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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.

Toyota launches BMW-powered Verso in Europe

BMW makes some sweet-revving engines, but its own vehicles aren't the only ones running BMW engines. So do the latest from Rolls-Royce and Mini, of course, as well as a handful of Peugeots and Citroëns thanks to its joint engine program with PSA. Wiesmann uses BMW engines, as did the famous McLaren F1. And now we can add one more to the list.
That would be the Toyota Verso, a Corolla-based minivan which Toyota builds in Turkey and sells in Europe and a few other markets overseas. The Verso is also now officially the first beneficiary of the partnership between Toyota and BMW as the Japanese automaker has released the MPV with BMW's 1.6-liter turbodiesel four.
The 111-horsepower engine is coupled to a Toyota transmission and joins the Verso range as the fourth (and least powerful) engine in the lineup, alongside the 122hp 2.0 diesel and the gasoline options with 1.6 liters and 160 hp and 1.8 for 180. Future collaborations between the two automakers will include fuel-cell development, a new joint sportscar platform, lightweight bodywork research and a new generation of lithium-air batteries. See the press release below for further details.

BMW now wants to build 'ultimate machine driver'

The lines between the auto industry and Silicon Valley have been blurring for a while now. Google, for example, is hiring people from deep within the automotive world to spruce up its autonomous driving project. Apple is doing the same, and Tesla's sort of on both sides. More examples are easy to find. That's why it's no surprise, really, that there's a movement happening behind the scenes at BMW to reinvent the roundel. Speaking at the Geneva Motor Show this week, BMW board member Klaus Froehlich told Reuters that the Bavarian automaker is refocusing its sights on Silicon Valley. The goal, Froehlich said, is to have half of BMW's research and development staff to be computer programmers. Their mission: to build the AI that will maneuver upcoming self-driving BMWs. In other words, after 100 years of building what the company calls the ultimate driving machine, BMW is shifting over to the ultimate machine driver. We should've seen it coming with that autonomous driving video last year. Many automakers are working on autonomous cars these days, and this is all nothing new for BMW, but Froehlich's comments show an increased focus on cars that will drive you. "For me it is a core competence to have the most intelligent car," Froehlich said. "Our task is to preserve our business model without surrendering it to an Internet player." Some of the tasks that Froehlich sees for an expanded software team will be developing better cloud connection, so that a self-driving car can get messages from a central network. It means perhaps licensing BMW's plug-in powertrains to smaller companies that maybe can't build their own but have other strengths that BMW can access. By developing its own staff and working with partners – the same strategy automakers have used for years – BMW is trying to get ready for the autonomous future. Related Video: News Source: ReutersImage Credit: Harold Cunningham/Getty Images Green BMW Technology Emerging Technologies Autonomous Vehicles Electric Future Vehicles bmw i research and development klaus froehlich