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Tag: automotive

  • Hyundai reveals a glimpse of the future

    Hyundai reveals a glimpse of the future

    Hyundai Motor Group offered a glimpse of its new concept autonomous car Friday in a short video. The concept car is electric. In the video, the electric car finds its way to a charging station inside a nearby parking lot on its own after the driver gets off at its destination. The station offers wireless charging. When charging is finished, the car then parks itself in an empty lot to make room for other vehicles to charge. When the driver calls the car back using their smartphone, the car drives itself to the requested meeting point.

    The Korean automaker described the feature as an “automated valet parking system.” The feature could take the burden off drivers struggling to park and also save time as they won’t need to find charging stations or empty lots.

    For this system to work, parking lots, cars and drivers need to continuously share information through a connected network, Hyundai said. For instance, parking lots need to send the location of charging stations and empty parking lots to cars, and wireless chargers need to notify drivers of cars’ battery status via text message or other means.

    “In the upcoming era where autonomous driving cars become prevalent, there will be growing demand for various driving control features using self-driving technology,” a spokesperson from Hyundai Motor Group said. “We will focus on developing services that enable drivers to make convenient and safe use of self-driving cars.”

    The company said it expects the wireless charging system and automated valet parking system to be applied to its autonomous driving cars scheduled for launch in 2025.

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  • 6 months of recalls, but BMWs are still burning in Korea

    6 months of recalls, but BMWs are still burning in Korea

    Things aren’t looking good for beleaguered German automaker BMW, with yet another vehicle reported to have burst into flames on Christmas Day. A BMW 520 sedan caught fire at around 6 p.m. on Tuesday in Gongju, South Chungcheong.

    Earlier that day at 1 a.m., the driver of a BMW 5GT sedan saw black smoke coming out of the back of their vehicle while driving on a highway bound for Pohang, North Gyeongsang. The car, subject to recall, had already gone through safety checks.

    The driver said the car was moving at 110 kilometers per hour (68 miles per hour) on cruise mode, but it started slowing down even though it was moving downhill and then smoke came out the back. The car didn’t burst into flames as the driver immediately pulled over and called the police.

    There were no casualties caused by either incident, but the news stoked fears over the safety of BMW vehicles. Just one day earlier, on Dec. 24, a BMW 320d sedan caught fire in Gwangju.

    The burnt 320d was a 2009 model not included in the 65 models currently subject to recall.

    A public-private investigation team under the Ministry of Land, Infrastructure and Transport had already raised the need of an additional recall for defective designs in exhaust gas recirculation (EGR) system when it released its examination report on BMW fires on Monday.

    The team confirmed that the major cause of the fires was a leaky EGR module, the same conclusion that the German carmaker came to, but disputed BMW’s claims that changing the faulty hardware resolves the issue. The team said there may be a fundamental problem with the EGR design and a simple replacement may not completely resolve that.

    “We spotted coolant boiling within the EGR cooler, and we think the boiling is due to a faulty design of the EGR,” the joint investigation team said in a statement. “If boiling continues, this could lead to a crack in the EGR cooler, [making them leaky.]”

    “New EGR systems won’t lead to fires right away, but the team found that after several years of constant driving heating up the EGR cooler, a similar fire could reoccur as long as the design stays the same,” a spokesperson from the Land Ministry said in a phone call on Wednesday. “We demanded that BMW come up with an explanation regarding EGR design.”

    The joint team also said the intake manifold connected to the leaky EGR coolant should be recalled as well after check-ups if it has been polluted or weakened by a mixture of leaked coolants and engine oil sticking to pipes. The team has delivered its research findings to the carmaker, which has to consult with its German headquarters and come up with a recall plan.

    In the meantime, an increasing number of BMW car owners are signing up to file a suit against the company. Barun Law, which is currently preparing for a class action suit against the carmaker, has collected around 1,000 car owners who would like to take part in the suit as of Wednesday. The Korea Consumer Association is also preparing for a separate suit and has gathered roughly 2,000 participants.

