2015 Kia Sorento Limited on 2040-cars

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Hyundai boosted production in March, so now its cars sit in U.S. ports

SEOUL — As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf. Consignments of cars shipped from South Korea are now sitting in U.S. ports, with dealers slow to take deliveries because of slumping sales and rising inventory, four people with knowledge of the matter told Reuters. The company idled a Tucson production line at home last week for five days, while sister firm Kia is looking to suspend three Korean plants for a week. And analysts now expect a sharp drop in first-quarter operating profit when it reports results on Thursday and some even forecast a second-quarter loss. "I hope that the situation will recover by the middle of next month. If not, we might have to lay off some people," said Brad Cannon, general manager of an exclusive Hyundai dealership in California, whose sales are down more than 50% from when the pandemic started. Hyundai runs a factory in Alabama — which is closed until May 1 — but imports are key to meet U.S. demand. Only about half of its vehicles sold in the United States are made in North America compared to between 68% and 85% for Japanese rivals Toyota, Nissan and Honda, who have also suspended production there till May. The South Korean company makes about 61% of its cars overseas, up from 48% a decade ago. That leaves it vulnerable to overseas factory shutdowns and shrinking demand outside of its home market. Hyundai's South Korean factory operation, which had recovered from a component shortage from China to nearly 100% capacity by March, could fall to as much as 70% in April, the company recently told analysts. "We will continue to monitor the situation and take appropriate action promptly," Hyundai said in an emailed statement. Minimizing the impact For its part, Hyundai has taken measures to minimize the impact.

Kia builds one millionth vehicle in the US

Kia Motors Manufacturing Georgia, Inc. (KMMG), the plant that produces the Kia Sorento crossover and Optima sedan, celebrated today as a Snow White Pearl 2014 Sorento SXL rolled off the assembly line at the 2,259-acre site, marking the one-millionth Kia to be produced on US soil.
Located in West Point, Georgia, KMMG was Kia Motors America's first manufacturing plant in the US and represented an initial investment of $1 billion. The plant started producing the 2011 Sorento on November 16, 2009 and is responsible for the creation of 11,000 jobs in West Point and the surrounding region. Production of the Optima sedan, Kia's best-selling car in the US for the past 18 months, started at the factory in 2011, and, in 2012, the completion of a $100 million expansion upped annual vehicle production capacity to 360,000.
"Building one million vehicles in less than four years is a tremendous achievement and one that each one of our more than 3,000 team members can take great pride in," said Byung Mo Ahn, Group President and CEO for Kia Motors America and KMMG.

Kia Seltos Luggage Test | How much cargo space?

The Kia Seltos starts at $21,990, which is consistent with a growing number of crossovers that slot in between sub-compact models (Hyundai Kona, Kia Soul, etc) and compact models (Honda CR-V, Toyota RAV4, etc). We now call this the midcompact segment. The Mazda CX-30 would be another example, and while the Mazda's engaging driving experience and stylish near-luxury interior are its prime selling points, the Seltos boasts expressive color combinations, distinctive styling details throughout and an ample amount of interior space that rivals bigger, pricier SUVs. As I discovered at the L.A. Auto Show, that includes Kia's own Sportage, which may have more power and higher-quality interior materials (plus a higher price), but has roughly the same passenger space and less maximum cargo capacity. To these eyes, it also looks worse.  On paper, the Seltos has 26.6 cubic-feet of cargo room behind the back seat, which would indeed be greater than sub-compact models but less than the CR-V's of the world. The CX-30 has 20.1 cubic-feet and you can see its luggage test here.  Like some other crossovers, including next week's Mercedes GLB, the Seltos has a dual-height cargo floor. The upper height is pretty much there to meet up with the folded rear seatbacks to create a flat-ish load floor. Since there's only a spare tire and bare metal below it, I saw no reason to test the cargo capacity with the high-floor setup. It seems logical that Seltos owners would almost exclusively use the lower, more voluminous floor height.  On to the luggage. I use two midsize roller suitcases that would need to be checked in at the airport (26 inches long, 16 wide, 11 deep), two roll-aboard suitcases that just barely fit in the overhead (24L x 15W x 10D), and one smaller roll-aboard that fits easily (23L x 15W x 10D). I also include my wife's fancy overnight bag just to spruce things up a bit (21L x 12W x 12D).  That would be all the roller bags (no fancy bag) even with the rigid, hatchback-style cargo cover in place. Excellent. That's the same amount of bags as the CX-30 could manage with NO cargo cover. Basically, the size difference indicated on paper is confirmed.  Remove the Seltos cargo cover and not only does the fancy bag fit, but there'd be room for another duffel bag.  This amount of height and width is comparable to those crossovers that are technically a size up in the "compact" category. The difference, though, is cargo area depth.