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Hyundai-Kia forecasts slowest sales growth in 8 years

Even with the arrival of the new Hyundai Genesis Sedan (above) and the expected introduction of at least two other new vehicles in 2014, Hyundai-Kia is estimating its sales will only increase by about 4.1 percent this year. Bloomberg has found that figure, which works out to a total of 7.86 million vehicles worldwide, to be lower than average analyst estimates of eight million vehicles. If the automaker is correct, that figure will represent the most sluggish growth for the Korean brands since 2006.
Based on an exchange rate of 1,050 won to the dollar - right now it's trading at anywhere from 1,050 to 1,052 depending on where you look - Hyundai is predicting a 3.8-percent uptick for sales of 4.9 million units, while Kia is expecting a 4.7-percent uptick for sales of 2.96 million units. That exchange rate is predicted to be part of what will hamper sales this year, with a stronger South Korean won making Japanese cars more price-competitive when cross-shopped. It's unclear how Hyundai derived its exchange rate, but 1,050 won to the dollar almost matches the 52-week high for all of 2013.
The company chairman mentioned a "low growth era" in the world economy, and weaker US sales are rumored to at least part of the reason John Krafcik recently vacated the post of Hyundai Motor America CEO, a post that has been filled by executive vice president of sales, David Zuchowski. That unexpected news capped a year in which two top execs resigned over quality issues and recalls and Hyundai agreed to settle a consolidated lawsuit over inflated fuel economy ratings for $395 million.

2017 Kia Sportage hits LA in US spec

Kia gave us our first look at the all-new Sportage back in August ahead of its global debut at the Frankfurt Motor Show. But with the LA Auto Show opening this week, the Korean automaker has now released the full details on its new compact crossover. The 2017 Kia Sportage represents a ground-up redesign of the model, adopting a more rounded look compared to the crossover it replaces. The tiger-nose grille makes it instantly recognizable as a Kia. And though it clearly takes a different design approach, its upright quirkiness (to our eyes) makes it a more suitable bridge between (and distinct stablemate to) the unconventional Soul and the larger Sorento. Now entering its fourth iteration, the new Sportage stretches 1.6 inches longer than its predecessor and rides on a 1.2-inch longer wheelbase, but maintains the same width. That means a more spacious cabin for both occupants and cargo, done up with more upscale materials and with the latest technologies buyers have come to expect. The increased use of high-strength steel helps optimize rigidity and weight in the latest iteration of Kia's longest-running nameplate, helping it launch a more concerted assault on the increasingly competitive compact crossover market. Buyers will be able to choose between three trim levels, labeled LX, EX, and SX Turbo. The first two derive their power from a 2.4-liter four good for 181 horsepower and 175 pound-feet of torque, while the latter steps up to a 2.0-liter turbo kicking out a more prodigious 241 hp and 260 lb-ft. Both promise improved efficiency, and can be had in front- or all-wheel drive, but either way they transmit their power to the road through a six-speed automatic transmission. Pricing for each model is set to be announced closer to their arrival in showrooms sometime in the new year.

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.