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Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

Hyundai spooks investors by paying $10B for new Gangnam HQ location

Doing things Gangnam style apparently costs a serious chunk of change, because Hyundai is reportedly paying roughly $10 billion for 19.6 acres (79,342 square meters) of land in the trendy district of Seoul, South Korea, to serve as the location for its new headquarters. That eye-popping number represents the highest amount ever paid for a plot of land in South Korea, according to Reuters. The hefty price tag reportedly scared investors enough for stock prices to sink dramatically.
Shareholders were apparently upset because the massive outlay could instead have been put back into the company for research and development or other improvements. Instead, the company reportedly bid triple the land's appraised value, says Reuters. The announcement caused Hyundai's stock price to plummet a massive 9 percent, and there were losses from Kia and the company's parts arm, as well. All told, the three of them lost nearly $8 billion in value from the falling share prices - almost enough to pay for the controversial land.
Hyundai currently has its headquarters on the outskirts of Seoul, but seems keen to move to the high-end Gangnam district to show off its rising status. It plans to build a new office complex, hotel, convention center and theme park on the site. According to an analyst speaking to Reuters, that could all cost an additional $6 billion to complete.

Autoblog fan favorite car ads from Super Bowl XLIX

Super Bowl XLIX is in the books, and the New England Patriots emerged victorious. Of course, if you're like us, the big game wasn't so much about the battle between the east coast and west, so much as a fight between the world's automotive advertisers. We collected and collated all of last night's new ads and put them together for you to vote on. And yes, we're limiting this year's contest to last night's new features. That's why you aren't seeing Dodge's epic Wisdom among our collection of commercials, and it's a similar story with Chevrolet's Truck Guy Focus Group series, which highlights the new Colorado. You can still vote for your favorites. We won't be closing the voting on our Super Bowl page, so while the winners and losers are correct as of this writing, it's entirely possible that there could be some changes in the rankings as time goes on. So, without any further ado, here are the winning ads based on your voting. Nissan: With Dad Fiat: Ready For Action Jeep: Beautiful Lands BMW: Newfangled Idea Mercedes-Benz: Fable NASCAR: America Start Your Engines As for those ads that failed to impact you, loyal readers, Toyota was the absolute, undisputed loser. The Japanese brand ran four ads in total – two for Toyota and two for Lexus – and all of them have negative tallies as of this writing. Lexus' Make Some Noise and Lets Play and Toyota's One Bold Choice and My Bold Dad both had very weak showings among the commercials that aired, although they weren't alone. Neither Mazda nor Kia scored particularly well, despite featuring celebrity magic act Penn and Teller and former James Bond, Pierce Brosnan, respectively. Chevrolet was the winner of the losers, as of our writing, recording the fewest downvotes for its audience-punking The Big Game ad. If you want to take a second look at the losing ads, you can head back to our Super Bowl page for the complete collection. But for now, head into Comments and let us know what you think of the results.