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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

Hyundai and Kia will offer AI assistants in 2019 cars

Hyundai and Kia both have reputations as early adopters of in-car tech, and that's truer than ever now that voice assistants are becoming a practical reality on the road. The Korean automakers have revealed that they plan to include AI assistants in their new cars starting from 2019, with every vehicle being "connected" by 2025. As Hyundai explained, they've been working with SoundHound to create an Intelligent Personal Agent (based on Houndify) that both makes proactive suggestions (such as reminding you of a meeting) and offers remote control of both your car and your home. This sounds a whole lot like what other voice assistants do, but the car brands are counting on support for "multiple-command recognition" as the ace up their sleeve. If you tell your car to check the weather and turn on the lights at the same time, it'll do both instead of scratching its head like so many other AI helpers. You won't have to wait until 2019 to see the technology in action. Hyundai will unveil Intelligent Personal Agent at CES 2018, and it'll test a "simplified" take on the Agent in hydrogen fuel cell cars slated to drive on South Korean roads throughout the year. It's hard to say if IPA will have an advantage over companies borrowing "off-the-shelf" AI like Amazon Alexa or Google Assistant, but it's more the ubiquity that will be important -- you won't have to buy a premium-priced model to treat your car like a smart home hub.Reporting by Jon Fingas for Engadget.Related Video: Image Credit: Hyundai Auto News CES Hyundai Kia Technology Emerging Technologies CES 2018

Kia rolls out updated Forte, Forte5 for 2017

Kia has updated the Forte sedan and Forte5 hatchback for the 2017 model year. Set to debut this week at the 2016 Detroit Auto Show, the revisions revolve principally around updated exterior design and interior equipment. But there are a few mechanical updates as well. We saw most of the stylistic updates when Kia revealed the new K3 back in Korea a month ago. The new Forte (as we know it on this side of the world) is distinguished by a new front bumper design and what Kia calls the "tiger-nose" grille that blends into the new headlights, much like the new Optima. There are new taillights as well, and a revised interior centered around a seven-inch touchscreen display that will soon offer Apple CarPlay and Android Auto compatibility. Under the hood, Kia has replaced the 1.8-liter four with a new 2.0, mated to either a six-speed manual or a new six-speed automatic transmission. There are new driver assistance systems as well, and the Korean automaker has added a new mid-level S trim in between the base LX and top EX models, with a sport-tuned suspension, 16-inch alloys, LED daytime running lights, a rear spoiler, and chrome exhaust tip. The revised Forte sedan will be the first new model produced at Kia's new plat in Monterey, Mexico. Pricing will be announced closer to launch in the next couple of months, as will a revised two-door Forte Koup, but Kia has also announced a revised Forte5 for 2017. The hatchback features similar cosmetic updates to the sedan. The 2.0-liter four carries over unchanged, as does the punchier 1.6-liter turbo, which can now be had with a new seven-speed DCT. That engine comes in the sporty SX model, which serves as the top of the three-trim line. Scope out the full details in the pair of press releases below. 2017 Forte overview - Compact Sedan Receives Updated Design, New Powertrain and Advanced Tech, Including Android Auto and Apple Car PlayTM - 2017 Forte adds 2.0-liter engine, plus updated six-speed automatic transmission - Advanced driver assistance features including Autonomous Emergency Braking, Rear Cross Traffic Alert, Front Collision Warning, and Dynamic Bending Lights3 are newly available - Sporty S trim pumps up Forte's sport factor with exclusive interior and features Irvine, Calif., Jan. 11, 2015 – The Motor City today got an up close look at the refreshed 2017 Forte when Kia Motors America pulled the silk off the updated compact sedan at the North American International Auto Show in Detroit.