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Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.

How Hyundai lost momentum, and will 'take a few years' to recover

SEOUL/DETROIT/CHONGQING, China — At a near-empty Hyundai Motor showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world's largest auto market. Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan dealership was selling about 400 vehicles a month, a store manager there said. "The sales are simply poor," Li told Reuters. "Look at the Nissan store next door, they have tens of customers while we just have two." An hour's drive away is Hyundai's massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year. But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public. Hyundai, the world's fifth largest automaker, declined to comment on the Chongqing plant's production or the showroom's sales but said it is "closely cooperating" with local partner BAIC to turn around the China business. BAIC did not respond to requests for comment. Hyundai's woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market. In 2009, Hyundai and partner Kia's combined sales ranked third in China after General Motors and Volkswagen. The South Korean duo now ranks ninth, and its market share in China was 4 percent last year, from more than10 percent at the beginning of this decade. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely and BYD. Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai's positioning as an affordable foreign brand, they said. In the United States, the world's second-biggest auto market, Hyundai's market share fell to 4 percent last year, near a decade low. Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S.

Hyundai ups price of 2014 Sonata Hybrid slightly to $26,000

Hyundai is hoping prospective car buyers won't quibble with a 1.3 percent price hike for its Sonata Hybrid this year. Heck, the South Korean automaker brought the price down a year ago, so everyone's theoretically almost even. Or so they hope. Hyundai is boosting the base MSRP on the 2014 hybrid sedan by $350 to an even $26,000, with the top-of-the-line version now priced at $30,750. The company's probably feeling pretty confident after coming off its best sales year ever in the US. Last year, Hyundai boosted unit sales by 2.5 percent to almost 720,800 units domestically. Oddly, Sonata sales fell enough last year for Elantra to become Hyundai's new best-selling model in the US. And the company doesn't break out sales of the Sonata Hybrid (don't feel bad, sister company Kia doesn't break out hybrid sales figures for its twin Optima either). A year ago - and after a very public lowering of fuel economy numbers - Hyundai increasing the Sonata Hybrid's fuel efficiency while cutting its price, and even arranged for bigger cargo space to boot. Specifically, the 2013 model-year Sonata Hybrid increased fuel efficiency to a 36/40/38 miles per gallon split while cutting its price by $200 to a base MSRP of $25,650. Check out Hyundai's press release on the 2014 Sonata Hybrid below. 2014 Sonata Hybrid Refreshes Interior With New Standard Premium Features and Maximizes Electric-Only Driving Efficiency Hyundai Continues Industry-Exclusive Hybrid Lifetime Battery Warranty FOUNTAIN VALLEY, Calif., March 4, 2014 /PRNewswire/ -- Hyundai Motor America has announced pricing for the 2014 Sonata Hybrid, starting at $26,000 for the extraordinarily well-equipped Sonata Hybrid and $30,750 for the range-topping Sonata Hybrid Limited. Hyundai Motor America will continue to offer an industry-exclusive Hybrid Lifetime Battery Warranty on the 2014 Sonata Hybrid. 2014 SONATA HYBRID PRICING Model Engine Transmission MSRP Sonata Hybrid 2.4L Atkinson 4-cyl. Hybrid 6-Speed A/T $26,000 Sonata Hybrid Limited 2.4L Atkinson 4-cyl. Hybrid 6-Speed A/T $30,750 Freight Charges for the 2014MY Sonata Hybrid are $810 and not included in the prices above. The 2014 Sonata Hybrid continues to demonstrate Hyundai's commitment to innovation with its advanced Hybrid Blue Drive architecture, which features a powerful 35 kW electric motor, 47 kW Lithium Polymer battery pack and an optimized hybrid operating strategy.