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Hyundai, union reach tentative labor deal

According to Reuters, South Korea's labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won - around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it's a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We'd wager that this is why US inventories haven't been hit quite so hard aside from the battering already taking place. The proposal will now go before the union's rank and file.
If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months' salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).
Based on Reuters' report, the work stoppages must have taken a real toll on Hyundai - its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

Don't call it a minivan: Kia previews new Sedona Grand Utility Vehicle

Kia sells more crossovers than ever, but it's not forgetting about its entry into the minivan segment. It released a design sketch to preview the next-generation Carnival, which is known as the Sedona in the United States. Stylists shun the increasingly unpopular minivan label; they claim they've created a Grand Utility Vehicle whose design is more stylish, more futuristic, and, somewhat inevitably, more SUV-like than the outgoing model's. The sketch released by the South Korean firm indicates the Sedona's front end receives a taller, flatter hood, a bigger grille with vertical slats and a chrome-look frame, plus thin horizontal lights accented by LED elements. Its overall proportions don't drastically change, no one's going to mistake it for a Stinger, but blacked-out door pillars create the illusion of a floating roof. We don't know what the rear end looks like yet, though the company noted the horizontal crease below the window line links the lights on both ends. The alloys are gigantic, but keep in mind we're looking at a design sketch. The production model will ride on smaller wheels with more sidewall. We'll need to muster a little bit of patience to find out what the Sedona looks like inside, or what its sheetmetal hides. Practicality is the name of the game in the minivan segment, so Kia will likely pack an array of clever features into the van to make commuting, kid-hauling, and road-tripping easier. Seeing a hybrid powertrain join the specifications sheet would make sense considering the market's on-going shift towards electrification, but nothing has been confirmed at this point. The current-generation Sedona receives a 3.3-liter, 276-horsepower V6 for the American market, and we wouldn't be surprised if it downsizes to a turbocharged four-cylinder. Kia will introduce the fourth-generation Carnival this summer, and the model will go on sale in its home country in the third quarter. It will begin arriving in other global markets shortly after. Although the company didn't specifically mention the United States, we'd bet on seeing it in showrooms as a 2021 model. Minivans are getting their lunch money taken by crossovers here, but the segment remains reasonably big. Kia is one of its underdogs: It sold 16,000 examples of the Sedona in 2019, while Honda and Chrysler each found nearly 100,000 buyers for the Odyssey and the Pacifica, respectively, and Toyota reported 73,585 Sienna sales.

Hyundai outlines EV strategy as it struggles with cost of engine defects

SEOUL — South Korea's Hyundai Motor pledged to boost sales of electric vehicles to over half a million by 2025 as part of a bid to focus on new technologies and catch up with rivals, but some analysts saw the target as conservative and warned of the costs. The announcement by Hyundai, the world's fifth largest car maker along with affiliate Kia Motors, underscores the accelerating strategy shift under Euisun Chung, who became the motor group's executive vice chairman last year. Hyundai announced a $35 billion investment last week in mobility and other auto technologies by 2025, less than a month after unveiling a $1.6 billion deal to develop self-driving vehicle technologies with Aptiv. The firm said on Thursday it plans to launch 16 EV models by 2025 to boost sales of such vehicles 17-fold to 560,000 by that year. Still, that would be equivalent to just over 10% of its projected global sales this year. The projection compares with more bullish forecasts offered by its bigger rivals. Volkswagen AG expects to make 22 million EVs over the next decade, while General Motors aims to sell 1 million EVs annually by 2026. "That is not an ambitious target. If Hyundai fails to boost volumes fast enough, costs of electric cars will weigh on profitability," Lee Jae-il, an analyst at Eugene Securities & Investment. Hyundai said that the EV market would face intensifying competition and oversupply soon and automakers failing to meet toughening European emissions regulations will face heavy penalties and suffer a serious blow to their reputation. "EV supply is expected to surpass demand from the second half of next year," Ka Suk-hyun, vice president of Hyundai Motor, told an earnings conference call. Quality issues Hyundai's third-quarter net profit rose 59% to 427 billion won ($365 million), well below the average 684 billion profit estimate of analysts based on Refinitiv data, due to 600 billion won provisions it earmarked to address potential engine defects in the United States and South Korea. Quality issues have been a major drag in Hyundai's attempt to steer a recovery from six consecutive annual profit declines and constrained its financial firepower to invest in future technologies. It is still under investigation by U.S regulators and prosecutors over potential faulty engines in some models. Total retail sales fell 3% in the third quarter, as higher U.S.