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Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.

Hyundai Kia asked to pay $28.9M in patent infringement case

After years of litigation, Hyundai and Kia have lost their hybrid technology patent infringement case against Paice LLC. The jury ordered the South Korean automakers to pay $28.9 million, but according to Bloomberg, because the violation was allegedly intentional, the judge could triple that amount. The automakers have announced plans to appeal the ruling. Paice's patent dates from 1994 on a piece of tech called the Hyperdrive, and it was a way to seamlessly switch between power from an electric motor and an internal combustion engine. This lawsuit was first filed in 2012 and covered the systems in the Hyundai Sonata Hybrid and Kia Optima Hybrid. According to Bloomberg, the companies tried to argue that the patent was no longer valid, but the strategy failed. "Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit," the company said in a statement to Autoblog. Paice is certainly no stranger to litigating over the Hyperdrive patent, though. It and Toyota had a similar court battle that lasted years. Eventually, there was a settlement, and the result was Paice getting royalties for each hybrid that the Japanese automaker sold. Similarly, there's a lawsuit pending against Ford over tech in the C-Max, Fusion, and Lincoln MKZ. Hyundai Statement: Hyundai believes that the verdict returned by the jury today in the matter of Paice v. Hyundai Motor Company et al., is not supported by the evidence. Accordingly, Hyundai has requested that the presiding judge enter a judgment in its favor notwithstanding the verdict. Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit.

2017 Kia Sportage hits LA in US spec

Kia gave us our first look at the all-new Sportage back in August ahead of its global debut at the Frankfurt Motor Show. But with the LA Auto Show opening this week, the Korean automaker has now released the full details on its new compact crossover. The 2017 Kia Sportage represents a ground-up redesign of the model, adopting a more rounded look compared to the crossover it replaces. The tiger-nose grille makes it instantly recognizable as a Kia. And though it clearly takes a different design approach, its upright quirkiness (to our eyes) makes it a more suitable bridge between (and distinct stablemate to) the unconventional Soul and the larger Sorento. Now entering its fourth iteration, the new Sportage stretches 1.6 inches longer than its predecessor and rides on a 1.2-inch longer wheelbase, but maintains the same width. That means a more spacious cabin for both occupants and cargo, done up with more upscale materials and with the latest technologies buyers have come to expect. The increased use of high-strength steel helps optimize rigidity and weight in the latest iteration of Kia's longest-running nameplate, helping it launch a more concerted assault on the increasingly competitive compact crossover market. Buyers will be able to choose between three trim levels, labeled LX, EX, and SX Turbo. The first two derive their power from a 2.4-liter four good for 181 horsepower and 175 pound-feet of torque, while the latter steps up to a 2.0-liter turbo kicking out a more prodigious 241 hp and 260 lb-ft. Both promise improved efficiency, and can be had in front- or all-wheel drive, but either way they transmit their power to the road through a six-speed automatic transmission. Pricing for each model is set to be announced closer to their arrival in showrooms sometime in the new year.