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Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Kia design chief Peter Schreyer named Hyundai-Kia President

Automotive News reports Peter Schreyer has been appointed the first non-Korean president of Hyundai-Kia Motor Group. Schreyer is expected to retain his role as the chief designer for Kia, while also taking on new, high-level executive duties. He is now one of three presidents at the automaker.
The designer made a name for himself at Volkswagen, where he penned the 1998 New Beetle and lent his eye to the Audi TT. In 2006, Schreyer moved to Kia, where he quickly revised the brand's styling from bland, forgettable lines to bold, "tiger nose" creations. Analysts attribute much of the brand's recent sales success to Schreyer's influence.
Kia is expected to move 2.75 million units worldwide next year, while sister company Hyundai will likely beat its 2012 sales forecast of 4.29 million units, according to CFO Lee Won Hee.

Kia wants to keep Stinger fresh with frequent variants

Kia is apparently feeling confident enough in the early sales figures of its new Stinger sedan to be mulling ideas for future variants of its GT-inspired fastback. The brand's North American product planner tells AutoGuide it wants to keep the nameplate's lineup fresh with frequent updates and additions. "The reaction has been phenomenal to (the Stinger)," Orth Hedrick, Kia North America product planner, told AutoGuide. "We're doing great, we have a very high mix of buyers, a lot coming from Optima, so we're looking to see if we can grow that. And I think there might be other opportunities down the road." He added that it was still early in the product's lifecycle and that the brand will wait to amass more data from consumers before building out the Stinger lineup. "We're going to be very aggressive for the lifecycle of this vehicle," Hedrick added, "we're going to be very aggressive with the colors. It's a fashion statement. You have to keep the car going with powertrain variants and other stuff coming down the road." Through March, Kia has sold 3,920 Stingers in the U.S., including 1,555 in March alone and not including the 843 it sold in late 2017. That's a fraction of the 50,645 vehicles Kia sold overall during the month, and it puts Kia on pace to sell nearly 16,000 for the full year. It's hard to independently assess whether that should be seen as a successful mark for a performance sedan that starts at $32,795 for the standard 255-horsepower 2.0-liter turbo four-cylinder, much lower than many of the German competitors it's established as benchmarks. Hendrick last year told Wards the Stinger was intended to increase both sales and brand recognition and was aimed squarely at auto enthusiasts. Its U.S. sales are slightly above those of the Alfa Romeo Giulia, which has sold 3,085 through March (this Stinger owners forum thread also offers some interesting guesstimates). And as long as Kia is pleased ... Anyway, if Kia wants to release variants, we're totally cool with that. It's already announced the limited-edition Atlantica, and we're down with more colors and maybe a manual transmission. And while they're at it, why not borrow the 5.0-liter V8 from the Korean version of the K900? Related Video: