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Hyundai, union reach tentative labor deal

According to Reuters, South Korea's labor unions may have reached a tentative deal with Hyundai following a compromise between the two sides on wages. Workers have staged a number of stoppages since August 20, which have cost the South Korean giant 1.02 trillion won - around $1.1B US. It also represents just over 50,000 units of production. That vehicle total sounds like a lot, but it's a small enough figure that Hyundai can apparently catch up with weekend and overtime shifts. We'd wager that this is why US inventories haven't been hit quite so hard aside from the battering already taking place. The proposal will now go before the union's rank and file.
If ratified, the new agreement will see workers getting a 5.14-percent raise in base salaries, along with 8.5-million-won (roughly $7,800) bonuses. Those concessions are a far cry compared to what the union was initially demanding, though. Early proposals included a 56.25-gram gold medal for each employee (worth about $2,400) and a 10-million won bonus (about $9,100) for employees whose children chose not to attend college. The union also sought a bonus worth two months' salary for workers that have been with the company for over 40 years, but this was negotiated down to a flat rate of six-million won ($5,464).
Based on Reuters' report, the work stoppages must have taken a real toll on Hyundai - its domestic sales dropped 20 percent last month, while exports were down nine percent. Those startling figures must have put some fire under the Hyundai bargaining team.

Motorcyclist lucky to escape with life after 100-mph crash

A motorcyclist tried to run from the California Highway Patrol in San Diego in the wee hours of February 9, but things didn't quite work out as he planned. In fact, the fleeing rider is lucky to be alive after colliding with a Kia at over 100 miles per hour during, ending, rather abruptly, the pursuit. The video on The San Diego Union-Tribune below shows the collision, but you might need to watch it a few times to see what happens. The bike shoots by in a flash, and then there are suddenly sparks when the cycle hits the rear of the car. Watch the left side of shot to see the rider standing by the median after the crash. Police quickly arrive to the scene to apprehend him. The guy is wearing a helmet but understandably appears to be in pain after the high-speed accident. The crash ripped the front end off the rider's Suzuki, but the Kia's driver wasn't harmed – though clearly shaken. According to the San Diego Union-Tribune, police took the motorcycle rider to the hospital to treat undisclosed injuries. What's Now: A motorcyclist going at least 100 mph slammed into the back of a car on I-805 early this morning. Remarkably, he was left standing on his own two feet before being arrested. Story: sdut.us/1TaOjDM Posted by The San Diego Union-Tribune on Tuesday, February 9, 2016 Related Video:

Kia confirms $1B factory in Mexico to be completed in 2016

Kia is the latest in a string of automakers to announce plans to build new or expanded factories in Mexico. The Korean company has signed a $1 billion deal to establish a plant in Monterrey in the state of Nuevo León, with construction starting in late September. If everything proceeds on schedule, the facility should be complete in the first half of 2016 and be able to produce 300,000 vehicles a year.
The $1-billion investment will create a "new, highly automated manufacturing plant," according to Kia's announcement, a facility covering 1,235 acres of land. Confirming earlier rumors, Kia will produce compact models there, but the company won't reveal specific model names, just yet. When complete, the factory in Mexico will boost the automaker's annual capacity to 3.37 million vehicles a year with 1.69 million of those in Korea and 1.68 million abroad. It will also join Kia's plant in Georgia (where the Optima and Sorento are made) as the business' other North American location.
Kia hasn't kept plans for the Mexican factory a very close secret and openly admitted it was "being considered as a possible location" to Autoblog. The country was chosen partially because of its free-trade agreements (read: NAFTA), that make it less costly to move models elsewhere, not to mention its easy access to the North, Central and South American markets. The new plant should also alleviate some of the tight supply issues Kia has had in the US.