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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.

Hyundai shocks Korea with mid-engined Veloster concept

There are many things we love here at Autoblog, but one of the quirkiest is the mid-engined hot hatch, whether it's the Renaultsport Clio V6 or the Volkswagen GTI W12-650 concept. Unfortunately, we can never seem to get our hands on one - the former never having made the transatlantic journey and the latter remained strictly a concept. And now we've got one more to salivate over.
It's called, simply enough, the Veloster Midship concept, and Hyundai is unveiling it this week at the Busan Motor Show in South Korea. As you might have guessed, it's essentially a Veloster with the engine - a 2.0-liter Theta turbo four producing 296 horsepower - mounted behind the two seats. It's also got a lightweight aluminum suspension, a reinforced chassis and extreme aero to help that mid-mounted turbo engine do its thing.
The project was undertaken by the same team that developed the initial i20 WRC rally car, but unfortunately as Hyundai itself says in the press release below (released with the solitary image above), "The Midship is a concept only to explore possibilities for the Veloster chassis and is currently not related to any future production model." Which is a bit of a shame, but hardly a surprise.

Hyundai rehires R&D president let go over quality issues

Last November, Hyundai announced the resignations of research and development president Kwon Moon-sik and two other R&D executives. At that time, it was said that the executives wished to "take responsibility for a series of quality issues" at the Korean automaker. Kwon Moon-sik had only been in the position for a year, but some of the quality issues thought to have caused the resignations included recalls of the Genesis and other sedans around the world, along with the company's much-publicized fuel economy overstatement controversy - both of which dealt with matters that transpired before Moon-sik took his position. In its statement at the time, Hyundai said, "The latest personnel change shows our firm commitment to quality management and reaffirms our will to continuously improve R&D competitiveness."
Three months later, Reuters is reporting that Moon-sik is back with the company, a statement announcing the rehire saying, "Given his expertise, experience and leadership skills, we reinstated president Kwon to enhance quality and R&D capability from scratch." Company chairman Chung Mong-koo is said to have a reputation for firing then rehiring workers, and it's possible this rehire is especially timely because Hyundai will bring its new Sonata to market this year and likely wants its experienced R&D captain at the wheel.
The man who had taken Moon-sik's position has returned to his previous post as head of powertrain development. However, in another surprise resignation, the head of Hyundai's design center, Oh Sug-geun, has left the company for "personal reasons." He has been replaced by Lee Byung-seob, who moves up from his position as head of exterior design.