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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.

BMW i3 to be priced around $40,000

According to Automotive News, the BMW i3 electric hatchback will likely be priced around $40,000, or similar to that of a well-equipped 3 Series sedan, when it goes on sale later this year. This information was revealed during an interview where AN spoke to Ludwig Willisch, CEO of BMW North America. The i3 will likely qualify for a $7,500 tax credit from the US federal government, though AN reports that a BMW spokesperson could not confirm this just yet.
In addition to the all-electric i3, BMW will offer a range-extended version that uses a 0.65-liter two-cylinder motorcycle engine and auxiliary generator to charge the car's battery on the go. Automotive News says pricing for this model is still unclear, as is whether or not the range-extended i3 will be eligible for the $7,500 tax credit. Of course, buyers needing a vehicle for longer trips will be able to borrow one from the automaker.
Automotive News also reports that the majority of BMW's 338 dealers in the United States will be able to sell the i3, as well as the upcoming i8 hybrid sports car. Dealerships have until June of this year to opt out of this program, however.

BMW i3 called 'most revolutionary car' since Ford Model T

The Ultimate Driving Machine, or at least one of them, may also be the Ultimate Engineering Success. Consultant Munro & Associates, which specializes in automotive tear-down analysis, pretty much said as much when taking an under-the-skin look at the BMW i3 plug-in. In short, the firm liked what it saw. Presenting at Detroit's Plastic's in Automotive conference this week, Munro CEO Sandy Munro called BMW's first mast-produced plug-in model the most revolutionary car "since Henry Ford's Model T." The car earned big points for its substantial uses of materials that are both lightweight (key for any plug-in's range) and recyclable. BMW has touted these advantages all along. In late 2013, the German automaker went as far as saying its use of carbon fiber reinforced plastic (CFRP) would reduce customer costs related to both repair and insurance. The i3 went on sale in the US last May and, by the end of the year, moved more than 6,000 units here. It sold almost 17,800 The i3 last November also was named the Green Car of the Year at the Los Angeles Auto Show, beating out models such as the compressed-natural-gas-powered Chevrolet Impala B-Fuel and the Audi A3 TDI diesel. Munro made news earlier this week when it offered a free i3 for anyone who bought the master- or OEM-level version of the report, though the report isn't cheap and that offered disappeared once Munro made his presentation. Check out Munro & Associates' press release below. Munro Discusses Groundbreaking Technology Finds from BMW i3 Teardown at Plastics in Automotive Conference; Offers New BMW i3 for Purchasers of Master-level Report DETROIT, Jan. 14, 2015 /PRNewswire/ -- During today's Plastics in Automotive Conference in Detroit, Sandy Munro, CEO of Munro & Associates, Inc., discussed – for the first time publicly – his consulting firm's findings from its extensive deep-dive teardown, costing and benchmark study of the BMW i3 urban electric car. During his presentation, "Deconstructing the BMW i3: Groundbreaking Technology and the Composite Car," Munro discussed the carbon fiber life module, polymer components, recyclability and safety of what he considers to be "the most revolutionary car in terms of creative engineering and manufacturing since Henry Ford's Model T." During the presentation, Munro focused on four crucial aspects of the BMW i3: the manufacturing of its carbon fiber life module; its polymer components; recyclability; and safety.