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Trump wants a trade deal, but South Korea doesn't want US cars

SEOUL - US auto imports from the likes of General Motors and Ford must become more chic, affordable or fuel-efficient to reap the rewards of President Donald Trump's attempts to renegotiate a trade deal with key ally South Korea, officials and industry experts in Seoul say. Meeting South Korean President Moon Jae-in last week in Washington, Trump said the United States would do more to address trade imbalances with South Korea and create "a fair shake" to sell more cars there, the world's 11th largest auto market. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." While imports from automakers including Ford, Chrysler and GM more than doubled last year largely thanks to free trade deal which took effect in 2012, sales account for just 1 percent of a market dominated by more affordable models from local giants Hyundai and affiliate Kia. Imports make up just 15 percent of the overall Korean auto market, and are mainly more luxurious models from German automakers BMW and Daimler AG's Mercedes-Benz, which also benefit from a trade deal with the European Union. "Addressing non-tariff barriers would not fundamentally raise the competitiveness of US cars," a senior Korean government official told Reuters, declining to be identified because of the sensitivity of the subject. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." TASTE BARRIER In Korea, US imports are seen as lagging German brands in brand image, sophistication and fuel economy, industry experts say. US imports do have a competitive advantage in electric cars: Tesla Motors' electric vehicles are seen as both environmentally friendly and trendy, while GM has launched a long-range Bolt EV. US Commerce Secretary Wilbur Ross had cited a quota in the current trade deal as an obstacle to boosting imports. The quota allows US automakers to bring in each year 25,000 vehicles that meet US, not necessarily Korean, safety standards. Should GM, for example, decide to bring in more than its quota of one model - the Impala sedans - it would cost up to $75 million to modify the cars to meet Korean safety standards, the company told its local labor union. Asked about non-tariff barriers, a spokesman at GM's Korean unit said removing them could expand the range of models the company can bring in from the United States. No US company, however, has yet to make full use of the quota, industry data shows.

Hyundai-Kia fuel-economy errors trigger $300M in federal penalties [w/video]

This amount includes $100-million in civil penalties, the largest such fines in EPA history.
Hyundai and Kia are getting more than a slap on the wrist for overstating the fuel economy of an estimated 1.2-million vehicles in their 2011-2013 model ranges. The Environmental Protection Agency, the Department of Justice and the California Air Resources Board are hitting the automakers with collective penalties valued at around $300 million for Clean Air Act violations. This amount includes $100-million in civil penalties, the largest such fines in EPA history. Specifically, Hyundai is paying a $56.8 million penalty and relinquishing 2.7-million greenhouse gas emissions credits. Kia is paying $43.2 million in penalties and giving up 2.05-million credits.

Does this Hyundai Intrado concept preview the next Tucson?

The second generation of Hyundai's Fluidic Sculpture design language has arrived a bit early, thanks to these leaked images of the Korean automaker's Intrado Concept. Set to make its big debut at next month's Geneva Motor Show, the three-door crossover is based on a next-generation version of the hydrogen powertrain used in Europe's ix35 Fuel Cell (that'd be a hydrogen Tucson, for anyone who's wondering).
We can see some 2015 Genesis Sedan in the grille, but the sharp, narrow LED headlights are something different. The c-shaped LED taillights also look good, although we're less sure about the odd fairings around the wheel wells. Overall, it's not a terrible design in our minds, but it probably won't be the pretties vehicle to debut in Geneva.
But instead of focusing on the design, let's talk about what impact the Intrado may have on Hyundai. Aside from the hydrogen powertrain, it seems as if the Intrado's design is too conservative to be a pure concept. Instead, and as you may have guessed from our headline, we're thinking this could be a preview of the next-generation Tucson. Considering the Tucson and its cousin the ix35 are the oldest vehicles in Hyundai's lineup (not counting the Sonata, which is getting replaced at the New York show) and it's a vehicle sold worldwide, previewing its replacement on a stage as big as Geneva doesn't strike us as a bad idea.