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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.

Kia reveals updated 2016 Rio hatchback and sedan [w/videos]

Kia makes vehicles of all different shapes and sizes (or many shapes and sizes, in any event), and the smallest of them all... well, that'd be the Picanto, but that's not sold here. The smallest Kia we get Stateside is the Rio, and it's just been updated for the 2016 model year and revealed here in Chicago. An update on the existing version rather than an all-new model, the new 2016 Kia Rio actually debuted in hatchback form at the Paris Motor Show a few months back. But this is the first time we're seeing the US model, where it's being showcased alongside its betrunked stablemate, the Rio sedan. Both bodystyles benefit from updated styling at both ends with new grilles and new lights front and rear. There are also some new paint options, and the interior has been updated with more high-density foam, higher-quality materials and revised trim. In addition to the choice of bodystyle, the Rio can also be ordered in three trim levels with varying levels of equipment, but they're all powered by the same 1.6-liter inline-four with 138 horsepower and 123 pound-feet of torque. They're mated to a six-speed transmission in either manual or automatic forms, though the stick has been discontinued on the five-door hatch. 2016 RIO 5-DOOR DEBUTS AT CHICAGO AUTO SHOW The new year brings refreshing enhancements to Kia's entry-level sedan and hatch at the 2015 Chicago Auto Show - New front and rear valances add visual width and sporty attitude; two new exterior colors added - Interior enhancements include upgraded UVO eServices1 technology and a more premium look and feel CHICAGO, Feb. 12, 2015 – Chicago's gleaming skyline and indie rock music were the backdrops today as Kia Motors America (KMA) pulled the wraps off the 2016 Rio Sedan at the Chicago Auto Show. Making its global debut alongside the previously introduced Rio 5-Door (Paris, 2014), these two modern and dynamic subcompacts are the entry points into KMA's ever-expanding lineup of award-winning cars and CUVs. Refreshed inside and out for the 2016 model year, the pair offer sporty European design cues and generous interior accommodations while providing fuel efficiency. Both Sedan and 5-Door are expected to go on sale in the first quarter. "The Rio signifies everything the Kia brand has evolved into since coming to the U.S. market more than 20 years ago," said Orth Hedrick, vice president of product planning. "And like the brand, the Rio has grown up as it enters the 2016 model year.

Kia Soul now has more turbo and 201 hp

Back in May, Kia revealed in a new hamster commercial that we would be seeing a turbocharged version of the Soul sometime this winter. After months of waiting, we finally get our first look at the Soul Turbo in the form of the European-market Soul SX. Obviously, the most important part of the newly-boosted Soul lies under the hood. There you will find the familiar turbocharged 1.6-liter four-cylinder from the Veloster Turbo and the Elantra Sport. Unsurprisingly, it makes the same 201 horsepower as its corporate cousins. But that's still a healthy 37-horsepower improvement over the naturally aspirated 2.0-liter. The engine is bolted up to a new 7-speed dual clutch transmission. Kia didn't say anything about a manual option, but we certainly hope they'll offer one. The company claims the Soul SX has a 0-62 mph time of 7.8 seconds and a top speed of 124 mph. Aside from the engine, there are subtle exterior and interior tweaks that distinguish this quicker Soul. The front bumper gets a larger, more aggressive grille, and the side sills are slightly wider. The car also receives exclusive 10-spoke, 18-inch wheels, red accents and Soul badge, and a twin-tip exhaust. Inside, the Soul SX has a black cloth and leather interior featuring orange stitching and the obligatory flat-bottomed steering wheel. Kia also revealed that the Soul SX is now available for ordering. However, this is just the European model. We still have yet to see the final US-spec version, but we'll probably see it very soon. Related Video: Featured Gallery 2017 Kia Soul SX: Paris 2016 View 12 Photos Image Credit: Live photos copyright 2016 Drew Phillips / Autoblog Paris Motor Show Kia Crossover Hatchback Performance 2016 paris motor show kia soul turbo