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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.

Hyundai pulls motorsports in US, parts ways with Rhys Millen Racing

Automakers don't necessarily undertake racing programs in proportion to their size. A company like Ferrari or McLaren, for example, may be small, but their racing programs are huge. The inverse could be said of a company like Hyundai, which has grown to rank among the largest automakers in the world, but has traditionally maintained a relatively short reach when it comes to racing. And now it's getting even smaller as the company is shutting down its entire motorsport program in the United States. Not that the program was that big to begin with in the first place. Although Hyundai recently launched a factory effort in the World Rally Championship, in North America its competition activities revolved essentially around Rhys Millen Racing, the California-based outfit with which the Korean automaker has tackled Pikes Peak, Formula Drift and the Global RallyCross Series – the latter of which Millen describes as "arguably the fastest most exciting form of racing to hit the US in years." But now Millen has announced that Hyundai has withdrawn from their partnership that has stood for six years. Without support from the automaker, Rhys Millen is putting up his Hyundais for sale or rental to any privateer team interested in getting in on the RallyCross action, while the team looks for a new partner with which to move forward. As for Hyundai, it seems the automaker may have stretched its motorsport budget a little thin with the WRC effort, on which it will now apparently rely to establish its racing cred. We reached out to Hyundai for clarification on its future motorsport plans in America, but representatives weren't immediately available for comment. We will update this story when and if we hear back.

Hyundai tops VW and Buick in China, survey says

You may be aware of the long-time competition in China between Volkswagen and Buick, but another brand apparently should be in that conversation too: Hyundai. In a recently published annual consumer survey, the Korean company actually took the top spot to beat out its German and American rivals in second and third, respectively. The results were part of the China Brand Power Index that interviewed 11,500 people around the nation and was paid for by the country's Ministry of Industry and Information Technology. While Hyundai proved popular with voters, its sales haven't necessarily shown that yet. According to Bloomberg, the brand had falling numbers in China for the first quarter of the year. Even Ford outsold the South Korean automaker in the same period, despite scoring lower on the survey. Meanwhile, Audi ranked as the populace's favorite luxury brand, which is hardly a surprise given the Four Rings' strong sales in China. In January alone the automaker saw a 15-percent boost in volume there. Parent company VW's strong performance was somewhat more surprising, though. State media severely criticized the German automaker in March, and customers protested last year for the allegedly poor handling of a recall.