2005 Kia Sorento Lx Sport Utility 4-door 3.5l on 2040-cars

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Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.

Kia Soul getting turbocharged variant, say hamsters

Last week, we reported on the return of Kia's Soul-promoting hamster mascots. They took on "Dueling Banjos," and it was adorable and entertaining and everything we expect from our favorite spokesrodents. But that same spot also hinted at something strange on the end slide – a Soul Turbo, coming this winter. One Autoblog staffer said I must have been so overcome by the return of my favorite spokeshamsters that I missed the end slide the first time around, and that might be true. Instead of debating that, let's focus on just what Kia revealed here. The company has long hinted that a higher-performance Soul was in the works, embodied by the Track'ster and Trail'ster concepts from 2012 and 2015. Both cars used a version of Hyundai/Kia's 1.6-liter, turbocharged four-cylinder, tuned to 250 hp in the Track'ster and 185 hp in the Trail'ster, which had the added bonus of a hybrid assist. Both added all-wheel-drive systems to the front-drive Soul package. A production Soul Turbo will likely fall between the hot-hatchback-like Track'ster and the off-road-focused Trail'ster. Expect Kia to pluck the corporate 1.6-liter turbo four for duty, with anywhere from 175 to 201 hp – we can hope for more, but that power spread covers Hyundai/Kia's current production trims for this engine. All-wheel drive seems like a given, based on Hyundai's approach to the Tucson, Kia's past few concepts, and the Soul's positioning as a sub-compact CUV. We've reached out to Kia for confirmation that the Soul Turbo is coming. As soon as we hear back, we'll update this post. And if you need a refresher on the video, we've embedded it below. The text in question pops up at 1:46. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Hyundai and Kia set aside $412 million for false mileage claims

We still don't know how the whole fuel economy ratings debacle is going to play out for Hyundai and Kia, but both automakers are preparing to make good on their promises to reimburse vehicle owners for lower-than-promised mileage figures. According to Automotive News, Hyundai and Kia have set aside a combined total of $412 million ($225 million for Hyundai and $187 million for Kia) as compensation, which will be sent out on a case-by-case basis via debit cards depending on the vehicle and the mileage driven.
Announced back in November, the exaggerated miles per gallon claims affect around 900,000 Kia and Hyundai products produced for the 2011 through 2013 model years sold in the US and Canada. This whole deal has had plenty of action ranging from suspected whistleblowing from a rival US automaker and even insider trading, but it has probably been most frustrating for vehicle owners who, in most cases, saw their vehicles' city and highway ratings drop between one and three digits.