2014 Kia Sorento Limited on 2040-cars

Auto blog

How the Koreans are cracking the luxury market

South Korea's two largest automotive brands are no longer the same companies they were when they first entered the world stage.
Anyone who visits Seoul after a few years absence is likely going to be in for a shock. What was, not that long ago, a decidedly third-world city is today a thriving, sprawling metropolis increasingly on a par with the world's most modern cities.

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 Niro crossover is the company's first dedicated hybrid

Kia arrives in Chicago this week with the Niro, an all-new hybrid crossover joining the company's growing electrified lineup. It's not Kia's first hybrid, but it is the first dedicated hybrid, designed from the ground up with gasoline-electric power. Following the Niro concept from the 2013 Frankfurt Motor Show and the teaser images that followed, the production Niro joins the Soul EV and Optima Hybrid in the automaker's EcoDynamics line. Though full specifications and dimensions have yet to be revealed, the Niro rides on a 106-inch wheelbase to slot it size-wise in between the smaller Sportage and larger Sorento. The parallel hybrid powertrain mirrors that of the Ioniq – which is, in turn, parent company Hyundai's first dedicated hybrid and which we're not expecting to see in person until next month. The system pairs a 1.6-liter four with an electric motor, a lithium-ion battery, and a six-speed dual-clutch transmission. The sum total is 146 horsepower and 195 pound-feet of torque, and a projected fuel-consumption rating of 50 miles per gallon. View 18 Photos According to Kia's product guru Orth Hedrick, the company has tuned the Niro for "the best combination of outstanding mpg, an engaging driving experience, utility, and most importantly, a stunning design that doesn't shout 'hybrid'." Of course the taller, less streamlined form means it won't cut through the air like a more streamlined sedan or hatchback would, but it's still much slipperier than most crossovers: its drag coefficient of 0.29 comes a lot closer to the Ioniq's 0.24 than it does to the Soul EV's 0.35. We'll wait to see it in person before we decide how that streamlined crossover styling comes across. But for now you can scope out the full details released thus far in the press release below. ALL-NEW 2017 NIRO HYBRID UTILITY VEHICLE ARRIVES IN THE WINDY CITY FOR GLOBAL DEBUT AT CHICAGO AUTO SHOW Kia's Hybrid Utility Vehicle Boasts a Number of Firsts for the Brand, Including an All-New, Dedicated Eco-Car Platform and Unique Hybrid System • Niro is a no-compromise package, maintaining the style and appeal of a utility vehicle while offering outstanding fuel economy with a targeted 50 mpg combined • Niro challenges the hybrid-electric segment with an innovative hybrid system that directly contributes to a dynamic driving experience CHICAGO, Feb.