2014 Kia Optima on 2040-cars

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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, Kia announce buyback plan for angry Korean investors

Hyundai's controversial decision last September to move its Korean headquarters to an expansive (and expensive) new facility was met with a swift backlash by shareholders. After making the biggest land purchase in South Korean history, the company's share price took a nine-point nose dive.
Now, in a bid to get back in the good graces of its stockholders, Hyundai and its subsidiary, Kia, will make a $615-million stock buyback plan. Reuters claims this is the first time in ten years that Hyundai has made a buyback offer with the explicit purpose of pumping up share prices.
The total deal bumped up Hyundai's share prices 5.7 percent while Kia is up two percent, although neither company has fully recovered from the battering that followed the headquarters announcement. It's unclear what else it will take for Hyundai to recover the ground it lost during the land deal.

Kia reveals sketches of its millennial-bait compact crossover

Kia has made the splash we had expected back during the New York Auto Show, just now releasing sketches of its coming compact crossover. This will be the production offering based on the SP Signature concept shown at the 2018 Auto Expo in India. It has been specifically "created for the millennial generation" with a "wide range of features and technologies suited to younger buyers," and is somehow promised to offer "the space and capabilities of a traditional SUV in a compact package." The sketches look like artistic versions of the actual concept, given the usual inflations of broad beam and giant wheels. Design traits left untouched from the SP concept include narrow, LED headlights that slide into a reworked "tiger nose" grille. An LED DRL runs almost the entire width of the front fascia, interrupted only by the pinch in the center of the grille. Three-lamp fog lights replace the vertical lights on the concept. In back, LED taillights grasp a chrome accent bar with caliper-like extensions. They further accentuate the already-exaggerated width of the sketch. We have a feeling the production car's plan view will be more in line with the concept, but there will be a touch of sleekness in the raked rear glass. The carmaker also says some of the design cues will show up on other products like the Sorento and Sportage. The compact crossover will launch in South Korea and supposedly India later this year, with other markets to follow. It's won't go on sale in Europe, but a U.S.-market launch should happen with the global rollout, perhaps early next year.