2019 Kia Sorento Lx on 2040-cars

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Hyundai Q1 profit triples, as it adjusts production due to chip shortage

  SEOUL — Hyundai Motor Co posted a first-quarter profit that nearly tripled to its highest in four years as people bought its luxury cars, but warned it would have to adjust production again in May because of a chip shortage. Unlike its rivals, the South Korean automaker staved off production halts in the first quarter, thanks to a healthy chip inventory. But the shortage, exacerbated by factors including a fire at a chip factory in Japan and storms in Texas, is now catching up with Hyundai. Hyundai, which has lagged its rivals in the electric vehicle (EV) race, also said on Thursday that it was developing solid-state batteries and planned to mass produce EVs using solid state batteries in 2030. In February, Hyundai launched its Ioniq 5 electric midsize crossover, the first in a planned family of EVs that it hopes will propel it into the third rank of global EV makers by 2025. Hyundai Motor and Kia together aim to sell 1 million EVs in 2025. In the quarter ended March 31, Hyundai was unscathed as people at home and the United States snapped up its high-margin sports-utility vehicles and premium Genesis cars as the coronavirus pandemic dragged on, fueling car ownership. Net profit surged 187% to 1.3 trillion won ($1.16 billion) from 463 billion a year earlier, when business slumped as countries shut down to limit the spread of the coronavirus. This was in line with an average Refinitiv SmartEstimate. Revenue rose 8.2% to 27.4 trillion won. Hyundai is expected to report net profit of 1.4 trillion won for the April-June period, up 536% from the corresponding period a year earlier, Refinitiv SmartEstimate showed. Hyundai affiliate Kia Corp reported operating profit of 1.1 trillion won for January-March, up 142% on the year. Hyundai, which together with Kia is among the world's top 10 automakers by sales, has temporarily paused production three times since the beginning of this month and saved chips for its most popular models. "The condition of semiconductor parts is being a little more prolonged than we expected," said Seo Gang-hyun, an executive vice president at Hyundai. "As the semiconductor procurement condition is rapidly changing, it's difficult to predict production status after May.

Kia considering tiny EV to give commuters an alternative to taking the bus

One of the more unexpected side effects of the coronavirus pandemic that's wreaking havoc on society is that public transportation is no longer being stubbornly celebrated as the solve-all alternative to driving. Commuters are afraid of catching the virus in a bus, and this trend is encouraging automakers to consider adding small, urban-friendly electric cars to their portfolio. Kia could jump into this segment to rival Citroen's $22-a-month Ami. "People want to feel safe today. We saw that clearly from a survey that was done after coronavirus in China, which showed people had moved from public transportation to private transportation," explained Emilio Herrera, the chief operating officer of Kia's European division, in an interview with British magazine Auto Express. He added 34% of respondents used private transportation before the virus began to spread; that number went up to 65% once the lockdowns and stay-at-home orders began to ease. Kia expects to see a similar shift in Europe and in North America, and Herrera said his team is "studying a proposal on having very small micro vehicles for urban use." He sees a real potential in this segment, and he has already looked at the aforementioned Ami. Electrification is key in this corner of the industry. First, it's difficult to develop a car the size of a golf cart if you need to package it around a 4.0-liter straight-six. Second, these vehicles are aimed specifically at urban users, and big cities in Europe and in Asia are increasingly kicking out non-electrified vehicles. Kia's pocket-sized car would be primarily used for short trips, and it would never venture farther than a few hundred yards away from a charging station, so it doesn't need a headline-grabbing driving range to be practical and usable. The 1,070-pound Ami is fitted with a 5.5-kilowatt-hour lithium-ion battery pack that delivers up to 43 miles of range. Rivaling public transportation is easy when it comes to comfort and convenience, but it's far more difficult when cost enters the equation. Taking the bus is cheap, so Kia's electric car needs to be almost as inexpensive. Citroen cracked the code: in France, the Ami costs about $6,600 to buy, $22 a month to lease, or 30 cents a minute via an app-based car-sharing program. Kia envisions users will be able to rent its competitor for a week or for a month via a subscription service "at very low monthly prices," though it stopped short of providing a dollar figure.

The best Super Bowl car commercials from the last 5 years

If you've been dipping into the Autoblog feed over the past days and weeks, you wouldn't even have to be a sports fan to know the Super Bowl is coming up. Automakers have been teasing their spots for the big game, dropping them days early, fully-formed onto the Internet and otherwise trying to amp up the multi-million-dollar outlays that they've made for air time on the biggest advertising day of the year. And, we're into it. The lead up to the Super Bowl is almost akin to a mini auto show around these parts; with automakers being amongst the most prolific advertisers on these special Sundays. The crop of ads from 2015 looks as strong as ever, but we thought we'd take a quick look back at some of our favorite spots from the last five years. Take a look at our picks – created from a very informal polling of Autoblog editors and presented in no particular order – and then tell us about your recent faves, in Comments. Chrysler, Imported From Detroit Chrysler, Eminem and a lingering pan shot of "The Fist" – it doesn't get much more Motown than 2011's Imported From Detroit. With the weight of our staffers hailing from in and around The D, it's no wonder that our memories still favor this epic Super Bowl commercial (even though the car it was shilling was crap). Imported really set the tone for later Chrysler ads, too, repeated the formula: celebrity endorsement + dramatic copy + dash of jingoism = pulled car-guy heartstrings. Mercedes-Benz, Soul teaser with Kate Upton One of our favorite Super Bowl commercials (and yours, based on the insane number of views you logged) didn't even technically air during the game. Mercedes-Benz teased its eventual spot Soul with 90-seconds worth of Kate Upton threatening to do her best Joy Harmon impression. (Teaser indeed.) It doesn't win points for cleverness, use of music, acting, or any compelling carness, but it proved that Mercedes' advertisers knew how to make a splash in the Internet Age. And, hey, it's still classier than every GoDaddy commercial. Kia, A Dream Car. For Real Life Like the Mercedes video above, the initial draw here is a pretty lady; in this case the always stunning Adriana Lima. But this Kia commercial really delivers the extra effort we expect while scarfing crabby snacks and homemades, too. First of all, Motley Crue. Second, a cowboy on a bucking rhino. Enjoy yet again.