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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

No diesels in the running for 2016 Green Car Of The Year

It's a new era for the Green Car Of The Year. In the past, the theme of the award was to take a broad look at alternative powertrains and pick the best among them. "Clean diesels" from the Volkswagen group were often among the finalists and won the award twice. For the 2016 edition - which will be handed out at the LA Auto Show next month - not a single diesel made the list. There's little wonder why. Green Car Journal, which names the winner with a panel of experts, had to strip two VW brand vehicles of their past wins. The 2009 VW Jetta TDI, which won in 2008, and the 2010 Audi A3 TDI, which won in 2010, have both lost their titles now that the world knows about the "defeat devices" that VW installed in many of its TDI vehicles around the world. So, what does that leave us with for 2016? Two plug ins, a hybrid, and two gas vehicles. The two electric vehicle are the Audi A3 e-tron and the Chevy Volt, while the all-new Toyota Prius (which will come with a plug-in version later) is the lone pure hybrid. Rounding out the pack are two efficient gas models: the Hyundai Sonata and the Honda Civic. This is the tenth year for the Green Car Of The Year, and it will be interesting to see if diesels can come back into the award's good graces (for the record, no diesels were among the finalists in 2013, either) in the future. For now, we'd like to know who you think should win. You can read more about the finalists in the press release below and then cast your vote in our poll. Show full PR text FINALISTS ANNOUNCED FOR 2016 GREEN CAR OF THE YEAR Green Car Journal to Reveal Winner of 11th Annual Award at LA Auto Show Press & Trade Days, November 19 LOS ANGELES, CA (October 15, 2015) – Green Car Journal has announced its five finalists for the magazine's prestigious 2016 Green Car of the Year® award. The 2016 models include the Audi A3 e-tron, Chevrolet Volt, Honda Civic, Hyundai Sonata, and Toyota Prius. An increasing number of vehicle models are considered for the Green Car of the Year® program each year, a reflection of the auto industry's expanding efforts in offering new vehicles with higher efficiency and improved environmental impact. Green Car Journal has been honoring the most important "green" vehicles every year at the LA Auto Show, since its inaugural award announced at the show in 2005.

Hyundai Sonata is the first application of Android Auto

Hyundai is grabbing an early technological lead as the first automaker to launch Android Auto in one of its production models. The Google-made operating system is now available on the 2015 Sonata with navigation, and current owners of the vehicle can get the software through an update available at dealers. The OS arrives on additional Hyundai products soon. Similar to Apple's CarPlay, Android Auto syncs with a smartphone to mirror some elements of the operating system directly on the vehicle's infotainment screen. The software allows for navigation through Google Maps, text messaging, and phone calls. Plus, it supports some third-party apps, as well. A driver can then control all of these functions through the car's microphone and physical controls. In a nod to safety, Android Auto also locks the phone's screen when in use to keep people from looking at their device while on the road. Beyond the Android Auto software in the Sonata, users need Android 5.0 or later and a companion app on their phone. Several other automakers intend to support the standard in the future. Autoblog recently got the opportunity to try out the OS, and you can look forward to a full report about it. All-New Integration Available on Best-Selling Sonata First car company to launch Android Auto on production vehicles, starting with the 2015 Sonata with Navigation Free Android Auto software update available for current owners of 2015 Sonatas with Navigation Android Auto reduces driver distraction by integrating the driver's smartphone with the vehicle's screen and controls Fountain Valley, Calif., May 26, 2015 – Today, Hyundai becomes the first car company to launch Android Auto™ on production vehicles. Android Auto is premiering on the 2015 Sonata with Navigation at dealerships nationwide, and will later become available on other Hyundai models. "Android Auto aligns with Hyundai's core interior design principles of safety, intuitiveness and simplicity," said Dave Zuchowski, president and CEO, Hyundai Motor America. "We launched this highly anticipated feature on our best-selling Sonata, adding to our promise of value. With the launch of Android Auto, we provide more owners with the experience of cutting-edge technology." Android Auto not only brings a high technology experience to Hyundai owners, but also improves safety.