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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.

Hyundai FE Fuel Cell Concept previews next year's hydrogen SUV

For a while and without too many specifics, Hyundai has been talking about a new hydrogen powered CUV or SUV to replace the Hyundai Tucson Fuel Cell. Now, in Geneva, the Korean automaker has given us a preview of that vehicle: the Future Eco (FE) Fuel Cell Concept. The FE Fuel Cell definitely looks like a concept car, with a clean, flowing look Hyundai says is inspired by water, which happens to be this car's only tailpipe emission. It has a sturdy stature, with the large wheels pushed to the corners. Aerodynamic touches help make it more efficient, and add to its fresh design. Let's hope the production vehicle keeps some of these visual cues. Inside the car, an internal air humidifier recycles some of those water emissions inside the cabin's atmosphere. The FE Fuel Cell Concept also has portable battery packs for powering passenger devices, and the trunk is built to stow and charge an electric scooter to help you go that last mile. The FE's hydrogen fuel cell technology improves upon the Tucson Fuel Cell by being lighter and more efficient, with a fuel cell stack with 30 percent greater energy density. That means more range. Driving range is, of course what sets FCEVs apart from other zero-emissions vehicles, and the FE Fuel Cell has plenty of that to go around. "We have designed the car to run the longest distance ever achieved by a fuel cell vehicle," says Hyundai Vice Chairman Dr. Woong-Chul Yang. It'll go about 500 miles on a full tank of hydrogen, which is especially helpful while fueling stations are still few and far between. Hyundai expects to launch the production SUV inspired by the FE Fuel Cell Concept in early 2018. Related Video:

Bisimoto Hyundai Genesis Coupe is a 1,000-horsepower tuner dream

The big guns are starting to roll out at the 2013 SEMA Show in Las Vegas. This is the Bisimoto Hyundai Genesis Coupe, the promised 1,000-horsepower monster that was first shown at the end of September. We ventured across the SEMA floor to get an up-close look at this hugely powerful two-door.
The list of aftermarket parts fitted to this Genesis Coupe is extensive, ranging from that huge intercooler up front to a pair of Bisimoto/Turbonetics turbochargers to an AEM engine management system, all of which allow the 3.8-liter V6 to produce upwards of 1,000 hp. A full roll cage and Buddy Club seats and harnesses are fitted to the cabin, while a coil-over suspension blesses this Genny with some extra agility. We don't know what size Toyo R888 R-Compound tires those are, but as they're fitted to 20x11-inch wheels in back and 20x9.5-inch wheels in front, we're betting they're huge. We've got a full list of aftermarket goodies in the press release below.
We also have a full gallery of live images of the Bisimoto Genesis on the SEMA Show floor up top, so be sure to hop in and take a look at just what kind of potential can be found in this two-door Korean sports coupe.