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Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.

Hyundai pushes on with development of delayed i20 WRC

It's a pretty big deal when a major automaker joins a top-flight racing series, and so it was when Hyundai entered the World Rally Championship with the i20 WRC last year. And while delays have postponed the arrival of its replacement, development presses on. For those unfamiliar, the i20 is Hyundai's rival to the likes of the Volkswagen Polo and Ford Fiesta for Asian, European and other overseas markets. The Korean automaker introduced a new version of the i20 late last year, including a new three-door version that was supposed to serve as the basis for the new rally machine, but production delays meant Hyundai couldn't homologate the rally version before the end of this season as originally planned. So instead it will base the new competition machine on the five-door version and aim to launch it in time for the start of next season. "We had hoped to introduce the car later this season but unfortunately an issue with the homologation schedule - related to production of the three-door road version – will delay our programme," said Hyundai Motorsport chief Michel Nandan. "We have therefore opted to continue focus on the five-door version of the New Generation i20 WRC which will compete at Rallye Monte-Carlo next year." In the meantime, as you can see from the photos above, development continues apace. Test driver Kevin Abbring and his co-pilot Sebastian Marshall are being charged with its shakedown, along with Thierry Neuville and Nicolas Gilsoul – the same duo that won the 2014 Rally Germany and which are currently ranked third in the 2015 World Rally Championship after placing second at round two in Sweden. They'll have to make do with the current car for the rest of the season, which continues with the fourth round later this month in Argentina. Hyundai Motorsport Continues New Generation i20 WRC Development - Hyundai Motorsport has recently carried out a four-day test in Spain with an upgraded version of the New Generation i20 WRC - Hyundai Motorsport confirms it will ramp up development of a five-door version of the New Generation i20 car in preparation for a full season of 2016 FIA World Rally Championship - The current Hyundai i20 WRC will run throughout the rest of the 2015 season April 10, 2015 – The Hyundai Motorsport team has recently completed a four-day test of the New Generation i20 WRC car in the Spanish region of Almeria.

Hyundai Group design chief wants more differentiation between models and brands

Luc Donckerwolke, the man who oversees design at Hyundai, Kia, and Genesis, is determined to get more differentiation into the model range. He not only wants greater visual separation between all the models in the range, he also wants more distinction between Hyundai Group cars and others in the respective segments, and global distinctions so that a Hyundai in China doesn't necessarily look like one built for North America. He told Autocar, "We will not have a global design language because otherwise it's too rigid. [The alternative is] more work, but it's more flexible." Donckerwolke gets an extreme look at the results of homogeneous design, because an enormous number of cars on the road in South Korea are Hyundai Group products. "[Our] core task is to differentiate the design philosophy of the three brands, not least because we have a big [around 70%] share in Korea. We need to differentiate each model, otherwise the landscape is too homogeneous." Top-down, each brand gets a design brief. Hyundai will be Hyundai's "sexy, seductive and sensuous, sporty, eager and stylish," holding onto its value proposition while adding emotion. Kia will be "young, challenging and cool — cooler than before," said brand design chief Byungchul Juh, with Donckerwolke adding that it's about "streetwear — bold, fresh and young." And Genesis is "haute couture." Donckerwolke characterizes the design philosophy as not "Russian dolls but ... chess pieces, with a look that reveals its own charismatic character. For example, Kia's used to be about the tiger nose grille, separate headlights and the lower intake. Now it's going to be more of a mask that will deliver sportiness and a presence." Kia designer Juh said, "There will be a distinct version of tiger face for each segment, and we'll keep the tiger nose grille. In principle it's the same, but there's a different interpretation for each segment, and more of a 3D feeling. We're moving from a nose to a face." The sketches we've seen of Kia's coming small global crossover take a first step, and we're told the next Sportage will make more impact than the new Tucson. As for Hyundai, the next Sonata will "be the design flag-bearer." We wait to see how much of the vehicle all of this affects. But right now, look at the 2020 Elantra and Sonata from the front three-quarter; ignore their front fascias, and they're two sizes of one sausage.