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BMW, Hyundai score big in JD Power's first Tech Experience Index

While automakers are quick to brag about winning a JD Power Initial Quality Study award, the reality, as we've pointed out before, is that these ratings are somewhat misleading, since IQS doesn't necessarily distinguish genuine quality issues. JD Power's new Tech Experience Index aims to solve that problem. The new metric takes the same 90-day approach as IQS but focuses exclusively on technology – collision protection, comfort and convenience, driving assistance, entertainment and connectivity, navigation, and smartphone mirroring. It splits the industry up into just seven segments, based loosely on size, which is why the Chevrolet Camaro is in the same division (mid-size) as Kia Sorento and the Mercedes-Benz GLE-Class is in the same segment as the Hyundai Genesis (mid-size premium). It makes for some screwy bedfellows, to be sure. Still, splitting tech experience away from initial quality should allow customers to make more informed and intelligent decisions when buying new vehicles. In the inaugural study, respondents listed BMW and Hyundai as the big winners, with two segment awards – the 2 Series for small premium and the 4 Series for compact premium, and the Genesis for mid-size premium and Tucson for small segment. The Chevrolet Camaro (midsize), Kia Forte (compact), and Nissan Maxima (large) scored individual wins. Ford also had a surprising hit with the Lincoln MKC, which ranked third in the compact premium segment behind the 4 Series and Lexus IS. This is a coup for the Blue Oval, whose woeful MyFord Touch systems made the brand a victim of the IQS' flaws in the early 2010s. But Ford and other automakers might not want to celebrate just yet. According to JD Power, there's still a lot of room for improvement – navigation systems were the lowest-rated piece of tech in the study. Instead, customers repeatedly saluted collision-avoidance and safety systems, giving the category the best marks of the study and listing blind-spot monitoring and backup cameras as two must-have features – 96 percent of respondents said they wanted those two systems in their next vehicle. But this isn't really a surprise. Implementation of safety systems from brand to brand is similar, and they don't require any input from users, unlike navigation and infotainment systems which are frustratingly deep.

S. Korea to raise concerns about EV credits, battery sourcing in U.S. visit

SEOUL — South Korean officials will meet U.S. counterparts this week to express "concerns" about the Inflation Reduction Act, which restricts who can receive U.S. subsidies for the production of electric vehicles and where firms can source battery materials. President Joe Biden signed into law this month a $430 billion bill, seen as the biggest climate package in U.S. history. The law requires that EVs be assembled in North America to qualify for tax credits, ending subsidies for several EV models, and that a percentage of critical minerals used in batteries come from the United States or an American free-trade partner. Automakers like Hyundai Motor face short-term competitive disadvantage to manufacturers of EVs that receive tax credits in the United States, while industry sources said Korean battery makers must make changes to mineral sourcing routes, which could affect cost adversely. South Korean officials are expected to tell counterparts from the U.S. Trade Representative's office and the U.S. Treasury that the new law may violate trade norms such as the U.S.-South Korea free trade agreement and the WTO agreement, the industry ministry said. Korean automakers will consider adjusting production plans to prioritize the construction of U.S. plants for example, the ministry said, while battery makers will seek to diversify where they source minerals from. Under new rules to kick in next year, at least 40% of the monetary value of the critical minerals in batteries will need to come from the United States or an American free-trade partner, with that proportion rising to 80% by 2027. Globally, the treatment of some 58% of lithium, 64% of cobalt and 70% of graphite goes through China, according to ministry data. FALLOUT The new rules are a major complication for battery makers LG Energy Solution (LGES), SK On and Samsung SDI, battery industry sources said. South Korea's LGES supplies Tesla and General Motors, while SK On and Samsung SDI supply Ford Motor and Volkswagen among others. The three battery makers together command more than a quarter of the global EV battery market, according to SNE Research. "It's become a huge headache ... Automaker clients said they didn't expect this new law would take effect this soon," said a South Korean battery industry source.

Hyundai Tucson Fuel Cell CUV deliveries running behind schedule

Things are running a little bit behind on Hyundai's hydrogen-powered Tucson Fuel Cell CUV program in the US. The last time we checked in with the South Korean automaker's H2 project, we heard that the first deliveries were supposed to happen by the end of March. Speaking with Hyundai's Kevin Lee at the Hyundai booth at the SAE World Congress this week, we learned that deliveries are now going to happen closer to a month from now. Globally, there are roughly 70-100 of these hydrogen CUVs running in customer hands today. Lee told AutoblogGreen that the first US-bound units will be shipped from South Korea at the end of April or beginning of May but there is no actual date set for the first customer delivery. He said he expects 100 or fewer H2 powered Tucson CUVs to be operating in the US by the end of this year, all of them in Southern California. He said the customers in this first batch are being selected based on the location of the nearest hydrogen fuel station. While the number of stations is small today, more are on the way. Globally, there are roughly 70-100 of these hydrogen-powered CUVs (also known as the ix35) running in customer hands today, in places like South Korea, Germany, Norway, Austria and Italy. Some H2 stations charge Hyundai a flat rate per fill while others charge the automaker a general station maintenance fee. In the US, the Tucson Fuel Cell CUV leases for $499 a month (with $2,999 down) for 36 months, and comes with unlimited hydrogen refueling as well as Hyundai's Valet Maintenance. Lee told us that one reason for the "free" hydrogen is that even the small number of public hydrogen stations out there (nine in SoCal) does not have a cohesive set of rules for how to sell H2 to the public. The stations are not yet certified to charge customers based on dollar per kilogram in California, Lee said, since that regulation has not yet been set by the Division of Measurement Standards (DMS). Currently, "each station is different," he said, with some charging Hyundai a flat rate per fill and others charging the automaker a general station maintenance fee. This situation will likely change by the end of the year, he said. Lee said Hyundai is already busy working on the next-gen fuel cell vehicles and trying to reduce costs but was not able to share any details.