2011 Kia Sorento Ex 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.

Hyundai plans to catch up with other automakers, offer EVs

YONGIN, South Korea (Reuters) - South Korea's Hyundai Motor Co is developing its first dedicated architecture for electric vehicles, seeking to catch up with the likes of Tesla in the growing segment with multiple, long-range models. While the platform will not be completed soon, Hyundai Motor and affiliate Kia plan to roll out small electric sport utility vehicles (SUVs) based on an existing underpinning next year, said Lee Ki-sang, who leads Hyundai-Kia's green cars operations. Hyundai will launch an electric SUV, followed by a sibling model by Kia Motors next year, Lee said, citing strong demand for SUVs. The subcompact or compact models would have a range of more than 300 km (186 miles) per charge, and would be "more competitive" than rival offerings, Lee said. And Hyundai said in a statement on Thursday that it plans to launch a new luxury electric vehicle under its Genesis marque in 2021, after introducing a plug-in hybrid version of an unidentified Genesis model in 2019. The separate platform represents a major push into the battery electric-car segment for a firm which has long trumpeted rival fuel-cell vehicles, reflecting strong investor pressure to compete more vigorously in a market that has been stimulated by U.S.-based Tesla's longer-range models. And tough fuel-economy and emissions regulations in the United States, Europe and China are compelling automakers to push fuel-efficient cars even though low oil prices have undercut demand. Hyundai's electric-car platform would allow the automaker to install a battery pack in vehicle floors to accommodate more battery capacity and maximize cabin space, Lee said. "The electric-vehicle platform will require high up-front investments, but we are doing this to prepare for the future," he said at Hyundai-Kia's green car research center in the city of Yongin, outside Seoul. He did not reveal the cost. Lee, a senior vice-president at Hyundai Motor, was speaking during an interview on the eve of an auto show that kicked off in Seoul on Thursday. Analysts said Hyundai had no choice but to build separate electric-vehicle platforms to be relevant in the segment. "The separate platform may incur losses initially, but Hyundai will be left behind the market if they don't offer long-distance models, like 300 km, 500 km and 600 km," said Ko Tae-bong, an analyst at Hi Investment & Securities.

2016 Kia Sorento First Drive

Teenagers are awkward, predictably provocative and generally horrible to be around – at least unless you, yourself are one. There's just something about those angst-ridden years spent trying on identities, none fitting quite right. Luckily for Kia, the automaker has just celebrated its 20th birthday in America, and fresh out of the driver's seat of its 2016 Sorento – dare we say it – we sense a touch of self-assured maturity. Don't worry; we expect the automaker's antics – including super-freak athletes jumping over an Optima at the NBA All-Star game and the employment of urban hamsters – to continue. Thankfully, offering unremarkable vehicles in pretty competitive segments seems officially a thing of Kia's history e-book. To be fair, we've seen a pleasing Korean Renaissance for a few years now, and we're not just talking hot pots and bulgogi – 2015 Hyundai Genesis, anyone? Kia Optima SX? Soul? So where exactly does this third-gen 2016 Sorento fit in? Actually, we're not sure Kia knows that either; its product planners tell us that this miraculous crossover competes with variously sized vehicles including the compact Jeep Cherokee, markedly larger Grand Cherokee, and even the family-hauling three-row Toyota Highlander. But Kia is also not completely off its rocker, because the Sorento suffers (benefits?) from severe bipolar disorder in terms of pricing. While you can get a base L model for $25,795 after delivery – there are five trim levels including L, LX, EX, SX, and top-of-the-line SXL – the fancy SXL 2.0T with all-wheel drive we tested was priced at $45,305. That's a difference of almost $20k, with the latter model reaches a completely different, almost premium demographic. And there's more. Sometimes the Sorento seats five, other times it can party hard with seven. There are three very different engine flavors to choose from: a carryover 2.4-liter four-cylinder will greet entry-level buyers with 185 horsepower and 178 pound-feet of torque. A meatier V6 – good for 290 hp and 252 lb-ft – will come on three-row models only, while the new 2.0-liter turbocharged four option, good for 240 horses and 260 lb-ft comes on two-row models exclusively. Kia will offer all-wheel drive on all Sorento models.