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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.

Provo concept name has Kia embroiled in terrorism controversy?

In the relatively lengthy press release that Kia composed for the launch of its Provo concept car at the Geneva Motor Show this week, the company never mentioned where the name came from, or what it means for the car. A very basic web search for "Provo" reveals that the inspiration for the hatch could have been a city in Utah, a township in South Dakota or a village in Bosnia. The name could be a reference to either an American (Fred) or Canadian (Dwayne) football player, and Provo might also accurately reference a "Dutch counterculture movement in the mid-1960s" or a ship in the US Navy. More likely than any of those, however, is that the Kia designers of the concept - a car that was wholly a product of the Korean automaker's design studios in Frankfurt, for the record - meant it as a play on the existing Pro_cee'd hatchback.
What the designers and Kia executives that signed off on the Provo almost certainly did not have in mind was a reference to a street name for the Provisional Irish Republican Army. That "Provo" was, according to TheDetroitBureau.com, an outlawed army faction that was blamed for some 2,000 deaths in Northern Ireland during a period stretching from 1970 to 1997.
And yet, it was that association that led Gregory Campbell, a member of parliament from Northern Ireland, to introduce legislation that would ban Kia from selling a car under the name Provo. Kia, quick to realize the sizable gaffe it has stumbled into with the name, has reportedly already promised not to use the name for a production vehicle.

Kia prepping Provo-inspired Mazda CX-3 challenger for 2017

Kia will be joining the fray in the sub-compact crossover segment, Australia's Motoring reports. The company could introduce a challenger to the Mazda CX-3, Jeep Renegade, Honda HR-V, and Toyota C-HR as early as this year's Los Angeles Auto Show. Kia Australia COO Damien Meredith told Motoring the new CUV will ride on the same platform as the redesigned Rio, and Kia will build the two compacts alongside each other, in South Korea. Kia hasn't gotten so far as naming the new crossover – at least it's not as far as wanting to publish a name – but it should draw inspiration from the Provo Concept the 2013 Geneva Motor Show. But it's tough to predict what that means. The Provo is, after all, a small hatchback. If Meredith came out and said it'd inspire the next Rio, it'd be an easier pill to swallow, but converting such an aggressive vehicle to CUV duty while retaining the overall look could be a challenge. That said, Kia's designs have become increasingly extroverted over the past several years – we can't wait to see what Peter Schreyer and his team come up with. According to Motoring, the Rio-based CUV could hit the market in the third quarter of 2017, which would put it several months behind the redesigned Rio. While that applies to the Australian market, a debut at Los Angeles or even in January 2017 at Detroit could lead to a similar timeline for a US on-sale date. Related Video: