Hyundai Promises Fairness, No Embezzlement, to Suppliers
By KatiePuckrikSeptember 10, 2008 - 682 views
Hyundai appears to be drawing up its own version of a constitution. The first on the list was “Quality shall be paramount” (moderately successful) and the second on the list is now “We shall work together with suppliers”. Hyundai’s corporate mothership has announced that it has signed a “fair trade agreement” with its 2368 suppliers. “The deal has paved the way for Hyundai-Kia Automotive Group to establish a fair trade order with partner companies and promote mutual growth through co-existence and cooperation,” said a company spokesperson. They also added that this is the first time a single company has agreed on a fair trade pact such a large number of firms. Before we break out the record books, which the “fair trade” aspect might possibly be fresh, the notion of positive, longstanding closely-knit relationships between industrial firms in Asia are a big part of the region’s manufacturing history. While I commend Hyundai for some serious long-term planning, how much of this was ethically motivated and how much was damage control? Sure Hyundai is promising transparency now. After their chairman stole $100 million for a secret bribery slush fund, and then received a pardon from the South Korean president, a former Hyundai executive.
Posted in Industry | Korea | News Blog | 9 comments 
Hyundai Sonata Wades Into Hybrid Price War
By Edward NiedermeyerAugust 22, 2008 - 2,132 views
Hyundai's U.S. niche is just below the the Toyondissan's offerings. Nowhere is that role more valuable than in the burgeoning hybrid segment. Considering the forthcoming Honda hybrid is set to be priced several thousand dollars less than the industry-standard Toyota Prius, Hyundai's pressed to deliver the hybrid Sonata at an even lower price point. And so they have. Li-on-powered, no less. Reuters reports that Hyundai could release a lithium-ion hybrid version of its Sonata as early as (you guessed it) 2010. Unlike other li-ion hybrids set to launch in that most magical of automotive years, the Sonata will not be a plug-in model. With Korean hybrids deliveries beginning next year, any early-adopter glitches should be resolved before sales ramp up stateside. Meanwhile, liquid-petroleum-gas-hybrid versions of Hyundai's Avante hatchback are also set to go on sale soon in Korea, although its chances of coming stateside are almost nil. Similarly, Hyundai VP for Product Development John Krafcik rates the possibility that they'll sell their Indian-built i10 city car stateside as "very unlikely."
Posted in Future Vehicles | Hybrid | Korea | News Blog | 14 comments
Hyundai Raising Prices
By Edward NiedermeyerJuly 16, 2008 - 31 views
High gas prices are a bitch. But other factors prevent the "build a small car, stupid" strategy from rescuing the auto industry. Like the fact that steel prices have increased 60 percent this year. In the compact car market, where price point is king and profit margins are razor thin, automakers are being forced to raise prices to maintain what little profits exist. Bloomberg reports that Hyundai will increase prices on its budget cars for the second time since June, due to high steel and other component costs. The good news: Hundai's US sales are down "only" 2.3 percent and actually up 1.3 percent since the last price increase. The bad news: even the second price increase "isn't enough to cover the higher costs, but it's hard for them to boost prices more without crimping sales.'' And it gets worse too. All of Hyundai's Korean production will endure stoppages this week, thanks to labor demands for a nine percent wage increase. With sister company Kia holding on to its rock-bottom pricing, it's no wonder that Hyundai is heading upmarket. But will consumers (particularly in crucial developing markets) follow?
Posted in Industry | Korea | News Blog | 7 comments
Kia Soul Engines Announced
By Justin BerkowitzJuly 16, 2008 - 60 views
Korea's Kia has released photos of its Soul. To herald the U.S. arrival of its new citycar– which looks to have the Chevy's Aveo Beat– Kia's announced the Soul's engine lineup. Globally, the Soul will offer three powerplants. Yanks are denied the 1.6-liter turbodiesel with 128 horsepower. We get to choose from either a 1.6-liter, 124-horse four (the new NA class leader) or a 2.0-liter with an unspecified amount of power. The fuel economy– which RF would call "mission critical"– has not yet been rated by the EPA. Although the new car's based on the Rio platform, Kia promises that the Soul "won't drive like a mailbox." Return to sender? Let's just hope Kia's Soul has more eponymousness than its other efforts, which tend to put inhabitants in econobox Hell.
Posted in Future Vehicles | Korea | New Cars | News Blog | 11 comments
Kia Forte Out on Street (in Korea)
By Justin BerkowitzJuly 14, 2008 - 123 views
Kia sent out some press shots of its new Forte compact sedan last week. But real world pictures of cars are always a step up. Those candid photos, along with scans of the Korean brochure, are here for you to peruse, thanks to the fans at Kia-World.net. IMHO, the Forte looks quite good in the metal. The biggest improvement over the Spectra: the interior. It appears to be made from something other/better than cardboard this time (no word on whether the traditional Hyundai-Kia interior crayon smell will remain). Americans probably will not get the 1.6-liter with 124 horses; the 2.0-liter engine with some 150 horses is a lock. And we're all holding out to see if Kia decides it wants to put its money where its auto show mouth is and give us a version of that 2.0-liter with a turbocharger. Not surprisingly, the Korean brochure shows all sort of high-end kit, from keyless go to Bluetooth to navigation. How many of these doo-hickeys will make it to North America is your guess. Looks like it might be the best Kia yet, though. And that's saying something. I think.
Posted in Future Vehicles | Korea | News Blog | 18 comments
GM to Build Chevwoos in Ohio
By Frank WilliamsJune 12, 2008 - 72 views
A couple of weeks ago, we reported that GM would be building a new small car at the Lordstown OH plant where they now build Cobalts and Pontiac G5s. Wards reveals the mystery car: the next-gen Chevy Optra, replacing the Cobalt/G5. The Optra (AKA Daewoo Lacetti, Suzuki Forenza and Buick Excelle) will be produced at GM-Daewoo's plant in Gunsan, Korea starting toward the end of this year. Production will expand to Ohio in 2010 "pending conclusion of GM's negotiations to obtain state and local investment incentives from Ohio authorities." The U.S.-spec Optra will feature a 1.4-liter turbocharged four-cylinder engine with "considerably upscale" and "sporty" styling. It'll be joined by a redesigned Aveo (Daewoo Gentra) in an "entirely new portfolio of Chevrolet small and compact vehicles." In a move akin to the "Chevy Classic," "Malibu Classic" and "Silverado Classic" games GM's played in the past, the Gunsan plant will continue to produce the current Optra "for certain export markets" along with the "dramatically different" new model. That "dramatic difference" better include dramatic improvements in materials and build quality if Chevy expects to sell it in what's becoming a highly competitive small car market.
Posted in Future Vehicles | Industry | Korea | News Blog | 21 comments
GM to Rebadge Korean Daewoos as Chevys?
By Frank WilliamsMay 22, 2008 - 1,491 views
GM Daewoo (GMDAT) builds cars in South Korea, and then sells them as a number of different brands around the world. In most markets they're rebadged as Chevrolets– in an attempt to make Chevy into GM's "global" brand (excluding the Corvette, which is a standalone brand in Europe). In South Korea, Daewoos are Daewoos. Blogging Stocks reports that GM is considering introducing the Chevrolet brand in Korea. If they do, what cars will they sell as Chevys? Do they change the "home team" GM Daewoo brand into an "import" brand? Do they introduce Daewoo-built models not currently sold as domestic models under the Chevrolet name? Or do they import cars built elsewhere to carry the brand? Who knows… maybe they'll introduce Korea to American full-sized pickups and finally have something to with that four-month inventory of Silverados they're sitting on.
Posted in Branding | Korea | News Blog | Overseas | 12 comments
Kia Aiming to Double Sales by 2010
By Justin BerkowitzMay 22, 2008 - 1,106 views
Kia, Hyundai's neglected smaller brother, plans to double their non-Korean sales by 2010 (!) to 1.9 million. How? Good question (I'm glad I asked). The Cee'd– a Golf competitor with a daft, sexually ambiguous name– has received solid reviews in Europe. Stateside sales continue to be… adequate. Plans for a Kia pickup truck were recently, wisely, cancelled. Fortunately for Kia, their Georgia (the y'all state, not the Central Asian country) manufacturing facility comes on line soon, Kia can then expand beyond America's import cap and take advantage of our not-so-hot currency. In truth, Kia is a brand in search of identity. While the Koup concept was a nice try at sportiness, Hyundai is the company that gets to do smoke-filled donuts on stage at the NY Auto Show. And the Optima sedan is still underpowered compared to the Sonata. But hey, whatever. Considering the affordability and relative fuel efficiency of their American lineup, Kia's continued growth is a possibility. Probably. Maybe. Eventually. Later soon.
Posted in Industry | Korea | News Blog | 15 comments
Hyundai/Kia Spike FWD V6 Pickup
By Edward NiedermeyerMay 9, 2008 - 2,386 views
Automotive News [sub] reports that Hyundai/Kia have scrapped plans to build a mid-sized unibody pickup truck at their new plant in West Point, GA. Sources from Hyundai (PR department?) say the truck (thought to be inspired by Honda's not successful but we build it on the same production line as the Odyssey and Pilot so who really cares Ridgeline) would have been built on the updated 2010 Kia Sorento chassis, which is set to switch to unibody design. Instead, the Georgia plant will build a Kia small car, likely the Optima. Executives say a Hyundai-branded car may be built there as well, "if the platform is compatible." As consumers turn away from large body-on-frame trucks, you might have expected a yen for lighter, unibody trucks (just as VW's Rabbit-based pickup sold well during the 1970's fuel crisis). And you might be right. But Hyundai/Kia's not about to make that gamble. Not with so much riding on the (larger and heavier than typical for Hyundai) Genesis RWD vehicles.
Posted in Future Vehicles | Korea | News Blog | 9 comments
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