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Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.

Kia Niro shares Hyundai Ioniq parts, could become an EV

It's time for the Chicago Auto Show, so it's no surprise that Kia has warmed up the chilly February air here with a green vehicle debut. This year it was the Niro, the brand's first dedicated hybrid, and it follows past Chicago debuts like the Soul EV and the Optima Hybrid. Like those vehicles, the Niro is not going to take long to get from the concept stage to showroom. Steve Kosowski, Kia Niro project manager, told AutoblogGreen that the first Niro hybrids will arrive in all 50 US states in about 11 months. The Niro will only be offered as a hybrid – both with a plug and without – but Kosowski could not say when the PHEV will arrive, other than, "a little later in the lifecycle." The standard hybrid will be certified as a 2017 model-year vehicle, but the PHEV might become a 2018, or even later. A PHEV will arrive "a little later in the lifecycle." Kia is on a mission (with Hyundai, see below) as it develops the Niro to get incredibly high fuel economy. Kosowski said that the defining mantra was, "Let's see what we can do when the resources are focused on hitting 50 miles per gallon and the only way the car is going to be built is with an electrified powertrain," he said. View 18 Photos Knowing that the Niro would have a battery allowed Kia and Hyundai engineers to plan things out together, because the Niro will share a lot of components with the upcoming Hyundai Ioniq. "The whole powertrain is essentially shared between the two," Kosowski said. "There are a few little tuning differences, but it's a 1.6 GDI, four-cylinder from the Kappa engine family that is the basis for both cars. The motor is sandwiched between the engine and the transmission, there's a clutch there. And the DCT is also shared between both cars." They both ride on the same 103-inch wheelbase, and the track width is similar as well. There might be some changes with the ratios and the tunings, Kosowski said, but the two companies are obviously working together to make these two vehicles very real, very soon. The main difference between the Niro and the Ioniq that the Kia is a CUV while the Hyundai is a sedan. "The market for electrified vehicles is changing rapidly." - Steve Kosowski Going into the process with electrification in mind meant "that the engineering, the platform layout, the way the car crashes, the way the car comes together, the way the car is assembled, all of that is engineered around having a battery," Kosowski said.

Hyundai Q1 profit triples, as it adjusts production due to chip shortage

  SEOUL — Hyundai Motor Co posted a first-quarter profit that nearly tripled to its highest in four years as people bought its luxury cars, but warned it would have to adjust production again in May because of a chip shortage. Unlike its rivals, the South Korean automaker staved off production halts in the first quarter, thanks to a healthy chip inventory. But the shortage, exacerbated by factors including a fire at a chip factory in Japan and storms in Texas, is now catching up with Hyundai. Hyundai, which has lagged its rivals in the electric vehicle (EV) race, also said on Thursday that it was developing solid-state batteries and planned to mass produce EVs using solid state batteries in 2030. In February, Hyundai launched its Ioniq 5 electric midsize crossover, the first in a planned family of EVs that it hopes will propel it into the third rank of global EV makers by 2025. Hyundai Motor and Kia together aim to sell 1 million EVs in 2025. In the quarter ended March 31, Hyundai was unscathed as people at home and the United States snapped up its high-margin sports-utility vehicles and premium Genesis cars as the coronavirus pandemic dragged on, fueling car ownership. Net profit surged 187% to 1.3 trillion won ($1.16 billion) from 463 billion a year earlier, when business slumped as countries shut down to limit the spread of the coronavirus. This was in line with an average Refinitiv SmartEstimate. Revenue rose 8.2% to 27.4 trillion won. Hyundai is expected to report net profit of 1.4 trillion won for the April-June period, up 536% from the corresponding period a year earlier, Refinitiv SmartEstimate showed. Hyundai affiliate Kia Corp reported operating profit of 1.1 trillion won for January-March, up 142% on the year. Hyundai, which together with Kia is among the world's top 10 automakers by sales, has temporarily paused production three times since the beginning of this month and saved chips for its most popular models. "The condition of semiconductor parts is being a little more prolonged than we expected," said Seo Gang-hyun, an executive vice president at Hyundai. "As the semiconductor procurement condition is rapidly changing, it's difficult to predict production status after May.