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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

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.

Car dealership gives man a new car after his is tagged with racist graffiti

Update: The Facebook post from the passerby mentioned is no longer available, and has been removed from the text. A man in Arkansas who found his pride and joy broken into and covered in racist graffiti has a new set of wheels, thanks to one generous car dealership. Reshod Johnson left his car parked outside of his place of work for just 15 minutes last week while he retrieved chairs for his son's third birthday party. When he returned, he found his belongings scattered across the street and racist terms spray painted on his car. "I just don't understand it. I don't do anything to hurt anybody," Johnson told THV11. "I don't go out looking for trouble." A friend spotted two white men fleeing the scene in a red truck. He made a police report, but as a full time student and former veteran with Christmas around the corner and a three-year-old at home, money is tight. Johnson made the painful decision to continue to drive his 2006 Nissan with the hateful messages intact, though he was keeping his young son away from it. "We're supposed to have advanced past this and to serve the country and to serve for everyone and to fight for rights and freedom for everyone and for this to happen, it's like a slap in the face and makes you wonder for what," Johnson told THV. When a passerby saw the damage, she became emotional and posted about the incident on Facebook. According to 9news.com, the post drew a ton of help and attention to Johnson's story. Steve Landers Kia saw Johnson's story and decided to help. They donated a new ride to Johnson just in time for Christmas. They said it was the least they could do for a veteran who experienced horrific random hate. "Times are hard out here and he's a veteran," an employee for Steve Landers Kia told 9News.com. "We're just trying to help the community out."Related Video: Weird Car News Kia Maintenance Ownership Safety vandalism veterans graffiti racism