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SK Group chairman Chey Tae-won is stepping up efforts to expand the group’s electrical battery business

Chey Tae-won, chairman of the SK Group, has begun to make a bold move to expand its electric vehicle (EV) battery business. He is pushing for the establishment of production plants in the U.S. and China, the world’s two largest markets, in his bid to make EV batteries as the group’s post-semiconductor growth engine.

SK Innovation announced on October 7 that the company would open a lithium-ion battery separator/ceramic coating separator plant in Changzhou, Jiangsu Province of China.

The factory will be built on a site of about 140,000 square meters in the Jintan Economic Development Zone in Changzhou. The investment scale will total about 400 billion won and build four lithium ion battery separator production facilities and three ceramic coating separator facilities. Ground will be broken in early next year. The facilities will begin to roll out products in the third quarter of 2020 and supply them to makers of electric vehicle batteries and information technology (IT) devices. Their annual output will reach 340 million square meters of li-ion battery separators and 130 million square meters of ceramic coating separators. When the facilities are completed, SK Innovation will be able to produce 850 million square meters of li-ion battery separators. Then, second-placed SK Innovation will narrow its gap with the world’s first ranker in terms of wet lithium ion battery separator market share.

SK Innovation has set up SK High Tech Battery Materials (Jiangsu) in China as its wholly owned company to make this investment. “This investment has laid the foundation for our plan to jump to the top of the world wet separator market from the current second,” said Kim Joon, CEO of SK Innovation.

SK Innovation is considering building a new electric car battery plant in the U.S. SK Innovation is seeking to secure local production facilities in the U.S. as electric car makers are ramping up their production volume. Yet the company has not finalized the plant’s site and size.

“We need to secure a production base by region,” CEO Kim told reporters earlier this month about the construction of the plant in the U.S. “Candidate sites have been narrowed down to four.”

Once SK Innovation completes and runs a production facility in the U.S., it would be its fourth production base, following those in Korea, Europe and China. LG Chem also has secured a production base in each of the four regions.

SK Innovation decided to build its European plant in Hungary earlier this year. The company’s goal is to elevate the current production capacity from current 1.9 GWh per year to 50 GWh per year in 2025.

The post SK Group to Build EV Battery Production Facilities in China appeared first on Auto Cluster.

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A rendering of Hyundai’s hydrogen fuel cell truck to be launched next year

Hyundai Motor Co., South Korea’s biggest carmaker by sales, on Friday provided a first look at its new truck, powered by a hydrogen fuel cell powertrain, ahead of its planned launch next year.

Hyundai plans to officially introduce the electric rigid truck at the IAA Commercial Vehicles show scheduled to take place from Sept. 20-27 in Hanover, Germany.

The fuel cell electric truck boasts a distinctive design which sets it apart from the rest of the Hyundai commercial vehicle line-up. It has a simple and clean design, is aerodynamically efficient and has a spoiler and side protector, Hyundai said in a statement.

The geometric shapes on the front grille symbolize hydrogen, giving the vehicle a unique and powerful look. With the bold, blue graphic design on the side, it emanates both dynamism and an eco-friendly nature, the company said.

Hyundai said it will announce official figures and specs for the truck in Hanover.

  The post Hyundai unveils fuel cell electric truck ahead of 2019 launch appeared first on Auto Cluster.

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The front and side design of the K3 GT

The rear and side design of the K3 GT

Kia Motors Corp., South Korea’s second-biggest carmaker by sales, on Thursday unveiled the exterior design of the K3 GT model ahead of its launch next month.

The K3 GT comes with a 1.6-liter gasoline turbo engine and a seven-speed dual-clutch transmission. The four-door and five-door versions will be available in the local market, the carmaker said in a statement.

The four-door K3 GT carries the dark chrome radiator grille and black high-gloss outside mirror cover, which makes a strong impression. The five-door, coupe-type model looks sporty with slim rear combination lamps, a black high-gloss rear spoiler and rear diffuser, the statement said.

The K3 GT equipped with 18-inch tires has a maximum output of 204 horsepower and 27 kilogram-force meters of torque, it said.

In February, Kia launched the all-new K3 compact sedan with a 1.6-liter gasoline engine to bolster its market share in the highly competitive segment.

  The post Kia unveils exterior design of K3 GT before Oct. launch appeared first on Auto Cluster.

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The Korean government is expected to give an unprecedented order to suspend the operation of BMW cars prior to an investigation into the case.

The Korean government banned on Aug. 14 the operation of the BMW cars that have not received safety inspections.

