2002 Hyundai Sonata on 2040-cars

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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

South Korea firms up fuel economy regs following Hyundai/Kia debacle

According to a report from Reuters, South Korea's government has drafted strict new rules for automakers to follow when calculating fuel economy. The legislation comes after a major snafu by Hyundai and Kia that resulted in the automakers lowering the estimated fuel mileage of many popular models - some by several miles per gallon, including the Soul subcompact above - and compensating owners in the US and Canada for the reduction.
The new fuel economy rules were announced by the Ministry of Trade, Industry and Energy in South Korea and will see average mileage ratings drop by roughly three to five percent, according to the report. In addition, manufacturers found guilty of overstating mileage figures will be liable for fines of up to $900,000.
These sweeping new regulations will go into effect in the second half of 2013 and, while they won't have any effect on EPA estimates for Hyundai and Kia vehicles in the United States, they are expected to result in new ratings for the two automakers in their home market of South Korea, where they enjoy a whopping 70-percent market share.

Meet Hyundai's new flagship, the Genesis G90

Hyundai just revealed the first vehicle for its new Genesis luxury brand. It'll be called the EQ900 back home in Korea, but to the rest of us, it will be known as the Genesis G90, effectively replacing the Hyundai Equus. The G90 is as big as a Mercedes S-Class, but like the outgoing Equus, will be priced closer to the E-Class. Exterior dimensions are incrementally larger than the outgoing Equus, and compare roughly to the Mercedes S-Class (in the long-wheelbase form we get in America). But if Hyundai keeps pricing in line with the Equus we currently know, the G90 will be priced closer to the smaller E-Class. Design was carried out under the watchful eye of Peter Schreyer at the company's new Prestige Design Division, headlining a new Athletic Elegance design language that will expand to the five new Genesis-branded models coming after the G90. The front end is characterized by a Crest-shaped grille with the Genesis brand's new winged emblem (also projected onto the pavement from the side mirrors), and flanked by LED headlamps. A chrome beltline bridges to the rear with its dual exhaust tips. While the interior of the Equus may not have been up to par with the competition, the G90's cabin looks poised to rival the best of them. Italian leather offsets real wood trim. The ergonomic seats are certified by German back specialists, with 22-way power adjustment for the driver and 14 ways for the other occupants. In Korea the EQ900 even features a Smart Posture Caring system that positions the seat, steering wheel, head-up display, and outside mirrors to the driver's optimal position. There's a 12.3-inch high-definition screen in the dashboard, a megapixel parking camera, 360-degree around-view monitor, Lexicon surround sound system, and wireless inductive phone charging – all of which adds up to what looks like a sumptuous environment in which to pass the miles. While the Equus is powered exclusively by a V8, the G90 offers three engine options. While the Equus is powered exclusively by a V8, the G90 offers three engine options: Least potent is the new 3.8-liter V6 launched in the Kia K900, rated at 311 horsepower. There's a 3.3-liter turbocharged V6 good for 365 hp. And the 5.0-liter V8 carries over at 419 hp (though the current version is quoted at 429 hp), propelling the sedan to 62 miles per hour in 5.7 seconds. Power in any case is transmitted through an eight-speed automatic transmission to either the rear wheels or all four.