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South Korea assists auto industry struggling with coronavirus fallout

SEOUL —  South Korea said on Monday it would provide logistical and financial support to help its auto industry through the coronavirus crisis, warning of disruptions to supply chains from Europe and the United States. The government said it would speed up customs clearance, arrange freight transportation and provide liquidity support for the industry, which employs about 12% of South KoreaÂ’s workforce, according to official figures. The coronavirus pandemic has led to shutdowns at auto factories and dealerships in the United States and Europe, which are expected to affect South Korean automakers such as Hyundai and Kia. “ItÂ’s time to prepare for the shock of a global demand contraction and European supply issues,” Industry Minister Sung Yoon-mo said in a meeting with parts supplier executives and industry associations, according to a readout from the ministry. “Survival is the most crucial thing in this unprecedented crisis when both demand and supply contract at the same time.” The ministry gave no details on how much liquidity support the government would provide or what form it might take. The assistance is part of 50 trillion won ($39 billion) in emergency financing announced last week to boost the economy. South Korea has reported 8,961 coronavirus cases and 110 deaths from the disease. Hyundai Motor closed its Montgomery, Alabama, assembly plant on Wednesday after an employee there tested positive for COVID-19. It also suspended production at its plants in the Czech Republic and India due to the coronavirus outbreak. Europe and the United States account for about 70% of Korean automakersÂ’ exports, and 54% of Korean parts exports, government data showed. A trade ministry official said South Korean exports would deteriorate in April and May, after rising 10% year-on-year in the first 20 days of March. Car exports rose 13.7% in the period, customs agency data showed on Monday. “For the time being, a drop in exports of cars and auto-parts are inevitable as car factories and dealerships are closing,” Sung said. South Korean automakers had stocked up on inventories which could last up to two months, Sung said. Related Video: Earnings/Financials Government/Legal Plants/Manufacturing Hyundai Kia coronavirus

Kia and CarMax pull LA Clipper sponsorships in wake of alleged Sterling comments

There's fallout across the automotive advertising world today as companies react to alarming, racially insensitive statements alleged to have been made Donald Sterling, owner of the NBA's Los Angeles Clippers franchise. Last Friday, entertainment website TMZ published excerpts from an audio recording, allegedly between Sterling and his girlfriend V. Stiviano, in which the Clippers owner said, among other things, that he didn't want her to bring black people to his games, including LA Lakers legend Magic Johnson. Sterling has yet to respond publicly to the allegations.
The story quickly gained steam over the weekend, and this Monday it has seen Kia Motors, auto sales website CarMax and insurance giant State Farm all pull sponsorship activities with the Clippers.
In a statement Kia said the alleged statements by Sterling were, "offensive and reprehensible," calling them "inconsistent with our views and values." Kia says it is "suspending" its advertising and sponsorship activities with the team, though has yet to clarify if that suspension includes commercials featuring NBA star and Clippers power forward Blake Griffin.

Kia design boss hints at an electric version of the Stinger

We return to the much-scrutinized Kia Stinger, the critically acclaimed but slow-selling performance sedan whose future is the subject of intense speculation. Thanks to an interview in Top Gear with the head of Kia design, Karim Habib, we now have not only official confirmation that the four-door fastback is getting a mid-cycle refresh, but also some hints about how the model might stick around by evolving. In the interview, Habib said he hopes that the “spirit of the Stinger” remains as the Kia brand evolves. “As the technology goes toward EVs and as the world and its appetite for these types of cars changes, the concept probably has to evolve as well,” he said. Is that a hint that the Stinger might eventually go electric? LetÂ’s explore. Kia has already announced its intentions to launch 11 new electric vehicles globally by 2025, including some with an 800-volt charging system for high-speed charging. TheyÂ’re doing so on a platform that will be purpose-built for EVs in partnership with Hyundai that can support larger and more powerful electric vehicles than either the Soul EV or Niro EV, KiaÂ’s two existing battery-electric offerings. Presumably that opens the door to build an electric Stinger or similar four-door sedan — Habib talked about the need to keep the “sporty, affordable, beautiful sculpture” around, if not necessarily the nameplate itself. But electrifying the Stinger would in all likelihood easily eclipse the 255-horsepower from the base 2.0-liter turbo-four and at least match the 365 hp offered by the twin-turbo V6. It would also undoubtedly represent a huge upgrade in fuel economy, which tops out at 25 mpg combined and is one of the StingerÂ’s few weak points. Kia is also working on battery technology that promises up to 310 miles of driving range. For now, anyway, we know from spy shots that Kia is preparing to give the Stinger interior and exterior styling updates and, reportedly, slight power boosts by tweaking the existing 2.0-liter and 3.3-liter mills. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.