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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.

Automatically efficient | 2017 Kia Optima Hybrid Quick Spin

Automakers are stuck between a rock and hard place with hybrid vehicles. On one hand, efficient hybrids are a necessary evil – for lack of a better phrase – to hit increasingly stringent CAFE standards. But on the other hand, low fuel prices mean it takes an increasingly long time for consumers to see a return on the investment of a hybrid's price premium. These factors have pushed automakers even harder to squeeze every mile per gallon possible out their hybrid offerings. That's inevitably led to powertrain innovations designed to maximize just how long and how far hybrids can run on pure electric power and how often the gas engine can shut down. Occasionally, this doesn't work out all that well – as is the case with the new Nissan Rogue Hybrid, for instance – but there are companies getting things right. Kia, with its 2017 Optima Hybrid, is one of them. Drive Notes Kia didn't try to get too creative with the Optima Hybrid's powertrain for 2017. There's a 2.0-liter, naturally aspirated, four-cylinder gas engine, a 38-kilowatt electric motor, and a 1.62-kWh battery pack. Total system output is 192 horsepower and 271 pound-feet of torque, with EPA estimated fuel economy ratings of 39 miles per gallon in the city and 46 mpg on the highway for a 42-mpg combined rating. That's all spiffy. But taking a six-speed automatic and replacing the torque converter with a clutch and the electric motor, Kia built a hybrid sedan that smoothly intertwines disparate power sources as well as a conventional hybrid like a Toyota Prius, while allowing the Optima Hybrid to take greater advantage of zero-emissions systems. Lift off the throttle and the four-cylinder engine shuts down and lets the 50-hp electric motor handle light, constant-throttle cruising below 62 miles per hour. Dig deeper into the gas, and the petrol powerplant quickly restarts and delivers the bulk of the Optima's power for heavy acceleration and higher-speed conditions. The Optima's back and forth is rarely disjointed – Kia's hybrid feels a lot like its conventionally powered model in normal driving. It's only under sudden, wide-open throttle situations, where the hybrid systems feel caught off guard, that the Optima Hybrid feels flatfooted. A less obvious benefit of the six-speed automatic, of course, is that it leads to quieter operation. There's no rubber-band-like revving like you'd get with a CVT because the transmission can actually shift up a gear.

Sales incentive growth clustered around brands with few CUVs, trucks

While it's arguably been around the longest, the dominance of the four-door sedan has been under threat for many years. As a further sign of the hurtin' that SUVs and crossovers have put on today's four-doors, a new report from Automotive News points to the increasing use of incentives by brands reliant on cars and light on CUVs and pickups.
Honda, Toyota, Volkswagen and Kia have all been stung by double-digit increases in their incentives-to-transaction price ratio, according to AN, which cites data from TrueCar. Honda's ratio is up 14 percent, while Toyota, VW and Kia are up 18, 15 and 19 percent, respectively.
"Most of the incentive growth we have seen is in product segments with low demand - midsized or large sedans," TrueCar CEO John Krafcik told AN. "As this trend goes on, the brands with three-sedan strategies are going to be in worse shape on incentive spending than the crossover brands."