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Autoblog Minute: Toyota factories closed after explosions in China

Fallout from explosions at the port city of Tianjin halt Toyota production in two of its nearby Chinese factories. Autoblog's Adam Morath reports on this edition of Autoblog Minute. Show full video transcript text [00:00:00] Fallout from explosions at the port of Tianjin halt Toyota production in two of its Northern Chinese plants. I'm Adam Morath and this is your Autoblog Minute. Two of Toyota's plants are closed following the deadly explosions that hit the busy port city of Tianjin, China. The Associated Press reports over 100 people dead, hundreds injured and many still missing. According to the Japanese automaker 50 Toyota employees were injured in last weeks [00:00:30] event and they plan to shut down production in their Chinese plants until Wednesday. Various automakers were also affected, including Renault and Hyundai who claim a significant loss of vehicles. As the Chinese government works to investigate the cause and fallout of this tragedy our thoughts are with the victims and their families. For Autoblog, I'm Adam Morath. Autoblog Minute is a short-form video news series reporting on all things automotive. Each segment offers a quick and clear picture of what's happening in the automotive industry from the perspective of Autoblog's expert editorial staff, auto executives, and industry professionals.

Hyundai Kia asked to pay $28.9M in patent infringement case

After years of litigation, Hyundai and Kia have lost their hybrid technology patent infringement case against Paice LLC. The jury ordered the South Korean automakers to pay $28.9 million, but according to Bloomberg, because the violation was allegedly intentional, the judge could triple that amount. The automakers have announced plans to appeal the ruling. Paice's patent dates from 1994 on a piece of tech called the Hyperdrive, and it was a way to seamlessly switch between power from an electric motor and an internal combustion engine. This lawsuit was first filed in 2012 and covered the systems in the Hyundai Sonata Hybrid and Kia Optima Hybrid. According to Bloomberg, the companies tried to argue that the patent was no longer valid, but the strategy failed. "Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit," the company said in a statement to Autoblog. Paice is certainly no stranger to litigating over the Hyperdrive patent, though. It and Toyota had a similar court battle that lasted years. Eventually, there was a settlement, and the result was Paice getting royalties for each hybrid that the Japanese automaker sold. Similarly, there's a lawsuit pending against Ford over tech in the C-Max, Fusion, and Lincoln MKZ. Hyundai Statement: Hyundai believes that the verdict returned by the jury today in the matter of Paice v. Hyundai Motor Company et al., is not supported by the evidence. Accordingly, Hyundai has requested that the presiding judge enter a judgment in its favor notwithstanding the verdict. Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit.

Hyundai mulling new small CUV under Tucson

Hyundai maintains it can barely build enough of its core models to satisfy North American consumers, but that doesn't mean it isn't keen to expand its offerings to capture developing segments of the market. According to Edmunds, one of those expanding niches could be the burgeoning subcompact crossover segment. The website quotes Hyundai North America president and CEO John Krafcik as acknowledging his company is "very under-represented" in crossovers, the market's hottest vehicle type.
With the discontinuation of the Veracruz, Hyundai is down to two CUV nameplates, Tucson (pictured) and Santa Fe, the latter of which covers two segments with a two-row Sport and long-wheelbase three-row model. And while Hyundai commands seven percent of the US sedan market, the company estimates it only has two percent of the truck segment.
And while Krafcik stops short of confirming a new model, he acknowledges "a new segment is emerging" underneath the Tucson and says, "I think it's something to look at." At the moment, the subcompact softroader segment remains small and somewhat amorphous, with tiny CUV offerings like the Buick Encore, Nissan Juke, and now-discontinued Suzuki SX4 illustrating that there are a lot of different ways to package and market such a vehicle.