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  • BMW assembly on the anvil, says Vietnam auto conglomerate

    BMW assembly on the anvil, says Vietnam auto conglomerate

    THACO, a major player in the country’s commercial vehicle segment, plans to assemble German brand BMW cars in Vietnam. Tran Ba Duong, chairman of the Truong Hai Auto Corporation (THACO), said at a conference last week that BMW cars will be the next vehicle that THACO assembles in the country, following other brands like Peugeot, Kia and Mazda.

    He did not reveal further details about when this would happen and what models would be assembled.

    THACO became the sole authorized distributor of BMW in Vietnam starting January this year, after Ho Chi Minh City-based Euro Auto lost its license for smuggling 133 BMW cars in December 2016.

    Duong had said earlier that he plans to open 15 BMW and MINI (a car brand owned by BMW) showrooms by early next year. However, the company currently runs only one BMW showroom in Hanoi, another in HCMC and one MINI showroom, also in HCMC.

    THACO has not revealed its revenue from selling BMW cars this year, but a source told VnExpress that the company sold almost 400 vehicles in the first half of this year. Euro Auto, at its peak, sold 1,400 BMW and 400 MINI cars a year.

    BMW cars were first assembled in Vietnam in 1995 by the VMC company in Hanoi. However, low sales led to the factory’s shutdown in 2005, and VMC had to spend two years selling its inventory.

    Mercedes-Benz is currently the only luxury car brand that assembles its vehicles in Vietnam, and it tops domestic market sales in this segment. Industry insiders say that if BMW cars are assembled in the country again, they could emerge a strong competitor, especially in terms of price.

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  • Korea’s car take top safety awards

    Korea’s car take top safety awards

    Vehicles from Hyundai Motor and Kia Motors were awarded three top safety prizes in the Ministry of Land, Infrastructure and Transport’s 2018 Korean New Car Assessment Program (Kncap) on Wednesday in a ceremony held at the InterContinental Seoul Coex in southern Seoul.

    Hyundai Motor’s hydrogen-powered sport-utility vehicle (SUV) Nexo, mid-sized sedan Genesis G70 and Kia Motors’ large-sized sedan, the K9, were awarded top Kncap prizes in their size segments.

    Vehicles were tested in three key areas – collision, pedestrian and accident prevention safety. The program assessed 11 vehicles this year, including four imported models.

    Hyundai’s eco-friendly vehicle, the Nexo, received perfect scores in front and side collision safety, pedestrian leg protection and advanced driver assistance system to not only win the top safety prize in its segment but also to win two other special awards: the top safety eco-friendly vehicle award and the top children’s safety award.

    Hyundai Motor said that the automaker conducted a variety of tests on the hydrogen-powered Nexo to ensure the safety of its high-pressure hydrogen tank such as shooting it with a bullet along with other fire-safety tests.

    Kia Motors’ flagship large-sized sedan, the K9, also scored top marks to receive a special award in top accident prevention on top of its top award for segment size.

    Meanwhile, the Genesis G70, awarded the top prize in the mid-sized sedan segment, ensures pedestrian safety with an active hood system that automatically lifts the hood of the vehicle if it collides with a pedestrian.

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  • Auto industry revs up industrial real estate in Vietnam

    Auto industry revs up industrial real estate in Vietnam

    Industrial real estate developers have been reaping the benefits of the investment surge into Vietnam’s automobile industry. Over the past three years, auto producers from Europe, the U.S. and Asia have been increasingly renting out industrial space and manufacturing facilities in Vietnam, giving real estate developers a significant boost.

    This is the conclusion drawn by a recent report by real estate service firm CBRE Vietnam which evaluates the impact of growth of the Vietnamese automobile industry on the industrial real estate market.

    The report notes that Camoplast Solideal from Luxembourg has rented 70,000 square meters of land to open a tire factory, and Schaeffler from Germany, 55,000 square meters to develop production facilities.

    Mercedes from Germany has rented 5,500 square meters of land to open a distribution center, while Bentley from the United Kingdom has rented 5,000 square meters for a showroom and service center.

    Yazaki of Japan has rented 39,000 square meters for electric car cable production, and Mogul Federal from the U.S. 5,000 square meters to make seats.

    The CBRE report says that although Vietnam’s car manufacturing sector may be behind some other ASEAN countries, the consolidation of cleared land allocated for automobile production is increasing.

    For both foreign and domestic producers, manufacturing facilities are mainly clustered in the north. Auto producers tend to choose this area to rent industrial land, the CBRE report says.

    Due to higher demand for industrial land, rentals have increased, recently.

    At an industrial park in southern province of Dong Nai, the price to rent industrial land for long-term leases of up to 50 years reached $90 per square meter last month, up from $60 to $70 last year.

    The average rent of industrial land in northern Vietnam hit $82 per square meter per lease term in Q3, an increase of nearly 9 percent compared to Q1, according to a report by real estate service firm Jones Lang LaSalle (JLL).

    Hanoi’s average rents increased significantly to $137 per square meter per lease term, the highest in the north, driven by limited supply.

    There are only 358 businesses in the auto industry in Vietnam compared to 2,500 in Thailand, according to the Ministry of Industry and Trade, and observers have said that the potential for growth is high.

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  • Mercedes-Benz Vietnam to recall 4,802 SUVs over faulty seatbelts

    Mercedes-Benz Vietnam to recall 4,802 SUVs over faulty seatbelts

    Mercedes-Benz Vietnam is expected to issue a recall notice for 4,802 vehicles due to seatbelt faults in their rear seats. Company representatives said that an application for the recall has been submitted and they are waiting for approval from the Vietnam Register, the vehicle registration, inspection and quality control department of the Ministry of Transport.

    The models affected by this recall are the popular GLC 200, GLC 250 4MATIC, and GLC 300 4MATIC. These models were assembled at the Mercedes factory in HCMC between March 2016 and February 2018, and sold mainly to Vietnamese consumers.

    It is expected that owners of the faulty SUVs can have their vehicles checked and repaired free of charge at Mercedes Vietnam dealers nationwide from Jan 15, 2019 till the end of 2023.

    For the left and right rear seats, the seatbelt retracts so much that its locking clip can be stuck in a crevice in the inner car plating. If this happens, the clip cannot be retrieved and used again.

    Mercedes GLC is one of the models distributed in the Vietnamese market by the German luxury manufacturer.

    In 2017, GLC was the best-selling model for the company as well as the entire luxury car market, priced at VND1.68-2.9 billion ($72,032 – $124,032).

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  • CGS-CIMB sees strong vehicle sales in December, raises 2018 TIV growth forecast

    CGS-CIMB sees strong vehicle sales in December, raises 2018 TIV growth forecast

    CGS-CIMB expects vehicle sales to be stronger in December and has raised its 2018 total industry volume (TIV) growth forecast from 2.5% to 4% on the back of stronger-than-expected TIV year-to-date. “We expect stronger sales in December in view of year-end promotions and multiple new models that were recently launched. For example, Proton launched its first SUV, the X70 on Dec 12 and we learned that it has started delivery to showrooms. Proton has so far received encouraging bookings of over 12,000 units since the end of November,” it said in its sector note today.

    On Wednesday, the Malaysian Automotive Association (MAA) announced that TIV grew 2.1% month-on-month to 48,282 units in November due to higher passenger vehicles (PV) sold. Perodua and Mazda recorded 8% and 14% month-on-month growth respectively.

    For the 11 months ended November, TIV rose 5.5% year-on-year to 550,526 units due to stronger PV and commercial vehicles (CV) demand on the back of the tax holiday period. PV and CV recorded healthy 5% and 8% year-on-year sales growth respectively during the period.

    For 2019, it expects resilient sales in PV on the back of new model launches in the passenger car and SUV segments from Perodua, Proton, Honda and Toyota but overall, TIV delivery is expected to be flat next year.

    “We project a 10% sector net profit growth in 2019, driven by positive earnings growth from all companies, led by Sime Darby. However, we see downside risk to earnings from the depreciation in ringgit versus US dollar and Japanese yen, as this will increase the distributors’ costs of imported complete knocked-down kits and complete built units,” it said.

    Bermaz Auto Bhd (BAuto) is CGS-CIMB’s top pick, in view of the company’s undemanding valuation, attractive yield and proxy to export sales growth. It has an “add” rating on the stock with a target price of RM2.65.

    “We expect BAuto to deliver robust sales volume in FY19-20, driven by the popular Mazda CX-5 and upcoming new model launches of Mazda 3 and CX-8,” it added.

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  • Vietnam’s car imports down 20 pct in 2018

    Vietnam’s car imports down 20 pct in 2018

    Vietnam imported 72,650 cars this year, down nearly 20 percent over 2017, according to the Vietnam Customs. The import value of cars exceeded $1.64 billion this year, up 21 percent year-on-year, the agency said. Thailand and Indonesia remain major suppliers of Vietnam’s imported cars. From Thailand alone, Vietnam has imported more than 52,170 vehicles worth a combined $1.04 billion since the beginning of the year.

    According to customs data, from December 7-13, car imports slowed down by 701 units from the previous week, totaling 2,833 vehicles. Total import value is reported to be $67 million.

    Vietnam’s population is around 93 million, larger than South Korea, but car consumption is only around 300,000 units a year, Mike Dunne, an independent industry analyst who has spent more than three decades in Asia, told U.S. television channel CNBC recently.

    Most cars sold in Vietnam are foreign brands assembled in the country from kits. But a series of free trade agreements have reduced import duties and are opening up the market. A 30 percent import tax on cars from other Association of Southeast Asian Nations (ASEAN) countries was scrapped this year.

    There are only 358 businesses in the auto industry in Vietnam compared to 2,500 in Thailand, according to the Ministry of Industry and Trade. The ministry also said that Vietnam imports over 90 percent of auto parts.

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  • Nissan terminates contract with Vietnamese distributor

    Nissan terminates contract with Vietnamese distributor

    Japanese carmaker Nissan announced it has ended its tie-up with its distributor in Vietnam, Tan Chong, without disclosing the reason. Malaysian-owned Tan Chong Motor Holdings Bhd, said it would stop importing and distributing Nissan vehicles and parts in Vietnam from September 10 next year.

    Tan Chong said it “remains open to further discussion with Nissan to explore alternative solutions and business opportunities for mutual benefit in Vietnam.”

    Nissan said: “The termination of the joint venture with Tan Chong will not affect the sales of Nissan cars in Vietnam.”

    Its business operations would remain unchanged in the near future, it said. It is set to debut its seven-seat SUV Terra in Vietnam on December 18.

    Tan Chong, a multinational corporation based in Malaysia, is not only the official distributor of Nissan in Malaysia and Vietnam, but also in Laos, Cambodia and Myanmar.

    In Malaysia, it also distributes cars by Opel, Renault and Foton. Its subsidiary, Motor Image, also owns the rights to produce and distribute Subaru vehicles in Southeast Asia, including Vietnam.

  • LG U+ 5G pass self-drive test on expressway

    LG U+ 5G pass self-drive test on expressway

    LG U+ has successfully tested a 5G-powered self-driving vehicle on an expressway for the first time. The mobile carrier announced Tuesday that a self-driving car developed by Hanyang University successfully drove on LG U+’s 5G network for 25 minutes across seven kilometers (4.35 miles) of busy city roads including the Gangbyeon Expressway and Olympic Expressway.

    A low latency video transmitter developed by LG U+ delivered real-time footage of the test drive to Hanyang University. Two cameras attached to the self-driving vehicle recorded the front and rear of the car.

    During the test drive, the vehicle had to react to certain scenarios such as avoiding obstacles and changing course. The vehicle was also tested to see how it reacts to new traffic information such as a blocked parking lot entrance.

    The vehicle was remote controllable, offering added safety measures in case of emergency.

    It was the first time that a self-driving car has completed a test drive on such a scale on an expressway or high-speed road in Korea, according to the company.

    “Self-driving cars that run on the 5G network will make important contributions to solving social problems like traffic volume and accidents,” said Sunwoo Myung-ho, who teaches automotive engineering at Hanyang University.

    “It’s significant that we were able to produce substantial results with self-driving cars through cooperation between industry and academia,” said Kang Jong-oh, who manages future technologies at LG U+. “We will continue to invest our efforts into developing self-driving car technology through cooperation between mobile carriers and the auto industry.”

