2012 Kia Optima Ex Sedan 4-door 2.4l on 2040-cars

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Hyundai boosted production in March, so now its cars sit in U.S. ports

SEOUL — As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf. Consignments of cars shipped from South Korea are now sitting in U.S. ports, with dealers slow to take deliveries because of slumping sales and rising inventory, four people with knowledge of the matter told Reuters. The company idled a Tucson production line at home last week for five days, while sister firm Kia is looking to suspend three Korean plants for a week. And analysts now expect a sharp drop in first-quarter operating profit when it reports results on Thursday and some even forecast a second-quarter loss. "I hope that the situation will recover by the middle of next month. If not, we might have to lay off some people," said Brad Cannon, general manager of an exclusive Hyundai dealership in California, whose sales are down more than 50% from when the pandemic started. Hyundai runs a factory in Alabama — which is closed until May 1 — but imports are key to meet U.S. demand. Only about half of its vehicles sold in the United States are made in North America compared to between 68% and 85% for Japanese rivals Toyota, Nissan and Honda, who have also suspended production there till May. The South Korean company makes about 61% of its cars overseas, up from 48% a decade ago. That leaves it vulnerable to overseas factory shutdowns and shrinking demand outside of its home market. Hyundai's South Korean factory operation, which had recovered from a component shortage from China to nearly 100% capacity by March, could fall to as much as 70% in April, the company recently told analysts. "We will continue to monitor the situation and take appropriate action promptly," Hyundai said in an emailed statement. Minimizing the impact For its part, Hyundai has taken measures to minimize the impact.

Kia decides on Mexico plant location for small car assembly

Mexico has long been a hot spot for auto manufacturing, but the country's fortunes have been boosted lately, with Honda, Mazda and Nissan recently adding factories there, and BMW is said to be poised to join them soon. Now, new reports indicate that Kia might start building south of the border to keep up with demand.
Insiders speaking to Reuters claim that the Korean automaker is very close to striking a deal to build a factory for two small models in Monterrey, Mexico, with a 300,000-vehicle annual capacity. Assembly could reportedly begin as soon as 21 months after ground is broken.
If true, Kia has done a fantastic job of keeping the deal under wraps. The only hint at anything like this brewing was a rumor last year that Hyundai may have investigation building a factory in Mexico. The company currently operates a factory in Georgia that builds the Optima and Sorento.

2017 Kia Forte5 Quick Spin | Sporty compact, lots of bells and whistles

A few months ago, we drove the Honda Civic Sport and found it to be a surprisingly fun and frisky hatch thanks to quick steering, a snappy shifter, and a willing turbo engine. It's also somewhat unusual in being a driver-focused compact, available with a manual, but not solely concerned with performance; sort of a warm hatch as opposed to a hot hatch. Kia's own warm hatch, the Kia Forte5 SX, is a close match for the Honda in some ways, and even better in others – for a price, that is. The Forte5 SX starts on the right foot with its punchy turbocharged four-cylinder. It's the 1.6-liter unit, which you'll also find in the Elantra Sport and Veloster Turbo, and makes a healthy 201 horsepower and 195 pound-feet of torque that nearly matches the output of the sportier-than-the-Sport Civic Si. You'll never be waiting for that power either, as the turbo hardly lags, and any lag that is present is masked by how smoothly boost comes into play. The throttle is fairly responsive, and the revs don't get hung up between shifts like they do in the Civic Sport. The Kia continues in the right direction by offering a manual transmission, as our tester had. In fact, the turbo-equipped SX trim is the only way to get a shift-for-yourself transmission on the Forte5. It features reasonably short, light throws, and the gates are a breeze to find. It's a tad rubbery at times, and isn't quite as precise as the Civic Sport's lever, but you won't be disappointed by it. The responsive engine also makes it easy to rev-match downshifts, but the pedals could be a bit closer together for heel-and-toeing. This drivetrain is packaged in the crisp, clean hatchback body of the Forte5. It's refreshingly free of extraneous vents and badging, leaving the body tasteful and classy. It's a body that is happy to change directions, too. It turns in quickly and neutrally, with only mild body roll. The steering itself is also quick and accurate with virtually no dead zone. There are a couple of handling gripes, though. The helm feels a bit overboosted and fairly numb, the ride somewhat unrefined. The body feels less controlled than it should over bumps, and the tires aren't very grippy. Inside the Forte5, things are a bit dour. The only color on the dash aside from black are the modest number of chrome appointments strewn about. Some of the plastic has a faux carbon fiber texture, but it almost makes the dash look cheaper, or cheesier, than it could be with better material finishes.