2017 Kia Optima Lx on 2040-cars

Auto blog

Hyundai outlines EV strategy as it struggles with cost of engine defects

SEOUL — South Korea's Hyundai Motor pledged to boost sales of electric vehicles to over half a million by 2025 as part of a bid to focus on new technologies and catch up with rivals, but some analysts saw the target as conservative and warned of the costs. The announcement by Hyundai, the world's fifth largest car maker along with affiliate Kia Motors, underscores the accelerating strategy shift under Euisun Chung, who became the motor group's executive vice chairman last year. Hyundai announced a $35 billion investment last week in mobility and other auto technologies by 2025, less than a month after unveiling a $1.6 billion deal to develop self-driving vehicle technologies with Aptiv. The firm said on Thursday it plans to launch 16 EV models by 2025 to boost sales of such vehicles 17-fold to 560,000 by that year. Still, that would be equivalent to just over 10% of its projected global sales this year. The projection compares with more bullish forecasts offered by its bigger rivals. Volkswagen AG expects to make 22 million EVs over the next decade, while General Motors aims to sell 1 million EVs annually by 2026. "That is not an ambitious target. If Hyundai fails to boost volumes fast enough, costs of electric cars will weigh on profitability," Lee Jae-il, an analyst at Eugene Securities & Investment. Hyundai said that the EV market would face intensifying competition and oversupply soon and automakers failing to meet toughening European emissions regulations will face heavy penalties and suffer a serious blow to their reputation. "EV supply is expected to surpass demand from the second half of next year," Ka Suk-hyun, vice president of Hyundai Motor, told an earnings conference call. Quality issues Hyundai's third-quarter net profit rose 59% to 427 billion won ($365 million), well below the average 684 billion profit estimate of analysts based on Refinitiv data, due to 600 billion won provisions it earmarked to address potential engine defects in the United States and South Korea. Quality issues have been a major drag in Hyundai's attempt to steer a recovery from six consecutive annual profit declines and constrained its financial firepower to invest in future technologies. It is still under investigation by U.S regulators and prosecutors over potential faulty engines in some models. Total retail sales fell 3% in the third quarter, as higher U.S.

2018 Kia Stinger GT Long-Term Review Update | A romp in the snow

After driving a slew of family sedans and crossovers, I was excited to take home our hard-charging, corner-craving 2018 Kia Stinger long-term car for a weekend of some sports car fun. Then Saturday came, bearing between three and four inches of snow and single digit temperatures. Lovely. But, the weather did offer an opportunity to put the Stinger through its first serious snow of the season, as well as the snow tires Nokian generously donated to us. And the big sedan hatchback did fine in the snow, but not exceptionally well. I appreciated the extra traction from the front wheels, which helped make crawling out of the deep snow in my driveway and accelerating through corners and at intersections easier. I didn't have much trouble breaking the rear wheels loose, either, confirming that the Stinger does indeed have a rear-wheel bias. Fortunately, it was pretty easy to control when the car would break traction, but it was easy enough that it felt as though the all-wheel-drive and traction control weren't doing much to optimize traction until the car really got loose. Then the traction control would quickly bring the car to a crawl to stabilize it. Cornering and braking were just OK, and it seemed to mostly be hampered by the Stinger's roughly 4,000-pound curb weight. I could feel that the car really wanted to keep forging straight ahead, and if I turned too fast or braked too late, it would take its opportunity to do so. Naturally this applies with any large vehicle, but it still feels surprising considering how agile the Stinger is on dry pavement. I hate to think what it would have been like driving the Stinger without the snow tires. On the low-profile all-seasons, I'm sure the traction control would be having conniptions, and I'd be crawling through corners and up to stops. Leaving my driveway probably would have taken a few forward and back attempts, too. Aside from the driving experience I was immensely grateful for the heated seats and steering wheel, both of which seemed to warm up quickly. Boy, though, I sure wish the Stinger had remote start. I'm sure it's not great for the environment, but oh how I wish I could have stepped out the door to an already toasty cabin this weekend. So there you have it. The Stinger GT definitely loses a lot of its fun character in the snow, but it will get you through it. And when things clear up, you'll be happy to have something sporty on hand.

Hyundai and Kia to hit record 8M sales for 2014

Hyundai and Kia are on a sales charge in 2014, and parent company Hyundai Motor Group is increasing projections to a record eight million combined units for the automakers by the end of the year – a bump over the original target of 7.86 million vehicles. According to Bloomberg, the key to the growth is beating expectations in Brazil, China and India, and strong crossover sales are also helping the bottom line. In the US, both automakers are doing well this year. In October, Hyundai saw a six percent dip in monthly sales, but through the first 10 months it sold 607,539 vehicles, compared to 601,773 at this point last year. Kia has done even better with 489,711 units sold from January to October, versus 456,137 for the period in 2013. The good news is a welcome antidote to negative headlines like investors' anger over Hyundai's $10 billion land purchase in Seoul, South Korea. The two automakers also had to pay a $300 million penalty to the Environmental Protection Agency for misstating fuel economy on some models. While sales may reach a new record, profits might not grow as much with them. The strong Korean won means that Hyundai and Kia have a tougher time keeping up profit margins compared to Japanese competitors with a weaker yen.