SEOUL, Sept 11 (Reuters) – South Korea’s Kumho Industrial said on Friday that its plan to sell Asiana Airlines , South Korea’s No.2 carrier, to Hyundai Development Co had fallen apart.
Hyundai Development and brokerage Mirae Asset Daewoo agreed in December to purchase control of Asiana for about 2.5 trillion won ($2.1 billion). (Reporting by Joyce Lee and Heekyong Yang; Editing by David Clarke)
SEOUL (Reuters) – Creditors plan to inject $2 billion into debt-ridden Asiana Airlines020560.KSafter a planned sale of South Korea’s second-largest carrier collapsed, a state bank said on Friday.
Kumho Industrial002990.KSpulled the 2.5 trillion won ($2.11 billion) sale of the South Korean to Hyundai Development Co294870.KSand brokerage Mirae Asset Daewoo006800.KS.
They had agreed to buy control of Asiana in December, but called for better terms after the airline’s debt surged in subsequent months after the coronavirus pandemic tore through markets and wiped out demand for travel.
Asiana CEO Han Chang-soo said it was necessary to preserve Asiana Airlines as a going concern. State-run lead creditor Korea Development Bank said creditors will relaunch Asiana’s sale as soon as conditions permit.
Hyundai Development plans to respond after legal review, it said in a regulatory filing, adding that the deal fell apart due to Asiana’s failure to meet preconditions.
Mirae Asset said it will respond according to future progress as a financial investor.
Asiana, which competes with bigger Korean Air Lines003490.KS, had a total debt of 12.8 trillion won as of end-June, up more than 33% from a year earlier, according to its regulatory filing.
Reporting by Joyce Lee and Heekyong Yang; Editing by David Clarke, Muralikumar Anantharaman and Louise Heavens
SEOUL, Aug 13 (Reuters) – U.S. electric truck maker Nikola said it was open to collaborating with Hyundai Motor on hydrogen technology following a media report that it had reached out to the Korean automaker.
In an interview with South Korean newspaper Chosun Ilbo published on Sunday, Trevor Milton, founder of Nikola Corp, said he would like to cooperate with Hyundai. He said he had twice made proposals to Hyundai that were rejected.
Hyundai, along with Toyota Motor Corp, are among the few automakers championing hydrogen technology.
“Trevor has immense respect for Hyundai and views Hyundai amongst the leaders in hydrogen around the world,” Nikola spokeswoman Nicole Rose said in an emailed statement to Reuters.
“Trevor has, and will continue to be, open to collaborate if they ever choose to do so,” Rose said. She did not address queries on whether Nikola had made proposals to Hyundai.
A person familiar with Hyundai said that there were no current cooperation talks. “If Nikola makes an official offer, Hyundai can consider the proposal,” the person said.
He said Hyundai wants to sell its hydrogen systems to other automakers but, at the same time, Nikola could become a potential competitor to Hyundai’s commercial truck business.
“It would be a complicated relationship,” he said, declining to be identified because he is not authorised to speak to the media.
Hyundai declined to comment.
Kim Joon-sung, an analyst at Meritz Securities in Seoul, said it was uncertain whether any partnership would bring benefits to Hyundai at this point.
“Nikola needs to produce some tangible results to work with Hyundai on fuel cell cars or infrastructure, but those are not certain at this point,” he said.
In July, Hyundai Motor shipped the first 10 of its Hyundai XCIENT Fuel Cell, the world’s first mass-produced fuel cell heavy-duty truck, to Switzerland, and aims to roll out 1,600 units by 2025.
Nikola has said it plans to start producing its battery electric trucks in 2021, followed by fuel cell electric trucks in 2023.
Hyundai has partnered with Audi on hydrogen vehicle technology. (Reporting by Hyunjoo Jin; Additional reporting by Heekyong Yang; Editing by Jacqueline Wong and David Clarke)
SEOUL (Reuters) – As Tesla IncTSLA.Oaccelerates the shift to electric cars, Hyundai Motor005803.KS‘s loyal suppliers have increasingly turned to “outsiders” for parts – but now the South Korean carmaker’s own supply company, Mobis, is plunging into the game.
Hyundai Mobis012330.KSis in talks with two global automakers to supply electrified parts, its executive told Reuters, as it hopes to boost volume and lower prices.
The move is a direct response to companies such as VolkswagenVOWG_p.DEand Tesla muscling in with suppliers with whom Hyundai had worked for decades.
“We were not able to supply to other companies because we were busy with keeping up with Hyundai’s growth. Now this has changed,” said Ahn Byung-ki, senior vice president of electric powertrain business at Hyundai Mobis.
“If we increase outside sales, overall prices will drop. This will benefit everyone – us, global companies and Hyundai,” said Ahn, who previously developed eco-friendly cars at Hyundai Motor.
Hyundai Mobis, in which Hyundai Motor Group chairman Chung Mong-koo is the biggest individual shareholder, gets more than 90% of its revenue from the mothership.
Ahn said reducing electric vehicle (EV) costs is key to competing with cheaper gasoline cars without subsidies, especially as Chinese rivals undercut Hyundai, and Tesla accelerates the industry’s shift to EVs.
He said Mobis hoped to win orders from a couple of global automakers as early as this year, marking its first deal to supply electrified powertrains, although it has supplied other parts of EVs or gasoline cars to Fiat-Chrysler and others.
Hyundai suppliers can leverage Hyundai’s longtime experience with developing eco-friendly cars, he said, which puts them ahead of European peers who have focused on diesel.
Hyundai Motor and its affiliate Kia Motors ranked third in global battery electric vehicle sales last year, behind Tesla and Renault-Nissan, according to researcher LMC Automotive.
Hyundai Motor Group’s heir and de facto leader, Euisun Chung, recently said Hyundai is aiming to have more than 10% of EV global market share in 2025.
Logistics affiliate Hyundai Glovis Co Ltd086280.KS, which counts Euisun Chung as its biggest shareholder, has also expanded customers from Hyundai to Tesla and Volkswagen to transport vehicles across continents.
(GRAPHIC: Hyundai suppliers seek to diversify on change – )
Like many of Korea’s family-owned conglomerates, or chaebol, Hyundai Group is deeply invested in vertical integration, with affiliates making key parts and even steel. Family members, aides and others close to the company founded key suppliers.
After years of breakneck growth, however, Hyundai-Kia’s production volume began trending down in 2016, hitting suppliers and moving them to rely less on Hyundai.
“As growth slowed, Hyundai told suppliers to survive on their own,” said Lee Hang-koo, senior researcher at Korea Institute for Industrial Economics & Trade.
Hyundai supplier Hanon Systems018880.KS, which supplies parts to Tesla Model 3 and Volkswagen’s ID3, generates more than half of its revenue from non-Hyundai customers.
Myoung Shin Co Ltd, founded by a former confidant of Hyundai’s legendary founder Chung Ju-yung planned to manufacture EVs for Chinese startup Byton after acquiring GM’sGM.Nclosed factory in Korea, creating potential competition with Hyundai, a key customer. An affiliate is also supplying hot-stamping parts to Tesla for the Model 3’s body.
But the pandemic hit Byton hard, delaying Myoung Shin’s plan to start pilot production of Byton’s M-Byte model this year, a person familiar with the matter said, speaking on condition of anonymity because of the sensitivity of the matter.
“It is not easy to reduce reliance on Hyundai,” he said.($1=1,185.3800 won)
Reporting by Hyunjoo Jin and Joyce Lee; Additional reporting by Ju-min Park. Editing by Gerry Doyle
(Reuters) – Major automakers posted lower U.S. monthly or quarterly new vehicle sales on Wednesday due in large part to weak fleet orders, but said consumer demand remained robust despite the ongoing coronavirus pandemic.
FILE PHOTO: A Fiat Chrysler Automobiles (FCA) sign is at the U.S. headquarters in Auburn Hills, Michigan, U.S. May 25, 2018. REUTERS/Rebecca Cook/File Photo
“This quarter demonstrated the resilience of the U.S. consumer,” said Jeff Kommor, head of U.S. sales at Fiat Chrysler Automobiles NV (FCA) (FCHA.MI) (FCAU.N), as the automaker reported a 39% slump in sales for the second quarter.
“Retail sales have been rebounding since April as the reopening of the economy, steady gas prices, and access to low interest loans spur people to buy.”
