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Hyundai, Kia launching dedicated hybrids in 2017

The currently weak green car market isn't stopping Hyundai and Kia from staging an ongoing electrified onslaught, and it's primed to just keep growing. Already familiar with the field thanks to vehicles like the Sonata Hybrid, Tucson Fuel Cell, and Kia Soul EV, for the 2017 model year the Korean siblings are launching their first dedicated hybrids, according to Automotive News. Since last year, the hybrids have been spotted testing several times while wearing heavy camouflage. Hyundai's version will reportedly be styled as a Chevrolet Volt-fighting sedan. Conversely, Kia will go for a more directly Prius-challenging hatchback. Underneath, they'll share a powertrain consisting of a direct-injected, 1.6-liter four-cylinder and electric motor. Both will use the same platform based on the next-gen Elantra and Forte, according to Automotive News. In addition, Hyundai will get a pure EV version of its model to launch in California in 2017, while Kia reportedly won't. According to Automotive News, the companies' strategy is reportedly to be ready when gas prices eventually rise again. "When they come back up and people start looking for hybrids again, it'll be very nice to be able to give buyers an option besides just the Prius," said Adam Kraushaar, president of a New Jersey Hyundai dealer. Further complimenting the electrified plans, a plug-in version of the Kia Optima Hybrid is also reportedly on the way. With its launch, the two brands would have a total of nine hybrid, EV or fuel cell vehicles on offer by the 2018 model year.

Hyundai Motor Group promotes heir apparent

SEOUL — Hyundai Motor Group promoted heir apparent Euisun Chung on Friday to a role of overseeing the conglomerate, moving him a step closer to succeeding his octogenarian father as head of South Korea's second largest group. Chung, 47, who will assist his father and group chairman Mong-Koo Chung, was appointed as executive vice chairman to respond to "deteriorating global trade issues and changes in competitive dynamics in major markets," Hyundai Motor Group said in a statement. Chaebols like Hyundai and Samsung Group, which have grown into global firms from the rubble of the 1950-1953 Korean War, are undergoing a transfer of power to third- or fourth-generation leaders. "In his new capacity, Executive Vice Chairman Euisun Chung will oversee the entire Group's operations, aiding and reporting to Chairman Mong-Koo Chung," the statement said. The appointment also comes as Hyundai battles tumbling profits, mounting pressure from activist shareholders to improve its governance, and amid South Korea's trade tensions with the United States that threaten to disrupt its production plans. "This is a good sign," Park Yoo-kyung, a director at Dutch pension fund APG Asset Management, said of the appointment. "This will enhance transparency about who is controlling the group and who is making key strategic decisions," she said. Generational shift The junior Chung, currently vice chairman of the group's crown jewel, Hyundai Motor Co, has stepped up in recent years, attending motor shows and government meetings with business leaders on behalf of his 80-year-old father who has made few public appearances. Shares in Hyundai Motor ended up 0.8 percent on Friday, and affiliate Kia Motors fell 0.3 percent in a wider market that rose 1.4 percent. Chairman Chung, the all-powerful boss, has presided over Hyundai for about two decades, transforming the company into the world's fifth-biggest car maker along with Kia Motors. Hyundai is now struggling to reverse slowing sales in China and the United States, where the company has suffered due to its delayed response to booming demand for SUVs. The appointment is part of an effort to "improve future competitiveness and secure future growth engines" at a time when the auto industry is undergoing major changes, the group said. The junior Chung has led the group's efforts to develop future vehicles such as autonomous and connected cars, as well as Hyundai's fledging premium brand Genesis.

Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.