“The central government has requested the provincial governments issue an order to suspend the operation of uninspected BMW vehicles starting Aug. 15,” Transport Minister Kim Hyun-mee said in an address to the nation on Aug. 14.

Once the owners of the uninspected BMW cars receive the order, they are obliged to suspend the operation of their cars and immediately get safety checks on them. They are only allowed to drive their cars for the purpose of the checks.

Kim Hyo-joon, chairman of BMW Group Korea, appealed on Aug. 13 to owners of BMW cars that have not undergone safety checks yet. “Please take your BMW cars to service centers for safety checks,” he said. But his appeal failed to subdue their antipathy against BMW Korea.

According to the Ministry of Land, Infrastructure and Transport, 72,888 or 68% of about 106,000 BMW vehicles subject to the recall received safety inspections as of Aug. 13.

BMW Korea should complete safety inspections of the remaining 34,000 vehicles by the Aug. 14 deadline. As 61 BMW service centers nationwide can inspect about 10,000 units a day, owners of at least 14,000 BMW cars will have no choice but to follow the suspension order.

“About 73,000 vehicles have received safety inspections so far. We earnestly ask other BMW owners to have their cars checked for safety,” chairman Kim Hyo-jun said in an emergency meeting on BMW fires held at the ruling Democratic Party. Kim met reporters shortly after the meeting and repeatedly stressed, “BMW owners ought to receive safety inspections on their cars as soon as possible.”

Meanwhile, the government is set to launch an investigation into the BMW case. If BMW Korea is found to have intentionally covered up a flaw in BMW cars which caused engine fires, the German carmaker will be slapped with a huge fine by the Ministry of Land, Infrastructure and Transport of Korea.

BMW Korea will have to spend a snowballing amount of money to cope with the disaster. The company already received a record 60.8 billion won in fine from the Ministry of Environment of Korea last year after it was found to have fabricated certificate documents.

If the inspection by the Ministry of Land, Infrastructure and Transport finds that BMW Korea has covered up a flow in BMW cars, BMW Korea will be slapped with a new record-high fine.

The Enforcement Ordinance of the current Automobile Management Act stipulates that a carmaker is subject to a penalty amounting to 1% of its sales if it finds a flaw in its cars that hinders safe operation and fails to rectify it without delay in accordance with the law.

Unlike other penalties, which range between one billion won and 100 billion won in amount, there is no upper limit for this one. BMW Korea posted 3,633.7 billion won in sales by selling 59,924 vehicles last year. The 106,000 vehicles being recalled this time are close to BMW Korea’s sales for two years. If the investigation finds that BMW Korea made a belated recall, a penalty of 70 billion won may be imposed on BMW Korea based on the number of recalled cars and sales volume.

On top of that, BMW Korea is providing rental cars to BMW owners receiving safety inspections. And some owners of BMW cars who suffered from engine fires are proceeding with a civil lawsuit. BMW Korea posted 8.1 billion won (US$7.2 million) in net loss last year due to penalty expenditure. Its loss is expected to increase this year.

The post Korean Gov’t Bans Operation of Uninspected BMW Vehicles appeared first on Auto Cluster.

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                 Photo provided by Doosan Corporation Industrial Vehicle

Doosan Industrial Vehicle (DIV), the material handling equipment unit of South Korea’s conglomerate Doosan Group, unveiled a line of new-generation forklift trucks to raise the bar for heavy duty work.

Celebrating the 50th anniversary of its foundation on Friday, the company introduced a high-tech forklift model BS7 running on lithium-ion batteries. It said the lithium-ion battery will allow the vehicle to run two to three times longer hours than the existing lead-acid battery with a 33 percent shorter charging time. The new forklift truck also boasts a constant output, high productivity at a temperature as low as 40 degrees below zero and simple and eco-friendly maintenance and management, the company explained.

Another new technology introduced at the event was a telematics solution Lin-Q for management of forklifts. The system transmits data for maintenance and operation in real time to allow its users to remotely monitor the equipment.

The company also aims to release an artificial intelligence-based smart mode application that analyzes the engine data of machines to automatically adjust the power to the environment later this year.

DIV, founded in 1968, started manufacturing forklifts for the first time in Korea. It also launched an electric forklift first in the country in 1979 and expanded its business to overseas markets by establishing operations in the U.S., the UK and Belgium. It currently has factories in China and Germany. The company earned about 800 billion won ($782 million) in sales last year and set a sales goal of 1.5 trillion won by 2022.

