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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Audi Prologue Avant puts new styling focus on wagons

As much as we loved the Audi Prologue Concept that debuted late last year at the LA Auto Show – and, suffice it to say, we liked the first Prologue a lot – this new Prologue Avant from the German automaker may just rock our socks that much further off our feet. We have very little by way of actual, concrete details on what's under the angular wagon-shaped skin of the Prologue Avant, but we'd be perfectly content if it kept the previous two-door's 4.0-liter twin-turbo V8 in place underhood, augmented as it was when it was again shown at CES last month with a hybrid-assist system that put total system horsepower at 677, along with a meaty 701 pound-feet of torque. With all that power routed to all four wheels through an eight-speed automatic transmission, the 0-60 time of just 3.5 seconds strikes us as plenty quick. The powertrain details hardly seem the point of this new concept from Audi, in any case. Clearly, the big deal is the new bodywork, which builds upon the beautiful foundation of the original Prologue coupe with an elongated wagon shell and three additional doors (two rear doors and a rear hatch). The attractive body sits low to the ground on exaggerated 22-inch wheels, according to Auto Express. We note high-tech lighting elements front and rear and a modified front fascia with a bit more brightwork than the previous version. Assuming there's a bit of future reality baked into the Prologue Avant – which we believe is likely, considering that the coupe we salivated over in LA was said to point the way forward for the brand – it's safe to say we're in eager anticipation of the next several years at Audi. Have a good look at the images that have so far been released, and feel free to let us know what you think. We're sure Audi is interested in hearing your opinions, too. Related Video: News Source: Audi via Auto Express Design/Style Geneva Motor Show Audi Wagon Concept Cars Future Vehicles Hybrid Luxury Performance 2015 Geneva Motor Show

Mercedes could make EV batteries with Audi, BMW

It's not a big leap from digital maps to batteries, it turns out.The head of Mercedes-Benz parent Daimler said recently that he envisions his company working together with German automotive competitors BMW and Volkswagen to further accelerate electric-vehicle battery technology. The three automakers recently worked together to enhance their in-car maps systems. Daimler CEO Dieter Zetsche talked about "commonalities" between automakers, not the least of which is the need for all of them to achieve increasingly stringent fuel-economy requirements in the European Union, at the Frankfurt Auto Show last week, according to Reuters. While these companies have made their own inroads as far as plug-in vehicles go, they are all behind the Renault-Nissan Alliance when it comes to public deployment of electric vehicles. This summer, Daimler, Audi and BMW hooked up to acquire the Nokia Here digital-mapping service for about $2.8 billion. The triad of automakers beat out companies such as Apple and Uber to buy the entity, which was founded in 1986 as Navteq. Nokia bought the company in 2007. The acquisition makes sense as the automakers work on improving their products with features like cloud-based data to warn drivers of icy roads and traffic jams. The technology will likely also eventually be used in autonomous vehicles. Automakers working together for a common goal of improved technology is nothing new, of course. General Motors and Honda agreed in 2013 to work together to accelerate hydrogen fuel-cell drivetrain development. Earlier that same year, Daimler said it would work with Ford and Nissan in a separate collaboration to speed up the development of hydrogen fuel-cell technology. Related Video: