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Hyundai plans to catch up with other automakers, offer EVs

YONGIN, South Korea (Reuters) - South Korea's Hyundai Motor Co is developing its first dedicated architecture for electric vehicles, seeking to catch up with the likes of Tesla in the growing segment with multiple, long-range models. While the platform will not be completed soon, Hyundai Motor and affiliate Kia plan to roll out small electric sport utility vehicles (SUVs) based on an existing underpinning next year, said Lee Ki-sang, who leads Hyundai-Kia's green cars operations. Hyundai will launch an electric SUV, followed by a sibling model by Kia Motors next year, Lee said, citing strong demand for SUVs. The subcompact or compact models would have a range of more than 300 km (186 miles) per charge, and would be "more competitive" than rival offerings, Lee said. And Hyundai said in a statement on Thursday that it plans to launch a new luxury electric vehicle under its Genesis marque in 2021, after introducing a plug-in hybrid version of an unidentified Genesis model in 2019. The separate platform represents a major push into the battery electric-car segment for a firm which has long trumpeted rival fuel-cell vehicles, reflecting strong investor pressure to compete more vigorously in a market that has been stimulated by U.S.-based Tesla's longer-range models. And tough fuel-economy and emissions regulations in the United States, Europe and China are compelling automakers to push fuel-efficient cars even though low oil prices have undercut demand. Hyundai's electric-car platform would allow the automaker to install a battery pack in vehicle floors to accommodate more battery capacity and maximize cabin space, Lee said. "The electric-vehicle platform will require high up-front investments, but we are doing this to prepare for the future," he said at Hyundai-Kia's green car research center in the city of Yongin, outside Seoul. He did not reveal the cost. Lee, a senior vice-president at Hyundai Motor, was speaking during an interview on the eve of an auto show that kicked off in Seoul on Thursday. Analysts said Hyundai had no choice but to build separate electric-vehicle platforms to be relevant in the segment. "The separate platform may incur losses initially, but Hyundai will be left behind the market if they don't offer long-distance models, like 300 km, 500 km and 600 km," said Ko Tae-bong, an analyst at Hi Investment & Securities.

New sketches show Kia small SUV interior

Little more than a week after releasing sketches of the exterior, Kia presents sketches of the interior of its first-ever small global SUV. Sticking to the message of enticements for younger buyers, we're told this will be a "bold design statement" that is "trimmed in high-quality materials throughout" with the aim of creating a "modern ambiance to appeal to young-at-heart, tech-savvy buyers." The renderings appear a good start to supporting those arguments. The centerpiece is a 10.25-inch infotainment screen stood atop the instrument panel. A menu button on the top left, a row of navigation buttons along the bottom edge, and two rows of navigation icons on the screen should keep everything an occupant could want no more than a couple of touches away. Beneath the screen come some chunky air vents, beneath those, an HVAC screen supported by an HVAC knob and controls. Notice how the IP design slides from the control surface into a passenger grab handle anchored on the center tunnel. To the left, a steering wheel loosely modeled on the one from the Sportage, ahead of an instrument binnacle that's a quartet analogue gauges bracketing a digital display. The images show two different interior grades; for instance, one HVAC knob is printed with the word "Auto," while the other isn't, and the steering wheels in the two images are slightly different. The differences are more pronounced around the shifter — which might, in fact, represent two kinds of shifters. AutoPortal reports there'll be an automatic transmission as well as a seven-speed dual clutch gearbox. One gear lever is flanked by seven buttons, three of them for the heated steering and ventilated seats. Another button turns off the park assistance feature. Then there's what looks like a hill descent control button, one for some sort of all-wheel drive feature like a locking rear differential, and a final button to turn off the Stop/Start system. The other image looks like the more luxurious trim, even though it's the one without the "Auto" HVAC knob. This gear lever is flanked by eight buttons, most too small to make out, but it's clear that the AWD button is missing, and the ventilated seat icon is now a heated seat icon. There's an electric parking brake switch next to the driver's seat, two cupholders, and the forward surface of the lower cubby holds a 12V outlet and an AUX input. We'll find out what the real thing looks like soon.

Hyundai Motor shares slide following U.S. probe of airbag failures

SEOUL — Shares in Hyundai Motor tumbled on Monday on a U.S. probe into why airbags failed to deploy in some of its Sonata sedans, with investors fretting about potential recall costs for the once popular cars. The probe, which follows crashes that reportedly killed four people and left six injured, will review the 2011 Sonata sedan as well as the 2012-2013 Forte made by affiliate Kia Motors, encompassing some 425,000 vehicles. It marks the second investigation by the U.S. National Highway Traffic Safety Administration into the South Korean duo in less than one year, exacerbating headaches for Hyundai which reported in January its worst annual earnings in seven years. Hyundai has issued a recall for more than 150,000 U.S. Sonatas after incidents of non-deployment were linked to electrical overstress in the airbag control unit, but said it did not have a final fix. "What I am concerned about is that the recall will be expanded to other markets," said Ko Tae-bong, an analyst at Hi Investment & Securities. The Sonata and Forte sedans were responsible for driving sales for Hyundai and Kia in key markets in recent years, although they are no longer as popular as they once were. Ko estimated the U.S. recall could cost as much as $575 million if airbags were replaced in 425,000 vehicles under review and the automakers were found responsible for the problem. Hyundai Motor shares tumbled 4.8 percent while Kia Motors lost 3.7 percent. Parts supplier Hyundai Mobis fell 5.4 percent while the broader market was down 0.7 percent. Hyundai declined to comment on whether the recall would be expanded. Kia said it has not confirmed problems with the airbags but added it would "act promptly to conduct a safety recall, if it determines that a recall would be appropriate." The automakers told the South Korean regulator that the Sonata and Forte models sold in the domestic market were not affected, an official at South Korea's transport ministry told Reuters. The U.S. regulator said the airbag control units were built by ZF Friedrichshafen-TRW, a German auto supplier that acquired TRW Automotive in 2015, adding that it would determine if any other manufacturers used similar airbag control units and if they posed a safety risk. The NHTSA also said that electrical overstress appeared to be the root cause in the 2016 recall by Fiat Chrysler America of 1.4 million U.S. vehicles for airbag non-deployments in significant frontal crashes.