2008 Kia Spectra Ex Sedan 4-door 2.0l on 2040-cars

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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.

Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.

Kia Niro EV concept coming to CES

Kia announced that it will show a new electric concept car at this year's Consumer Electronics Show. The announcement didn't explicitly say what the vehicle is, but that's fine, because the teaser images above reveal the car's "secret" identity. At the back of the car are bright glowing letters spelling out the name "Niro EV." Even without seeing the name, the images make it pretty clear this is a Niro of some sort. The profile fits the production hybrid and plug-in hybrid production cars, especially the upright and wide rear hatch. It also has the Niro's distinct hood with twin creases above the headlights. There are a number of styling changes, though, mainly up front. The headlights look to be more swept back and have LED strakes for style. The taillights mirror this design, and they add a center portion between the main elements to make the lights full width. Additional three-pointed fog lights are also added front and rear. The grille at the front is no longer a grille, instead now featuring a bunch of little lights. This may have something to do with the "motion graphic" lighting technology Kia will show on the car, since it looks like the pattern and intensity could change. The shape of this faux grille panel also looks wider and slimmer than that on the production Niro. On the topic of production Niros, we wouldn't be surprised if this full EV Niro makes it to market. The Niro is based on the Hyundai Ioniq, which itself offers normal hybrid, plug-in hybrid, and full electric variants. And since the Niro is already available in hybrid and plug-in versions, a full EV would round out the model nicely. It wouldn't be without work, since the electric version of the Ioniq has a torsion bar suspension rather than the multi-link setup in the hybrid Ioniqs and Niros in order to fit the larger battery pack, but it's far from impossible. Stay tuned for more info on the concept and any news on a production version. Related Video: