2011 Kia Soul 5dr Wgn Man + Air Conditioning Tachometer Alloy Wheels on 2040-cars

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Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

Did a US automaker blow the whistle on Hyundai, Kia fuel economy issue?

In all of the most hotly contested mainstream segments of the motoring universe, the difference of one mile per gallon averaged on a widow sticker can mean the difference between a sale and a walk-off - to say nothing of two or three mpg. So, when Hyundai and Kia were forced to reveal that many of their 40-mpg ratings were actually 38s and 37s, well, it made for big news.
It also, conceivably, made for a competitive disadvantage immediately, when the Korean automakers' products were being shopped versus the guys down the block. And it's that disadvantage that makes a recent story from Automotive News so juicy.
AN is reporting that Margo Oge, former head of the Environmental Protection Agency's Office of Transportation and Air Quality, got a tip in 2010 that Hyundai/Kia were "cheating" to get its impressive fuel economy numbers. The tip, said Oge (who retired from the EPA this past September), came from a senior vice president from a domestic automaker. The source was credible enough for Oge to launch an audit of the Hyundai figures, which ultimately lead to the debacle that we reported on a few months ago, and that the Korean company has been trying to bounce back from ever since.

Kia Soul to get AWD?

The funky Kia Soul is one of the three affordable, efficient and style-first boxes on sale today (along with the Scion xB and Nissan Cube). Like its competition, it sits atop a front-drive platform with a longitudinally mounted four-cylinder engine.
It's a dandy car in this setup, but it sounds like Kia may be looking to differentiate the Soul from the herd by offering an optional all-wheel-drive system in the future. According to the report filed by Kia World, the popularity of the small, stylish crossover segment is expected to expand considerably over the coming years, especially overseas.
Citing the optional all-wheel drive on the Renault Captur, Ford Ecosport and Opel Mokka (Buick Encore in the US), along with the eventual arrival of a sub-Tiguan Volkswagen, called the Taigun, an all-wheel-drive Soul seems to make a lot of sense for these foreign markets. In the American market, meanwhile, AWD would open the Soul up to a new segment of buyers that like its looks but want all-wheel ability. Kia World is claiming the Soul AWD could hit markets in 2016 wearing a ruggedized version of the sheetmetal shown on the 2014 Soul that debuted in earlier this year in New York. Expect a bit of extra ground clearance to accompany the new drivetrain. Finally, all-wheel drive would likely only be available on the mid-range Soul + and top-spec Soul !.