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Hyundai sticks to EV rollout plans, sees solid growth this year

SEOUL — Hyundai Motor said on Thursday it would not delay plans to roll out new electric vehicles and was upbeat about prospects for continued growth this year — a contrast to recent steps by rivals to cut back on EV output. Electric vehicle sales are growing strongly but not as much as carmakers had forecast, with demand hit by high interest rates. "We do not plan to dramatically reduce EV production or our line-up due to likely near-term hurdles as we believe EV sales will grow longer term," Seo Gang Hyun, an executive vice president at the South Korean automaker, told an earnings briefing for analysts. The Hyundai Motor Group, which encompasses the Hyundai, Kia and Genesis brands, said in April it plans to launch 31 EVs by 2030. This includes the launch of the Ioniq 7 SUV next year. Seo said Hyundai's EV sales next year could be slightly lower than previously expected, but the automaker had the production flexibility to boost output of gasoline engine cars if demand shifted that way and he did not expect a significant impact on overall sales. When asked about the impact on Hyundai Motor of the United Auto Workers (UAW) union reaching a tentative labour deal with Ford, Seo said the company expects the deal will have an impact on wage increases at its U.S. factories, but such costs could be covered as the automaker has been putting effort into reducing costs, such as in logistics. Hyundai Motor, which is not a member of the UAW, operates an assembly plant in Alabama and is building a factory to produce EVs in Georgia. For the third quarter, Hyundai booked a net profit of 3.2 trillion won ($2.4 billion), more than double its year-earlier result and beating an LSEG SmartEstimate of 2.9 trillion won, with the automaker helped by a favourable exchange rate. Sales also increased, climbing 8.7% to 41 trillion won on solid demand for high-margin gasoline SUVs. Sales of EVs and hybrids also grew, up by a third to 169,000 units. This month has seen a flurry of downbeat EV announcements. Citing flattening demand for EVs, GM said it would delay production by a year of Chevrolet Silverado and GMC Sierra electric pickup trucks at a plant in Michigan. Ford is temporarily cutting one of three shifts at the plant that builds its electric F-150 Lightning pickup truck. Tesla is also slowing plans for a Mexico factory, while GM and Honda announced on Wednesday that they were ending a $5 billion plan to develop lower-cost EVs together.

Kia U.K. builds a 420-horsepower Stinger GT track car

The Kia Stinger GT is an admirable sports sedan, er, hatchback, with 365 horsepower. But Kia's U.K. branch wanted more, leading to the 420-horsepower Singer GT420 you see here. As Kia explains, the car used to create this one-off track car is actually the first Stinger GT pre-production test car in the U.K. It was used for final testing, photography, and was even featured on Top Gear and The Grand Tour. Once its testing and publicity duties were over, though, it was slated to be crushed. But some delaying and the idea of building a track car saved it. To get it to its final output ratings of 420 horsepower and 413 pound-feet of torque, Kia (with help from Hyundai Motor Group's technical team in Germany) added a high-flow air filter, aftermarket exhaust without catalytic converters, an upgraded transmission cooler, and an engine tune. The car also benefits from weight reduction: The whole car was gutted, taking out everything unnecessary for speed such as the sound system, rear seats, carpeting, bumper supports and more. Even with the addition of a roll cage and extra chassis braces, the car is just over 330 pounds lighter than stock. Handling and stopping capabilities were also enhanced with stiffer springs and thicker anti-roll bars, along with six-piston brake calipers and brake cooling ducts up front. The car also gets visual changes in the form of a front splitter and rear spoiler and diffuser, plus the bold vinyl wrap. Naturally, this isn't a production car, especially with the gutted interior and emissions non-compliant exhaust. But looking at the list of modifications, it wouldn't be hard to replicate the Stinger GT420 on your own. In fact, someone could probably exceed the car's performance, since there are some areas ripe for upgrading Kia skipped over, such as upgrading the turbochargers. Your move, tuners.

Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video: