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2016 Hyundai Veloster Turbo Rally Edition Quick Spin [w/video]

Our year-long test of the Hyundai Veloster Turbo was a mixed experience. There were plenty of not-very-nice anecdotes about the blown Hyundai – at one point, our own Managing Editor Steve Ewing suggested we "stop thinking of the Veloster Turbo as a proper hot hatch," and Senior Editor Seyth Miersma said it was a car that "doesn't feel especially hot-hatchy." We felt this way despite the car's overt hot-hatch trappings: the red turbo badging, matte-gray paint, upgraded body kit, huge center-exit exhaust pipes, and sticky Michelin tires. Our reaction to this Rally Edition was lukewarm when it debuted earlier this year at the Chicago Auto Show. You can imagine, then, our trepidation with the arrival of the matte blue tester. As it turned out, a week behind the wheel proved that Hyundai has addressed a number of the complaints we lodged during our prior year-long Veloster test. Driving Notes There was only so much Hyundai could do to the Veloster during this year's mid-cycle refresh. That means the 1.6-liter, turbocharged four-cylinder is still there, writing checks its performance can't cash. We still get 201 horsepower and 195 pound-feet of torque, the latter of which is available between 1,750 and 4,500 rpm. Despite the generous torque spread, there's no sense of urgency with this engine. Pair that with the still persistent turbo lag, and the Veloster Turbo feels slower from behind the wheel than other hot hatches, even less powerful competitors like the Fiat 500 Abarth. There were a number of complaints about our Veloster Turbo's fuel economy during our year behind the wheel. At 24 miles per gallon, this Rally Edition managed to come in just under the EPA-estimated 25-mpg city rating, improving measurably on the less than 22 mpg Senior Editor Miersma returned in his long-term wrap-up. Still, we were four mpg below the 28-mpg combined rating in what was largely mixed driving. Aside from the unchanged powertrain, the Rally Edition brings a lot to the Veloster Turbo package worth liking. The inclusion of a B&M Racing short-throw shifter makes this gearbox not only easier but also far more enjoyable to manipulate, although the gearing is still too tall for our taste. The shift knob is just the right size, and the shift action feels rifle-bolt precise. It is delightful, aside from an annoying, almost inexcusable flaw, which you can see in the video below.

Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

Hyundai RM16 N mid-engine hatchback might be real

So, remember the Hyundai RM16 Concept? The South Korean automaker showed the mid-engine concept at the Busan Motor Show earlier this year, giving the world a glimpse of the menacing and mean future of the N performance brand. While we liked the look, we also lamented that "it doesn't seem any closer to reaching production." Looking at our latest round of photos from the Nurburgring, we might have been a smidge wrong. This car looks exactly like the RM16. Same huge flared fenders, same deep front intake, same rear bumper, and same side scoops for feeding the mid-mounted, 300-horsepower, turbocharged engine. Yes, we said "mid-mounted." While it's easy to see a mid-engine concept and figure, "Meh, it's just an auto show car, the real one will be front-engine, front-drive," it certainly doesn't seem to be the case here, judging by the swollen rear aches, camouflaged rear windows, and enormous side scoops. Really, the similarities between the car shown above and Busan's RM16 is staggering. If we're seeing the production RM16, it's a huge deal. First, because mid-engine, rear-drive hatchbacks are one of the craziest and rarest automotive species - see the Renault 5 Turbo, Renault Clio V6 Renault Sport, and Lancia Delta S4 for examples. Second, and obviously, a mid-engine Hyundai would mark a dramatic departure from today's crop of all-wheel-drive hot hatchbacks, like the Volkswagen Golf R and Ford Focus RS. We're guessing Hyundai's car would enjoy both better handling and lighter weight, while asking drivers to sacrifice most of hatchback practicality. We also don't really know what to make of Hyundai's testing regime. According to our spies in Germany, Hyundai did a single lap of the Ring before heading out. Wet conditions could have called for a shortened day, but it seems odd to come out of the garage for a single lap, weather be damned. At this point, it's genuinely difficult to predict what Hyundai's up to. This car looks relatively finalized, right down to the tongue sticking out of the grille that could be a radar unit. We can't begin to predict when or where this car will debut, if at all. The Geneva Motor Show is a good bet, but that's a total shot in the dark on our part. All we know is that we would love it if this is Hyundai's first N Performance car.