Hyundai plans to raise its worldwide production capacity (including Kia) to 6.5 million a year by 2012, company sources told The Nikkei [sub]. To put that into perspective: In 2009, the Hyundai/Kia chaebol sold 4,645,776 cars. To put it further into perspective: GM sold 6.5m cars worldwide in 2009. Here is the expansion blueprint: Read More >
I hate to get all “workers of the world unite”, but management seems to get away with a hell of a lot more than the rank and file. Take Prudential’s bid to take over AIG’s Asian arm. The bid failed and the whole exercise cost Prudential £377m (about $579.5m). Digest that figure for a second, then digest the next fact. The CEO, Tidjane Thiam, refuses to stand down over this mistake. Now consider this, if you, as a rank and file member, would cost the company you work for just 1 percent of that previous figure, could you honestly expect to keep your job? Now let’s look at the FIATsco incident. The whole affair cost GM $2b. Again, had you have cost the company you work for just 1 percent of that figure, could you keep you job? After writing this paragraph, I find the next story almost heartwarming. Read More >
When Renault and Nissan signed an agreement to form an alliance, few expected it to work. In fact, according to the book “Shift” (or was it “Turn Around”?), Bob Lutz was quoted as saying that Renault would be better off taking the money they spent on the Nissan stake, putting it on a ship, sailing it into the middle of the ocean and sinking it. Another accurate prediction from the One of Maximum Bullsh*t. The reason that the Renault-Nissan has worked so well so far is, according to Carlos Ghosn, communication. Without communication, how can you expect your partner to understand you? Sounds simple, right? Not to Hyundai and Kia. Read More >
Since Mahindra doesn’t seem to be giving its self-destructed US distribution channel much attention, we couldn’t help but wonder what exactly is more important to the Indian firm than a little PR the world’s second [sigh] largest car market in the world. The answer, of course, is its acquisition of Ssangyong, a South Korean automaker known only to Americans as the maker of the legendarily ugly Rodius (to be fair, regular TTAC readers may also recall Ssangyong’s bid for world’s ugliest bankruptcy declaration). But the meeting point between Ssangyong and Mahindra isn’t styling, it’s diesel and four-wheel-drive.
Despite the fact that Ssangyong is still technically in receivership, there are still 25 dealers selling its products in Australia on the strength of the motto “We Live Diesel,” while Mahindra has 40 diesel-only Australian dealers. Recently Ssangyong revived the nameplate given to its original product, Korando, for a new model that reportedly launches in Australia later this year. Looking at the evolution of the Korando, from original CJ7 clone to the forthcoming model (which reportedly boasts a 174 hp, 337 lb-ft “German-designed” diesel engine, and available FWD or AWD), one can’t help but wonder where Mahindra sees itself going.
Having recently invested in an all-new global compact car, the Cruze, it was inevitable that Chevrolet would eventually come out with an MPV based on the Cruze’s underpinnings. When the unavoidable people-mover debuted at the 2008 Paris Auto Show as the severely handsome Orlando Concept, its clean yet distinctive look certainly got our attention. And with initial plans calling for US production (Hamtramck), it seemed that The General really was ready to put up to seven Americans in a compact-car-based vehicle. But after we called the Orlando “The Cruze To Wait For,” GM entered bailout hell and the Orlando was canceled and uncanceled for the US market with every new executive that passed through the RenCen.Now, with the first images of the production Orlando hitting the web, the post-concept reality of Chevy’s “Delta MPV7” reflects its troubled development.
The very European-looking concept has been softened into what looks more like a US-market crossover (i.e. something you might spot in Orlando)… but it’s going to be made by Daewoo in South Korea, and is focused on the European market. And based on the current plans, Americans looking for this kind of car from GM will have to spring for a GMC Granite “Urban Utility Vehicle.” Because apparently GM’s product planners think Europeans are into generic, American-named people movers, while Americans are looking for over-the-top designs and an upmarket brand from their fuel-efficient kiddy haulers. On the other hand, as little sense as that premise makes, the production look of the Chevy Orlando won’t exactly inspire anyone to contradict it.
