GM Korea reached a tentative wage agreement with its union, Reuters says. Workers receive a little more money, and a major concession that could have far-reaching consequences for GM’s recovery if it sets a precedence in the rest of GM’s world. (Read More…)

Less than a year ago, the Tokyo automotive press corps was summoned to Kyushu, the southernmost of the four main Japanese islands to visit a Nissan plant. Nobody knew why, until Nissan CEO Carlos Ghosn had one of his trademark impromptu outbursts. He called the exchange rate “abnormal,” several times, until everybody got it. He threatened several times that Nissan and most of the Japanese industry would pack up and leave, and delivered an ultimatum: “If six months down the road we are still in this situation, then this will provoke a rethinking of our industrial strategy.” (Read More…)

Nissan joins Hyundai and Kia in exporting cars to the U.S. Nissan will make the Rogue SUV at a plant of Alliance partner Renault Samsung Motor. This according to similar reports by Reuters and the Nikkei [sub], both without quoting official sources. (Read More…)

At home, GM is at peace with the unions, benefits of having the UAW as a major shareholder. Abroad, GM Europe has been in a low intensity conflict with the European unions that oppose cuts at Opel. Now, a labor conflict flares up in an unexpected part of the world: Korea. (Read More…)

Korea’s Samsung, better known for flat panel TVs, Galaxy smart phones and other gadgetry, wants its name removed from cars produced by Renault in Korea. “We want to take our brand ‘Samsung’ out of Renault Samsung since we don’t have anything to do with the car sales,” a Samsung executive told The Korea Herald.

Nothing doing, replied a Renault spokesman: (Read More…)

Despite an explicit suggestion from Opel’s own CEO that Chevrolet cars could be built in European Opel plants, GM Korea has shut the door on such an idea.

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BMW turns more and more into the world’s purveyor of engines. If recent talks are successful, BMW motors could power Hyundai cars. This according to a report in Germany’s industry publication Automobil Produktion.

The magazine reports that Chung Eui-Sun, Vice-Chairman of Hyundai Motor Company and only son of und Hyundai CEO Chung Mong-Koo, has been in Munich to start the talks. (Read More…)

Is this another “senseless provocation” by “imperialist American dogs“, or do Koreans really want to buy the Chevrolet Corvette?

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Major carmakers around the world had their eyes on Hyundai’s growing muscle for a while. In the business, you call that benchmarking. Now, the benchmarking sensors sound alarm: Hyundai announced yesterday that its February global sales jumped 28 percent from a year earlier. (Read More…)

Toyota plans to more than double its exports to South Korea to 20,700 vehicles this year, says The Nikkei [sub]. The cars come from places that used to be import nations for Toyota: The U.S. and Europe. After announcing plans to export U.S.-built cars to South Korea, Toyota now is looking to bringing made-in-Europe cars back to Asia. (Read More…)

Hyundai may really, honestly launch its own luxury brand. In a way, at least, perhaps

For years, Hyundai has been going back and forth over on question: Luxury brand or not? Imitate Infiniti? Do it like Lexus? A la Acura? This conundrum produced millions of Google hits, but otherwise led to nothing. Hyundai may finally cave in and do it. Hyundai’s U.S. sales chief Dave Zuchowski told Automotive News [sub] that such a move could be in the offing. Why? Customers are well ahead of Hyundai and already created a new brand called “Genesis.”

Said Zuchowski: (Read More…)

Automakers in the U.S., Europe, and Japan are getting increasingly worried about the Korean Twins, Hyundai and Kia. Both had already outpaced the U.S. and European market last year. Today, Kia announced aggressive plans  for both regions. (Read More…)

When we heard from Reuters about GM’s possible plan to shift production from its South Korean former Daewoo plants to Europe, we didn’t think that would be highly appreciated in South Korea.  After duly reporting that there could be a deal afoot to mollify the German and European steelworkers union with jobs taken away from South Korea, we opined: Let’s see what the militant South Korean unions have to say about that.”

We did not have to wait long. The unions in South Korea already threaten war, and when they say war, they mean war. (Read More…)

When thinking about creating cost efficiencies, moving jobs to Asia usually comes to mind. GM has a different plan to bring profitability back to its hemorrhaging Opel unit. GM is considering bringing Chevrolet production from its Korean plants to Europe. In exchange for delivering jobs, GM expects concessions from the unions that would clear the way for a major cost-cutting operation necessary to stop the bleeding and to save the German patient from otherwise certain death. This is at the heart of a detailed report just filed by Reuters correspondents Christiaan Hetzner in Frankfurt and Ben Klayman in Detroit. (Read More…)

Kia’s mission in America over the past decade was to compete squarely with the likes of Honda and Toyota. Lately however, the plucky South Korean brand seems to have larger aspirations. With the new Optima and Sportage turbos it would appear that Kia may just have budget near-luxury brands in mind as competition. Competition is fierce in the CUV market and the cute-ute segment is especially cut-throat with (by my count) no fewer than 11 vehicles that more-or-less compete directly with the Sportage. Among the main competition lurk the likes of the Rav 4, CR-V, Rogue, Juke, Compass, Patriot, Escape, Tiguan, Equinox, RDX and possibly the Q5.

However the 260HP turbo Sportage SX is possibly a different beast, and if you were to whittle this list down to just the 200HP+, turbocharged competition the list gets considerably shorter: Tiguan, Q5 and RDX. As Kia continues their claw upmarket, it should come as no surprise that Acura’s baby crossover should be found in Kia’s crosshairs. The question is: does the Sportage have what it takes to convince entry-level luxury CUV shoppers to stop at the Kia dealer? Or is this just faster competition for the RAV 4 and CR-V? Michael Karesh was able to get a Sportage SX turbo for a day from a local dealer, but what’s it like for a week? Lets find out.

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