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How the Koreans are cracking the luxury market

South Korea's two largest automotive brands are no longer the same companies they were when they first entered the world stage.
Anyone who visits Seoul after a few years absence is likely going to be in for a shock. What was, not that long ago, a decidedly third-world city is today a thriving, sprawling metropolis increasingly on a par with the world's most modern cities.

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.

2014 Kia Optima Hybrid shows its freshened face

Think back to the 2013 New York Auto Show, and you'll recall that the already attractive Kia Optima midsize sedan was re-schnozzed for the 2014 model year. The hybrid version was left alone, visually, though its powertrain was updated to provide more oomph and slightly better fuel economy. And now, the whole thing comes full circle - the fresh-faced 2014 Optima Hybrid is making its debut here at the Chicago Auto Show.
The new look is really the only news here, with a reworked front fascia that combines restyled Hybrid-specific LED lighting elements and new enhancements that Kia says improves aerodynamics. A similar touch-up has been given to the rear end, and new 16- and 17-inch wheel designs are also available.
Under the hood, the Optima Hybrid's powertrain is unchanged, the four-cylinder gasoline-electric system still putting out a combined 199 horsepower and 235 pound-feet of torque. Fuel economy is also unchanged for 2014, with the LX model estimated to achieve 36/40/38 miles per gallon (city/highway/combined), and the higher-grade EX estimated to net 35/39/37 mpg.