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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Next-gen Audi A7 design to be 'radical'

The Prologue concept has our attention. In fact, it has everyone's attention. It is the preview for the coming A7, and Autocar summarized Audi design chief Marc Lichte's concerning the new A7 as, "A more radical design is promised for the next-generation." In fact, the next A7 is said to become "the most radical" of three coming designs inspired by the Prologue, the others being the new A6 and A8. Autocar also said Lichte made it clear that there would be "much greater visual differentiation between the trio and other future Audis." Yet, for at least four years Audi has been talking about a design overhaul to fight back charges that its cars look too similar. In 2011 there was a "design initiative" dubbed AQR to make sure that "the design details will be different" between its hatchbacks, Quattro offerings and R Sports cars, and make proportion changes to its sedans. That didn't really move the needle. In 2013, then-design boss Wolfgang Egger hailed the end of "scalable design," a prime culprit for the 'same sausage, different lengths' accusations. We're not sure the needle moved much then, either. And this year came news of a new "Quattro-centric" design language that would stress horizontals, perhaps the new Q7 it's first serious proponent, a crossover that we'll have to see before we can judge. Although we've heard the bells ringing about fresh design at Audi for years, we hope they mean it with products that come after the Prologue; it is a fabulous place to start. Featured Gallery Audi A7 Sportback facelift View 13 Photos News Source: Autocar Design/Style Audi Sedan marc lichte

Next Audi RS4 to get V6 turbo, US sales still unclear

Audi's high-performance S models have forged a reputation in the US for offering wonderful driving dynamics in a package that doesn't scream, "I bought a sport sedan." However, its even higher-performance RS models are still somewhat of a rarity here. While the RS5 and RS7 are in the current US lineup, many of the wild RS models that Europe gets, like the RS6 Avant (pictured above), never make it to these shores. Unfortunately, that might not be changing anytime soon with the next-gen RS4.
The RS4 will follow the lead of the next BMW M3/M4 and (rumored) next Mercedes-Benz C-Class AMG and make the switch to a smaller turbocharged powerplant. According to an Audi insider speaking to Car and Driver, the next RS4 will drop the last generation's 4.2-liter V8 in favor of a turbocharged V6. The engine block will likely be shared with the supercharged 3.0-liter V6 in the regular S4 but fitted with two turbochargers. Power would likely be around 400 horsepower to match the 425-hp M3 and rumored 450-hp C-Class AMG.
Unfortunately, the RS might not make it across the pond to our waiting hands because the source says no decision has been made to export them yet. Obviously, we hope that Audi makes the right decision and brings the next RS4 here.