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Trump encouraged by talk of 'a level playing field' on trade with South Korea

South Korea is a longstanding American ally, but President Donald Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact. "We will do more to remove barriers to reciprocal trade and market access," Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos. Trump said he was encouraged by South Korea's President Moon Jae-in's assurances that he would seek a level playing field for American workers and businesses, particularly automakers. A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year. Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly. "Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies," she said. The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011. At the start of Friday's talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained. "I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side," he said. Ross said later on Friday that some progress had been made in the talks. The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues. (By David Brunnstrom and Lisa Lambert. Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay) Related Video: Image Credit: Kim Hong-Ji / Reuters Government/Legal Genesis Hyundai Kia trade

First peek inside Hyundai's hybrid Prius fighter

There are two new vehicle rumors that the auto industry can't seem to get enough of these days: "Tesla fighters" and "Prius fighters." The former category is filled up by Porsche and Audi and more. In the ranks of those who want to take on the world's best-selling hybrid, we can add Hyundai, but this time with a potential twist. First, let's take a look at the latest spy shots of the potentially 2017 model year gas-electric hybrid, including our first look inside. This car will be based on the next-generation Elantra that is also supposed to arrive in 2017. Rumor has it that a medium-sized lithium-polymer battery pack could offer 38 electric miles before the 1.6-liter engine takes over. The new hybrid will likely have a new name and could appear at an auto show at some point in 2016. We've seen other versions of this Prius fighter disguised in different camo. If you'd like to compare the vehicles, you can do so here and here (the latter shows modified Elantra GTs). Now, what about that twist? Well, alongside the standard gas-electric vehicle, it appears that Hyundai might also be working on an all-electric version of its "Prius fighter." Wearing the "AE" moniker, the all-electric version isn't guaranteed to arrive when the gas-electric car does, and may show up later, according to Green Car Reports. This all fits with Hyundai's promise, in 2014, to introduce a new all-electric car for the US market. We won't be surprised if it has wireless charging, too.

Hyundai, Los Angeles Times and Consumer Reports in fuel economy skirmish?

On Wednesday, Consumer Reports issued a story taking umbrage with the auto industry's move toward smaller, turbocharged engines, noting its own testing revealed that many such powerplants fail to deliver their promised fuel economy numbers. The story covered a variety of domestic and foreign automakers, with Ford and Chevrolet featuring prominently in the discussion. Hyundai was also mentioned for its Sonata Turbo, but the Korean automaker's family sedan came within one observed mile per gallon of its EPA ratings in CR's test, and its normally aspirated 2.4-liter counterpart actually beat its combined EPA ratings, 27 mpg to 26.
Good news for Hyundai, right? The automaker was so pleased with its report card that it sent out a small statement to a handful of news outlets including Autoblog, reading in part:
"We at Hyundai believe that Consumer Reports real-world average fuel economy testing results and EPA combined fuel economy results should correlate, and in fact do correlate nicely for some brands. Among all brands, Hyundai does particularly well in this correlation, with no high-volume brand having a better correlation between EPA combined and Consumer Reports real-world fuel economy."