“Doosan Industrial Vehicle as an industry leader will expand the business to rental, service, logistics and management sectors to provide a total solution for logistics,” said Dong Hyun-Soo, the vice chairman of Doosan Corp.

The Original Posted By Lee Dong-in and Lee Ha-yeon

The post Doosan Industrial Vehicle unveils eco-friendly, smart forklifts appeared first on Auto Cluster.

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Hyundai Motor’s overseas production is increasing as its domestic plants suffer from high wages and low labor productivity.

Hyundai Motor Company’s overseas labor force has hit a record high once again. The trend is expected to continue as production is increasing overseas in comparison to domestic plants that suffer from high wages and low productivity.

According to the “2018 Sustainability Report” released by Hyundai Motors on the 12th, the number of overseas employees among the total number of employees (122,217) increased by 1,911 to 53,341(43.6%) last year, a record high. Domestic labor force stood at 68,876, 1,055 employees more than previous year. The number of overseas employees, which was at 29,125 in 2011, increased by more than 83% for the last six years and is continuing to record a new high every year. During the same period, the number of domestic employees increased only by 20% (11,573).

This is because Hyundai Motor has increased production in the US, China, and Europe versus Korea which has low productivity. Hyundai Motor Company’s Korean plant’ Hours Per Vehicle (HPV) is over 26 hours, which is significantly less productive than those of the US (14.7 hours) and China (17.7 hours). On the other hand, the labor cost is 15% of the total sales, which is much higher than competitors that have less than 10% labor cost ratio. For this reason, Hyundai Motor has increase the Chinese plants’ production capacity from 600,000 units to 1.65 million units after 2012 and increased the US production capacity in 2011 from 300,000 units to 370,000 units. The Turkish plant production capacity increased by 200,000 in 2013, and the Czechs plant production capacity increased in 2014 from 200,000 units to 330,000 units. Last year, Hyundai Motor’s US manpower surpassed the 10,000 mark for the first time with 10,942 employees and European manpower drew 9,955 employees with 3,300 additional workers, which was due to the impact of Turkey joining the European region from other region last year, a Hyundai Motor official explained.

The post Hyundai Motor’s Overseas Manpower Reaches a New High appeared first on Auto Cluster.

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Genesis Motor America Executive Director Erwin Raphael (left) and J.D. Power Vice President Geoffrey Mortimer-Lamb pose for a picture on June 20.

Genesis, Kia Motors and Hyundai Motor have topped the 2018 J.D. Power Initial Quality Study (IQS), proving that Hyundai Motor Group, which controls the three brands, has reached the world’s highest level in terms of vehicle quality.

Genesis scored 68 points to come in first in both the category of the 13 premium brands and the overall category, which also included 18 non-premium brands. Genesis topped the premium brand chart for the second consecutive year. This year, it was followed by Porsche (79 points), Lincoln (83), Lexus (84), BMW (87), Cadillac (90), Infiniti (92), Mercedes Benz (92), Acura (99) and Audi (105).

On the non-premium brand chart, Kia Motors took the top spot with 72, followed by Hyundai Motor (74), Ford (81), Chevrolet (82), RAM (84), Nissan (85), Mini (90), Buick (95), Jeep (96) and Toyota (96). Kia Motors topped the chart for four years in a row and Hyundai Motor Company climbed from fourth to second.

The Genesis G90 sedan has been selected as the best large premium car and Kia Motors’ Sorento and Rio have been awarded the top prize in the mid-size SUV and subcompact car categories, respectively. The Hyundai Tucson beat all of the other small SUVs in this year’s IQS.

The Original Posted By Jung Min-hee/Business Korea

The post Genesis, Kia and Hyundai Top 2018 J.D. Power IQS appeared first on Auto Cluster.

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Hyundai’s Nexo (left) and Audi’s “h-tron” concept car

Hyundai and Audi are teaming up in the development of hydrogen fuel vehicles in a deal announced on Wednesday.

Hydrogen fuel vehicles are considered the ultimate environment-friendly car, as they purify air as they run. They emit zero gas, and can cover more distance with a shorter charge than electric vehicles.

Hyundai has been making huge investments in the development of hydrogen fuel vehicles, while Audi has been leading it in the Volkswagen Group, the world’s largest automobile giant.

“This collaboration was made possible as both sides reached the consensus that the future for hydrogen fuel vehicles is bright. We hope to bring big changes to the current market,” said a Hyundai spokesman.

With the deal, the two groups will share technologies and components that have been already patented or will be patented to fast-track development and reduce costs.

