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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, Kia add to 2.4 million cars recalled in U.S. over fires, engines

DETROIT — Hyundai and Kia have added more than a half-million vehicles to 3 1/2 -year string of U.S. recalls for engine failures and fires. Three recalls released Thursday by the government add new problems and vehicles to the Korean automakers' list of safety woes, which have brought hundreds of complaints about fires from across the nation. The companies have now recalled nearly 2.4 million vehicles for fire and engine failure problems since September 2015, and they are under investigation by the National Highway Traffic Safety Administration for potentially being slow to fix faulty vehicles. In addition, the companies are doing a "product improvement campaign" covering another 3.7 million vehicles to install software that will alert drivers of possible engine failures and send the cars into a reduced-speed "limp" mode if problems are detected. The largest of three recalls posted on the National Highway Traffic Safety Administration website Thursday covers nearly 379,000 Kia Soul small SUVs from 2012 through 2016 with 1.6-liter engines. Documents show that high exhaust gas temperatures can damage the catalytic converters, which control pollution. That can cause abnormal combustion and damage pistons and connecting rods. A failed connecting rod can pierce the engine block and cause oil leaks that can cause fires. In addition, Hyundai and Kia are recalling 152,000 Tuscon SUVs from 2011 to 2013 and Sportage SUVs from 2011 and 2012 to fix an engine oil pan leak that also can cause fires. Documents show that Kia had been investigating fires in Souls after the nonprofit Center for Auto Safety petitioned the government to look into the fires last year. In November, the automaker couldn't find any safety problem trends but it kept monitoring repair data and found the problem with the catalytic converters. All Souls with 1.6-liter engines made from July 8, 2011, through August 11, 2016, are being recalled. Dealers will replace a computer that prevents the catalytic converter from overheating. They'll also replace the catalytic converter and the engine if they have been damaged. Letters will be mailed to owners starting April 12. In the Tuscon and Sportage recalls, the fix for the oil pan problem is still being developed. Hyundai owners will be notified starting March 29, while Kia owners will get letters starting April 10.

Kia dealers report K900 flagship RWD sedan is coming to US

Kia has told dealers that it will bring a $50,000 to $70,000, rear-drive flagship sedan to the United States early in 2014, although it won't be called what you think. Instead of the unloved Quoris name, the full-size sedan will be called the K900.
That name change is a welcomed one, judging by our initial reactions to Quoris. Names aside, though, the K900 sounds like an interesting piece of kit. It'll be riding on the same platform as the Hyundai Equus, although we suspect Kia's car will be quite a different beast than it's corporate cousin. Automotive News is reporting that the K900 should have a pair of engines when it arrives in the US - a 3.8-liter V6 and a 5.0-liter V8. The former puts out 290 horsepower, while the V8, which is likely the same Tau engine found in the Equus, should have around 420 hp. LED headlights, adaptive cruise control and all the other trimmings expected at this price point will also make appearances on the K900.
Kia's national dealer council, Don Hobden, told Automotive News the K900 should represent "7-Series value for a 5-Series price." While Kia wouldn't comment on the new model, AN reports that it's targeting 5,000 units next year, with a limited rollout at select dealerships.