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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

2021 Kia Optima getting two turbo engines, all-wheel drive option

Even before we've had a chance to drive it, the 2021 Kia Optima is proving to be an interesting sedan. For one thing, it might not even be called Optima anymore, with a switch to the Korean-market K5 name rumored. The styling is thoroughly aggressive, too. As for the latest Optima news, it's getting a pair of turbo engines for the United States, and two more drive wheels as an option. Unsurprisingly, the Optima will be available with a turbocharged 1.6-liter inline-four, just like many versions of its cousin, the Hyundai Sonata. It makes 178 horsepower and 195 pound-feet of torque. There's also mention of a naturally aspirated 2.5-liter inline-four with the same 191 horsepower and 181 pound-feet of torque as the Sonata's base engine. Kia doesn't specifically say it will be offered in America, but its presence in the Sonata means it will probably be available. If those engines aren't powerful enough, the Optima will be available with a turbocharged 2.5-liter engine making 286 horsepower and 311 pound-feet of torque. Presumably, this is the same engine that will be in the Sonata N-Line and future Genesis G70. Kia says this engine is good for a 0-62 mph run of 6.6 seconds. The other big news about the Optima, besides the engines, is that it will available with all-wheel drive as an option. The Sonata does not offer it, making it a unique selling point for the Kia. It will join a growing number of sedans with available all-wheel drive including the Toyota Camry, Nissan Altima, and of course the Subaru Legacy. The Ford Fusion is also among this group, but will soon be discontinued. In addition to all-wheel drive, Kia said Optimas will be available with either six- or eight-speed automatic transmissions, though it didn't specify to which engines they would be paired. The same goes for the eight-speed dual-clutch automatic announced, but seeing as the Sonata only has that on the N-Line, it's probably exclusive to the turbo 2.5-liter engine. Pricing isn't available yet for the new Optima. But Kia did say it will go on sale in the first half of 2020. Related Video:    

Hyundai, Kia and Genesis EVs recalled for damaged charging control unit

Hyundai Motor America and Kia America are recalling a combined 147,100 U.S. vehicles over a damaged charging unit, the National Highway Traffic Safety Administration (NHTSA) said on Thursday. Hyundai will recall 98,878 vehicles, including certain 2022-2024 Ioniq 5 and Ioniq 6, Genesis GV60, Genesis GV70 Electrified and Genesis GV80 Electrified models, while Kia will recall 48,232 vehicles impacting certain EV6 models. The Integrated Charging Control Unit (ICCU) "may become damaged over time from transient high voltage and thermal cycling" and stop charging the 12-volt battery, which can result in a loss of drive power increasing the risk of a crash, the safety regulator said. Kia notes that there will be "audible warning chimes and one or more of the following: Illumination of "Check Electric Vehicle System" warning light, Master warning light, Charging system warning light, "Stop vehicle and check power supply" warning light, power down (turtle) warning light and/or reductions in motive power." Dealers will inspect and replace the ICCU and its fuse, as necessary. In addition, dealers will update the ICCU software. Material from Reuters was used in this report. Green Recalls Genesis Hyundai Kia Electric