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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 previews new midsize sedan concept for Geneva

Kia has released a teaser and brief statement about a new concept it'll be bringing to the Geneva Motor Show. Though there's not much to go on, there are a few details to be extrapolated. Firstly, Kia says this is a D-segment model – which is Euro-speak for a midsize sedan. And as far as Kia's concerned, that means the Optima. Considering that the current model is the better part of five years old now, it'll be due for replacement soon, and this could be our first look at the fourth-generation model. What's interesting is that this concept was designed by the company's European design studio in Frankfurt, Germany. (And it does look rather European: in fact if you covered certain parts like the tell-tale tiger-nose grille, and didn't tell us what we were looking at, we might start seeing elements of Jaguar and Skoda in its design.) Which could mean that this is simply the German office's proposal for the Optima's replacement, or that the model line could be split between European and North Ameican models – much like the Cee'd occupies the largely same segment in the Euro market as the Forte does here. Finally the "elegant energy" handle could suggest hybrid or fully electric propulsion, but we'll have to wait a little while long as its debut at the Swiss expo approaches, now just weeks away. ELEGANT ENERGY – KIA TO SHOW NEW CONCEPT CAR AT GENEVA - Concept to be unveiled at the 85th Salon International de l'Automobile in Geneva on 3 March 2015 - D-segment model is the 11th concept car created by Kia's European design studio - The concept has been created as a spacious and versatile accessory to an active lifestyle Kia Motors Europe will exhibit a stylish new concept car at the 85th Salon International de l'Automobile in Geneva on 3 March 2015. This new D-segment model is the 11th concept car created by Kia's European design studio in Frankfurt, Germany. With confident, powerful lines which sweep elegantly from Kia's hallmark 'tiger-nose' grille towards the rear of the vehicle, Kia's new concept car embodies modern design and refined, understated energy. The concept has been created as a spacious and versatile accessory to an active lifestyle, as a purposeful, energetic design study for the style-conscious, and as a sanctuary from the stresses of the modern world. News Source: Kia Geneva Motor Show Kia Concept Cars Sedan 2015 Geneva Motor Show

2020 Kia Tellurides recalled for seatbelt problem

Just over 30,000 2020 Kia Telluride SUVs are being recalled in the U.S. due to a seatbelt installation problem. Year to date, Kia hasn’t sold much more than 30,000 Tellurides, so the recall applies to nearly every Telluride on the road right now. Documents posted on the NHTSAÂ’s website explain that the wrong seatbelt assemblies may have been installed in certain Tellurides. Instead of American-spec assemblies, Kia says the Middle East-spec seatbelt assemblies may have been installed on some Tellurides. HereÂ’s why thatÂ’s an issue: Kia states that the seatbelts in the passenger seat, second row and third row may not be equipped with an automatic locking retractor (ALR) feature. In case you werenÂ’t familiar with the terminology, automatic locking retractor belts are seatbelts that lock into place once theyÂ’re snug to whatever theyÂ’re holding — they lock into place, instead of allowing a passenger to tug them back out again. This is necessary for securing child seats into place via the seatbelt, because you donÂ’t want there to be any give or movement in a crash. U.S. regulations require that every forward-facing seat that isnÂ’t the driverÂ’s seat has the ALR feature so that a child seat can be properly secured in it. Kia says “If a non-ALR seat belt is used to secure a child seat in the front passenger, second or third row seats, it may not tightly secure a child restraint system, increasing the risk of injury to a child seat occupant in a crash.” As of now, there are no reported deaths or injuries as a result of this issue. Owners of these potentially affected Tellurides will have to bring their vehicles into the dealer to be inspected. If they have the non-ALR Middle East-spec seatbelts installed in them, Kia will change them out for American-spec belt assemblies free of charge. The recall is scheduled to begin Aug. 30, so owners should expect a notification in the mail soon. This recall is the first experienced by the popular Telluride SUV.