2007 Kia Optima Lx on 2040-cars

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Hyundai boosted production in March, so now its cars sit in U.S. ports

SEOUL — As Detroit's automakers shut production in March due to the coronavirus pandemic, South Korea's Hyundai cranked up its factories back home to ship cars to the United States, a move that is proving costly for the world's fifth-largest auto group. Hyundai ramped up domestic production to as much as 98% of capacity by late March, not only as the Korean market was recovering from a bad February but also because it bet on demand for Tucson SUVs and other models from U.S. customers, its biggest overseas market outside of China. While Hyundai is one of few global automakers whose production has recovered at home, its exports optimism has been dampened by the severity of the U.S. outbreak, weak consumer sentiment and as rivals have quickly moved to guard their turf. Consignments of cars shipped from South Korea are now sitting in U.S. ports, with dealers slow to take deliveries because of slumping sales and rising inventory, four people with knowledge of the matter told Reuters. The company idled a Tucson production line at home last week for five days, while sister firm Kia is looking to suspend three Korean plants for a week. And analysts now expect a sharp drop in first-quarter operating profit when it reports results on Thursday and some even forecast a second-quarter loss. "I hope that the situation will recover by the middle of next month. If not, we might have to lay off some people," said Brad Cannon, general manager of an exclusive Hyundai dealership in California, whose sales are down more than 50% from when the pandemic started. Hyundai runs a factory in Alabama — which is closed until May 1 — but imports are key to meet U.S. demand. Only about half of its vehicles sold in the United States are made in North America compared to between 68% and 85% for Japanese rivals Toyota, Nissan and Honda, who have also suspended production there till May. The South Korean company makes about 61% of its cars overseas, up from 48% a decade ago. That leaves it vulnerable to overseas factory shutdowns and shrinking demand outside of its home market. Hyundai's South Korean factory operation, which had recovered from a component shortage from China to nearly 100% capacity by March, could fall to as much as 70% in April, the company recently told analysts. "We will continue to monitor the situation and take appropriate action promptly," Hyundai said in an emailed statement. Minimizing the impact For its part, Hyundai has taken measures to minimize the impact.

Genesis bringing an EV concept and G90 to New York Auto Show

It's official, the entire Hyundai Group has plans for the New York Auto Show. During the Hyundai Sonata press launch in South Korea, design head Luc Donckerwolke told Roadshow "You'll have an electric show car for Genesis." This year will be the charm for Genesis and EVs, after showing the GV80 SUV concept and its hydrogen fuel cell powertrain in 2017, and the electric Essentia coupe concept last year. We will also see the production version of the U.S. market Genesis G90 and its mongo grille. The premium brand's debuts will join the new Sonata sedan and Venue crossover, and an as-yet-unnamed Kia show car expected to be our version of the SP Signature concept potentially called Tusker. Hyundai-Kia isn't getting its electric razzle dazzle ready for New York alone. Auto Express reports the group is working on a new electric car platform to serve the carmaker the same way Volkswagen's MEB architecture serves the German group's brands. At the moment, the only four EVs in the South Korean automaker's range are the Hyundai Kona and Ioniq, and the Kia e-Niro and Soul. They are all built on ICE platforms, the Kona and e-Niro still proving popular enough for this year's planned UK-market production to sell out already. According to a "company insider," the dedicated EV platform is around two years away and will focus on B- and C-segment cars. That's the same year that Genesis is expected to have its EV ready, but unless the luxury arm has plans to dip its grille into C-segment waters, Genesis likely has other EV platform plans. By 2025, Hyundai and Kia have said they'll have 14 EVs in the combined lineup as part of 38 electrified offerings. Whatever's on the way could prove far more radical than today's offerings. Donckerwolke told Auto Express that in order to attract the future EV buyers that aren't necessarily car people, "[You] have to ask whether you want science fiction or whether you want to conform. We can create something that doesn't appeal to someone in the traditional sense." If the head designer gets his way, 3D-printing will help whip up those attractions. Last year's Essentia concept showed off 3D-printed carbon fiber ornament, but the potential goes much further.

Kia debuts the compact Seltos crossover in Delhi

The Kia Seltos has had an unusual gestation, with two concepts, exterior sketches, interior sketches, an effective reveal during a photo shoot, a christening via mythology and more teasers. Even so, since the Kia Seltos small crossover began as last year's SP concept for the Indian market, it's fitting Kia hosted the production model's debut in Delhi. We're still missing a few details, like the look of the production interior and drivetrain options, but we have a bit more to go on. The detailing and materials are what could set the Seltos apart in the segment. The overall lines are familiar, however, Kia designers have worked to make those lines lyric instead of prosaic. The front fascia's been defined by three transverse metallic-look pieces shaping the upper and lower forms. The wide tiger-nose grille gets bracketed by crisp splashes of color with the LED headlights and intricate turn signals. The rear end's creasing, shadow and metallic effects are bounded by LED taillights and more "3D multi-layer indicators." We've seen renderings of the interior and know to expect a 10.25-inch infotainment screen atop the instrument panel. That screen display can be split up to show three infotainment applications at once. Kia says there will be an available eight-inch heads-up display on a glass panel behind the steering wheel. Optional eight-speaker Bose audio can pump tunes that guide the optional Sound Mood Lighting, which uses ambient lighting to create a light show timed to the beat. Indian buyers will have a choice of a 1.6-liter turbo four-cylinder with 175 horsepower, a 2.0-liter four-cylinder with 147 hp, and a 1.6-liter diesel four with 134 hp. Kia didn't specify how the transmission options will be assigned, but the selection includes a seven-speed dual-clutch, a six-speed automatic, and a CVT. A three-mode driving selector offers Eco, Normal, and Sport. The Kia release said "Sport mode increases responses from steering and electric motor to maximize the dynamic driving feel." As there's no mention of hybridization, we wonder if the electric motor refers to the electrically-assisted power steering, or something else. Wheel choices for India start with 16-inch alloys on 205/60 rubber, moving on to 17-inchers on 215/55 rubber, topping out at 18-inch wheels on 235/45 tires. In one of the interior drawings, we noted buttons that appeared to control all-wheel drive, hill descent control, and a locking rear differential.