As the yen weakened against the dollar for a second consecutive year, Honda, Nissan and Toyota all set production records in their North American plants in 2013, according to Automotive News.
Find News by Subject:
Category: Korea
Imported vehicle sales by country. Source: Canadian Vehicle Manufacturers Association
Companies building cars in Canada are lobbying at the last minute to, kill an “imminent” free trade deal between Canada and South Korea that the automakers say would damage the Canadian auto industry and the greater Canadian economy. Ford Motor Co. of Canada Ltd. president and chief executive, Dianne Craig, said on Thursday that the U.S.-Korea trade agreement enacted in 2007 has been a “disaster” for auto makers. Craig urged the Conservative government not to make the same mistake as the United States.
“We understand that [the Canadian government] need[s] to look for what’s in the best interests of Canada,” Ms. Craig said in an interview with Toronto’s Globe & Mail. “But, frankly, autos are the greatest driver of GDP and we think we need to have a pretty strong voice in this conversation. This is not good for autos, which means it’s not good for the economy, which means it’s not good for Canadians.”
GM Korea design center
Now that General Motors is withdrawing the Chevrolet brand from the European market, it plans to reduce salaried employee rolls at GM Korea, which has been assembling most of the Chevy branded vehicles sold in Europe. Reuters reports that Sergio Rocha, GM Korea CEO, said that GM’s Korean subsidiary will offer a “voluntary retirement” plan to its 6,000 salaried workers, including research and design staff. Some of the product development responsibilities have already been shifted out of Korea, like the design of the current Chevy Cruze. The previous generation of the Cruze was designed in Korea. So far the reductions are aimed at salaried workers as Rocha said the company has no plans to eliminate production jobs. Read More >
Though Hyundai has set its sights on some sales gains in 2014 in the European market, the automaker has no plans to defend market share to the death, opting for repeat business rather than taking the Germanic approach of volume at all costs.
Bowing at the LA Auto Show is the Veloster Turbo R-Spec, aimed at pulling in tuner-oriented shoppers through a halo inversion designed to, someday, have them drive away in a Genesis sedan.
Hyundai unveiled their entire 2014 Elantra lineup at the LA Auto Show with the aim of introducing to the world their much-improved elements of fun driving.
If you’re into EVs but find the Tesla Model S too expensive, and the Leaf too jelly bean, then Kia would like to offer you something with a bit of soul. An electric Soul, that is.
Over a month ago, we brought you news on the upcoming arrival of Kia’s rear-driven K900 sometime in early 2014. If you can’t wait to see the car in the flesh, however, the car will make its debut in November during the Los Angeles Auto Show.
Following labor unrest and increasing costs at their operations in South Korea, General Motors has begun to reevaluate GM Korea’s role in the giant automaker’s production plans. Currently GM Korea, formerly Daewoo, builds about 20% of GM’s global production. The already announced shifting of production of Opel’s Mokka small crossover to the Zaragoza facility in Spain starting in the second half of 2014 may portend other changes in GM Korea’s role. Both foreign and domestic Korean automakers have expressed concern over rapidly rising wages in that country. The strong Korean currency, the won, coupled with those rising labor costs have made Korea one of the more expensive places for GM to build cars. Read More >
Though General Motors has not commented, a spokesman for the Korean Metal Workers Union, which represents employees of GM Korea, said that the automaker plans to launch the next generation of the Chevrolet Spark in the first half of 2015 but that next Aveo (sold as the Sonic in the United States) will be delayed.
Last week, members of the Korean Metal Workers Union approved an annual wage contract with GM Korea that follows more than two weeks of partial strikes that affected GM’s Asian manufacturing base. GM Korea assembles about 40% of Chevy branded cars sold worldwide.
Despite low inventory levels that affected sales in North America and their home market of Korea, Hyundai Motor Co. announced near record profits for the second quarter of 2013, powered by good results in China. Hyundai reported net profits of 2.52 trillion Korean won ($2.26 billion), down just slightly from last year but beating analysts expectations. Operating profit was 2.41 trillion won ($2.16 billion) on revenues of 23.18 trillion won ($208.39 billion).
Spurred by increased sales in China, Kia’s second quarter profits were up 7.7% from last year, to 1.18 trillion won ($1.06 billion), exceeding analysts expectations slightly. Revenue was up 4.4% to 13.1 trillion won ($1.168 billion).
As GM starts rolling out the Chevolet Spark EV, starting in eco-friendly California and Oregon, Automotive News has a look at the marketing challenges the newest electrified car from America’s largest car company. AN raises the issue of GM’s electrification strategy, which is focused on battery electrics, not conventional hybrids, and the sui generis Chevy Volt. While hybrid sales this year are up, EV sales continue to be lukewarm which has resulted in significant price cuts on cars that run on batteries: $4,000 off the price of the Ford Focus Electric, $6,400 off the price of a Nissan Leaf, and GM itself started offering a cash rebate of $4,000 last month on 2013 Chevy Volts.
Workers at GM’s South Korean plant will stage a partial walkout, ominously on Independence Day, July 4th, Reuters heard from a union spokesman. The walkout could turn into a full-fledged strike, union spokespeople said. Reports Reuters:
Recent Comments