Hyundai began developing hydrogen fuel vehicles in 1998, and became the first carmaker in the world to commercially produce one in 2013 with the Tucson FCEV. Early this year it launched the Nexo, which can run 609 km with just a five-minute charge.

Hyundai is one of the leaders in the hydrogen car market along with Japan’s Honda and Toyota, which released the Clarity in 2016 and the Mirai in 2014, respectively.

Audi first unveiled its hydrogen fuel concept named “h-tron” at the 2016 Detroit Motor Show, and is getting ready for its mass production in 2020.

The two groups want to create a bigger market for the cars whose sales reached only some 3,000 units last year, compared to 1.22 million electric cars.

“Our partnership with Audi will prove to be a turning point in promoting hydrogen car worldwide,” said Chung Eui-sun, vice chairman of Hyundai. The Original Posted By Ryu Jung/The Chosunilbo

The post Hyundai, Audi Team up on Next Hydrogen Car appeared first on Auto Cluster.

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GM Korea’s Equinox SUV

GM Korea Co., the South Korean unit of General Motors Co., on Thursday launched the Equinox sport-utility vehicle in the domestic market in an effort to revive its lackluster sales.

The Equinox is the second Chevrolet model launched in Korea out of 15 new and upgraded Chevy vehicles scheduled to be launched in the next five years by the carmaker, the company said a statement. The Spark mini car was launched as the first model early this month.

The U.S.-built SUV comes with a 1.6-liter diesel engine and a six-speed automatic transmission. Its price tag starts at 30 million won and rises to 39 million won depending on options. The crossover has a front-wheel drive base with an optional all-wheel-drive function, the company said.

GM Korea said it also plans to place the Traverse SUV in the local market to absorb the growing demand for SUVs and seek a turnaround in the company’s bottom-line.

The Original Posted by kyongae.choi@yna.co.kr

The post GM Korea launches Equinox SUV to boost sales appeared first on Auto Cluster.

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A concept car with smart electronics is displayed at the Consumer Electronics Show in Las Vegas in January.

Traditional motor shows are losing their luster as many major carmakers are turning their eyes on IT expos.

The Paris Motor Show in October is expected to be downsized this year as major automakers are not participating. Marking its 120th anniversary this year, the Paris show is one of the world’s four biggest alongside Detroit, Geneva and Frankfurt.

Earlier this month Volkswagen already announced its decision to pull out of the event this year, while other carmakers including Ford, Infinity, Lamborghini, Matsuda, Nissan, Opel and Volvo followed suit.

Volkswagen said it could instead host “various communications activities” in Paris, including test drives. “The Volkswagen brand is continually reviewing its participation in international motor shows,” it added.

Jaguar, Land Rover, Matsuda and Porsche also did not take part in the Detroit Motor Show in January, and three major German brands — Audi, BMW and Mercedes-Benz — have already made it clear that they will not participate from next year.

A considerable number of automakers including Bentley, Honda, Ssangyong, Volkswagen and Volvo are not participating in the Busan Motor Show next month either.

Their rationale is that these shows are not good value for money. It costs a carmaker billions of won from shipping expenses to booth rental charges to take part. BMW used to spend up to 25 million euros (about W31.5 billion) on a show.

But motor shows are no longer a must for carmakers with a new trend in marketing that favors customized and targeted promotions.

“Nowadays, many customers are visiting dealerships after participating in test drive events and making up their mind,” an industry insider said. “There’s less need for automakers to unveil their new models at motor shows.”

Instead, carmakers are focusing on developing technology for future cars such as electric and self-driving vehicles.

And to present their blueprints they choose IT shows rather than motor shows.

Most global carmakers took part in the Consumer Electronics Show, the world’s largest electronics fair in Las Vegas in January, with more booths set up than last year.

“More carmakers are participating in IT shows instead of traditional motor shows as vehicles are more equipped with high-tech electronics features,” said Prof. Kim Pil-soo of Daelim University. “Motor shows will continue to shrink.” The Origianl Posted By Kim Seong-min/The Chosunilbo Business

The post IT Shows Replace Traditional Motor Expos for Carmakers appeared first on Auto Cluster.

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Mando plans to target the global electric car market as well as the Chinese electric car market based on the new contract with Byton, an electric car brand launched by Future Mobility.

Mando will supply parts to Byton, China’s new electric car brand, beginning at the end of next year. This move was made based on a strategy to make a foray into the world electric car market using China, which has huge growth potential, as a springboard.

