Hyundai, Kia deny Apple car talks, send shares tumbling

SEOUL - South Korean automaker Hyundai and its affiliate Kia on Monday denied news reports they were in talks with Apple for a joint project to make autonomous vehicles, sending their shares tumbling.

The announcement came about a month after the country's cable broadcaster Korea Economic TV said the iPhone maker had approached Hyundai to discuss a potential partnership to develop electric vehicles and batteries for them, sending the car maker's shares soaring.

Reports last week suggested they could produce cars in the US state of Georgia.

But on Monday Hyundai and Kia said in regulatory filings they were "not discussing autonomous electric car development with Apple".

Both automakers added that they had talked with multiple firms about such projects, but no decision had been made.

Hyundai said those talks were in their "early stages".

Kia shares slumped 14.98 percent at the close in Seoul on Monday, while Hyundai fell 6.21 percent.

Consumer interest in eco-friendly vehicles has mounted in recent years with Tesla largely taking the lead in the sector.

Apple's Project Titan is devoted to self-driving technology but the firm is known for being ultra-secretive about its business.

Hyundai, South Korea's biggest automaker, has already rolled out fully electric cars, including the Ioniq and the Kona Electric, as it seeks to win a slice of the growing market.

But Apple has never acknowledged talks with Hyundai, despite several news reports claiming they were close to a deal.

Agence France-Presse

Hyundai to make flying cars for Uber air taxis

LAS VEGAS -- Hyundai announced Monday it would mass produce flying cars for Uber's aerial ride-share network set to deploy in 2023.

The South Korean manufacturer said it would produce the four-passenger electric "vertical take-off and landing vehicles" at "automotive scale," without offering details.

The deal announced at the Consumer Electronics Show in Las Vegas could help Uber, which is working with other aircraft manufacturers, to achieve its goal of deploying air taxi service in a handful of cities by 2023.

Jaiwon Shin, head of Hyundai's urban air mobility division, said he expects the large-scale manufacturing to keep costs affordable for the aerial systems.

"We know how to mass produce high quality vehicles," Shin told a news conference at CES.

He said he expected the partnership to allow for the short-range air taxis to be "affordable for everyone."

Eric Allison, head of Uber Elevate, appeared at the CES event with Hyundai to discuss the partnership.

"By taking transportation out of the two dimensional grid on the ground and moving it into the sky, we can offer significant time savings to our riders," Allison said.

He said that because of its other app-based transport options, "only Uber can seamlessly connect riders from cars, trains and even bikes to aircraft."

Uber has announced it had selected Melbourne to join Dallas and Los Angeles in becoming the first cities to offer Uber Air flights, with the goal of beginning demonstrator flights in 2020 and commercial operations in 2023.

Hyundai is using CES to show the S-A1 model aircraft with a cruising speed up to 180 miles (290 km) per hour.

The aircraft utilizes "distributed electric propulsion," designed with multiple rotors that can keep it in the air if one of them fails.

The smaller rotors also help reduce noise, which the companies said is important to cities.

The Hyundai vehicle will be piloted initially but over time will become autonomous, the company said. 

Agence France-Presse

Hyundai Motor to invest $1.5-B in Indonesia factory

SEOUL - South Korea's Hyundai Motor has signed a deal to build a $1.5 billion car plant in Indonesia, the company said, its first in Southeast Asia, where Japanese carmakers dominate the market.

The deal comes as Seoul looks to diversify its trade-dependent economy, the world's 11th largest, away from reliance on traditional partners China and the US.

Indonesia is the region's largest automobile market, and the $1.55 billion deal aims to "combat slowing demand in the global automotive market" and propel future growth, Hyundai said in a statement.

The plant, to be built in Bekasi, east of Jakarta, will start production in 2021, Hyundai said, ultimately aiming to produce 250,000 vehicles a year.

South Korea's President Moon Jae-in has been pushing a "New Southern Policy", seeking to bolster economic ties with Southeast Asia as the country aims to reduce over-reliance on Beijing and Washington, and Hyundai's announcement coincided with a South Korea-ASEAN summit in Busan.

Hyundai, the South's largest automaker, said it was building the factory in Indonesia to avoid import tariffs ranging from five to 80 percent in the ASEAN region.

At present it lags far behind its Japanese rivals in the region, with its sales reaching 122,883 vehicles versus Toyota's 854,032 and Renault–Nissan–Mitsubishi's 351,267 from January to September this year, according to research firm LMC Automotive.

South Korea's central bank last month cut its key interest rate to its lowest in two years in an effort to prop up slowing growth with the economy hit by a bitter trade spat with Japan.

Hyundai shares were up 1.22 percent in Wednesday afternoon trading in Seoul.

source: news.abs-cbn.com

Hyundai launches new Genesis sports sedan in SUV-driven market

SEOUL - South Korea's Hyundai Motor Co will launch its first new sedan under the premium Genesis marque in Seoul on Friday, hoping to cement the brand's place in the luxury segment and make up for its lack of a strong SUV line-up.

US pop singer Gwen Stefani will perform for about 10,000 people at a gala event to launch of the G70, the third sedan to carry the Genesis name but the first to be marketed exclusively under Hyundai Motor's fledgling premium brand.

Starting from $33,000, the sporty four-door offers bang for the buck as it takes on rivals including affiliate Kia Motor's Stinger sedan and BMW's 3 series.

But analysts say the G70 will not solve Hyundai's troubles in the United States, where sports utility vehicles (SUVs) are all the rage and the two previous Genesis-branded sedans failed to take off.

"Look at Cadillac, with just one crossover, the brand is struggling in the US. It will be much the same story for Genesis until they can get a crossover to market," said Dave Sullivan, product analysis manager at US consultancy AutoPacific.

"It's not because the G70 will be a bad product ... The sedan lineup just doesn't match consumer demand."

The G70 debuts in South Korea on Friday followed by the United States next year. Hyundai has not said when it would enter China and Europe, which are dominated by German premium brands.

Hyundai's China sales tumbled more than 60 percent in the second quarter due to its lack of a strong SUV line-up and political tensions between China and South Korea over North Korea's nuclear weapons program.

In the United States, SUVs made up 35 percent of Hyundai's total US sales from January to August this year, far lower than the industry's 62 percent, according to US researcher Autodata.

CRITICAL TEST

The Genesis project is being closely watched by Hyundai Vice Chairman and heir apparent Chung Eui-sun, as he prepares to take over the world's No.5 auto group from his father, 79-year-old Chairman Chung Mong-koo.

As the first Genesis model which was not previously sold as a Hyundai, the G70 will be a key test of the two-year-old marque's ability to survive in a fiercely competitive field.

Its chief rival will be Hyundai affiliate Kia's slightly cheaper Stinger, which shares the same platform as the G70 and launched in late April. Other rivals include BMW's 3 series, Audi's A4 and Mercedes-Benz's C-class.

Hyundai has said the Genesis line-up will grow to six by 2020, with the addition of a sports coupe and two SUVs.

source: news.abs-cbn.com

Hyundai, Kia to recall 240,000 vehicles in South Korea

Hyundai Motor and Kia Motors on Friday said they would recall 240,000 vehicles from South Korea after the transport ministry issued its first compulsory recall order over safety defects first flagged by a whistleblower.

The ministry also asked the prosecutor to investigate whether or not the automakers allegedly covered up the five flaws, which affect 12 models, including the Elantra, Sonata, Santa Fe, and Genesis.

This is the first time ever that the ministry ordered a compulsory recall of Hyundai and Kia vehicles, and comes after the automakers had rejected an earlier order for a voluntary recall, saying the defects did not compromise driving safety.

On Friday, Hyundai and Kia said they "accept the administrative order," adding: "There have been no reported injuries or accidents from the cited issues."

source: news.abs-cbn.com

Hyundai, Kia aim to grow 2017 sales to 8.25 million vehicles globally

SEOUL - Hyundai Motor Co. and affiliate Kia Motors said on Monday they aim to increase their combined sales to 8.25 million vehicles globally in 2017, despite rising competition.

The 2017 target is slightly higher than their 2016 goal of 8.13 million vehicles. The South Korean automakers' final sales figures for 2016 are due out later on Monday, with analysts expecting a miss due to weak demand in emerging markets.

"The 2017 goal is slightly higher than my projection," said Ko Tae-bong, an auto analyst at Hi Investment & Securities, adding that the performance of new models would be the key to success after some disappointments in recent years.

With emerging markets such as Russia stabilizing, and with Hyundai and Kia Motors gearing up to boost vehicle supply to the United States and China, sales could get a lift this year.

But Hyundai Motor and Kia Motors - which together rank fifth in global sales - plan to add capacity in China and Mexico this year, just as those markets and the United States are seen slowing, likely pressuring margins.

"With the global economy continuing its low growth, trade protectionism spreading and competition intensifying in the automobile industry, uncertainty is growing more than ever," Hyundai Motor Group Chairman Chung Mong-koo said in his New Year message to employees.

Hyundai Motor likely clocked its fourth straight annual profit decline last year, hurt by its higher exposure to weak emerging markets, and a product line-up that features more sedans than sport utility vehicles, just as SUVs have become more popular across many global markets.

Hyundai Motor is targeting 2017 global sales of 5.08 million vehicles, while Kia Motors set its goal at 3.17 million vehicles.

Kia Motors Vice Chairman Hank Lee told employees on Monday that the automaker hoped to revive growth this year, after falling short of its 2016 sales target.

Hyundai Motor shares were flat in a wider market .KS11 that was down 0.4 percent in early morning trade, while Kia Motors shares were down 0.3 percent

Hyundai Motor shares fell for a third straight year in 2016, down 2 percent versus the wider market's 3 percent gain. Kia Motors shares slumped 25 percent last year, making them the worst-performing stock among major car makers in the world.

source: news.abs-cbn.com

Hyundai targets 77,000 hybrid car sales next year

South Korean automaker Hyundai has launched its first hybrid-dedicated model called "Ionic."

The gasoline-electric car is the first hybrid-exclusive car the company has made from scratch.

Hyundai is targeting to sell 77,000 of its hybrid car next year.

It had invested heavily to build a hybrid model to take on Toyota and hopes to achieve a better fuel economy than the latest Prius.

-ANC's Market Edge, January 15, 2016

source: www.abs-cbnnews.com

Hyundai to pay record $10-billion for Gangnam property

SEOUL - Hyundai Motor Group will pay a record $10 billion for the site of its new headquarters in Seoul's high-end Gangnam district, out-bidding Samsung Electronics Co Ltd and raising investor concerns that it is wasting cash on a trophy property.

The conglomerate smashed the previous record auction price for a single plot of land in South Korea with its bid of 10.55 trillion won ($10.14 billion), more than triple the appraisal value.

Investors and analysts expressed alarm at the price Hyundai was willing to pay for a site where it plans to build an auto theme park and hotel as well as new offices, at a time when it could be pouring money into higher dividends or more auto factories.

"The bid price is nonsense. I was stunned," said Kim Sung-soo, a fund manager at LS Asset Management and investor in Hyundai companies.

"Even taking into account competition with Samsung, the bid price is excessive."

Shares in Hyundai Motor and sister company Kia Motors plunged 9 percent and 10 percent, respectively, after the winning bid was announced by seller Korea Electric Power (KEPCO). Shares in parts maker Hyundai Mobis Co, also part of the bid consortium, lost 7.5 percent.

Although Hyundai Motor Group has plenty of cash, Hyundai Motor Co and Kia, which together rank fifth by global auto sales, have been posting slowing profits as the strong local currency saps overseas earnings.

"This deal is going to take a huge chunk out of Hyundai's vault, and dipping their hands into a cash stash that could have otherwise been used for higher dividend payouts and R&D is going to aggravate many investors, especially foreigners," said Ko Tae-bong, auto analyst at HI Investment & Securities.

The companies also need to fund new factory projects in Mexico and China, which are expected to go into production in 2016.

KEPCO shares gained 7 percent after Hyundai won the auction by what a KEPCO official called "a wide margin". The official did not disclose the size of Samsung's bid and a Samsung Electronics spokeswoman declined to comment.

Hyundai Motor Group's 10 listed companies, excluding financial firms, had 42.8 trillion won in cash and equivalents at the end of the first quarter, according to public filings compiled by data consulting firm CEO Score.

CAR THEME PARK

While some investors were shocked at the move, Hyundai's big bid for a landmark in the heart of Seoul's trendiest district may help ease its tax burden under proposed rules that would tax excess corporate cash.

Based on last year's earnings, companies that belong to the Hyundai Motor Group would have the largest exposure to the law, facing 284 billion won in further taxes if the government required conglomerates to spend at least 60 percent of net profit on investment, wages and dividends, CEO Score has said.

Hyundai Motor Group has said it plans to build a vast complex on the 79,342 square metre site that will house its headquarters as well as a hotel, convention centre and a theme park. It noted that rivals such as BMW and Volkswagen have tourist attractions around their headquarters.

"In order to achieve production capacity of 10 million cars and bolster brand value that befits a global top-five company, we need a global business centre. The bid is the result of comprehensively reviewing its value as a symbol of the group's second growth phase," a Hyundai Motor Group spokesman said.

