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Automakers teaming with Google to bring Android to cars this year

Remember how we mentioned that Hyundai would be offering a BlueLink infotainment app for Google Glass? And how last week, we told you about a rumored partnership between Audi and Google? Well, both of these things were just part of a much bigger deal.
Google has teamed up with Audi, General Motors, Hyundai and Honda to form the Open Automotive Alliance. With the help of chipmaker NVIDIA, the group aims to bring Google's Android operating system to the auto industry on a large scale. While the speed with which Android will be adopted by the industry remains unclear - the OAA's own press release says "timing for each automaker will vary" - we could see the first Android-equipped vehicle by year's end.
For those that keep their ear to the ground in the automotive tech world, this is a big deal for more than just one reason - Honda, GM and Hyundai are all partners in the Siri Eyes Free program from Apple. The future of that relationship now that three of its automakers are in bed with Apple's arch-rival, though, could be under threat.

We get our hands on Android Auto [w/video]

After a week with version one of Android Auto in a 2015 Hyundai Sonata, my opinion is that it fulfills the promise of the technology. I couldn't even exploit it fully because I'm not married to the Android ecosystem. At my desk right now there's a PC in front of me, an iPad on my left, and an Android phone on my right. My Android phone is, in fact, so old that it's not compatible with Android Auto. So in addition to a Sonata, Hyundai let me borrow a Nexus 5 smartphone and a Motorola Moto360 watch. Yet even with all that gear, which, in practical terms is someone else's borrowed digital life, Android Auto still showed itself to be tech worth having. When you start the Sonata you get the standard Hyundai infotainment screen. Plug your phone in, and you'll get an option to click over to Android Auto. At that point, you lose the ability to use your phone, which is the purpose of the system, to keep you from using the handset. Since the contents of your phone are ported to the head unit, there is hardly any reason to reach for the portable device anyway. The Google Now screen comes up first, populated with a series of notifications resulting from Google having learned your life and kept track of where you've been going, who you've been calling, and what you've been searching for. After only two days, Google Now understood that I probably lived in Venice, CA, and not in Orange County, where the phone had previously resided. No matter the make of car, the interface is the same. The icons along the bottom of the screen indicate Navigation, Phone, Home (Google Now), Audio, and Return – to go back to the car's native interface. The first four options represent much of what we use our phones for (we'll get to texting in a second), and that's what buyers want: for cars to work seamlessly with their phones. Oh, and to have voice recognition actually be useful. Android Auto works with the Hyundai system, so if music is playing when you turn the car on, it will continue to play even though you're in Android Auto, and you can control it through that interface. Switching to media or apps on your phone is as easy as saying, "Play music," which defaults to Google Play, or pressing the audio button and choosing an app like JoyRide or NPR One. You do have to figure out how to speak to the system. I couldn't find any list of Android Auto-specific voice commands, so sometimes it would take a few tries to figure out how Google liked to be ordered around.

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.