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Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.

Rumor suggests Kia Soul EV replacement will not come stateside

The replacement for the Kia Soul EV may not come to the United States after all. Despite the company's plans to introduce it here last year, presumably as a 2020 model, a Kia source has reportedly told Roadshow that plans to bring the next-generation compact electric hatchback to the U.S. have effectively been canceled. While Kia has not officially commented on the current status of the Soul EV, its delayed introduction is a troublesome signal to those who hoped to see the second-generation electric hatchback on U.S. dealer lots. While a delay of just a year is fairly minor compared to what we've seen from some promised introductions in the past decade (looking at you, Mazda), this rumor — combined with the lack of official updates from Kia — is nonetheless concerning to those who were excited by the prospect of Kia's small EV returning.  The Soul EV has been on sale in Europe since late last year. It can drive for up to 243 miles on a single charge, which is about double that of the last-generation model. Kia originally blamed the delay on supply issues related to its battery pack, which it shares with the Hyundai Kona Electric, and Kia Niro EV. Roadshow speculates that priority is being given to the Niro here in the United States, as it is already on sale and its crossover format gives it an advantage with American buyers. When reached for comment, a Kia spokesperson confirmed that the company is focused on Niro EV deliveries and that the Soul EV is not expected to arrive any sooner than 2021, but stopped short of confirming that it is currently on track for release next year.  If this rumor turns out to be accurate, it will be a blow to the compact electric car segment, as the Soul EV looked to be a highly competitive entry, with more polish and refinement than the Chevrolet Bolt and a healthy range advantage over the Nissan Leaf.  Related Video:

Kia confirms $1B factory in Mexico to be completed in 2016

Kia is the latest in a string of automakers to announce plans to build new or expanded factories in Mexico. The Korean company has signed a $1 billion deal to establish a plant in Monterrey in the state of Nuevo León, with construction starting in late September. If everything proceeds on schedule, the facility should be complete in the first half of 2016 and be able to produce 300,000 vehicles a year.
The $1-billion investment will create a "new, highly automated manufacturing plant," according to Kia's announcement, a facility covering 1,235 acres of land. Confirming earlier rumors, Kia will produce compact models there, but the company won't reveal specific model names, just yet. When complete, the factory in Mexico will boost the automaker's annual capacity to 3.37 million vehicles a year with 1.69 million of those in Korea and 1.68 million abroad. It will also join Kia's plant in Georgia (where the Optima and Sorento are made) as the business' other North American location.
Kia hasn't kept plans for the Mexican factory a very close secret and openly admitted it was "being considered as a possible location" to Autoblog. The country was chosen partially because of its free-trade agreements (read: NAFTA), that make it less costly to move models elsewhere, not to mention its easy access to the North, Central and South American markets. The new plant should also alleviate some of the tight supply issues Kia has had in the US.