    LG U+ will continue to work with Hanyang University to polish its 5G-based self-driving car technology.

    Competitors SK Telecom and KT are also actively investing in self-driving technology. KT, for example, successfully tested a self-driving bus at Incheon International Airport last month.

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  • Hyundai forms joint venture for Algerian assembly plant

    Hyundai forms joint venture for Algerian assembly plant

    Hyundai Motor and Algerian car maker Global Group signed a deal on Monday to establish a joint venture to produce commercial cars in Algeria. The joint venture will operate a factory that assembles knock down kits in Batna, Algeria. The assembly facility is scheduled to start operations in 2020.

    In the early stage, the factory will assemble 6,500 cars a year and gradually increase production. Medium and large trucks like the Mighty and Xcient, as well as the Hyundai County bus, will be assembled at the facility.

    According to the Korean automaker, the commercial vehicle market in Algeria has been expanding. Last year demand for commercial cars in the country was around 8,000 units, but that has increased to 12,000 units this year. By 2025, the automaker projects demand will reach 22,000.

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  • Genesis starts by-the-month car subscriptions

    Genesis starts by-the-month car subscriptions

    Hyundai Motor luxury brand Genesis is starting a car subscription service, the first such effort by a domestic automaker in Korea. The company Thursday announced its Genesis Spectrum program. Under the program, subscribers can drive Genesis vehicles – including the G70, G80, G80 Sport and G90 – for 1.49 million won ($1,330) per month. The service is in collaboration with domestic rental-car companies and Hyundai Capital’s Deal Car.

    The fleet of available cars includes the 2018 G70 3.3 Sports Supreme, the G80 3.3 Premium Luxury, the 2019 G80 Sports 3.3T Premium Luxury and G90 3.8 Premium Luxury. The provided cars are relatively new, with fewer than 10,000 kilometers (6,213 miles) of accumulated driving, according to the carmaker. For those using the G70, G80 and G80 vehicles, cars can be switched twice a month. The G90 is available to subscribers only for test driving 48 hours a month.

    Subscribers will not have to pay any maintenance costs, including after-sales service and the purchase of replacement parts. They will have to renew their subscription every month, but no fee is charged for early termination of membership. The program offers pick-up and delivery in Seoul as long as the vehicles are reserved three days in advance.

    “Genesis has been researching opportunities our brand could offer customers,” an official at Genesis said. “One of the results of the survey is a subscription program, which is globally emerging as trend.”

    Genesis added that the subscription service will allow the brand to collect data about its customers and drivers, such as preferred models for certain age groups and car replacement cycles.

    While subscription services for cars are a global phenomenon, as fewer people opt for ownership, the concept hasn’t taken off in Korea yet.

    Hyundai Motor’s finance affiliate Hyundai Capital America has already launched a subscription service in the United States called Hyundai PLUS, where subscribers can use the Sonata, Tucson, Santa Fe and other models for a monthly fee. Other carmakers have been offering subscriptions in certain markets. Porsche runs Porsche Passport, Mercedes-Benz has Benz Collection and BMW has Access by BMW.

    Swedish carmaker Volvo recently started Care By Volvo, and has rolled out its “Don’t Buy This Car” campaign to promote the new service.

    “Subscription services are suitable especially for younger people who want to enjoy a diverse range of driving experiences while avoiding the financial burden of buying the car and then maintaining it,” said Kim Pil-soo, an automotive engineering professor at Daelim University.

    The Mini brand launched a subscription service in partnership with connected-car platform Epikar last month in Korea. Its membership fee is 1.79 million won, but it charges more depending on which model the customer wants to drive.

    The Genesis service started Thursday and will run for 10 months.

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  • Hyundai Motor bets 6.7 billion dollars on hydrogen cells

    Hyundai Motor bets 6.7 billion dollars on hydrogen cells

    Hyundai Motor Group said it will invest 7.6 trillion won ($6.7 billion) in fuel-cell electric vehicles (FCEV) by 2030, betting big on hydrogen as the energy source for the future. The group announced what it called its “FCEV Vision 2030” on Tuesday, promising to build production capacity of 500,000 FCEVs yearly by 2030 to take the lead in the fledgling industry. It added that the investment will generate some 51,000 new jobs by 2030.

    As a first step, Hyundai Mobis, the auto parts and software affiliate of Hyundai Motor, held a groundbreaking ceremony for its second fuel cell stack factory in Chungju, North Chungcheong, on Tuesday.

    If the factory is completed in 2022, Hyundai Motor Group’s production capacity for fuel cell stack will expand from its current 3,000 units per year to 40,000 units.

    “Hyundai Motor Group will become the first mover in the new hydrogen society that will arrive soon,” said Chung Eui-sun, Hyundai Motor Group’s executive vice chairman, in a speech at the ceremony in Chungju on Tuesday.

    “The group plans to expand the fuel cell stack production capacity to 700,000 units by 2030, including for the 500,000 FCEVs we plan to make by that year.”

    The ceremony was attended by Minister of Trade, Industry and Energy Sung Yung-mo, Hyundai Motor President Chung Jin-haeng and Hyundai Mobis President Lim Young-deuk.

    Hyundai Mobis’ Chungju plant is focused on producing parts for eco-friendly vehicles like hybrid and electric cars.

    Last year, it constructed a new section dedicated to making fuel cell stacks with a capacity of 3,000 units per year.

    The carmaker forecasts that hydrogen will be used as an energy source in shipbuilding, railways and forklifts in the future and said it would start a business supplying fuel cell modules to other companies. The additional 200,000 units of FCEV modules that are not used in Hyundai Motor’s own FCEVs by 2030 will be sold elsewhere, the carmaker said.

    Executive Vice Chairman Chung said the FCEV industry will become a new growth engine for Korea.

    “Ninety-nine percent of auto parts in FCEVs are made domestically,” Chung said, “which is why its growth will have big ripple effects on other companies related to the industry. Through co-investment with partner companies, [Hyundai Motor] will try to build new growth engine for Korea’s future car industry.”

    Currently, some 130 partner companies are providing parts for fuel cell stacks made by Hyundai Mobis.

    Hyundai Motor has been making hefty investments in FCEVs along with rival Toyota. It was the first carmaker in the world to make a mass-produced FCEV model in 2013 called the Tucson ix35. It launched a hydrogen-powered Nexo SUV early this year.

    Since last year, the carmaker has been chairing the Hydrogen Council, a global lobbying group. Other companies represented on the council include Daimler, BMW and Air Liquide.

    The Korean government plans to supply 16,000 FCEVs and build 310 FCEV charging stations by 2022. There are currently only around 10 stations available to the public in Korea.

    China plans to supply 1 million FCEVs by 2030 and construct 1,000 charging stations. Japan plans to supply 40,000 FCEVs by 2020 and build 160 charging stations.

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  • VW new sedan model launched

    VW new sedan model launched

    Volkswagen launched its sleek new midsize Arteon sedan in Korea on Wednesday with high hopes that the car will overshadow consumers’ memories of the company’s emissions rigging scandal, which was first revealed three years ago. The sedan is the last of the five cars the German automaker promised to roll out in the local market in April, when it opened up a press event to show it was back in Korea after suspending sales in 2016.

    Stefan Krapp, the managing director of Volkswagen Korea, said he is “convinced the new Volkswagen Arteon will be another best seller in the Korean market, alongside the Tiguan, Tiguan Allspace and Passat,” during the launch event. He introduced the new sedan as its “new flagship model that opens a new chapter of Volkswagen’s design language.”

    The latest sedan is positioned at the top of the carmaker’s sedan line up, even above the Passat GT, according to Krapp.

    Under its sporty-looking exterior lies a spacious interior, thanks to the Arteon’s 28.40 centimeters (11.18 inches) wheelbase, which the carmaker says is the longest among its competition. The storage space can be as large as 1,557 liters (55 cubic feet) when the backseats are folded down.

    All Arteons come with a whole package of driving assistance programs, including adaptive cruise control and parking assist as basic features, in line with the digital trend sweeping the auto market. The cars come in two trims – Arteon Elegance Premium and Arteon Elegance Prestige. The most distinct feature of the Arteon is its quality assurance program.

