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South Korea firms up fuel economy regs following Hyundai/Kia debacle

According to a report from Reuters, South Korea's government has drafted strict new rules for automakers to follow when calculating fuel economy. The legislation comes after a major snafu by Hyundai and Kia that resulted in the automakers lowering the estimated fuel mileage of many popular models - some by several miles per gallon, including the Soul subcompact above - and compensating owners in the US and Canada for the reduction.
The new fuel economy rules were announced by the Ministry of Trade, Industry and Energy in South Korea and will see average mileage ratings drop by roughly three to five percent, according to the report. In addition, manufacturers found guilty of overstating mileage figures will be liable for fines of up to $900,000.
These sweeping new regulations will go into effect in the second half of 2013 and, while they won't have any effect on EPA estimates for Hyundai and Kia vehicles in the United States, they are expected to result in new ratings for the two automakers in their home market of South Korea, where they enjoy a whopping 70-percent market share.

Hyundai previews new infotainment system ahead of CES

One of the most common refrains in the world of automotive infotainment is that soon, smartphone-enabled infotainment systems would come to dominate the industry. We've seen some progress in this regard, with a number of automakers offering apps and services that take advantage of a driver's smartphone data plan, but few that have gone whole hog and offered a system that genuinely relied on a cellular service. At the 2015 Consumer Electronics Show, Hyundai will offer up its take on smartphone-enabled infotainment, with a new, seven-inch-touchscreen Display Audio system. Designed specifically to work with Apple CarPlay or Android Auto, the system will first be rolled out to Hyundai's more affordable 2016 offerings before rolling out to the brand's entire entry-level lineup. Once mated with the car, both systems will offer access to a plethora of third-party apps, in addition to the typical satellite navigation and text message services. Apple CarPlay users will build on the standard suite of stuff with Siri Eyes Free. Overall, whichever phone you're loyal to, this new Hyundai system sounds remarkably interesting. Of course, expect to hear plenty about the new Display Audio system in the coming months. Until then, let us know what you think in Comments. Should automakers just stick to traditional infotainment systems, or do you support the idea of relying on a smartphone inside the car? Scroll down for the full press release. HYUNDAI TO DEBUT DISPLAY AUDIO SYSTEM AT 2015 CONSUMER ELECTRONICS SHOW All-New Infotainment Unit to Be Offered in Select 2016 Models Brings Android Auto™, which extends the Android™ platform in a way that is purpose built for driving Brings Apple CarPlay™, the smarter, safer and best iPhone experience, on four wheels Features the next generation Blue Link system with Connected Care, a suite of safety and car care features and remote engine start with climate control Incorporates the latest smartphone-enabled technologies and the next generation Blue Link® system into more lower price Hyundai models without embedded navigation systems The Display Audio system includes a large color touch-screen display that has been optimized for smartphone integration Fountain valley, Calif., Dec. 17, 2014 – Hyundai is doing the unthinkable at the 2015 Consumer Electronics Show (CES®) by showing a new Display Audio system with no CD player or embedded navigation system.

How Hyundai lost momentum, and will 'take a few years' to recover

SEOUL/DETROIT/CHONGQING, China — At a near-empty Hyundai Motor showroom in the Chinese mega city of Chongqing, the store manager is grumbling about his shortage of customers and a lack of bigger, cheaper SUV models popular in the world's largest auto market. Even with discounting of as much as 25 percent, his dealership was selling barely a hundred vehicles a month, said the manager surnamed Li. A nearby Nissan dealership was selling about 400 vehicles a month, a store manager there said. "The sales are simply poor," Li told Reuters. "Look at the Nissan store next door, they have tens of customers while we just have two." An hour's drive away is Hyundai's massive $1 billion manufacturing plant, which opened last year with a target to produce 300,000 vehicles per year. But with sales weak and the Chinese auto market slowing sharply, the factory is running at roughly 30 percent of capacity, two people with knowledge of the matter said. The sources asked not to be identified because the information was not public. Hyundai, the world's fifth largest automaker, declined to comment on the Chongqing plant's production or the showroom's sales but said it is "closely cooperating" with local partner BAIC to turn around the China business. BAIC did not respond to requests for comment. Hyundai's woes mark a major reversal for the automaker which was an early success story in China as it quickly and cheaply rolled out popular new models into a surging market. In 2009, Hyundai and partner Kia's combined sales ranked third in China after General Motors and Volkswagen. The South Korean duo now ranks ninth, and its market share in China was 4 percent last year, from more than10 percent at the beginning of this decade. Executives and industry experts say Hyundai conceded its once stronghold in the low-end segment to fast-growing Chinese rivals such as Geely and BYD. Foreign rivals not only defended their turf in premium segments but also kept pricing competitive for mass-market models, squeezing Hyundai's positioning as an affordable foreign brand, they said. In the United States, the world's second-biggest auto market, Hyundai's market share fell to 4 percent last year, near a decade low. Hyundai ran into problems in China and the United States for similar reasons: It missed shifts in consumer tastes, especially the surge in demand for SUVs, and it sought higher prices than its brand image could command, four Chinese dealers and half a dozen former and current U.S.