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Hyundai sees tough year ahead, plans to introduce 13 new models

SEOUL — South Korea's Hyundai Motor Group predicted another year of tepid car sales growth on the back of a slow 2018, saying trade protectionism adds uncertainty and major markets such as the United States and China remained sluggish. In his first New Year address to employees, group heir apparent Euisun Chung said Hyundai Motor Co and Kia Motors would complete a restructuring of South Korea's second-biggest conglomerate, which is widely expected to pave the way for him to formally succeed his octogenarian father as head of the group. The complicated succession plans come as Hyundai contends with a bunch of problems that have cost it market share in China and the United States and stalled its rise up the ranks of global automakers. It missed a boom in sports utility vehicles (SUVs), faces potential U.S. tariffs and a U.S. investigation over how it handled a vehicle recall, and lost ground in technological advances such as self-driving cars. "Business uncertainties are heightening as the global economy continues to falter. Walls of protectionism are being constructed around the world," Chung, 48, told hundreds of employees at the group's headquarters in Seoul. "Internally, we face challenging tasks such as stabilizing business in major markets like the U.S. and China, while simultaneously enhancing our responsiveness to drive future growth." Hyundai and Kia — together the world's fifth-biggest automaker — set what they called a "conservative target" of 7.6 million vehicle sales in 2019, a 3 percent increase from the 7.399 million vehicles sold last year. The 2018 sales fell short of the group's target of 7.55 million vehicles, marking its fourth consecutive annual sales goal miss. The duo sold 7.25 million vehicles in 2017. Morgan Stanley expects global auto production to fall 1 percent in 2019, the first drop in nine years. In that environment, the group said it would launch 13 new or face-lifted models in 2019, including a premium Genesis SUV, the big Hyundai Palisade SUV and the Sonata sedan. "Hyundai will be launching new models, but competitors will be also doing so, making it difficult for Hyundai to increase shares in the sluggish markets in China, U.S. and Europe," said Sean Kim, an analyst at Dongbu Securities. Hyundai shares ended down 3.8 percent and Kia slumped 2.7 percent, while the wider market <.KS11> was down 1.5 percent.

Second-generation Hyundai Veloster spied with same asymmetric doors

Until we saw these photos, the future of the Veloster didn't look especially bright. It's entering its fifth year on sale with no major updates, and no announcements for a replacement. It also was killed in the UK three years ago when it wasn't selling well. However, these photos show that Hyundai hasn't given up on it. At first glance, it looks very much like the current model, but closer inspection reveals some differences. Up front, the hood looks lower, and it tapers down to what seems to be an exaggerated version of the "cascade grille" Hyundai has implemented on the Elantra GT, and new Sonata. The headlights look slimmer, and there seem to be fewer busy, "quirky" lines. Moving backward, we find the same asymmetric door layout consisting of one door on the left, and two on the right. On the right side, the rear door handle is still tucked in the corner of the window. The glass area on the right also appears a bit larger thanks to a lower edge that stays lower for longer. At the rear, the camouflage is at its heaviest, but interesting details still show through. The rearmost glass seems to be more steeply raked. We can't tell if there's still glass on the top of the hatch, but considering the evolutionary nature of this car's design, we would expect the same amount of hatch glass. The taillights have adopted the slim and wide look of other recent Hyundai's. The center-exit exhaust remains, too, but it looks a bit smaller, and no longer has an obvious split in the middle. On either side of the bumper are auxiliary vents, likely fake. Besides the low sales and limited updates, another reason we questioned the future of the Veloster was its unremarkable driving dynamics. While forgivable in the base model, it was an issue on the Turbo, which simply wasn't fun enough to recommend over competitors. We're glad to see Hyundai will give it another shot, though, since the world can always use more quirky and interesting automobiles. Hopefully this next one will drive better. And who knows, it might even spawn a crazy mid-engine, rear-drive version. Related Video:

5 Hyundai and Kia models have higher-than-average fire insurance claim rates

DETROIT — Owners of five Hyundai and Kia cars and SUVs file fire insurance claims at a rate far higher than the average for comparable vehicles, according to an insurance industry study. The Highway Loss Data Institute, which analyzes data from insurers representing about 85 percent of the U.S. industry, found that some Hyundai and Kia vehicles equipped with four-cylinder engines have double the noncrash fire claim rates than the average of comparable vehicles. Last week the South Korean brands announced they would recall about 168,000 vehicles to fix a fuel pipe problem that can cause fires. The problem stems from improper repairs during previous recalls for engine failures. They also announced additional sensor software for another 3.7 million vehicles. Hyundai and Kia started recalling 1.7 million vehicles in 2015 — about 618,000 of which are Kias — because manufacturing debris can restrict oil flow to connecting rod bearings. That can cause bearings in 2-liter and 2.4-liter four-cylinder engines to wear and fail. The problem can also cause fires. The repair in many cases is an expensive engine block replacement. Results of the Arlington, Virginia-based institute's study have been turned over the U.S. National Highway Traffic Safety Administration, which is investigating engine failures and fires in Hyundai and Kia vehicles. The agency is mostly closed this week due to the partial government shutdown. Hyundai said Tuesday that the majority of its models in the study are already being recalled or are part of additional actions to keep customers safe. "Hyundai actively monitors and evaluates potential safety concerns, including non-collision fires, with all of its vehicles and acts swiftly to recall any vehicles with safety-related defects," spokesman Michael Stewart said. Kia spokesman James Bell said the company is cooperating with NHTSA "and will take any necessary corrective action in a timely manner." Many of the fires involve vehicles included the engine failure recall and could have been prevented if owners had the recall repairs done, he wrote. The institute began studying fire claims after the Center for Auto Safety petitioned NHTSA last year seeking a wider recall of Hyundai and Kia vehicles. The center had found a higher-than-normal number of consumer complaints about Hyundai and Kia fires in the agency's database. NHTSA has used Highway Loss Data Institute studies in the past to help make recall decisions.