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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.

VW Group exploring F1 options, would likely wait until Ecclestone is out

The real hurdle is that Volkswagen overlord Ferdinand Piech doesn't like Bernie Ecclestone on a personal or professional level. Superbugs. They are antiobiotic-resistant bacteria and viruses, fiends that defy eradication no matter how much counteracting agent you throw at them. Reports that Audi is going to join Formula One? They are the superbugs of rumors; for five years they've been coursing through the blood of motorsport, and no amount of denials or Audi's continued non-presence in F1 has been able to make them go away. Not even a month ago we contracted another bout of it, courtesy of Auto Express, citing sources who said Audi would leave endurance racing and DTM - handing Le Mans over to Porsche, instead of the other way around - and buy either Red Bull or Toro Rosso for an entry in 2016 with an in-house powerplant. Within 24 hours of that story, Audi Sport sent the tweet, "Audi in F1? There rumors keep appearing with regularity since years. It's pure speculation again this time and without any foundation." Now, few things are impossible in F1, but lining up on the grid in 2016 is not far away from needing to be ready tomorrow, in F1 terms, which is why these announcements come long in advance. Honda, you'll recall, gave us almost two years' notice of its F1 reunion and Porsche gave us three years notice about Le Mans. A brand-new report in the BBC says that Audi is using new hire and ex-Ferrari technical director Stefano Domenicali to lead a feasibility study into an F1 program. According to that story, the real hurdle to the foray, however, is that Volkswagen Group overlord Ferdinand Piech doesn't like F1 boss Bernie Ecclestone on a personal or professional level, so one of them would need to leave his position before Audi could say yes, feasibility be damned. Since we're talking about two men who define professional longevity, that day might not come soon. The BBC story goes on to say that Martin Winterkorn, head of the VW Group management board, would like to see the group in F1, and that if it happened it would be with a "car designed and made in Germany." Ladies and gentlemen, you know where to file this one...

Automakers need to stop stalking celebrities

Since the invention of the automobile, cars and stars have gone together like paparazzi and the Kardashians. During this season of starlet-adorned award ceremonies, from the Golden Globes through to the Oscars, you will find a lot of car companies all vying to loan out their vehicles to any celebrity with a recognizable face who happens to be heading to a red-carpet award ceremony. There is, however, none so coordinated, consistent and aggressively playing the Fame Game as our friends at Audi. Since the invention of the automobile, cars and stars have gone together like paparazzi and the Kardashians, so by association getting a celeb behind the wheel of your car brand gives it an instant image boost that must make the car more attractive to buyers. Celebrity tales equals dealership sales. That's the logic, anyway. But surely the millions of dollars spent giving free cars to rich stars is a waste of precious and increasingly smaller marketing budgets. It's time to make the car the star, not the other way around. Lets be clear, we are not talking about the very obvious dropping of famous faces into big budget ads. That has its place in the marketing toolbox, but in a very media savvy world it's clear most of us get that play-for-pay concept. Today, the use of just a famous name in an ad yields very little influence on whether you or I will buy that car. No, this awards-ceremony loaner deal is a subtler, but higher risk, idea that if you see a "star" with "their" car in "real life" then surely that adds to the car's appeal. We, the audience, are expected to start salivating like Pavlovian puppies in our desire to have same car in our own, less red-carpeted driveway. Geoff Day has been called the "Pied Piper" of the auto industry, leading auto journalists on wild rides around the globe in his position as former director of communications for Mercedes-Benz USA. Before that, he worked at DaimlerChrysler UK on its PR efforts, and rubbed elbows with the Queen of England in his role at the Buckingham Palace Press Office. His phone is filled with the numbers of the great, the good and the bad. His head is filled with dirty little secrets hiding in many corners of the auto industry. There is no doubt that the publicity that comes with a well placed story, picture or feature can help raise awareness of a product – Oprah proved that with her "Favorite things" – especially if you are launching a line of wrinkle cream or juice bars.