2014 Kia Soul + on 2040-cars

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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.

Kia recalls 9,700 new Sorento models for potential front axle failures

Kia has announced a recall on the 2014 Sorento due to an issue that could lead to a broken right front driveshaft on certain models. Only models equipped with the 2.4-liter inline four-cylinder engine and front-wheel drive are affected by the campaign.
The National Highway Traffic Safety Administration says that Sorento models built between January 7 through March 12 of this year may experience broken axle shafts that could lead to loss of power or cause the vehicle to roll if parked. According to the Detroit Free Press, a total of close to 9,700 units are being recalled, but that number is closer to 9,300 for customers in the US.
Kia says that it has had one incident with an internal vehicle that experienced a separated axle shaft in addition to 10 related warranty claims, but it says no accidents or injuries have been reported. The recall campaign will begin next month. Scroll down for the NHTSA recall notice as well as an official statement from Kia.

Kia GT spied looking like a rakish, sexy Forte

Just over four months ago, we told you that Kia would offer a production version of its handsome GT concept. Now, we have images of the svelte new four-door testing in Germany. It looks like we're getting a sexy, rear-drive performance sedan the size of a Kia Forte. And we're pretty stoked. Judging by our spy images, Kia is going to stick pretty close to the concept car's rakish lines. That means more four-door coupe than three-box sedan, which is precisely the kind of thing Kia could use. Beyond the overall shape, the headlights retain the same interesting shape as the concept, albeit in a more production-focused look. They crown a production-spec fascia, with more conventional vertical intakes. In back, the vehicle-spanning taillight element from the concept car appears to have been replaced by a conventional set of lamps – there's camo where the lighting element should be. Speaking of the tail, look at those tailpipes. Few things shout "Rawr, I'm a performance car," like a meaty set of quad exhausts. It's hard to tell here, but the rear fascia looks much more conventional than the GT concept, too, which went with a very aero-intensive design. Under the skin, our spies tell us the GT rides on a shortened version of the rear-drive platform slated to underpin the upcoming Genesis G70 – that backs up the reports that the GT would challenge the BMW 4 Series Gran Coupe. Our most recent report pointed to a range of four and six-cylinder engines from 2.0- to 3.3-liters. Our spies suggest that twin-turbocharged V6 will put out anywhere from 365 to 400 ponies. Obviously, this would be a range-topping model, but what a range-topper it would be. It's like a budget M4. Our best intelligence points to the GT's production debut at the 2016 Paris Motor Show, with an on-sale date in just under a year.