFE standards. But on the other hand, low fuel prices mean it takes an increasingly long time for consumers to see a return on the investment of a hybrid's price premium. These factors have pushed automakers even harder to squeeze every mile per gallon possible out their hybrid offerings. That's inevitably led to powertrain innovations designed to maximize just how long and how far hybrids can run on pure electric power and how often the gas engine can shut down. Occasionally, this doesn't work out all that well – as is the case with the new Nissan Rogue Hybrid, for instance – but there are companies getting things right. Kia, with its 2017 Optima Hybrid, is one of them. Drive Notes Kia didn't try to get too creative with the Optima Hybrid's powertrain for 2017. There's a 2.0-liter, naturally aspirated, four-cylinder gas engine, a 38-kilowatt electric motor, and a 1.62-kWh battery pack. Total system output is 192 horsepower and 271 pound-feet of torque, with EPA estimated fuel economy ratings of 39 miles per gallon in the city and 46 mpg on the highway for a 42-mpg combined rating. That's all spiffy. But taking a six-speed automatic and replacing the torque converter with a clutch and the electric motor, Kia built a hybrid sedan that smoothly intertwines disparate power sources as well as a conventional hybrid like a Toyota Prius, while allowing the Optima Hybrid to take greater advantage of zero-emissions systems. Lift off the throttle and the four-cylinder engine shuts down and lets the 50-hp electric motor handle light, constant-throttle cruising below 62 miles per hour. Dig deeper into the gas, and the petrol powerplant quickly restarts and delivers the bulk of the Optima's power for heavy acceleration and higher-speed conditions. The Optima's back and forth is rarely disjointed – Kia's hybrid feels a lot like its conventionally powered model in normal driving. It's only under sudden, wide-open throttle situations, where the hybrid systems feel caught off guard, that the Optima Hybrid feels flatfooted. A less obvious benefit of the six-speed automatic, of course, is that it leads to quieter operation. There's no rubber-band-like revving like you'd get with a CVT because the transmission can actually shift up a gear.

Which of these five plug-ins should win the 2017 Green Car of the Year?

It's going to be a competitive race for the 2017 Green Car Of The Year. With a minivan in the running for the first time in ages, the five finalists announced by Green Car Journal today include five very different plug-in vehicles. As Ron Cogan, the editor and publisher of Green Car Journal, said in a statement, "electrification is now considered by most automakers an essential technology for current and future high-efficiency models." Let's check out the list: Toyota Prius Prime, the updated plug-in version of the world's best-selling hybrid. Chevy Bolt, GM's all-new entry into the long-range EV game. Chrysler Pacifica, a family hauler with the ability to go 30 miles on electric power. Kia Optima. The nomination is for the full line-up, but really the hybrid and plug-in hybrid models are the green stars here. BMW 330e iPerformance, one of the automaker's many new plug-in hybrids that bring battery power to models outside the i sub-brand. Green Car Journal will announce the winners at the Los Angeles Auto Show on November 17th, along with some, "other green transportation announcements," whatever that means. Last year, the winner was the 2016 Chevy Volt, the first model to snatch up two wins. Which do you think should win this year? Related Video: News Source: Green Car JournalImage Credit: REUTERS/Kevork Djansezian Green LA Auto Show BMW Chevrolet Chrysler Kia Toyota Chevy Bolt chrysler pacifica green car of the year toyota prius prime bmw 330e