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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:

Hyundai Kona crossover factory grinds to a halt ahead of U.S. launch

SEOUL — Hyundai workers in South Korea have stopped building the Kona sport utility vehicle this week ahead of its U.S. launch at the L.A. Auto Show — a protest against what the automaker's labor union says are plans to trim assembly-line headcount. The union, which is also in annual talks with management over pay, warned that a wider strike was possible. Hyundai has been in discussions with its labor union since October on production plans for the Kona, a key model that it hopes will reverse a U.S. sales slump. The union contends that the automaker wants to introduce more automation and outsource more assembly of key sections to part makers — plans that it is vehemently opposed to. Hyundai management argues that the union is making "irrelevant demands" such as requests for extra windows in the factory as part of the production discussions. The automaker's decision to start production of the Kona on a new assembly line was made without consultation with the union and was unacceptable, union leader Ha Boo-young said in a statement, adding that a wider strike was possible "should there be another provocation by management." The move comes ahead of a planned unveiling of the U.S.-production version of the Kona at the Los Angeles Auto Show on Wednesday, with U.S. sales slated to begin early next year. The Kona is currently sold in South Korea, where it has proven to be a popular model, as well as Europe. The two days loss of production so far this week is equivalent to 1,230 vehicles, Hyundai said. Hyundai Motor President Yoon Kap-han said it was regrettable that the labor union was disrupting production for a high-demand model at a time when most of its plants were "suffering from the worst sales slowdown." Hyundai Motor's global sales fell 6 percent from January to September compared with the same period a year earlier, as a limited number of SUV models hurt sales in the U.S. market and a diplomatic row between Seoul and Beijing hurt sales in China. Reporting by Hyunjoo JinRelated Video: Featured Gallery 2018 Hyundai Kona: LA 2017 View 13 Photos Related Gallery 2018 Hyundai Kona View 20 Photos Image Credit: Live photos copyright 2017 Drew Phillips / Autoblog.com Plants/Manufacturing LA Auto Show Hyundai Crossover SUV 2017 LA Auto Show autoworkers

A brief taste of Korea's latest dish | 2018 Hyundai Kona

Disclaimer: We were limited to a short 10-minute drive at Hyundai's research and development facility in Namyang, about a 90-minute drive from the South Korean Capital of Seoul. The closed loop didn't provide much in the way of road variation, and we reached a blistering top speed of 45 mph with all of three opportunities to use the brakes. The Kona we drove was a Korean-spec model. Suspension and steering tuning will be adjusted for the US, though we couldn't get a clear answer on what sort of changes that entails. Expect the US model to be a bit softer than what the Koreans and the Europeans will see, though we'll have to wait until a full first drive to be sure. Hyundai has been on a roll lately, releasing a series of solid if not exactly groundbreaking products, though until now they company was missing an entry into the ever-burgeoning B-segment crossover. For several years, compacts like the Honda HR-V and Mazda CX-3 have ruled the class, but Hyundai is going all-in on crossovers, with several new models on the horizon. The first one out of the gate is the Kona. In the next few years, we'll see a model that slots below the Kona and a large SUV that will sit above the Santa Fe. We got our first look at the new model at Hyundai's new Motorstudio, a place that's half interactive museum and half high-end conference space. The Kona's styling, a mix of original and derivative design elements, is sure to be divisive. The most standout feature is the plastic cladding that comes in either black or grey, depending on the body color. Hyundai is calling it armor. We just hope it's affordable to replace. The front wears Hyundai's cascading grille, an element that's making it's way across the automaker's lineup. It's flanked by what Hyundai is calling is calling composite headlights. It's a split design that places the slit-like turn signals above and separate from the actual headlights. It looks very similar to the current Jeep Cherokee, odd considering the controversy that model caused a few years ago. There's also a bit of Nissan Juke in there, though substantially toned down. You best get used to it, though, as design chief Luc Donckerwolke says it's the new face of the brand. Expect to see some variation making its way across the automaker's lineup. Not so with the rest of the Kona, as Donckerwolke said each model will get unique elements only found on that particular car. For the Kona, it's the armor.