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Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Hyundai takes fully autonomous fuel cell vehicles on 70 mph road trip

Hyundai has announced three test vehicles based on its upcoming NEXO fuel cell vehicles, fitted with Level 4 autonomous technology, have completed a trial journey of 118 miles from Seoul to Pyeongchang across the Korean peninsula completely autonomously. It's a world first for fuel cell powered vehicles to reach Level 4 autonomous driving, which translates as "mind off" driving with no driver input needed. One of the interesting things about the NEXO fleet's trial is that it was performed in regular traffic at public highways, at speeds up to nearly 70mph. Earlier autonomous car testing in Korea has been performed on selected sections of road and at lower speeds than the highest allowed Korean highway speed reached in this trial. Hyundai says the test drive included following the traffic's flow, completing lane changes, and even handling motorway toll booths — and that the only human intervention needed was pressing "Cruise" and "Set" buttons on the three cars' steering wheels, to put them in autonomous mode. The NEXO has been designed as a hydrogen fuel cell car from the ground up, instead of the earlier, ICE-based Tucson FCEV. Hyundai claims a target range of 500 miles (NEDC) for the NEXO, for a single, five-minute hydrogen charge, and a system efficiency of 60 percent. On the run to CES from L.A. last month, Hyundai declared a real-world range of 360 miles for the tested NEXO; the 120-kW motor takes the fuel cell crossover to 60 mph in 9.9 seconds. The vehicles used in the South Korean trial use a combination of radar, lidar and cameras to monitor their surroundings, and some of these systems are already used in production Hyundai vehicles. At CES, Hyundai announced its partnership with Aurora Innovation, which is a Silicon Valley startup set up by former Alphabet Inc and Tesla engineers; the autonomous NEXOs are likely to feature Aurora's input. Hyundai sees commercialization of Level 4 vehicles taking place in 2021, though only in what it calls "pilot smart cities," or locations tailored to be connected enough to make the implementation of autonomous tech easier. "Fully" autonomous driving would be at commercial level by 2030. As for the vehicle itself, it features virtual assistant technology that is complemented with noise canceling to further turn the NEXO into a cocoon-like pod; there's also "Home Connect" tech which enables the passengers to use smart home gadgets remotely during their commute. Related Video:

Genesis changes its mind on retail plans

Genesis will apparently open the doors to its nascent dealership network to all existing Hyundai dealers, reversing its earlier plan to launch a separate, much more limited retail network as a way to distinguish the brand. The brand's general manager, Erwin Raphael, told Hyundai's dealer council last week that Genesis would allow all Hyundai dealers the opportunity to sell the luxury brand in the U.S. That amounts to a 180 on plans announced in January, when the two-year-old spinoff said it planned to build out a network of about 100 Genesis retailers in around 48 mostly urban luxury markets, with first dibs on the franchises going to high-performing Hyundai dealers. The plan was to have separate branding, with the long-term goal of having them all operating out of standalone facilities after launching in temporary or shared showrooms. Per Automotive News, Genesis will no longer confine its sales to those 48 markets. All Hyundai dealerships will be able to apply to be licensed as Genesis dealers, though 2019 models will only be shipped to the newly franchised Genesis retailers. About 350 "elite" Hyundai dealerships that already sell the G80 and G90 sedans can continue to sell them, or take previously offered settlement money and move on. Those who become or remain Genesis dealers will have to sign new or separate franchise agreements that were expected to go out this week or next. Genesis will still require separate, standalone stores and service facilities. The news will likely please Hyundai dealers who have been frustrated or confused by Genesis's rollout strategy and are eager to play a role in the brand's growth. It also could provide a sales lift for Genesis, whose sales during the first four months of 2018 fell 17.5 percent to 5,390. They'll also be hoping for a boost when the compact G70 sedan launches this summer. Related Video: