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Luc Donckerwolke steps down as head of Hyundai Group design

Automotive News got hold of "an internal note" declaring that Hyundai Group design chief Luc Donckerwolke is stepping down today for "personal reasons." After ex-Volkswagen Group pen Peter Schreyer took over Kia design in 2006 and began the South Korean automaker's renaissance, Donckerwolke became the next VW Group design emigre to head east in 2015. He began his tenure in charge of Hyundai and Genesis, then took over as group design head when Schreyer stepped back from day-to-day operations in November 2018. Donckerwolke pushed for emotional products and brands that didn't look like different-sized versions of one another, dividing the trio of company makes into sexy and sporty Hyundai, young and cool Kia, and haute couture Genesis. Two of the three brands are on their way. Kia's got some top products but is still tweaking its formula.  The Belgian's design resume stretches back to his first job at Peugeot in 1990, where he stayed for two years before moving to Volkswagen. That's where things get good, a 23-year run including work on the first-generation Skoda Octavia and Fabia, the Audi A2, A4 Avant, and R8 Le Mans race car, the Lamborghini Diablo VT, Gallardo and Murcielago, and the Bentley Flying Spur among many others. Credits at Hyundai include the Kona and Palisade, and at Genesis, the G80 and G90 sedans and the GV80 crossover. Considering Donckerwolke's background, it's no surprise to hear he opined for a Genesis supercar within a year of arrival at Hyundai, and had ideas about what he wanted to do. He said at the 2016 New York Auto Show, "I won't reveal the secret now because it's still my baby! Obviously, yes, this is part of the interest of designing a brand, being able to create [supercars]. It's not just something which we'll do, let's say a rational traditional project, but there will be some highlights." It's too bad we'll miss that. Hyundai Group bosses won't name a successor yet, leaving SangYup Lee as head of design at Hyundai and Genesis and Karim Habib, the ex-BMW and ex-Infiniti designer hired last year, in charge of Kia design. Donckerwolke issued a statement that read in part, "It's been an honor and privilege to contribute to the shaping of the future of Hyundai, Kia and Genesis.

Imported pickup tax in play in Trump trade talks with South Korea

WASHINGTON/SEOUL - Talks starting Friday to amend a U.S.-South Korean trade deal must balance President Donald Trump's domestic agenda against the need to contain a nuclear armed North Korea and will have to be completed swiftly, officials from both sides told Reuters. The U.S goods trade deficit with South Korea has doubled since the 2012 signing of the US-Korea Free Trade Agreement (KORUS). Almost 90 percent of the 2016 shortfall of $27.6 billion came from the auto sector, an issue the United States is expected to press hard in the Washington talks. A quick deal could give Trump his first trade victory at a time when NAFTA negotiations are dragging on without agreement and pressure on China to change trade practices has yielded little progress. The talks, led by Assistant U.S. Trade Representative Michael Beeman and Yoo Myung-hee, director general for FTA negotiations at South Korea's trade ministry, begin at a time of heightened tensions with Pyongyang. A trade ministry official in Seoul said South Korea was waiting for Washington's formal proposals and substantial negotiations would not take place on Friday over a deal Trump has repeatedly threatened to scrap. "The U.S. brought up lowering non-tariff barriers, especially for their auto industry. At the moment, we are not sure whether the U.S. will ask that but we will be prepared (for the U.S. demand)," said the official, who spoke on condition of anonymity as he was not authorized to talk to the press. A top priority for the Americans is maintaining a 25 percent tariff on Korean pickup truck imports, which was meant to have been phased out from 2019 under the current deal, according to a U.S. official and a South Korean car industry source. South Korea has two major automakers, Hyundai and Kia, both of which are heavily reliant on exports due to the small size of their domestic market. Critics charge that South Korea discriminates against imports with a range of non-tariff barriers. South Korean auto companies believe that Washington will also seek to increase the 25,000-vehicle per U.S. automaker threshold for U.S. car shipments to South Korea that can enter the country without meeting Seoul's domestic industry regulations. The official at a South Korea auto company, who was not authorized to speak to the media, also said the United States was interested in easing Seoul's vehicle emissions targets. These are viewed as discriminating against U.S. autos.

Hyundai spotted testing Prius rival

That Hyundai is gearing up to go after the Toyota Prius with a dedicated hybrid of its own is no great secret. We've seen prototypes for it testing twice before. But this is our best look at the Korean challenger yet, wearing its own bodywork and in the light of day. Spied undergoing testing in Germany, this prototype dubbed AE HEV (likely for Advanced Experimental or Alternative Energy Hybrid Electric Vehicle) is still heavily camouflaged to keep it away from prying eyes (like ours). But there are still some details we can discern from underneath the cloth cladding. For starters, you can see the horizontal slates on the front grille, blue accents on the headlights, maybe even a strip of LED daytime running lights. There looks to be a spoiler at the back similar to that on the European hatchback version of the Honda Civic. Of course it's another Honda whose form this prototype seems to be emulating, and that's the Insight. It'll be interesting to see if Hyundai can succeed where the Insight failed, and take the fight to the Prius. Expect to see it emerge sometime in the second half of next year.