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Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

Hyundai Motor's two R&D vice chairmen reportedly resigning

SEOUL — Hyundai Motor Group's two vice chairmen in charge of research and development have offered to resign, three people familiar with the matter told Reuters on Tuesday. R&D president Albert Biermann is likely to be named the new head of the division, two of the sources added, declining to be named as they are not authorized to speak to media. Hyundai is battling a plunge in sales, profits and its share price, and the reshuffle would be the latest since Hyundai promoted Euisun Chung in September to executive vice chairman, moving him closer to succeeding his octogenarian father as head of South Korea's second-largest group. The group has appointed new product strategy, design chiefs and replaced senior executives at its overseas operations, including China and the United States. The latest shake-up at the group, which includes Hyundai Motor and its affiliate Kia Motors, could be announced on Wednesday, one of the sources said. It is "part of a generational change Chung is pushing for," another person said. A Hyundai Motor spokesman declined to comment. The group's vice chairmen, Yang Woong-chul and Kwon Moon-sik, both aged 64, told senior officials on Tuesday that they would leave the company, the sources said, declining to say why they had offered to resign. Biermann, a former BMW performance vehicle development official, adds to a flurry of foreign executives that Chung, 48, has brought in to the company typically dominated by Koreans. In October, Thomas Schemera, also a former BMW executive, was appointed to lead product planning for autonomous cars, connected and electrified vehicles, while Luc Donckerwolke, a former Bentley design chief, was appointed to oversee design at Hyundai and Kia. Hyundai Motor's third-quarter net profit plunged by two-thirds, hit by U.S. recall costs that added to its problems. The automaker was already suffering with weak sales in its key U.S. and Chinese markets. Hyundai's share price is down more than 10 percent this quarter, despite a recent rebound driven by a share buyback plan announced on Nov. 30. Reporting by Hyunjoo JinRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2021 Kia Sorento caught completely undisguised at a commercial shoot

Remember when Kia just sold cheap warranties wrapped in sheetmetal? After looking over these fresh spy photos of the 2021 Sorento crossover, we'd forgive you for saying no, as those days are clearly well behind the Korean automaker.  Not even a week ago, we saw leaked images of a finished example hiding out underneath a sheet, but this week's unveiling is far more comprehensive. Our spies weren't crafty enough to position themselves for any interior shots, but we have just about every angle of the new Sorento's exterior, and quite frankly, we like it a lot.  Like most newer cars, the 2021 Sorento is rocking an almost full-width grille, but we'll forgive this unfortunate bit of trendy convention because the rest of the design looks clean, contemporary and practical.  While there are plenty of details and nuances to the sheetmetal, the overall shape is fairly minimalist. It's a classic SUV silhouette with only a slight taper to the rear glass, which should allow the new Sorento to hold a good bit of cargo even with the second-row seats intact.  Also in the rear, we see that Kia has taken a page out of some European designers' playbooks with a widely spaced "SORENTO" made up of individual letters across the bottom of the tailgate. Kia has also gone for a split vertical tail light design that places interior housings on the tailgate itself and exterior housings in the quarter panels.  This Sorento also shows what appear to be integrated exhaust finishers that are mirrored by reflector housings above them, giving the whole lower rear bumper a very futuristic look.  A Kia executive confirmed that hybrid and plug-in variants are planned for the redesigned crossover, however it's not clear yet whether (or when) those variants will come to the U.S.  We're expecting to learn more about the new Sorento soon, as we've just learned it will be revealed at the Geneva Motor Show in March.  Related Video: