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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.

2020 Kia Forte GT revealed at SEMA adds turbo engine, manual transmission

We figured it was coming soon, but the performance version of the Kia Forte just dropped at SEMA. Named Forte GT, this 2020 model sedan takes the redesigned for 2019 Forte and turns it up a few notches in the fun department. Replacing the naturally aspirated 2.0-liter four-cylinder is a 1.6-liter turbocharged four banger. It makes 201 horsepower and 195 pound-feet of torque, which is identical to the power it makes in the Hyundai Elantra Sport and GT Sport. A "sport-tuned" dual exhaust is added to give the car some aural appeal too. Buyers will be able to choose between a six-speed manual and a seven-speed dual-clutch automatic, also the same as the Elantra. We hope you're noticing a trend here. The torsion bar rear suspension is replaced with a fully independent suspension design, making it that way for all four corners. Thicker sway bars and larger disc brakes are used all around as well. To keep it stuck to the ground, Kia is offering Michelin Pilot Sport summer tires as an option — that's pretty sweet. All of these changes follow the same pattern as the Elantra did when Hyundai introduced the Sport trim for that car. The Hyundai doesn't offer this aggressive of a tire package though. Of course, there are exterior changes here, too. New 18-inch two-tone wheels are exclusive to the GT. A shouty (and questionable) gloss black and red accented grille with GT designation is the most obvious switch-up. There's more gloss black on the mirrors, side sills, rear spoiler and turn signals. Black sport seats with red contrast stitching, a flat-bottom steering wheel and aluminum sport pedals differentiate the interior from the normal Forte trims. Kia is also making a less exciting Forte "GT Line" trim car, which is essentially a GT appearance package. You'll get almost all the go-fast look parts, but the mechanicals are identical to the standard Forte. This means the 2.0-liter, CVT and torsion beam rear go back in. The baby Stinger theme is carried on with this car in its name and even the GT1 and GT2 option packages available for these two new trim levels. Both the packages offer differing levels of Kia's driver assistance technologies, as well as tech like a Harman Kardon audio system and heated/cooled seats. While we can safely say the new Forte is no Stinger, this GT trim is an extremely welcome addition, especially the continued option for a manual transmission. Related video:

Kia reveals new K3 Forte sedan in Korea [w/video]

Kia's new version of the Forte sedan has already been unveiled back in South Korea, where it's known as the K3. But while details have yet to be announced, we can expect most (if not all) of these updates to make their way to US showrooms soon. The facelifted version of the model known here as the Forte, in Korea as the K3, and elsewhere as the Cerato has a more sophisticated exterior appearance, with a larger grille, new head- and tail-lamps, and reshaped bumpers to give it a wider, more planted appearance. The interior features a sporty new flat-bottom steering wheel as well as new vents, multimedia controls, and trim. The Korean automaker has also taken the opportunity to outfit the new K3 with speed-sensitive electric power steering, lane assist, automatic park assist, and hands-free trunk opening. In its home market, the revised K3 offers 130 horsepower and 118 pound-feet of torque. But considering that the current Forte packs more punch than that already, we wouldn't take too much stock in the KDM engine specs. The 2015 Kia Forte LX available in the US packs a 1.8-liter inline-four good for 145 hp and 130 lb-ft of torque, while the more potent Forte EX steps up to a 2.0-liter four delivering 173 hp and 154 lb-ft. The Forte nameplate was launched in the US in 2009. The current, second-generation model launched in 2013. It's currently offered as a sedan, five-door hatchback, and as the two-door Forte Koup. The closely related Kia Cee'd offered in Europe is sold as a three-door hatch, five-door hatch, or five-door wagon.