Did we mention that Hyundai is doing well in the U.S.? Sales up 21 percent for the year. Hyundai cars sold in the U.S. average about 30 miles per gallon, the best fuel efficiency in the industry. Jack Baruth loves his 2005 Hyundai Accent so much that major portions had to be redacted such as not to conflict with indecency laws. Can Hyundai do much better than that? They think they can. How? No idea. Read More >
Autocar reports that Renault workers in France are jumping on a bus and heading to the Paris Motor Show. Are the doing it because they fancy a day out? Maybe they want to see all the nice cars on display? Nope, they’re going there to protest. OK, so who do you think they are going to protest? Hyundai? Toyota? Ford? Nope. They’re protesting against Renault. So, a bunch of French Renault workers are going to the Paris Motor Show to protest against their own company? Why?
I know that stories about who will buy a down and out Korean carmaker called Ssangyong are not a major click-through magnet. Therefore, just for the record: Ssangyong selected India’s Mahindra & Mahindra as the preferred bidder to acquire a majority stake. And just in case, they named India’s Raghav Industries as the secondary preferred bidder, says The Nikkei [sub]. Read More >
Does anyone remember when Hyundai set foot on U.S. soil? “KKK” (as in Korean Krap Kar) was one of the funnier monikers they received. Does anyone remember when Hyundai announced plans to become one of the top five automakers in the world? Rimshot. Cost-to-coast laugh track. Fast forward to the real world, and – oooops: Hyundai’s quality and reliability is now being thought of in the same vein as Toyota and Honda, Hyundai’s Alabama plant can’t make their cars fast enough and Hyundai was recently labelled the most fuel efficient automaker in the United States. It’s a long cry from the days of the Hyundai Pony, which was a load of old pony. Well guess what? Hyundai just broke another corporate milestone.
Auto Loan Daily reports Hyundai has broken into Kelley Blue Book’s Top Five Most Considered Automotive Brands, kicking out Nissan. The top five (in case you’re interested) goes like this: Read More >
Times must be good again. Rarely has the bidding for a down and out automaker been so hot as for distressed Ssangyong in Korea. Today was the deadline for putting in binding for a majority stake in the sorry little thing. Two of the six presumptive bidders did a cop-out.
Ssangyong has been under court-led bankruptcy protection since early 2009. Today, at 0600 Zulu the bids had to be in. No messing around like with Opel in Berlin, there are Korean courts involved. Read More >
There’s a constant temptation for commentators on the American auto industry to idealize labor relations outside of the reach of the United Auto Workers. But, as the JoongAn Daily reports, even resurgent automaking nations like Korea still face a number of challenges from unruly workers. Hyundai, Ssangyong and GM-Daewoo have already closed deals with their unions guaranteeing a strike-free 2010, but Kia is still locked in negotiations over
several issues, including wages and role of full-time union representatives. The management wants to enforce restrictions on the number and work practices on union representatives before discussing the wage issue. The union wants to negotiate the two issues at the same time.
If Kia reaches a deal with its union, it will make 2010 the first year in the last 24 without a strike by Korean autoworkers.
When Apple releases a new product, people wait in line for it. Steve Jobs talks, everyone buys. Apple often runs out of stuff that is in high demand. Usually, people will wait. Hyundai has a similar problem. But maybe not a similar solution. Read More >
India’s Mahindra & Mahindra is putting in a binding bid to buy a majority stake in troubled South Korean automaker Ssangyong Motor. Ssangyong went bankrupt in 2009 after China’s SAIC dropped the ball. They nearly went up in flames, when militant workers incited a riot and threatened to blow up the paint shop. Read More >
The Korea Times reports that the Seoul Central District court has ordered the union of a subcontractor of Hyundai-Kia to remove a picture from the walls of the union headquarters. A court order? To take down a picture? Why? Read More >
Our Korea-based contributor Walter Foreman already suspected that the new Hyundai Avante might be one of the world’s first mass-market compact car with a self-parking feature (similar systems are offered on the Toyota Prius and Euro-market VW Golf), and this video proves that he was dead right. What’s still not clear is whether self-parking is standard on the new Avante (launching August 2 in Korea), or whether it will be offered when it comes stateside as either the 2011 or 2012 Elantra. This would be the ultimate challenge for such technology, as legal concerns allegedly kept Volkswagen’s pioneering system out of the US. Still, Hyundai had the cojones to equip its mass-market C-segment car with technology that just a few years ago was available only on the Lexus LS. That’s exactly the kind of decision that has Hyundai raising eyebrows across the industry.
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