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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

Kia to reveal 2015 Sedona minivan in New York

Hold on to your sippy cups, America. The Kia Sedona minivan may have gone to recess for the 2013 model year, but it mounted a quiet comeback for 2014 sporting the slightest of updates. Thankfully, those minor tweaks will only have to sustain it a short time. Kia knows it can't afford to nap for another year against strong rivals like the Honda Odyssey and Chrysler Town & Country, and the Korean automaker remains committed to duking it out in the kinshlepper segment. So committed, in fact, that Autoblog has learned it will launch its third-generation minivan at April's New York Auto Show.
As seen in these spy shots captured last August, the 2015 Sedona will incorporate styling cues from Kia's well-recieved 2012 KV7 concept, and it's predicted to feature more refined drivetrains and interior appointments, including Kia's latest UVO infotainment system and available rear-seat entertainment. We further expect fuel economy figures to get a nudge upwards thanks to fuel-saving features like electric power steering and direct injection.
Given the minivan segment's 'safety first' mindset, look for the next Sedona (known elsewhere as the Carnival) to offer a full quiver of active safety features, including blind-spot detection and a lane-departure warning system - two popular features the 2014 model does without.

Kia recalling 377k Sorentos that can accidentally shift out of park

Kia has announced that it will recall 377,000 Sorento crossovers built between October 19, 2009 and January 31, 2013, which equates to model years 2011 through 2013. The affected vehicles may suffer failure in the brake-shift interlock mechanism. Put enough force on the lever and the interlock will crack or chip. Once that happens, the Sorento can be shifted out of park without stepping on the brakes. That's bad news for safety, and as the National Highway Traffic Safety Association bulletin notes, it's a violation the Federal Motor Vehicle Safety Standards on theft protection. Naturally, Kia will notify owners of the affected vehicles and ask them to report to dealers for a new brake-shift interlock mechanism. Repairs will be carried out free of charge. The official start date of the recall is November 24. Read on for the official press release from Kia. RECALL Subject : Brake-Shift Interlock Mechanism Can Chip or Crack Report Receipt Date: OCT 06, 2015 NHTSA Campaign Number: 15V626000 Component(s): POWER TRAIN Potential Number of Units Affected: 377,062 Manufacturer: Kia Motors America SUMMARY: Kia Motors America (Kia) is recalling certain model year 2011-2013 Kia Sorento vehicles manufactured October 19, 2009, to January 31, 2013. In the affected vehicles, if excessive force is applied to the gear shift lever, the brake-shift interlock mechanism may chip or crack allowing the transmission being able to be shifted out of "Park" without the brakes being depressed. As such, these vehicles fail to comply with the requirements of Federal Motor Vehicle Safety Standard (FMVSS) number 114, "Theft Protection." CONSEQUENCE: Without requiring the brake to be pressed, the vehicle may be unintentionally shifted out of Park, allowing it to roll, which may result in a crash. REMEDY: Kia will notify owners, and dealers will replace the brake-shift interlock mechanism, free of charge. The recall is expected to begin November 24, 2015. Owners may contact Kia customer service at 1-800-333-4542. Kia's number for this recall is SC124. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.