2013 Kia Sportage Lx on 2040-cars

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Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

U.S., South Korea strike a new trade deal

WASHINGTON — The United States and South Korea have reached agreement on a new trade pact, the White House said on Tuesday. "We have come to an agreement in principle, and we expect to roll out specific details on that very soon," White House spokeswoman Sarah Sanders told a briefing. Her comments were the Trump administration's first confirmation that the two sides had reached an agreement in trade talks covering revisions to the U.S. South Korean Trade Agreement (KORUS) and a South Korean exemption from new U.S. metals tariffs. Seoul on Monday announced a deal to limit exports to the U.S. of South Korean steel, while extending high U.S. tariffs on any possible South Korean pickup trucks and increasing U.S. automakers' access to the Korean market. But details of the agreement have not yet been released by the U.S. Trade Representative's office, which led the negotiations for the United States after President Donald Trump last year called the 6-year-old bilateral pact a "horrible deal" that had doubled the U.S. trade deficit with South Korea since 2012. The deal is expected to permanently exempt South Korea from Trump's tariffs of 25 percent on steel and 10 percent on aluminum, but South Korea will have to reduce its steel exports to the United States by 30 percent from its average over the past three years to about 2.68 million tons. South Korea was the third largest steel exporter to the United States last year after Canada and Brazil. The agreement also was expected to double South Korea's import quota for cars meeting U.S. safety standards — not necessarily Korean standards — to 50,000 per manufacturer per year from 25,000 previously. The big challenge now would be getting unimpressed Korean consumers to buy them. The 25 percent U.S. tariff for pickup trucks, which was due to begin a phase-out starting in 2019, would be extended for another 20 years, according to South Korean officials. This would virtually ensure that any pickup truck contemplated by Korean automakers Hyundai or Kia for the U.S. market would be built in the United States.Reporting by Ayesha Rascoe and David LawderRelated Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Image Credit: Reuters Government/Legal Hyundai Kia

2017 Kia Cadenza First Drive

"Garbanzo? Costanza? Credenza?" I can't tell if the guy at the bakery is trying to be funny or if he's genuinely forgetting the name of the car – I've told him twice; it's the 2017 Kia Cadenza. But you know, maybe the miscommunication is just fine. Like the Cadenza itself. It's fine. You shouldn't read that negatively. Every now and then in this job, you drive a car and simply come away thinking, "it was fine." And if you're building a car in this particular segment, that's practically the response you hope to elicit. A comfortable jack-of-all-trades at a price that isn't going to bankrupt the owner. Consider the Cadenza's competition: Toyota Avalon, Nissan Maxima, Chevrolet Impala, Buick LaCrosse. These aren't groundbreaking luxury vehicles, masters of utility or fuel economy, or Nurburgring-smashing sports sedans; they're... fine. You almost feel bad saying it – from a very reasonable angle it's a great segment, populated with cars offering a lot of the same equipment and a little more bang for the buck than a full-on luxury sedan, and tending to be roomier, too. And yet it's that dilution of dedicated purpose that keeps these models stagnant in showrooms compared to the more luxurious – and certainly to the more economical. It's hard to raise an eyebrow here. So it goes with the Cadenza. Despite looking a heck of a lot like the previous car, the new Cadenza has been reworked significantly – the use of high-strength steel has doubled, to over 50 percent; the use of hot-stamped steel has tripled; the doors are 16 percent more dent-resistant; the chassis has 35 percent greater torsional rigidity; there's a new subframe (similar to that of the Optima); the front windows are now laminated and there's 13 percent more sound insulation in the A-pillars; there's a full underbody cover and wheel air curtains; it has a new eight-speed transmission – developed in-house; there are 40 fewer pounds of unsprung weight thanks to aluminum parts; the brakes are bigger; and there's a bevy of upscale tech features – but we lost you halfway through that paragraph. The styling is a little sharper than the outgoing model's – it's not going to blow your pants off, but it's hardly a bad-looking car. The updated design features Kia's now-trademark quad-LED setup within the lower front grilles, and the main grille is a concave affair – base models get a "Diamond Butterfly" insert you know from other Kia models, and higher-end Cadenzas get "Intaglio" vertical slats.