But some auto dealers worry that spiking coronavirus cases in states like Florida, Texas, Arizona and California could spell fresh trouble for new vehicle sales.
Scott Fink, CEO of Fink Automotive Group, which has two Hyundai stores and single Chevrolet, Volkswagen and Mazda dealerships in the Tampa, Florida area, said his sales in June were “pretty good,” but he was concerned about “hot-bed states like where I am.”
“I’m happy to do what we’re doing, but there’s a level of anxiety from top to bottom,” Fink said. “You can feel it with the consumers and you can feel it with staff members.”
U.S. auto production was shut down for two months in the spring as part of efforts to thwart the spread of the novel coronavirus. That has left automakers scrambling to ramp up production again to boost low dealer inventories.
“GM entered the quarter with very lean inventories and our dealers did a great job meeting customer demand, especially for pickups,” Kurt McNeil, U.S. vice president for sales at General Motors Co (GM.N). “Now, we are refilling the pipeline by quickly and safely returning production to pre-pandemic levels.”
GM said its efforts to rebuild dealer inventory levels included working with logistics and trucking companies to make sure vehicles ship as soon as they roll off the production line.
GM posted a pandemic-fueled 34% decline in second-quarter sales, but noted while April sales sank about 35% versus the same month in 2019, May and June saw declines of around 20% or under.
“Our resilient sales reflect an improving demand curve,” McNeil said.
April Ancira, vice president of Ancira Auto Group, which has 12 dealerships mostly around San Antonio, Texas, said in the short term she was more concerned about low vehicle inventories than consumer demand. But long term, she worries that government relief programs will run out before the U.S. economy recovers.
“At some point, this is all going to catch up to us if things don’t turn around in a hurry,” Ancira said.
While U.S. consumer demand for new vehicles has rebounded surprisingly quickly despite the economic ravages wrought by COVID-19, the disease caused by the new coronavirus, fleet sales to rental car companies, corporations and government agencies have dragged overall sales down.
Recovery for those sales is expected to be slow, while the future of the rental car industry is uncertain.
Hyundai Motor Co (005380.KS) said that while its overall sales fell 22% in June, sales to consumers rose 6% versus June 2019, while its fleet sales plummeted 93%.
FCA’s Kommor said fleet sales “remained low” during the quarter as FCA “prioritized vehicle deliveries to retail customers.”
“As a result, we have built a strong fleet order book which we will fulfill over the coming months,” he added.
Toyota Motor Corp (7203.T) reported a 26.7% drop in sales in June, though sales for some SUV models were up versus the same month in 2019. Nissan Motor Co Ltd (7201.T) said its second-quarter sales were down nearly 50%.
Additional reporting by Ankit Ajmera and Sanjana Shivdas in Bengaluru, Ben Klayman in Detroit; Editing by Shinjini Ganguli and Bernadette Baum
Automaker partnerships with the movie industry are nothing new, theMarvel Cinematic Universebeing one of the most obvious in recent memory. It’s a simple formula: Take a blockbuster movie, throw in an actual brand or two and hope that results in boosted sales.Hyundai’sabout to take a big bet along these lines, putting itself into cahoots with a studio that has some big flicks on the horizon.
Hyundai announced this week that it has inked a deal with Sony Pictures Entertainment that will put the Korean automaker’s products and technologies into a number of upcoming Sony pictures. According to the release, Hyundai’s IP will make its way intofivedifferent forthcoming movies, including the follow-ups toSpider-Man: Far From HomeandSpider-Man: Into the Spider-Verse. The former is scheduled to release in late 2021, with the latter arriving inlate 2022. Other collaborations will be announced at a later date, Hyundai said.
While it’s entirely possible my headline could come true, that’s likely not the direction Hyundai will take. By the sounds of its press release, it appears this partnership goes well beyond hawkingcrossovers. The release makes mention of all sorts of things, including “a wide range of opportunities to leverage Sony Pictures IP for marketing content and immersive entertainment, collaborate on infrastructure and vehicular concepts for Sony Pictures movies, co-create virtual reality andgamingexperiences, and co-produce events, among other opportunities.”