    Krapp said the carmaker’s utmost priority is regaining consumer trust and reaffirmed the company will not compromise on quality.

    Volkswagen’s Triple Trust Program, exclusive to the Arteon, offers a bumper-to-bumper warranty for five years or 150,000 kilometers (93,205 miles), whichever comes earlier. The program also guarantees up to 1.5 million won ($1,347) in maintenance costs when metal plating or painting is necessary after an accident. For windshield glass, side mirrors and tires, which often need to be replaced, the company will guarantee up to 2 million won in repair cost.

    “This package is the best available in the market, I would say,” Krapp said. He added that in the import car market, where consumers usually sacrifice either style or value for money, the Arteon offers both.

    “This is how we will challenge our competitors,” he added.

    Though Volkswagen had no sales at all last year, it has gradually been coming back to life thanks to the popularity of the four models it launched earlier this year: the Passat GT, Tiguan, Tiguan Allspace and Passat TSI. The automaker’s market share in the local market is still in the single digits, low compared to good days when its shares were in the double digits, but it managed to reach 5.65 percent market share this year through October and sell a total of 12,294 cars.

    Whether the Arteon will help sales is another question, as it’s a pricey product. The more affordable Arteon Elegance Premium carries 52.2 million won price tag, while the Prestige model sells for 57.1 million won.

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  • Hyundai Motor rejects renewed Gwangju plan

    Hyundai Motor rejects renewed Gwangju plan

    Hyundai Motor refused a revised plan that removed a restriction on collective wage bargaining at a proposed plant in Gwangju, further complicating plans for the factory. A council with representatives from the local government and area employers, labor unions and citizens on Wednesday agreed to remove a clause from the agreement that would have suspended collective bargaining for about five years at the new joint venture between the Gwangju city government and Hyundai Motor.

    The new company will be hiring workers for a production plant to be built on 628,000 square meters (155 acres) of land in the Bitgreen National Industrial Complex. The venture is the first in Korea to bring government and private industry together in the formation of a new manufacturing facility.

    Union representatives strongly protested the clause, calling it toxic.

    Rather than pushing the clause, the council decided to offer three alternative proposals to Hyundai Motor. The city and the automaker will continue negotiations.

    “Over time, Hyundai Motor and the labor union have retreated in their demands,” said Lee Byung-hoon, Gwangju vice mayor. “But the suspension of the wage bargaining clause was the biggest issue.”

    After the announcement was made, it was Hyundai that refused the proposal.

    “We cannot help but to point out the repeated revisions and backtracking [done by the Gwangju government],” Hyundai said through a statement.

    In the first meeting held at 10:30 a.m., all nine labor representatives, including Yoon Jong-hae, head of the Federation of Korean Trade Union’s Gwangju office, refused to attend in protest of the wage bargaining ban.

    The agreement between Gwangju city and the Korean automaker had included a clause in which wage negotiations were to be suspended until the cumulative production of compact SUVs reached 350,000 units. As Hyundai Motor guaranteed a minimum of 70,000 units a year, the labor union estimated that it would take about five years before the employees at the new plant would be able to negotiate.

    The meeting resumed at 3 p.m., and Yoon joined, raising the number of attendees to 22 out of a possible 28.

    The plant proposal has been under a tight deadline as an agreement needs to be reached before the National Assembly passes the budget. The ruling Democratic Party has announced that it plans to pass next year’s budget soon.

    Meeting the budget deadline is crucial as the city needs government funding to build the necessary infrastructure, including housing that will cost roughly 300 billion won ($269 million).

    The Gwangju plant project, first proposed in June 2014, has generated significant public interest as it could keep manufacturing jobs in Korea and contribute to the revitalization of the regional economy. It would also help ease the burden of high labor costs.

    The plan is for the Gwangju government and Hyundai Motor to create a new joint-venture company. The new Hyundai Motor plant will have the capacity to produce 100,000 compact SUVs a year.

    One of the key factors in this new job creation model is that employees will receive an annual salary of 35 million won, 38 percent of the 92 million won average salaries of Hyundai Motor workers.

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