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Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.

Trump wants a trade deal, but South Korea doesn't want US cars

SEOUL - US auto imports from the likes of General Motors and Ford must become more chic, affordable or fuel-efficient to reap the rewards of President Donald Trump's attempts to renegotiate a trade deal with key ally South Korea, officials and industry experts in Seoul say. Meeting South Korean President Moon Jae-in last week in Washington, Trump said the United States would do more to address trade imbalances with South Korea and create "a fair shake" to sell more cars there, the world's 11th largest auto market. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." While imports from automakers including Ford, Chrysler and GM more than doubled last year largely thanks to free trade deal which took effect in 2012, sales account for just 1 percent of a market dominated by more affordable models from local giants Hyundai and affiliate Kia. Imports make up just 15 percent of the overall Korean auto market, and are mainly more luxurious models from German automakers BMW and Daimler AG's Mercedes-Benz, which also benefit from a trade deal with the European Union. "Addressing non-tariff barriers would not fundamentally raise the competitiveness of US cars," a senior Korean government official told Reuters, declining to be identified because of the sensitivity of the subject. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." TASTE BARRIER In Korea, US imports are seen as lagging German brands in brand image, sophistication and fuel economy, industry experts say. US imports do have a competitive advantage in electric cars: Tesla Motors' electric vehicles are seen as both environmentally friendly and trendy, while GM has launched a long-range Bolt EV. US Commerce Secretary Wilbur Ross had cited a quota in the current trade deal as an obstacle to boosting imports. The quota allows US automakers to bring in each year 25,000 vehicles that meet US, not necessarily Korean, safety standards. Should GM, for example, decide to bring in more than its quota of one model - the Impala sedans - it would cost up to $75 million to modify the cars to meet Korean safety standards, the company told its local labor union. Asked about non-tariff barriers, a spokesman at GM's Korean unit said removing them could expand the range of models the company can bring in from the United States. No US company, however, has yet to make full use of the quota, industry data shows.

2021 Kia Seltos rolls style and value into a subcompact package

When Kia unveiled the Seltos, a pocket-sized crossover aimed at young buyers, it didn't reveal whether we'd see the model in the United States. The wait is over, and the American-spec variant of the soft-roader made its debut next to the updated Kia Niro at the 2019 Los Angeles Auto Show. Named after Celtos, the son of Hercules, the Seltos falls in line with Kia's recent design language without aping styling cues from a bigger model. Flanked by swept-back headlights, the upright grille flows into a hood that's surprisingly tall and long considering the car's relatively small dimensions. The Seltos was developed with urban use in mind, but it can tackle light off-roading thanks in part to an angled front bumper that increases its approach angle, and 7.2 inches of ground clearance. Kia explained it paid special attention to the materials the passengers see and touch, and it made the cabin as spacious as possible. It promised an abundance of cargo space, though it didn't provide specific figures, and noted every trim level comes with reclining rear seats. Buyers have a pair of four-cylinder engines to choose from. The entry-level unit is a naturally-aspirated, 2.0-liter that delivers 146 horsepower and 132 pound-feet of torque. Front-wheel drive and a continuously variable transmission (CVT) come standard, and all-wheel drive is available at an extra cost. Motorists seeking more power can move up the trim level hierarchy to unlock a 1.6-liter turbocharged to 175 horsepower and 195 pound-feet of torque. It's also offered with front- or all-wheel drive, but it channels its power to the driven wheels via a seven-speed dual-clutch automatic. While Hercules' lineage allegedly includes several Spartans, the Seltos is anything but. It comes with Android Auto and Apple CarPlay compatibility, and it's the first Kia offered with an optional, eight-speaker surround-sound system sourced from Bosch. Fully loaded, it features a blind spot monitoring system with a collision avoidance function, forward collision monitoring with avoidance assist, highway driving assist, adaptive cruise control, rear occupant alert, plus lane-keeping and lane-following technologies that help it stay in its lane, among other electronic driving aids.  Scheduled to go on sale during the first quarter of 2020, the Seltos will slot between the Soul and the Sportage in Kia's growing range of soft-roaders.