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Trump wants a trade deal, but South Korea doesn't want US cars

SEOUL - US auto imports from the likes of General Motors and Ford must become more chic, affordable or fuel-efficient to reap the rewards of President Donald Trump's attempts to renegotiate a trade deal with key ally South Korea, officials and industry experts in Seoul say. Meeting South Korean President Moon Jae-in last week in Washington, Trump said the United States would do more to address trade imbalances with South Korea and create "a fair shake" to sell more cars there, the world's 11th largest auto market. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." While imports from automakers including Ford, Chrysler and GM more than doubled last year largely thanks to free trade deal which took effect in 2012, sales account for just 1 percent of a market dominated by more affordable models from local giants Hyundai and affiliate Kia. Imports make up just 15 percent of the overall Korean auto market, and are mainly more luxurious models from German automakers BMW and Daimler AG's Mercedes-Benz, which also benefit from a trade deal with the European Union. "Addressing non-tariff barriers would not fundamentally raise the competitiveness of US cars," a senior Korean government official told Reuters, declining to be identified because of the sensitivity of the subject. "What we really want to say to the United States is: Make good cars, make cars that Korean consumers like." TASTE BARRIER In Korea, US imports are seen as lagging German brands in brand image, sophistication and fuel economy, industry experts say. US imports do have a competitive advantage in electric cars: Tesla Motors' electric vehicles are seen as both environmentally friendly and trendy, while GM has launched a long-range Bolt EV. US Commerce Secretary Wilbur Ross had cited a quota in the current trade deal as an obstacle to boosting imports. The quota allows US automakers to bring in each year 25,000 vehicles that meet US, not necessarily Korean, safety standards. Should GM, for example, decide to bring in more than its quota of one model - the Impala sedans - it would cost up to $75 million to modify the cars to meet Korean safety standards, the company told its local labor union. Asked about non-tariff barriers, a spokesman at GM's Korean unit said removing them could expand the range of models the company can bring in from the United States. No US company, however, has yet to make full use of the quota, industry data shows.

Genesis' decision to build the Electrified GV70 in America is a sign of things to come

As Steely Dan famously sang, they call Alabama the Crimson Tide. Here in Montgomery, we’re knee-deep in a Green Tide thatÂ’s transforming the business of building and selling cars. The high-style Genesis Electrified GV70 emerging from Hyundai Motor Manufacturing Alabama (HMMA) is the first Genesis built outside South Korea. ItÂ’s only the second made-in-America EV from a foreign-based automaker, after the Volkswagen ID.4 whose Tennessee production kicked off in July.  Get ready for many more. Spurred by the Inflation Reduction Act — whose final interpretations and outcomes remain in Washingtonian flux — automakers foreign and domestic are scrambling to onshore EV-and-battery production to boost American jobs and security, as a condition to securing lucrative tax incentives for manufacturers and consumers. Beginning in 2024, qualifying for EV credits may even require sourcing a hefty percentage of minerals and other battery materials from America or approved trade partners, a list that conspicuously does not include China or Russia. As things stand, that sticking point could make a vast number of 2024 EVs ineligible for purchase credits; though leasing a vehicle may still earn dealers a $7,500 commercial credit that they could pass along to consumers, as most currently do for EV lessees.  The electric version of GenesisÂ’ most-popular SUV is the avatar of Hyundai MotorÂ’s $10 billion American EV investment, which is expected to foster up to 8,000 good-paying jobs. Even thatÂ’s a fraction of what Atlas Public Policy estimates to be $128 billion in industry-wide investment in AmericaÂ’s EV, battery and recycling capacity through 2030 alone. HyundaiÂ’s planned onshore footprint includes a new battery factory northwest of Atlanta, and a $5.5 billion EV factory near Savannah that aims to produce Hyundai, Kia and Genesis EVs beginning in 2025. Beginning that year, Genesis says every new model introduced will be an EV, with no fossil-fuel option. And Genesis plans to phase out gasoline-powered models entirely by 2030, a similar timeline to luxury brands including Volvo and Cadillac. In Alabama, where Hyundai also builds the Elantra, Sonata, Santa Fe and Santa Cruz, an Electrified GV70 is hoisted onto a lift for the final stop on its 16-hour assembly journey.

2020 Kia Telluride First Drive | The cool dad of crossovers

TELLURIDE, Colo. — We're going to be talking a lot here about practicality and value, but inevitably, the main appeal of the 2020 Kia Telluride comes down to its styling. People dig it. It's boxy, rugged and has a whiff of Range Rover premium cool. In a three-row crossover segment dominated by non-descript family haulers, the Telluride stands out by subtly flying its family flag. It's the cool dad in a leather jacket and Ray Ban Wayfarers standing next to the shlub in wrinkled khakis. The visual attraction carries inside. There is a style present in even low trim levels that you just won't get in the Honda Pilots and Subaru Ascents of this world, which prioritize simple functionality. The risk to that approach is that it makes it especially difficult on upper trims to make them look and feel like vehicles that warrant price tags approaching $50,000. The Telluride has no such issue, as the range-topping SX trim level we tested boasts a cabin worthy of such a luxury-nearing price tag. There's convincing wood trim, soft leather and leather-like surfaces everywhere, and feature content that's second to none in the segment. Better yet, the volume-selling EX trim level one rung down the ladder has pretty much the same look, but with fewer high-lux features slathered on. While the Telluride's mechanically related cousin, the Hyundai Palisade, has generated plenty of interest since its introduction, the big Kia feels like it has captured actual buzz. Still, the two are awfully similar on paper. The wheelbase is identical, as is the 3.8-liter V6, eight-speed automatic and 5,000-pound towing capacity. The Kia's is a mere 0.8 inch longer and 0.4 inches taller, but there's 1.8-inch greater third-row headroom, and three more cubic feet of space behind the third row — perhaps its most significant difference. The Telluride's cabin is also bigger and more spacious than popular entries like the Pilot, Ascent and Toyota Highlander. Only the 2020 Ford Explorer and gargantuan Chevrolet Traverse enjoy a size advantage among three-row crossovers. Importantly, however, the Telluride's big enough inside that shoppers should be able to easily distinguish it from the Sorento, despite both having three rows of seats. Simply, the Sorento is for people who might use the third row on occasion for short distances and/or with short people. The Telluride's third row can be used by anyone on a regular basis.