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Hyundai Q1 profit triples, as it adjusts production due to chip shortage

  SEOUL — Hyundai Motor Co posted a first-quarter profit that nearly tripled to its highest in four years as people bought its luxury cars, but warned it would have to adjust production again in May because of a chip shortage. Unlike its rivals, the South Korean automaker staved off production halts in the first quarter, thanks to a healthy chip inventory. But the shortage, exacerbated by factors including a fire at a chip factory in Japan and storms in Texas, is now catching up with Hyundai. Hyundai, which has lagged its rivals in the electric vehicle (EV) race, also said on Thursday that it was developing solid-state batteries and planned to mass produce EVs using solid state batteries in 2030. In February, Hyundai launched its Ioniq 5 electric midsize crossover, the first in a planned family of EVs that it hopes will propel it into the third rank of global EV makers by 2025. Hyundai Motor and Kia together aim to sell 1 million EVs in 2025. In the quarter ended March 31, Hyundai was unscathed as people at home and the United States snapped up its high-margin sports-utility vehicles and premium Genesis cars as the coronavirus pandemic dragged on, fueling car ownership. Net profit surged 187% to 1.3 trillion won ($1.16 billion) from 463 billion a year earlier, when business slumped as countries shut down to limit the spread of the coronavirus. This was in line with an average Refinitiv SmartEstimate. Revenue rose 8.2% to 27.4 trillion won. Hyundai is expected to report net profit of 1.4 trillion won for the April-June period, up 536% from the corresponding period a year earlier, Refinitiv SmartEstimate showed. Hyundai affiliate Kia Corp reported operating profit of 1.1 trillion won for January-March, up 142% on the year. Hyundai, which together with Kia is among the world's top 10 automakers by sales, has temporarily paused production three times since the beginning of this month and saved chips for its most popular models. "The condition of semiconductor parts is being a little more prolonged than we expected," said Seo Gang-hyun, an executive vice president at Hyundai. "As the semiconductor procurement condition is rapidly changing, it's difficult to predict production status after May.

Kia debuts Forte 5-door with available 201-HP turbo engine

The US-bound 2014 Kia Forte first showed up in sedan form back at the LA Auto Show last year, but Kia unveiled the hatchback version of the car today at the Chicago Auto Show. Unlike the current Forte five-door the 2014 will feature styling that is distinct from its sedan counterpart, but the big news is it will also get a few extra ponies under the hood.
Since the Forte five-door will only be offered in EX and SX trim, the sedan's 1.8-liter inline-four is not offered on this model. The base engine in the EX is the 2.0-liter direct-injected four, producing 173 horsepower and 154 pound-feet of torque. Those looking for more power should check out the Forte SX, which uses the 1.6-liter turbocharged engine currently found in the Hyundai Veloster Turbo. This engine produces 201 hp and 195 lb-ft, and it can be paired to either a six-speed manual or automatic transmission; the latter of which is optional and comes with paddle shifters.
Aside from the obvious styling changes required for the added cargo area, the 2014 Kia Forte five-door gets numerous design elements to set it apart from the sedan. The face of the new hatchback will get a much smaller tiger-nose grille than the sedan, but it will get a larger lower intake, which we can't help but compare to the Mitsubishi Lancer Evo. Kia also gave the Forte dual exhaust outlets and LED taillights, and the SX model will get stylish 18-inch wheels. Inside, the five-door design allows the Forte to increase its cargo volume to 23.2 cubic feet, and the cabin can also be equipped with features such as heated front seats, ventilated driver's seat, navigation, leather seating and dual-zone climate control.

Rumormill again says Kia Stinger is on the ropes

The Kia Stinger hit the market in 2017, spending the first year of its life earning plaudits for terrific handling at an unbeatable price. Although the Stinger could shake the competition, starting in 2018 and ever since, the Stinger couldn't shake rumors that it won't get a second generation. In fact, tangential questions about the Kia began in late 2017, with the assertion that Kia needed to upgrade its dealer network if it really wanted to take on the Germans. Once sales in the key North American market began to soften, then slide, that put blood in the water. Kia's head of design couldn't put off the sharks in October 2018, telling Australian outlet Which Car that the sedan wasn't selling as well as expected in North America. He returned with the same dolor the next year when speaking to Aussie outlet Car Advice, and followed that a month later by sharing the same hesitations phrased differently with Aussie outlet CarsGuide. Now The Korean Car Blog, sourcing "a new report of the South Korean sales," alleges the situation has gotten worse thanks to the coronavirus catastrophe and the need to conserve resources. Kia had already opted not to put a new powertrain into the 2021 Stinger refresh, saving money by adding more power to the current 3.3-liter twin-turbo V6 with a revised exhaust. Everyone who appreciates the Stinger has clear ideas about why it doesn't sell well in certain markets, like these Canadians, this guy in the UK, and these folks from the U.S. and other countries. TKCB believes one of the major issues is the in-house Genesis G70 competition, which has just about everything the Kia could want: A premium brand with premium touchpoints, marketing and advertising, a more rational equipment mix, near constant tweaking, and again, marketing and advertising. Does anyone remember when LeBron James and Aerosmith's Steven Tyler fronted the Stinger movement? Of course, the rumors of axing are still only rumors, and the Stinger is still only three years old. Anything can happen, apparently including the remote possibilities the Stinger morphs into a different kind of vehicle or goes electric. If the sales numbers continue as they've been going, however, something will need to happen; after an 18% dip from 2018 to 2019 in U.S. sales, the Stinger's already down 21% so far this year. Or we'd think something needs to happen — the Kia K900 remains on sale having tabbed 102 sales all of last year in the U.S., and 65 so far this year.