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Weekly Recap: Kia leads Korea's quality surge

The rapid rise of Korea's auto brands in the US market has been apparent on the sales charts for several years, and now it's showing up in an area that's just as crucial: quality. Kia and Hyundai earned the highest rankings among mainstream brands in the J. D. Power Initial Quality Study released on Wednesday. The study tracks problems owners report during the first 90 days they own their car. Kia reported 86 problems per 100 vehicles, or fewer than one problem per car sold, to take second in the rankings behind luxury sportscar-maker Porsche (80). Kia's score improved by nearly 20 percent compared with the 2014 study. "The big industry story is Kia," Renee Stephens, vice president of U.S. automotive quality at J.D. Power, said in a video statement, noting Kia's infotainment systems were the key reason for its improved performance. Hyundai was fourth for the second straight year, though its score actually worsened by one, to 95. Even with Hyundai's slight dip, Korean quality increased 11 percent, according to the study, which far outpaced American and European companies' three-percent increases. Japanese brands improved one percent. Hyundai Motor Co. (parent company of the Hyundai and Kia brands) captured four individual vehicle awards, which tied for the most with General Motors, Nissan, and Volkswagen. "The Korean brands have really taken off," Stephens said. "There's movement in the industry, and the patterns are shifting." Another luxury brand, Jaguar (93 problems), slotted in between Hyundai and Kia in third place. Infiniti was fifth, followed by BMW. Chevrolet was the highest domestic brand, taking seventh place, followed by Lincoln, Lexus, and Toyota, which were all well above the industry average of 112 problems per 100 vehicles. OTHER NEWS & NOTES Kirk Kerkorian dead at 98 Kirk Kerkorian, a billionaire activist investor who wielded enormous influence on the Detroit Three car companies in the 1990s and 2000s, died Monday. He was 98 years old. Kerkorian made headlines in 1995 for trying to take over Chrysler – with the help of former chairman Lee Iacocca – before being fended off by Chrysler management. His takeover attempt ultimately pushed Chrysler to be sold to German giant Daimler. He tried to buy Chrysler again in 2007 when Daimler put Chrysler on the market, but Kerkorian fell short and the automaker was sold to private equity firm Cerberus.

Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

The Hyundai Solus is a 500-hp Genesis Coupe for SEMA

Hyundai is working on a SEMA Show car again with its old pals at ARK Performance. This time the project is a wide-body Genesis Coupe dubbed the Solus, a performance concept theoretically aimed at the BMW M4 and Lexus RC F. The white paint is subtle for SEMA, but ARK Performance built new parts for practically the entire body. The bumper gets larger intakes and a carbon-fiber splitter, the fenders are widened at both ends, and a new hood fits the revised look well. Side skirts bring the styling treatment along the profile to highlight the more aggressive rear. The styling should mesh nicely with the 700-horsepower Tucson that's also coming to the event. ARK Performance didn't neglect the engine, stroking the V6 from 3.8 up to a full 4.0 liters and then adding a Rotrex supercharger. The result is a claimed 500 hp running to the rear through a six-speed manual. The company also installs its own coilover kit to help handling. This isn't the first Genesis Coupe Ark has tuned. The company has produced multiple tuned versions of the model for SEMA going back to 2010. Last year, it switched gears slightly with a 550-hp supercharged Genesis sedan called the AR550. Seventh Consecutive SEMA Vehicle Blends Premium and Performance Sponsorship Provided by Hyundai Car Care Express and Quaker State FOUNTAIN VALLEY, Calif., Sept. 30, 2015 – Leveraging its long-standing relationship with Hyundai Motor America, ARK Performance has released details on its race-inspired Solus Genesis Coupe, blending performance and luxury to take on vehicles like the BMW M4 and Lexus RC F. The vehicle will be revealed at Hyundai's SEMA press conference on November 3 at 11:30 a.m. PT. For the tuner's seventh consecutive vehicle built for SEMA, ARK added performance and luxury in tandem, creating a premium coupe that can go toe-to-toe with top rivals from around the world. Building on the success of last year's AR550 Genesis Sedan, the vehicle's design focuses on creating a wider visual look to give a more powerful stance using ARK's own "Solus" wide body kit. The interior also has been given a complete makeover with a redesigned dashboard, race-bred steering wheel and gauges, with ample carbon fiber. The Solus Genesis Coupe is sponsored by Quaker State and Hyundai Assurance Car Care Express, with more than 300 service centers nationally. Car Care Express provides customers with quick oil changes, tire rotation and other basic services in less than an hour.