2014 Hyundai Sonata Hybrid Limited on 2040-cars

Auto blog

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 forecasts slowest sales growth in 8 years

Even with the arrival of the new Hyundai Genesis Sedan (above) and the expected introduction of at least two other new vehicles in 2014, Hyundai-Kia is estimating its sales will only increase by about 4.1 percent this year. Bloomberg has found that figure, which works out to a total of 7.86 million vehicles worldwide, to be lower than average analyst estimates of eight million vehicles. If the automaker is correct, that figure will represent the most sluggish growth for the Korean brands since 2006.
Based on an exchange rate of 1,050 won to the dollar - right now it's trading at anywhere from 1,050 to 1,052 depending on where you look - Hyundai is predicting a 3.8-percent uptick for sales of 4.9 million units, while Kia is expecting a 4.7-percent uptick for sales of 2.96 million units. That exchange rate is predicted to be part of what will hamper sales this year, with a stronger South Korean won making Japanese cars more price-competitive when cross-shopped. It's unclear how Hyundai derived its exchange rate, but 1,050 won to the dollar almost matches the 52-week high for all of 2013.
The company chairman mentioned a "low growth era" in the world economy, and weaker US sales are rumored to at least part of the reason John Krafcik recently vacated the post of Hyundai Motor America CEO, a post that has been filled by executive vice president of sales, David Zuchowski. That unexpected news capped a year in which two top execs resigned over quality issues and recalls and Hyundai agreed to settle a consolidated lawsuit over inflated fuel economy ratings for $395 million.

Hyundai Nexo revealed at CES: Hydrogen SUV finally gets a name, more photos

Hyundai Nexo, that's the name of the fuel-cell electric vehicle to succeed the Tucson FCEV. Built on a dedicated platform instead of using a converted ICE architecture, as the Tucson did, the Nexo packs a lighter, more compact hydrogen powertrain and a more powerful electric motor to deliver improved performance everywhere. The Nexo also plays a key role in Hyundai's "Hydrogen Life Vision," which aims at integrating hydrogen as a home energy source. The power density of the Nexo's stack increases by 50 percent, and overall system efficiency goes up 5.1 percent. The smaller engine contains fewer moving parts, and even the hydrogen tanks are 36 pounds lighter than those in the Tucson FCEV. View 11 Photos The Tucson FCEV uses a 100-kW electric motor that provides 221-pound-feet of torque, and after the 90-second preparation and stack heating time on startup, the Tucson accelerates from zero to 60 miles per hour in 12.5 seconds. The Tucson's two storage tanks held 140 liters of hydrogen (37 gallons) that could provide about 295 miles of range and an EPA rating of 50 mpge. The Nexo uses a 120-kW motor with 291 lb-ft, is ready to go in 30 seconds after starting, and accelerates to 60 mph in 9.9 seconds. The new FCEV's three storage tanks hold 156 liters of hydrogen (42 gallons), which Hyundai says are good for more than 350 miles on the EPA test cycle. In a real-world run from Los Angeles to Las Vegas, Hyundai said the Nexo returned a 360-mile range and 57 mpge. Refilling the 700-bar system will take five minutes. The Nexo will introduce some of the carmaker's new technology, too. Lane Following Assist keeps the Nexo in the center of its lane in the city and on the highway, and recognizes road edges when lane markings aren't clear. Blind-spot View Monitor displays an image of either side of the vehicle when the driver plans to change lanes. The Nexo parks itself autonomously, and returns, with Remote Smart Parking Assistant Hyundai envisions owners of this second-generation FCEV beginning to use the Nexo as an integral part of their lives, not merely as an appliance. At the Consumer Electronics Show, Hyundai will have the Nexo hooked up and providing power to a demo household as part of the automaker's "Hydrogen Life Vision." The carmaker's also got plans for using the Nexo's "pure water to grow vegetation" (water and water vapor are the only emissions byproduct of FCEVs).