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Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.

Hyundai Fined $17.35 Million For Delayed Recall

Hyundai has agreed to pay a $17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars, the National Highway Traffic Safety Administration said Thursday. The defect involves corrosion in critical brake system components that can reduce braking effectiveness and increase the risk of a crash, NHTSA said. Hyundai was aware in 2012 that brake fluids used in the model year 2009-2012 Genesis cars did not sufficiently inhibit corrosion in key components of the vehicle's brake system, the agency said. But rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences that failure to take that action might have, NHTSA said. Hyundai also did not inform Genesis owners of the potential safety consequences, the agency said. Hyundai recalled 27,500 of the cars in October 2012 just hours before the government opened an investigation. "Hyundai failed to act to protect their customers and others that were harmed in an accident, and must change the way they deal with all safety related defects," David Friedman, head of the safety administration, said in a statement. About 70 percent of the affected Genesis cars have been repaired so far, the safety administration said. Hyundai is committed to ensuring immediate action in response to potential safety concerns, including the prompt reporting of safety defects, said Jim Trainor, a senior group manager for Hyundai Motor America. "In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements, and enhancing the ability of its U.S. leadership team to readily respond to regulatory reporting requirements," he said in an email. In May, the safety administration slapped General Motors with a record $35 million fine Friday for taking more than a decade to disclose an ignition-switch defect in millions of cars that has been linked to at least 13 deaths. Earlier this year, after a four-year criminal investigation, the Justice Department made Toyota pay $1.2 billion for concealing unintended acceleration problems from NHTSA. No individuals were charged with a crime. Related Gallery Safest Crossovers For The Budget-Conscious Family View 10 Photos Recalls Genesis Hyundai NHTSA brakes

2019 Hyundai Veloster shows off its colorful new face

The next-gen Hyundai Veloster is coming soon. When I was in Korea for the launch of the new Hyundai Kona, all three variants — standard, Turbo and N — were trotting around the automaker's proving grounds, teasing and laughing at us since we weren't allowed to use our cameras. After some sleuthing, we uncovered some new info. Thanks to the automotive media back in Korea, we have what appears to be official images of the new Veloster Turbo done up in some of the best-looking camouflage we've seen in a long while. The car will make its full debut at the Detroit Auto Show in January. It seems the car was shown off to the Korean press at Inje Speedway in Gangwon Province. The car retains the same basic three-door layout of the old model. That means two doors on the passenger side and one for the driver. The shape may be generally the same, but the car looks far cleaner than before. It's as if Hyundai's designers smoothed out all the lines and pulled the bodywork tighter to the frame. Like before, the exhaust appears to exit from the center, though the N model I saw in Korea and in spy photos has a more traditional dual-exit exhaust pipe. Floating red-painted calipers appear to clamp on some pretty large rotors. There appear to be two wheel designs, too. There aren't any photos of the interior, but once again our spy photographers have come through. The press release we found also lists a new heads-up display. Since these photos came from Korea, we contacted representatives at Hyundai here in the U.S. for more info, but weren't given any clear answers. All we were told was that the images came from their counterparts in Korea. Expect the Veloster Turbo to share the 201-horsepower turbocharged 1.6-liter inline-four and transmissions from the Elantra GT Sport. Korea apparently gets a 1.4-liter engine, but it's unclear if that's coming here. We hope the hopped-up Veloster N will get the 271-horsepower turbocharged inline-four from the i30 N. Hyundai has been on a killer roll as of late. We can't wait to drive this. Related Video: