2014 Kia Soul Base on 2040-cars

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Kia's Australian arm wants a Toyota Land Cruiser-like SUV

The team in charge of Kia's Australian division is asking the company's top brass for a rugged, body-on-frame SUV with Toyota Land Cruiser-like off-road capacity. The model could arrive quickly if it's approved for production. "We need probably one or two bigger [SUVs], to be quite honest. That would help us dramatically," affirmed Damien Meredith, the chief operating officer of Kia Australia, in an interview with Motoring. He added there's room above the Sorento for a new SUV, and he requested a sturdy model capable of towing and going off-road. In the United States, Kia's biggest SUV — and the largest car it has ever put its name on — is the well-received Telluride (pictured) released in 2019. It's not as tough as the body-on-frame model Meredith has in mind, and it's not sold in Australia because it's currently only available with left-hand drive. Kia would need to create a new model to challenge the Land Cruiser Prado (which is smaller than the standard model, and sold as the Lexus GX in the United States) and the Ranger-based Ford Everest in Australia, but it might not have to start from scratch. In 2019, Meredith confirmed Kia and sister company Hyundai are jointly developing a body-on-frame pickup aimed at Toyota's Tacoma-sized Hilux and the Ford Ranger, Australia's best- and second-best-selling vehicles in 2019. Kia could follow the path blazed by its rivals and turn its upcoming medium-sized truck into a family-friendly SUV. This strategy would give its Australian division the Land Cruiser-punching model it's asking for, while allowing it to leverage the benefits of economies of scale by sharing parts across several model lines. Kia stressed the SUV on Meredith's wish list hasn't been approved for production yet, so it's far too early to tell whether it will be available in the United States. Offering it outside of Australia is a must, though. Toyota sold 18,335 units of the Land Cruiser Prado on the Australian market in 2019; even if Kia tops it with 20,000 sales, that's not nearly enough volume to justify developing a new car, even one built on an existing platform. We'll have a better idea of what the future holds for Kia's global SUV range when the aforementioned trucks make their debut. Both are expected on sale by 2021, so they're around the corner, and neither has been confirmed for the American market yet; Hyundai's version is unrelated to the Santa Cruz also under development. Related Video:    

Former Lamborghini designer reportedly headed to Hyundai

Luc Donckerwolke (pictured above) only left his position as the Director of Design for Bentley in early June, but he might have already had a new gig lined up as he was walking out the door. Donckerwolke is reportedly teaming up with former Volkswagen Group styling bigwig Peter Schreyer at Hyundai Motor, in a position to eventually take over the look of all of the Korean brands' vehicles. At the moment, this major hire for Hyundai and Kia is still just a rumor, though, and the Korean automaker is playing it close to the vest. Company spokesperson Jim Trainor tells Autoblog, "We do not comment on speculation concerning potential appointments." However, insiders tell Automotive News that the deal is the reason for Donckerwolke walking away from his long career among VW's brands. In Korea, Donckerwolke would hold a position under Schreyer at first, and he would take over Hyundai and Kia's design duties when Schreyer retires, which is expected in about two years. Donckerwolke joined the German automotive giant in 1992 and eventually came to define the modern look of Lamborghini by penning both the Murcielago and Gallardo. In 2011, he became the Head of Advanced Design for VW Group and took over styling duties at Bentley in 2012. Schreyer left a fruitful career at VW Group, including penning the original Audi TT, to join Kia in 2006. He gained the overall design duties for the Hyundai and Kia brands in 2012. Ousted VW Chairman Ferdinand Piech once said that he was regretful of losing the talented stylist. Related Video:

Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs