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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.

We get our hands on Android Auto [w/video]

After a week with version one of Android Auto in a 2015 Hyundai Sonata, my opinion is that it fulfills the promise of the technology. I couldn't even exploit it fully because I'm not married to the Android ecosystem. At my desk right now there's a PC in front of me, an iPad on my left, and an Android phone on my right. My Android phone is, in fact, so old that it's not compatible with Android Auto. So in addition to a Sonata, Hyundai let me borrow a Nexus 5 smartphone and a Motorola Moto360 watch. Yet even with all that gear, which, in practical terms is someone else's borrowed digital life, Android Auto still showed itself to be tech worth having. When you start the Sonata you get the standard Hyundai infotainment screen. Plug your phone in, and you'll get an option to click over to Android Auto. At that point, you lose the ability to use your phone, which is the purpose of the system, to keep you from using the handset. Since the contents of your phone are ported to the head unit, there is hardly any reason to reach for the portable device anyway. The Google Now screen comes up first, populated with a series of notifications resulting from Google having learned your life and kept track of where you've been going, who you've been calling, and what you've been searching for. After only two days, Google Now understood that I probably lived in Venice, CA, and not in Orange County, where the phone had previously resided. No matter the make of car, the interface is the same. The icons along the bottom of the screen indicate Navigation, Phone, Home (Google Now), Audio, and Return – to go back to the car's native interface. The first four options represent much of what we use our phones for (we'll get to texting in a second), and that's what buyers want: for cars to work seamlessly with their phones. Oh, and to have voice recognition actually be useful. Android Auto works with the Hyundai system, so if music is playing when you turn the car on, it will continue to play even though you're in Android Auto, and you can control it through that interface. Switching to media or apps on your phone is as easy as saying, "Play music," which defaults to Google Play, or pressing the audio button and choosing an app like JoyRide or NPR One. You do have to figure out how to speak to the system. I couldn't find any list of Android Auto-specific voice commands, so sometimes it would take a few tries to figure out how Google liked to be ordered around.

Hyundai, BMW and Ford win Concept Vehicle of the Year awards

More than two dozen jurors started with a pool of 23 concept cars introduced at the most recent Los Angeles, Detroit, Chicago, Toronto and New York auto shows, then pared it down to three winners in three categories for the twelfth annual North American Concept Vehicle of the Year Awards. The trophy-bearers are said to be those "vehicles most likely to shape the future of the automobile industry," and lead their classes in the Concept Car, Concept Truck and Production Preview divisions.
Hyundai had two cars as finalists for the Concept Car category, the competition boiled down to the Hyundai HCD-14 Genesis concept, Veloster C3 Roll Top, Honda EV-STER and the Toyota Corolla Furia. It won with the HCD-14 Genesis that was introduced at the Detroit Auto Show, a sharp sedan that sharply divided opinion between those who thought it was too much, those who thought it was too much Audi A7, and those who thought it was perfect. The award panel's judges, however, thought so much of it that it's got two awards in one sitting, not only taking concept car honors, but because it earned the highest overall score in the competition it also takes the crown for Most Significant Concept Vehicle of 2013.
The final selection in the Concept Truck category was down to the Ford Atlas, Kia Cross GT, Nissan Resonance and Volkswagen Cross Blue. The Ford Atlas took the silverware, after also winning the Eyes on Design award - shared with the Nissan Resonance - at the Detroit Auto Show where it was introduced.