It sounds like there will be a big focus on more futuristic technologies that are often relegated to small-scale models on display stands at trade shows. The release specifically mentions “future mobility,” and Hyundai’s got plenty to show off to that end. At this year’sCES, Hyundai brought a whole-ass flying car to the show, bolstered by a concept it called “the Hub,” a sort of proto-community space centered around using new methods of transportation to get across crowded cities. That’s the kind of pie-in-the-sky stuff that’ll fit right in alongside the whiz-bang CG of a modern Spider-Man movie.
MARVELous Machines: the cars of the Marvel Cinematic Universe (pictures)
Now playing:Watch this: 2020 Honda Accord vs. 2020 Hyundai Sonata: Battle of…
When it comes to the basic family sedan, theHondaAccordhas long been one of the top sellers, packing in reliability and performance at an affordable price. However, theHyundai Sonatajust got a major re-working for this year, and is looking to take the sales crown from the competition.
There’s a lot to like about both cars and it’s tough to decide a winner here. Honda has more engine options, including a punchy 2.0-liter turbocharged powerplant, but both the Sonata and the Accord are fairly even when it comes to efficiency. The two are pretty evenly matched in size as well, but interior space is quite different. Taller drivers might want to test out the Sonata first.
2020 Honda Accord vs. 2020 Hyundai Sonata
2020 Honda Accord EX-L
2020 Honda Accord EX-L
2020 Hyundai Sonata SEL Plus
1.5-liter turbo I4
2.0-liter turbo I4
1.6-liter turbo I4
30 / 38 / 33 mpg
23 / 34 / 27 mpg
27 / 36 / 31 mpg
$30,450 (plus $955 dest.)
$32,420 (plus $955 dest.)
$27,650 (plus $955 dest.)
However, it’s really the features that distinguish the Accord and the Sonata. The Accord gets the Honda Sensing suite of driver-assistance features and the Sonata gets Hyundai’s equivalent, SmartSense, which is much more robust. Further, there are a lot of options available on the Sonata, like a digital gauge cluster and a highway driving assistant that combines adaptive cruise control and lane-keeping assist, which can’t be had on the Accord.
Of course, you have to consider looks and price here, as well, and the Sonata walks away with both. It’s striking design stands out in a crowd. Plus, comparing the Accord EX-L and Sonata SEL Plus, the Hyundai costs a few thousand dollars less than the Honda.
We’vealready seen how easy it is to learnto drive manual on the Hyundai Veloster N’s stick shift, even if it wasn’t quite what you expected. But if you’d rather not bother, the 2021 Hyundai Veloster N now comes with an auto.
The Veloster N,an office favorite around here(in part because of its solid manual!) is now available with an optional 8-speed wet dual-clutch transmission the company is labeling its “N DCT,” after its newly minted performance brand.
Hyundai claims the transmission brings the car’s performance up to 62 mph from 0 in 5.6 seconds, which is just about dead on, give or take a tenth of a second from the manual transmission’s tested performance byCar And Driver.
Except for the easy mode toggle, the transmission is still hooked up to a 2.0-liter turbocharged four-cylinder, and yeah the car still comes with just three doors; the only one in the back is curbside.
Hyundai claims this N-tuned transmission has some handy performance tricks up its sleeve, too. I’m just going toquote the release here:
The N DCT comes with video game-like features that enhance driving fun. N Grin Shift (NGS) increases torque by 7 percent from 36.0 to 38.5kgf-m by allowing turbocharger overboost and maximizes transmission response for 20 seconds – performance that is certain to induce “driver grin”.
Additionally, N Power Shift (NPS) engages when the car accelerates with more than 90 percent of throttle, thereby mitigating any reduction in torque by using upshifts to deliver maximum power to the wheels. This gives the driver a responsive feeling of dynamic acceleration when shifting.
The N DCT also comes with N Track Sense Shift (NTS) that discerns when road conditions are optimal for dynamic driving and activates automatically, selecting the right gear and shift timing just like a professional race car driver to provide optimal performance.
I like that the manual is still an option, and I really like that it didn’t stop the engineers from giving drivers more control over their shifts than most standard automatics. It sounds like a fun gimmicky feature, but I’d probably use it more than the contemporary “exhaust pops button” on a lot of cars these days.
The only hangup is it appears to be activated through the car’s central touchscreen. I’d rather a Porsche-style steering wheel toggle, but maybe that’s reaching.