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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

High-performance 2019 Kia Forte spied with dual exhaust

The 2019 Kia Forte compact sedan introduced at the Detroit Auto Show earlier this year showed off a handsome, subtly aggressive exterior inspired by the Stinger. But the sporty exterior was betrayed by a simply adequate powertrain: a naturally aspirated 2.0-liter four-cylinder engine making 147 horsepower. Now, one of our spy photographers has caught a disguised Kia Forte out testing that has a number of visual changes suggesting it's a more powerful version of the Forte. It might be called the Kia Forte GT to fit the Stinger's nomenclature, or Kia Forte SX to follow the naming scheme of past punchier Fortes. The most notable of this Forte's visual enhancements is its dual exhaust outlets. All versions of the current Forte have just one exhaust outlet on the right side and more exhausts usually mean more power. Along the side, the body and side skirts are the same as regular Fortes with the more aggressive body kit. But up at the front, we can see some adjustments under the camouflage. The upper grille appears to be larger, with bottom corners that push out lower and wider than on the basic car. The lower grille also looks a bit taller, and seems to have larger fog lights mounted farther inward than the regular Forte. View 20 Photos As for what might power the newer, peppier Forte,the likeliest candidate is the 201-horsepower turbocharged 1.6-liter four-cylinder found in the Hyundai Veloster Turbo and Hyundai Elantra Sport. As discovered by The Korean Car Blog and someone going by SHM, there is information saying that the Korean version of the Forte will indeed have that turbo engine paired to either a six-speed manual or seven-speed dual-clutch automatic transmission. This wouldn't be surprising given that the new Forte shares its naturally aspirated engine with the base Elantra and Veloster. A version of that turbo engine was also used in the outgoing Forte SX models. Since the new Forte has been revealed and will go on sale later this year, we expect we'll hear about this high-performance version sometime early next year, with a release not too long after. Related Video: Featured Gallery 2020 Kia Forte GT spy shots News Source: The Korean Car Blog, SHMImage Credit: KGP Photography Spy Photos Kia Economy Cars Performance Sedan kia forte

Hyundai outlines EV strategy as it struggles with cost of engine defects

SEOUL — South Korea's Hyundai Motor pledged to boost sales of electric vehicles to over half a million by 2025 as part of a bid to focus on new technologies and catch up with rivals, but some analysts saw the target as conservative and warned of the costs. The announcement by Hyundai, the world's fifth largest car maker along with affiliate Kia Motors, underscores the accelerating strategy shift under Euisun Chung, who became the motor group's executive vice chairman last year. Hyundai announced a $35 billion investment last week in mobility and other auto technologies by 2025, less than a month after unveiling a $1.6 billion deal to develop self-driving vehicle technologies with Aptiv. The firm said on Thursday it plans to launch 16 EV models by 2025 to boost sales of such vehicles 17-fold to 560,000 by that year. Still, that would be equivalent to just over 10% of its projected global sales this year. The projection compares with more bullish forecasts offered by its bigger rivals. Volkswagen AG expects to make 22 million EVs over the next decade, while General Motors aims to sell 1 million EVs annually by 2026. "That is not an ambitious target. If Hyundai fails to boost volumes fast enough, costs of electric cars will weigh on profitability," Lee Jae-il, an analyst at Eugene Securities & Investment. Hyundai said that the EV market would face intensifying competition and oversupply soon and automakers failing to meet toughening European emissions regulations will face heavy penalties and suffer a serious blow to their reputation. "EV supply is expected to surpass demand from the second half of next year," Ka Suk-hyun, vice president of Hyundai Motor, told an earnings conference call. Quality issues Hyundai's third-quarter net profit rose 59% to 427 billion won ($365 million), well below the average 684 billion profit estimate of analysts based on Refinitiv data, due to 600 billion won provisions it earmarked to address potential engine defects in the United States and South Korea. Quality issues have been a major drag in Hyundai's attempt to steer a recovery from six consecutive annual profit declines and constrained its financial firepower to invest in future technologies. It is still under investigation by U.S regulators and prosecutors over potential faulty engines in some models. Total retail sales fell 3% in the third quarter, as higher U.S.