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Hyundai and Kia announce $3.1-billion investment in US facilities

Update: A US spokesperson for Hyundai had no further information, but called the reports about the automaker's investments accurate. Hyundai and Kia announced this morning a plan to invest $3.1 billion into its US facilities over the next five years. According to Automotive News, the new investment is a 50-percent increase over what Korea's two largest automakers have brought to the US in the last five years. The automakers already have several large-scale manufacturing bases in the US, but the new investment could bring another plant into the fold. There is the possibility of producing a Genesis product in the US or building a new plant for a US-specific crossover. The announcement is the latest US investment plan as President-elect Donald Trump prepares to take office Friday. Trump has singled out automakers for not building cars in the United States, and Ford, General Motors, and Fiat Chrysler all announced plans to invest in the US since the beginning of January. Skeptics say these moves would have to be years in the making, though Trump has been quick to take credit for them. Not all of the new money will go toward building new plants. Hyundai and Kia could simply expand the already busy plants in Montgomery, AL, and West Point, GA. Beyond that. The automakers could further their research into electric and autonomous vehicles. Like many other automakers, the two Korean giants have backed down from planned expansions into Mexican manufacturing. Although many automakers currently build or were planning to build new vehicles in Mexico, threats of importation fees appear to be causing caused automakers to refocus some of their efforts toward US production. With all this new investment in the US, Kia and Hyundai said there will be no jobs moved to Mexico. Meanwhile, this morning GM announced plans to bring truck axle manufacturing back from Mexico. As with all of the recent announcements, Hyundai and Kia stated that Trump's upcoming presidency played no part in the decision to reinvest in the US. Related Video: News Source: Automotive News Plants/Manufacturing Genesis Hyundai Kia Mexico Trump jobs investment

Supply issues force Kia to delay new Soul EV until 2021 model year

The electric version of the new, third-generation Kia Soul won't join its gasoline-powered siblings in showrooms for the 2020 model year. Kia announced it was forced to delay the model. American motorists seeking an electric Soul will need to wait until the 2021 model year, Green Car Reports learned. Kia blamed the delay on a shortage of electric motors, and on battery-pack-related supply issues, and it warned the new timeline might change. Autoblog reached out to the company to find out whether the delay is linked to its decision to sell only the electric variant of the hatchback on the European market. We can confirm the model already arrived in showrooms in many European nations, and several dealers we spoke to in France told us they had a handful in their inventory. The Soul EV will be worth the wait when it finally disembarks in the United States. It can drive for up to 243 miles on a single charge, which is about twice the number its predecessor was capable of achieving. It shares its 64-kilowatt-hour lithium-ion battery pack with the Hyundai Kona Electric, and it offers a Soul Turbo-like 201-horsepower output. We called it a top choice among entry-level electrics after driving it for the first time in its home country of South Korea. The other reason why the Soul EV might be worth the wait is that Green Car Reports added Kia might choose to sell it in more states. The last-generation model axed after the 2019 model year was only available in 13 states, including Hawaii, New York, Georgia, and, of course, California.

Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video: