#Korea

GM’s Korean partner GM-Daewoo has an Aveo-based “SUV” in the final stages of design development… and it definitely looks like the 2007 “Chevy Trax” concept, right? Wrong. Of course.

Design chief Taewan Kim insists the design is “still not fixed” for production but the detailed study is finished to the sort of standard designers reach before wheeling in The Boss to sign it off as ready for production and the interior ‘mock-up’ looked all but sorted to give the suppliers the go for first off-tool samples. Looks? Cameras were banned but think ‘I shrunk the Capitiva’ and you get the idea.

Don’t know what a Captiva is? Well, do you remember the Saturn Vue? No? Well, there’s a new one anyway… take a look after the jump.

The Korean word for ‘five’ sounds like “oh,” as in, “Oh, Snap!” or “OMG.” So in Korea, that makes Kia’s new K5 a “K.O.,” at least in name. But does Kia’s new Camccord fighter actually land a knockout on the all-important D-Segment, or is it a mere win by decision?

Ur-Turn is your weekly opportunity to contribute to TTAC. Every Weekend we select a piece submitted to our contact form, and publish it as a showcase for the diverse perspectives of TTAC’s readers. Today’s contribution comes from Nick Naylor, who explores the street-level reality of American cars in Asia, and the prospects of American exports to Asia.

As a frequent TTAC poster and lifelong enthusiast, some of my favorite topics and articles are the ones in which vehicles are found outside their cultural context. Paul’s classic Mustang on the streets of Paris, for example, struck me as a particularly beautiful image. “Real” American cars are of special interest to me—cars designed predominately for the North American market, built there, and exported. You don’t see too many of these outside of North America–for a myriad of reasons I need not get into here. That said, when I see a Cadillac, or an American Ford product in an Asian or European city—it invokes a similar feeling to what Paul experienced seeing the Ford and the Hummer in Paris. In this time of Obama’s pledge to double exports in 5 years, with cars being a particular sticking point with Korea, it is American made vehicles that he must be most interested in selling, not Chinese-made Chevy Sails. Is it possible?

With this on my mind, and camera in hand; I recently spent three weeks between China (Hong Kong and Guangdong province), Korea (Seoul) and Japan (Tokyo). What I observed follows below. There’s no reports, sales numbers, or data here…just observations and supporting photos.

Did you know that the Volt’s most important and priciest ingredient comes from Korea? The Volt battery is made by LG Chem, the battery arm of the Korean company formerly known as Lucky Goldstar. Noises coming from Korea indicate that GM might be building more Volts than thought. How do the Koreans know that? GM ordered more batteries.

Well, it seems that the wrecked US-Korean trade pact only affects U.S. food exports to Korea. It most certainly does not seem to have any influence on Hyundai. Hyundai expects to set a company record for annual U.S. sales next week already, and to sell even more in 2011.

The rest of the world is busy tearing down tariff borders by entering free trade agreements, such as the one between South Korea an the EU. Japan doesn’t want to stand on the sidelines and is in FTA negotiations with the EU. At the same time, the U.S. and Korea yesterday shitcanned their free trade plans. The reason? Cars. Allegedly.

The recently-debuted Chevrolet Volt ads are built around the same basic assumption that drove the design of the Volt’s extended-range electric (EREV) drivetrain: Americans will not tolerate running out of vehicle range. So severe will be America’s Range Anxiety®, GM is guessing, that its electric vehicle (EV) consumers would be happy to lose some electric range and pay a significant price premium compared to the pure-electric competition in order to fill up on gas when they forget to plug in. But while we wait for this psychological insight to prove true across the broader market, recent news seems to show that GM has forgotten about another beloved American freedom: the freedom of choice. For example, the choice to buy a GM-made “pure” EV. To find that kind of freedom you have to go to China…

As we’ve noted before, Hyundai and Kia have been quick to exploit the weakness of the domestic auto industry by advertising their American-made cars as American-made cars. Now, they’re taking the attack to a whole new level, as Hyundai USA President John Krafcik tells CNN Money that his brand will build 80 percent of its vehicles in the United States by next year. If the Korean brand can actually achieve that goal, it would make Hyundai’s lineup the most American-built full line on the market. And though he insists that Hyundai doesn’t make decisions about production based on PR, Krafcik can’t help but twist the knife, saying

I’m going to build my three best selling cars in the US. Ford builds its best selling car in Mexico.

Oh snap!

This weekend sees the first ever South Korean Formula 1 Grand Prix. This is a push into new markets for Formula 1. This is why they are trying to push into North America and the Middle East. But it seems that it’s receiving a cool reception from the very people whom they are trying to woo. Namely, the car business.

Launching a new car division is tough. A monumental task, you might say. And it has to be executed just right. I’ll give you an example, look at Lexus. When Lexus was launched in the United States, it was a hit. It didn’t take much to separate American drivers from their Cadillacs, Lincolns and Buicks. Now compare this to the European launch. Lexus never really took off. Why? Well, a good reason would be that when Lexus starting exporting to Europe, Germany was making luxury cars to a high standard already, so Lexus was nothing special. Hyundai knows this.