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Hyundai sales slump in China over North Korea, standoff with Chinese partner

BEIJING/SEOUL — Hyundai is at loggerheads with its Chinese partner over efforts to cut supplier costs, as they grapple with cutthroat competition and the impact of a standoff between Beijing and Seoul. Hyundai, along with affiliate Kia, has been caught up in a political row over a missile defense system that is being deployed in South Korea, but opposed by China, as tensions grow over North Korean missile tests and last week's test of a nuclear bomb the North claims can be mounted on a missile. Sales of Hyundai cars in China have been falling, part of a backlash against South Korean brands over the missile system that China views as a threat to its own national security. On Tuesday, South Korea asked the United States to lift a limit on the explosive payloads it can use in the missile system. This as a North Korean missile, believed to be an intercontinental ballistic missile, was being tracked by intelligence services being moved on the ground toward North Korea's west coast and a possible launch site. That has come against the backdrop of ever tougher competition from local Chinese automakers. Until last year, Hyundai and Kia ranked third in China by sales. But Hyundai's sales alone have slumped 41 percent from January to July, fraying relations with local partner BAIC Motor Corp and making this the biggest crisis since Hyundai entered the Chinese market in 2002. Last month, Hyundai suspended production at its four China plants for a week after a French supplier refused to provide fuel tanks when its bills went unpaid. On Tuesday, Hyundai suspended production at one of its plants in China after a German firm went unpaid. Hyundai and BAIC — whose Beijing Hyundai joint venture is a 50:50 partnership — are divided over how to solve the issue of suppliers and tougher competition. Hyundai wants to protect its South Korean supply chain, while BAIC favors shifting to cheaper Chinese suppliers to cut costs, the people said. "BAIC wants to solve this aggressively and is ... asking Hyundai to change its sourcing strategy significantly and immediately," said the head of a Hyundai supplier based in Seoul, adding the idea was to source more locally from cheaper suppliers in China. Hyundai wants to solve this more gradually "over perhaps 5-10 years and do so in phases," the person said. BAIC declined to comment.

Next-generation Kia Soul spied with old box shape, new split headlights

The current Kia Soul has been around since the 2014 model year, and Kia has kept the little box fresh with the introductions of electric and turbocharged variants, the latter of which appeared for the 2017 model year. But based on these spy shots, Kia is preparing a more thorough redesign of the hatchback/quasi-crossover. Though Kia has covered the front and rear of the new Soul carefully, the middle section gives it away as the favored transportation of anthropomorphic hamsters. Also, while there are indications there will be significant design changes, the basic formula won't change. It will still have a really thick D-pillar, darkened A-pillar and a roof that gets thinner toward the front. The roof itself also looks a bit taller, although perhaps its just the rear windows that have gotten smaller. It appears the front fascia and windshield will also retain a similar amount of rake to the current models to prevent it from looking overly boxy. The front end, as camouflaged as it is, also reveals a major lighting change. Instead of the very large headlamps of the last two generations, the forward lighting will be split in two, and the primary illumination looks to be coming from the lower elements. This design follows in the footsteps of Hyundai's Kona and upcoming Santa Fe, as well as the Nissan Juke and previous Jeep Cherokee. The upper elements also look as though they sit lower in the fascia than on past models, perhaps to give the new Soul a more aggressive look. The back is also thoroughly covered up, but we can tell that the high-mounted taillights in the D-pillars will continue. It also looks like they wrap around the bottom of the rear glass this time. This is the first time we've seen the new Soul, and Kia hasn't said much about its plans for the car. We expect that it will continue to offer at least one naturally aspirated engine, if not two as it does currently, and a peppier turbo model. We would also suspect that all-wheel drive will be on the table to better compete with sub-compact SUVs like the Jeep Renegade and Honda HR-V, which have virtually the same body style as the tall, boxy Soul. Many already consider them rivals and Kia has even hinted at the possibility with its Trail'ster concept. We'll be keeping an ear to the ground, and an eye on the rear ends of Souls, to learn more in the future. Related Video: Featured Gallery Kia Soul spy shots View 11 Photos Image Credit: Brian Williams Spy Photos Kia Crossover Hatchback Economy Cars

Kia's regionally inspired concepts converge on Las Vegas [w/poll]

Kia has, over the past couple of weeks, been steadily streaming an array of concept cars it's prepared for SEMA this year. But with the doors now open at the Las Vegas Convention Center, it's now released the full monte – so to speak – including one we hadn't seen before at all. The lineup takes a geographic approach, each representing a different region in this great country of ours, and each is based on a different model in the company's product line. Arguably the most outlandish is the A1A Optima. The sedan has been converted into a four-door convertible, taking its name and inspiration from the coastal highway in Florida. The project was carried out by Lux Motorwerks, which reinforced the Optima's bodywork for the chop job, fitted suicide rear doors, and painted it a bright shade of turquoise. It rides on 20-inch HRE alloys, with an interior trimmed out in cream leather and titanium accents. A coilover suspension drops it down to the tarmac, and a new exhaust system helps with the turbo four's sound. Next up is the PacWest Adventure Sorento, inspired by the Pacific Northwest with a woodsy approach. The Sorento crossover has been customized by LGE-CTS Motorsports with a candy-effect green paint job and matte black trim, tubular bumpers, a raised suspension, off-road tires, a snorkel for fording streams, and a pop-up tent on the roof. They're joined by the Photo Safari Sedona, which is a new addition we hadn't seen until now. The minivan has been thoroughly transformed into a rolling observation point for shutterbugs in the wild. The rear section has been converted into a pickup bed, the seats have been swapped out for deploying buckets to get closer to the action, and the whole thing rides on an air suspension with off-road tires on 17-inch wheels. It's even got an iMac workstation on board for processing photos. In short, it's everything you could want to embark on a photographic adventure in the Northeast – or anywhere else for that matter. Finally there's the Mud Bogger, a Forte Koup inspired by the South. It's jacked up four inches on an off-road suspension, with an open rollback vinyl roof to let in the elements. The bodywork has been painted a deep shade of blue, offset by the white powder-coated roll cage, brush guards, and wheels. And the interior has been stripped out and fitted with Sparco racing seats. Kia has also brought the Ballast Point Sedona back to the show this year.