Hyundai and Kia have been keen to build a premium image around their brands to better compete with the likes of German rivals that are taking a rising share of the domestic market.

This was not the first time cash-rich Hyundai Motor Group drove up the price in a big auction.

A consortium of the same three Hyundai Motor Group companies bid around 5 trillion won in 2011 to buy Hyundai Engineering & Construction, which had been expected to fetch around 3 trillion won but had symbolic value as the original company of the Hyundai empire, founded in 1947 by Chung Ju-yung.

source: www.abs-cbnnews.com

Elantra drives Hyundai's PH sales in September

MANILA, Philippines – Sales of Hyundai vehicles in the country jumped 6% in September, according to its Philippine distributor.

Hyundai Asia Resources, Inc. (HARI) in a statement said it sold 1,507 units in September, up 6% from 1,421 it sold a year ago.

Hyundai's sales were driven by 2012 Philippine Car of the Year Elantra, which saw an 88% increase in September.

The Eon maintained its recent growth streak with an increase of 61% while Accent saw a 35% increase.

Hyundai’s passenger car lineup grew 44% against the same period last year, offsetting the 32% drop in sales of its Light Commercial Vehicle (LCV) segment.

With the uptick, HARI believes it is on track to meet its targets before the year ends, saying it is only 5% off its mark a year ago through the first nine months of 2013.

HARI remains optimistic that the holiday season will bring higher sales.

"With the season of giving fast approaching, the Hyundai family is thrilled to continue providing Filipinos exciting and compelling offerings to share with the family this blessed season,” said Ma. Fe Perez-Agudo, HARI president and CEO.

source: www.abs-cbnnews.com

Hyundai projects PH sales at 22,000 units

MANILA, Philippines - The local distributor of South Korea’s Hyundai vehicles expects its total sales this year to just match last year’s sales which reached almost 22,000 units as supply issues remain, an official said.

Hyundai Asia Resources Inc. (HARI) president and chief executive officer Fe Perez-Agudo told reporters at the sidelines of the Hyundai New Thinkers Summit Kick Off Event yesterday the firm aims for total vehicle sales of 22,000 units this year.

“We are still hopeful we will achieve that target,” she said.

In 2012, HARI sold a total of 21,996 vehicles.

As of end-September, Agudo said Hyundai’s sales were down four percent from the 17,156 units in the same period last year.

Sales for this year are seen to be almost at the same level as last year’s as vehicle supply is not able to keep up with demand.

Hyundai vehicles sold here are imported from South Korea.

“The supply constraint continues. It has been here for the last two years. The demand continues too,” Agudo said.

She admitted that Hyundai is able to supply only 70 to 80 percent of the requirement at the moment.

Amid supply problems in almost all vehicle models sold here, except for the Eon, HARI has already stopped accepting reservations.

But while supply problems persist, Agudo assured it would not affect preparations for the introduction of upgrades to its vehicle models.

“Definitely (in) the first quarter of 2014, we will have some upgrade (to) models that we will launch in the Philippine market. Tucson will have an upgrade, the Elantra, Accent, most of our models,” she said.

HARI’s supply issues, however, may have an impact on the Association of Vehicle Importers and Distributors, Inc.’s (AVID) total sales for the year.

“The AVID may also have flat growth, but definitely not negative because the rest of the members are also positive in their sales,” Agudo said noting that HARI accounts for the bulk of the group’s sales.

AVID sold a total of 28,400 units in 2012.

source: www.abs-cbnnews.com

Hyundai distributor posts higher Q1 sales

The local distributor of Hyundai vehicles has reported a rise in its first quarter sales despite the lack of supply of its best-selling models.

Maria Fe Perez-Agudo, president and CEO of Hyundai Asia Resources Inc. (HARI), said the company sold “more than 5,000" units in the first three months of the year compared to 4,572 units sold in the same period in 2010.

Agudo also reported a rise in HARI’s year-to-date sales despite the international supply shortage of models like Accent, Sonata, and Tucson.

She added that South Korea’s Hyundai Motor Co. has no plans to ramp up its annual production capacity of 6.3 million units to meet the global demand for Hyundai vehicles pegged at 7.5 million units this year.

Hyundai models sold locally are all shipped from South Korea.

Agudo expressed optimism that HARI can secure enough allocations from the South Korean automaker to hit its 20-percent growth target over last year’s sales of 20,172 units.

The company chief said HARI is Hyundai’s No. 1 distributor in Asia and the third-largest vehicle seller in the Philippines. — PE/JE, GMA News

article source - gmanews.tv