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Trump encouraged by talk of 'a level playing field' on trade with South Korea

South Korea is a longstanding American ally, but President Donald Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact. "We will do more to remove barriers to reciprocal trade and market access," Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos. Trump said he was encouraged by South Korea's President Moon Jae-in's assurances that he would seek a level playing field for American workers and businesses, particularly automakers. A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year. Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly. "Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies," she said. The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011. At the start of Friday's talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained. "I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side," he said. Ross said later on Friday that some progress had been made in the talks. The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues. (By David Brunnstrom and Lisa Lambert. Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay) Related Video: Image Credit: Kim Hong-Ji / Reuters Government/Legal Genesis Hyundai Kia trade

Hyundai outlines EV strategy as it struggles with cost of engine defects

SEOUL — South Korea's Hyundai Motor pledged to boost sales of electric vehicles to over half a million by 2025 as part of a bid to focus on new technologies and catch up with rivals, but some analysts saw the target as conservative and warned of the costs. The announcement by Hyundai, the world's fifth largest car maker along with affiliate Kia Motors, underscores the accelerating strategy shift under Euisun Chung, who became the motor group's executive vice chairman last year. Hyundai announced a $35 billion investment last week in mobility and other auto technologies by 2025, less than a month after unveiling a $1.6 billion deal to develop self-driving vehicle technologies with Aptiv. The firm said on Thursday it plans to launch 16 EV models by 2025 to boost sales of such vehicles 17-fold to 560,000 by that year. Still, that would be equivalent to just over 10% of its projected global sales this year. The projection compares with more bullish forecasts offered by its bigger rivals. Volkswagen AG expects to make 22 million EVs over the next decade, while General Motors aims to sell 1 million EVs annually by 2026. "That is not an ambitious target. If Hyundai fails to boost volumes fast enough, costs of electric cars will weigh on profitability," Lee Jae-il, an analyst at Eugene Securities & Investment. Hyundai said that the EV market would face intensifying competition and oversupply soon and automakers failing to meet toughening European emissions regulations will face heavy penalties and suffer a serious blow to their reputation. "EV supply is expected to surpass demand from the second half of next year," Ka Suk-hyun, vice president of Hyundai Motor, told an earnings conference call. Quality issues Hyundai's third-quarter net profit rose 59% to 427 billion won ($365 million), well below the average 684 billion profit estimate of analysts based on Refinitiv data, due to 600 billion won provisions it earmarked to address potential engine defects in the United States and South Korea. Quality issues have been a major drag in Hyundai's attempt to steer a recovery from six consecutive annual profit declines and constrained its financial firepower to invest in future technologies. It is still under investigation by U.S regulators and prosecutors over potential faulty engines in some models. Total retail sales fell 3% in the third quarter, as higher U.S.

2020 Kia Stinger GT-Line becomes only 2.0-liter model on offer

The 2019 Kia Stinger comes in five flavors: 2.0L and Premium with the 2.0-liter turbocharged four-cylinder engine, and GT, GTS, GT1, and GT2 with the 3.3-liter twin-turbo V6. Beyond the engine, the two lowest trims differ from the GT versions with different grilles, bumpers, wheels, and exterior trim. Having seen an early order guide, CarsDirect says Kia will replace the two base models with a single model that's been restyled with GT cues, while raising the price just $100. The new model is called the Stinger GT-Line, a trim that's been available in other markets for a while on everything from the tiny Picanto to the Sorrento crossover; the pictured car is a UK Stinger GT-Line. The model bolts on the grille and bumpers from the GT, black chrome trim and body-colored door handles, plus 18-inch GT-styled wheels. The cabin gets dressed up with a black headliner no matter the interior color, a leather-wrapped steering wheel, and headrests embossed with "GT-Line." The price will be $33,090 plus $995 destination, totaling $34,085, a figure that comes in an even $100 above the 2019 Stinger 2.0L. $34,085The loss of the Premium trim leaves a $6,410 gap between the GT-Line and the base GT trim. The Premium was the way to get a long list of luxury and convenience features paired with the four-cylinder, but it was only $110 less dear than the entry GT with the bigger engine but without the feature set. The price of that GT goes up, meanwhile, CarsDirect saying the 2020 GT will start at $40,495 after destination, a $200 increase over the 2019 model. Furthermore, with the Premium gone, the only way to option automatic emergency braking will be to spend more than $46,000 on the GT1 grade.  Engines don't change for next year, the 2.0-liter producing 255 horsepower and 260 pound-feet of torque, the 3.3-liter putting out 365 hp and 376 lb-ft, both shifting through an eight-speed automatic.