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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

2016 Hyundai Sonata Sport 2.0T Beauty Roll

For those of you paying attention, we've really ramped up the old Autoblog video game these days. Our new series Car Club USA joins Translogic and The List, and there are more Daily Drivers and Short Cuts than ever. But sometimes, all you care about is the car. The Autoblog Beauty-Roll video series has one goal: bring you glossy video images of cars, and nothing but. We're collecting moving pictures of all the cars we test, inside and out. Each episode comes with a hit of engine sound – start-up and with a few revs – to round out the package. Set your resolution to max, kick it into full-screen, turn up the sound, and enjoy today's subject, the 2016 Hyundai Sonata Sport 2.0T. Oh, and if you'd like more Beauty-Roll, click here to see the back catalog.

Hyundai i30 N, so probably Veloster N, to get dual-clutch transmission

Hyundai's N Performance division broke out of the starting gate with the i30 N in Australia, fitted exclusively with a six-speed manual transmission. Our first taste of a South Korean blue wonder will be the Veloster N launching later this year, and it also comes with that single gearbox. Hyundai executives told Australian site Car Advice an eight-speed dual-clutch transmission is on the way, but that it won't join the party until late 2019. That means we could see it in the Veloster around then or a little later, and it might portend future developments for the go-fast lineup. The in-house unit will be all-new, not a rework of the seven-speed EcoShift dual-clutch in the Veloster Turbo. It isn't clear whether the seven-speeder can handle the 279 pound-feet of torque in the top-spec N cars when on overboost. According to N Peformance boss Albert Biermann, the new eight-speed, wet-clutch, paddle-shifted gearbox has already been tested in the Kia Sorento diesel, which has 325 lb-ft of torque, and the 380-horsepower RN30 concept car. Ultimately, it will serve vehicles across Hyundai and Kia ranges. Although late introduction of a dual-clutch has been the plan all along, a Hyundai exec admitted "sales limitations" in offering a manual exclusively. Every prime rival offers dual-clutch transmissions. But Hyundai believed that it needed to appeal to the Euro hot-hatch purists first, and we can't blame it. The long delay between launch and DCT availability does raise questions and possibilities, though. Every N model unveiled so far sends all power to the front wheels because, according to Biermann, "Without a high amount of power there is no need to go to all-wheel drive." The introduction of the beefier eight-speed DCT that's ready to deal with at least 380 hp and 325 lb-ft could open up the way to even more powerful N versions and all-wheel drive, which has the potential to create real parity with segment rivals. Car Advice also reported that Hyundai Australia will cover track use in the five-year warranty on the i30 N. We'll wait to see if that line-item makes it to the U.S., but after the dual-clutch woes suffered by competitors like the Volkswagen Golf R and Ford Focus RS, such reassurance could go a long way with buyers. Eventually. Related Video: