2011 Kia Sorento Ex on 2040-cars

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2021 Kia K5 starts at $25,455, just $100 more than outgoing Optima

The 2021 Kia K5 continues this year's trend of carmakers placing minimal premium on a brand new or heavily revised model. Cars Direct got a look at an early order guide showing that Kia's new midsize sedan will start at $23,490 before a $965 destination charge, for a total of $24,455. The destination fee doesn't change, and the MSRP is but $100 more than the outgoing entry-level 2020 Optima LX. That also puts the Kia $120 under the 2020 Hyundai Sonata SE, $520 under the Honda Accord LX, and $925 below a Toyota Camry SE. The K5 is powered by a 1.6-liter turbocharged four-cylinder with 180 horsepower and 195 pound-feet of torque shifted through an eight-speed transmission, giving it a little less horsepower than the competing trio — the 23 hp given up to the Toyota is the largest difference — but more torque than the other three.   The K5's trim steps have been rearranged compared to the Optima, so instead of LX, S, Special Edition, EX, EX Premium and SX, there will be the K5 LX, LXS, GT-Line, EX and performance-minded GT. The LXS will start at $27,555, the GT-Line at $30,055. Those will be the only two trims offering AWD, and the four-wheel system has late availability as well. Cars Direct didn't mention a price for the EX.   The GT and its exclusive 2.5-liter turbo four-cylinder with 290 hp and 311 lb-ft tied to an eight-speed dual-clutch gearbox will be late availability. The order guide showed that trim costing $31,455 after destination. That's $1,700 less expensive than the less powerful, top-of-the-line Optima SX. Among rivals, only the V6-powered Camrys come close to the K5's output, with 301 hp and 267 lb-ft from a 3.5-liter V6. The Camry TRD stands at $670 more than the K5, butt the only big-ticket extras available for the Camry TRD are two-tone paint jobs costing from $500 to $925. One of the K5 options will be a GT1 Package that adds LED headlights, better driver assistance features such as forward collision avoidance and park assist, adaptive cruise control, semi-self driving on the highway, 12-speaker Bose audio, ventilated front seats with memory, and more. Upgrading to GT1 spec will cost $4,000, taking the price to $35,455. The Toyota Camry TRD V6 doesn't offer some of the GT1's finer tech. The Toyota Camry XLE V6 needs to be optioned up to match a K5 GT1, the Toyota coming out to $38,325. Cars Direct also saw a bulletin to Kia dealers outlining some lease and purchase offers that will run through August 3.

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 Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.