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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 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.

Predictable is good | 2017 Kia Sorento Quick Spin

It's been a while since we've tested the latest Kia Sorento, and we've never reviewed the V6 model. That's a shame. It's comfortable, drives well, and offers a lot of features. It's one of Kia's best-sellers, though sales have slipped as competitors roll out fresher models. Still, with consumers flocking to crossovers, the Sorento remains a critical vehicle for Kia. We spent a couple of days running around metro Detroit in the top trim SXL V6 model, which starts at $46,595. With optional Snow White Pearl paint ($395) our tester comes in at $46,990. It's loaded, with the 3.3-liter V6, all-wheel drive, 19-inch chrome alloy wheels, HID headlights, and LED fog and taillights. The interior has heated and vented seats, a heated leather steering wheel, Kia's UVO infotainment, satellite radio, and Infinity surround sound audio. Safety features include an auto emergency braking system, lane departure warning, surround view monitor, and rear traffic alert. Put simply, it's a really nice crossover. Here's our impressions. We were immediately impressed with the V6, which pumps out 290 horsepower and 252 pound-feet of torque. It offers strong, even acceleration. We took off from a stoplight, revved to 6,000 rpm, and shot past a line of traffic cued up to the left. The Sorento feels a little bit like a sleeper. It's strong on the expressway. We had no trouble merging or maneuvering through plodding traffic. Reaching cruising speeds of 75 or 80 miles per hour isn't a chore. We occasionally floored it to stretch things out and weren't disappointed. Response is very acceptable for this segment. We noticed the sound of the V6 is basic, and not sporty. Just six cylinders doing their thing. Teamed with a six-speed automatic transmission, the V6 was refreshing. So many crossovers come with turbo and/or naturally-aspirated four-cylinders (the Sorento offers both). But a competent engine moving us forward in a linear fashion is kind of nice. Traditional even. Yes, the industry is moving toward downsized displacement, and that's a smart tactic. But a turbocharged engine — they all have some degree of lag — is a strange dynamic for some consumers. Add in a dual-clutch or an eight- or nine-speed gearbox, and everyday vehicles can start to feel weird. Accelerate quickly in a turbo crossover with a non-enthusiast and they're not going to like it. The point: the traditional powertrain in the Sorento delivers. Once we're cruising, we noticed a little bit of road and wind noise.