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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.

2016 Hyundai Elantra gets new Value Edition [UPDATE]

Update: Hyundai informs us the 2016 Elantra Value Edition actually collects $1,550 in equipment together for $550 more than the Elantra SE with the Popular Equipment Package. The next-generation Hyundai Elantra reportedly debuts at the 2015 Los Angeles Auto Show in November, but there's still quite a while before the updated model arrives at dealers. To keep the sedan somewhat fresh among a crowded fielded of competitors, Hyundai is giving the 2016 model year a new Value Edition and some small tweaks to other trims. The 2016 Elantra Value Edition rings up for $19,700, plus $825 destination, and all of them come with a 1.8-liter four-cylinder with 145 horsepower and 130 pound-feet of torque along with a six-speed automatic. To earn its budget-friendly name, Hyundai claims the new trim bundles $1,000 in features for $550 more than the Elantra SE with the Popular Equipment Package. On the outside, these models get a sunroof, chrome beltline molding, and turn signals in the side mirrors. The improvements are a little more extensive inside with a tilt-and-telescoping, leather-covered steering wheel, push-button start with proximity key, and heated seats. In addition to the Value Edition, the Elantra Limited now gets standard push-button start with a proximity key and dual climate zones. Hyundai claims that it's a $600 value, but the $21,700 price is the same as last year. Finally, the Elantra Sport is losing some features to lower its price. The trim now retails for $1,350 less than last year at $20,250 with the 173-hp, 2.0-liter four-cylinder and six-speed manual or $21,250 with a six-speed automatic. However, to make that savings possible, the leather seats and power sunroof are no longer standard features. The interior now has cloth upholstery. The 2016 model year Elantras should arrive at dealers in May. 2016 ELANTRA ADDS NEW TRIM LEVEL AND MORE VALUE 15/05/15 from Hyundai New Elantra Value Edition provides $1,000 in value savings; Elantra Limited gets more standard features FOUNTAIN VALLEY, Calif., May 11, 2015 – Today, Hyundai Motor America announced the 2016 Elantra, featuring product improvements and new value-focused packaging updates. Elantra continues its high value proposition as a strong choice for shoppers in this highly-competitive segment, validated by several coveted accolades over the model's lifecycle. Elantra ranked highest in its segment for initial quality in the influential J.D. Power 2014 U.S. Initial Quality StudySM (IQS).

Hyundai mulling new small CUV under Tucson

Hyundai maintains it can barely build enough of its core models to satisfy North American consumers, but that doesn't mean it isn't keen to expand its offerings to capture developing segments of the market. According to Edmunds, one of those expanding niches could be the burgeoning subcompact crossover segment. The website quotes Hyundai North America president and CEO John Krafcik as acknowledging his company is "very under-represented" in crossovers, the market's hottest vehicle type.
With the discontinuation of the Veracruz, Hyundai is down to two CUV nameplates, Tucson (pictured) and Santa Fe, the latter of which covers two segments with a two-row Sport and long-wheelbase three-row model. And while Hyundai commands seven percent of the US sedan market, the company estimates it only has two percent of the truck segment.
And while Krafcik stops short of confirming a new model, he acknowledges "a new segment is emerging" underneath the Tucson and says, "I think it's something to look at." At the moment, the subcompact softroader segment remains small and somewhat amorphous, with tiny CUV offerings like the Buick Encore, Nissan Juke, and now-discontinued Suzuki SX4 illustrating that there are a lot of different ways to package and market such a vehicle.