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Hyundai recalls 24k Genesis sedans over electrical issue

An electrical problem has prompted Hyundai and the National Highway Traffic Safety Administration to issue a recall for the 2015 Genesis. The problem arises when water leaks into the taillight assembly, which – in a way that would only make sense to an electrician – could cause the incorrect gear to be displayed on the instrument panel or even a delay in switching from Park to Reverse or Drive. Needless to say, if the driver doesn't know into which position the transmission has shifted, that could increase the likelihood of a crash. The issue affects an estimated 24,400 units of the 2015 Genesis in the United States – specifically those manufactured between February 21, 2014, and January 24, 2015. Owners of those vehicles can expect to hear from their local dealer to arrange the installation of additional waterproofing pads to prevent the troublesome moisture from leaking in to the taillights. RECALL Subject : Water may Leak into Rear Combination Lamp Assembly Report Receipt Date: FEB 19, 2015 NHTSA Campaign Number: 15V097000 Component(s): ELECTRICAL SYSTEM , EXTERIOR LIGHTING , POWER TRAIN Potential Number of Units Affected: 24,400 Manufacturer: Hyundai Motor America SUMMARY: Hyundai Motor America (Hyundai) is recalling certain model year 2015 Genesis vehicles manufactured February 21, 2014, to January 24, 2015. Water may leak into the rear combination lamp assemblies and cause an incorrect gear display on the instrument panel or a delay in the engagement of the selected gear when the vehicle is shifted from Park to Reverse or Drive. CONSEQUENCE: If the incorrect gear is being displayed, the vehicle may move in an unintended direction, increasing the risk of a crash. REMEDY: Hyundai will notify owners, and dealers will apply pads to prevent water intrusion into the combination lamp housing, free of charge. The manufacturer has not yet provided a notification schedule. Owners may contact Hyundai customer service at 1-855-671-3059. Hyundai's number for this recall is 128. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Hyundai, union reach tentative labor deal

According to Reuters, South Korea's labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won - around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it's a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We'd wager that this is why US inventories haven't been hit quite so hard aside from the battering already taking place. The proposal will now go before the union's rank and file.
If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months' salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).
Based on Reuters' report, the work stoppages must have taken a real toll on Hyundai - its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

Hyundai mulling new Lexus-fighting upscale crossover

The idea of Hyundai marketing a luxury automobile might have seemed ridiculous a decade ago, but that was before the Genesis sedan, Genesis coupe and Equus came along. Now that buyers seem more accustomed to the notion of an upscale Hyundai, the Korean automaker is said to be considering launching a luxury crossover to take on the likes of the Lexus RX and Cadillac SRX.
The report comes from our compatriots at Edmunds, who spoke to Dave Zuchowski, head of Hyundai's North American unit, who said that the project is not yet part of the company's plan, but that "it is something under consideration."
The last time Hyundai entered that territory was with the Veracruz (pictured above), a model that was sometimes compared to but ultimately failed to compete with the Lexus RX when it was sold between 2006 and 2011. The Veracruz was effectively replaced by the seven-passenger Santa Fe with which it shared its underpinnings. This new project being considered would similarly be based on the latest Santa Fe, and the challenge Hyundai is facing once again would be to position it as a sufficiently upscale product to warrant a premium sticker price.