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Hyundai, union reach tentative labor deal

According to Reuters, South Korea's labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won - around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it's a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We'd wager that this is why US inventories haven't been hit quite so hard aside from the battering already taking place. The proposal will now go before the union's rank and file.
If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months' salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).
Based on Reuters' report, the work stoppages must have taken a real toll on Hyundai - its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.

2019 Kia Forte First Drive Review | Slow, but steady

PITTSBURGH, Pa. — Kia is in the midst of an sea change. The Stinger's release has shifted the brand's focus away from simply being rebadged Hyundais, giving the Korean automaker a new identity. The Soul and Niro have been solid and unique products, but one or two cars aren't enough to move the needle, especially in the eyes of the public. Our long-term 2018 Kia Stinger GT is a fantastic car, but it still gets plenty of "that's a Kia?" comments out in public. If Kia wants to reinvent itself in this new image, every product is going to have to look and feel as if it was cut from the same cloth. For 2019, the Kia Forte is entering its third generation, having debuted a decade ago as replacement for the Spectra. Like the previous two models, the new Forte shares more than a little with its corporate sibling, the Hyundai Elantra. Kia claims the Forte is more than just an Elantra with handsome new sheetmetal, with some minor updates and changes underneath the skin. There are some allusions to the Stinger in the Forte's design — thin, sweptback headlights, a wide lower air intake up front and full-width taillights in the rear. Both cars are also sprinkled with a number of black accents. It's clean and more distinctive than the recently refreshed but still conservative Elantra. The Forte's interior is less Stinger and more Optima — not quite as bold as the exterior might suggest, but purposeful. There are the practical details that make a difference: small spaces for your phone, sunglasses and more. The Honda Civic offers more, but the Forte is near the top of its class. Like the Elantra, the Forte's seats are comfortable and well positioned, though I do wish there were a little more thigh bolstering. Base models come with cloth, though heated and ventilated leather seats are standard on the top-tier EX trim. The EX also comes with two USB ports and an optional wireless charger. Fit and finish are impressive, too. There was nary a rattle or panel gap to be found. Kia's focus on improved noise and vibration was immediately evident, too. Both wind and road noise were both mild, with just a little bit of sound coming from the car's A-pillars. The chassis has been stiffened significantly compared to the Elantra, and it definitely comes across on the road. The overall impression inside is that it looks and feels as well-built as anything coming from Japan and better than some of the Americans. Unfortunately, things aren't quite as rosy when you get moving.