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Hyundai Motor reassigns 17 top execs to make way for fresh ideas

SEOUL — South Korean conglomerate Hyundai Motor Group shook up its executive ranks on Tuesday and appointed its first foreign head of research and development, raising expectations of a smooth transition of power at the family-run business empire. The reshuffle, first reported by Reuters on Tuesday and confirmed by Hyundai on Wednesday, is part of preparations for generational change in the executive ranks at South Korea's second-largest family-owned business empire. Group President Albert Biermann, a German former BMW executive, was named head of research and development, replacing longtime executives Yang Woong-chul and Kwon Moon-sik. The move was seen as a significant step to bring in fresh ideas at the Korean-dominated group. In all, 17 top executives were reassigned across the group including at Hyundai Motor Co and Kia Motors Corp — which together form the fifth-biggest automaker in the world. The move follows the promotion of Euisun Chung in September to Hyundai Motor's executive vice chairman, moving him closer to succeeding his 80-year-old father, Mong-Koo Chung, as group chairman. It comes as Hyundai Motor Co battles to reverse falling profits as a result of U.S. recall costs and weak sales in the U.S. and Chinese markets. Hyundai Motor Co shares jumped as much as 9 percent to their highest level since Oct. 10, while shares in affiliates like Hyundai Mobis, Hyundai Wia and Hyundai Glovis also rallied. While the announcement by Hyundai on Tuesday of a major investment in fuel cell production also lifted sentiment, analysts said most of the share price rise could be attributed to the leadership changes. In particular, it signaled that the junior Chung was making progress with his plans to restructure the sprawling group after a previous plan was scrapped due to opposition from U.S. hedge fund Elliott. "The reshuffle signals that the junior Chung is tightening his grip on the conglomerate, a move which raises investors' hopes for change," said Kim Joon-sung, an analyst at Meritz Securities. Ascendance of outsiders In a sign that Chairman Chung's grip may be weakening, one of his closest lieutenants, Hyundai Motor Co Vice Chairman Kim Yong-hwan, was reassigned away from the core automaker and named vice chairman of steelmaking affiliate Hyundai Steel.

We get our hands on Android Auto [w/video]

After a week with version one of Android Auto in a 2015 Hyundai Sonata, my opinion is that it fulfills the promise of the technology. I couldn't even exploit it fully because I'm not married to the Android ecosystem. At my desk right now there's a PC in front of me, an iPad on my left, and an Android phone on my right. My Android phone is, in fact, so old that it's not compatible with Android Auto. So in addition to a Sonata, Hyundai let me borrow a Nexus 5 smartphone and a Motorola Moto360 watch. Yet even with all that gear, which, in practical terms is someone else's borrowed digital life, Android Auto still showed itself to be tech worth having. When you start the Sonata you get the standard Hyundai infotainment screen. Plug your phone in, and you'll get an option to click over to Android Auto. At that point, you lose the ability to use your phone, which is the purpose of the system, to keep you from using the handset. Since the contents of your phone are ported to the head unit, there is hardly any reason to reach for the portable device anyway. The Google Now screen comes up first, populated with a series of notifications resulting from Google having learned your life and kept track of where you've been going, who you've been calling, and what you've been searching for. After only two days, Google Now understood that I probably lived in Venice, CA, and not in Orange County, where the phone had previously resided. No matter the make of car, the interface is the same. The icons along the bottom of the screen indicate Navigation, Phone, Home (Google Now), Audio, and Return – to go back to the car's native interface. The first four options represent much of what we use our phones for (we'll get to texting in a second), and that's what buyers want: for cars to work seamlessly with their phones. Oh, and to have voice recognition actually be useful. Android Auto works with the Hyundai system, so if music is playing when you turn the car on, it will continue to play even though you're in Android Auto, and you can control it through that interface. Switching to media or apps on your phone is as easy as saying, "Play music," which defaults to Google Play, or pressing the audio button and choosing an app like JoyRide or NPR One. You do have to figure out how to speak to the system. I couldn't find any list of Android Auto-specific voice commands, so sometimes it would take a few tries to figure out how Google liked to be ordered around.

Hyundai Tucson Fuel Cell sales not hitting target [UPDATE]

UPDATE: Hyundai spokesperson Derek Joyce contacted Autoblog to clarify that 1,000 units is a global production goal, not a sales goal. Hyundai's aim to get 1,000 examples of the Tucson Fuel Cell out to the public worldwide is falling well behind the company's original hopes. As of the most recent accounting through May 2015, the Korean automaker has managed to move just 273 of them globally since the FCVs first went on sale in Korea in 2013. Hyundai reportedly sold 76 Tucson FCVs in 2013, 128 in 2014, and 69 so far this year, according to Korea's Yonhap News Agency. Of those, the vast majority were shipped to the US and Europe with 116 and 117, respectively. Another 29 remained in South Korea. However, the automaker's vice president of corporate and product planning in the US said in May that it had actually only leased about 70 of the vehicles here. The 1,000-unit global goal by the end of 2015 is almost certain not to be met. The Yonhap News Agency points to a lack of refueling infrastructure as a major problem in marketing the Tucson Fuel Cell. There are 11 hydrogen stations in all of South Korea, and just of them are in Seoul. The situation isn't much better in the US with around 10 of them open to the public, mostly in California. In Korea, cost is also an issue because even the recently reduced price of 85 million won (76,170) is high and comes without government subsidies.