“We recently signed a contract to supply exclusive parts for electric vehicles with Byton,” an official of Mando said on May 28. “We cannot disclose the specific volume of the contract but we will supply components on a full scale starting at the end of next year when Byton produces electric cars.” Mando will supply rack-assisted electronic power steering (R-EPS) systems, steering wheel columns, electronic brake systems and shock absorbers among others to Byton. In particular, the R-EPS system, which transmits the movement of the steering wheel to the wheels electronically, is the first component which Mando succeeded in mass-producing in Korea and is considered an essential element for self-drive electric vehicles.

Mando plans to target the global electric car market as well as the Chinese electric car market based on the new contract with Byton. Byton is an electric car brand launched by Future Mobility, an electric car startup founded by former executives of BMW, Tesla and Nissan. Future Mobility will launch electric cars in China, Europe and US markets in the fourth of next year.

It is also expected that the contract will have a positive impact on improving Mando’s business performances. Mando’s sales sank to 5,684.7 billion won from 5,866.4 billion won in 2016. During the same span, its net profit plunged to 18.3 billion won from 210 billion won. In particular, its sales in China plummeted about 10%. “As the Chinese electric car market has big growth potential, we have growing expectations for an earnings improvement,” a Mando official said.

The Original Posted by By Jung Min-hee/Business Korea

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The Korean automotive industry is forecast to lose no less than 160,000 jobs after 2021.

Concerns are rising over the future of the Korean automotive industry as it faces an urgent need to overhaul its high-cost and low-productivity structure to jack up sluggish global sales.

Samsung Securities said in its recent report that the Hyundai Motor Group’s domestic production volume is estimated to fall from 3.17 million vehicles in 2017 to 2.95 million in 2020 and then further down to 2.4 million in 2021 or later. According to industry insiders, this is likely to result in 100,000 to 160,000 lost jobs.

The brokerage added in its report that South Korean automakers already lost their inventory control functions due to hostile labor-management relations, frequent strikes and a continuous rise in wages. For these reasons, they are relocating their manufacturing facilities abroad at a rapid pace.

“Cost factors such as a rise in minimum wage and shorter working hours will raise the cost ratio of the Hyundai Motor Group to at least 33% in the near future and it is already too late to go back,” it went on to say.

The Hyundai Research Institute recently pointed out that 94,000 jobs are estimated to be lost after withdrawal of GM Korea, which produces 400,000 to 500,000 vehicles a year. On May 22, an anonymous source said based on the estimate that no less than 160,000 jobs could be lost in the South Korean automotive industry after 2021.

“The minimum wage is about to rise and working hours are about to be reduced, while the wage systems of automakers and auto parts suppliers will remain as they are,” said an executive at a local automaker, adding, “Then, the high-cost structure will be even more solidified with sales already sluggish and policy risks mounting, which means the local companies have no other option but to move abroad.”

  The post Foundation of Korean Automotive Industry Is Shaking appeared first on Auto Cluster.

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Hyndai Motor’s Sonata PHEV.

Hyundai Motor and Kia Motors are planning to roll out 130,000 units of electric cars per year by 2021, three times more than their output this year.

According to industry sources on May 1, Hyundai and Kia are planning to expand their electric car production systems to increase their EV models to 15, including plug-in hybrid electric vehicles (PHEVs), by 2021. The number of electric cars produced three years later will be nearly three times the current output.

Hyundai is currently selling five EV models — the Ioniq Electric, the Ioniq PHEV, the Sonata PHEV, the Kona Electric, and the Nexo. Kia Motors is offering three models — the Niro PHEV, the Soul EV, and the K5 PHEV.

Hyundai Motor has three new EV models in the pipeline — Porter EV, Wagon PHEV (for Europe only) which is the next model of the Sonata, and the Tucson PHEV. Kia Motors will also add three new models– the K5 Wagon PHEV (for Europe only), the Bongo EV and the Niro EV which will come out first this year. Hyundai Motor plans to launch the GV80, the first electric sports utility vehicle (SUV) of the Genesis brand.

  The post Hyundai, Kia to roll out 130,000 EVs of 15 models in 3 Years appeared first on Auto Cluster.

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New cars await shipment in the port in Pyeongtaek, Gyeonggi Province on Wednesday.

The Korean car industry is suffering from slumping domestic and foreign sales, intensifying competition from Chinese rivals, rising wages and a strengthening Korean won.

The market shares of Korean automakers keep dropping in the U.S. and China, while imported cars are grabbing a bigger slice of the Korean market each year.

Hyundai’s operating profit in the first quarter of this year nearly halved on-year to W681.3 billion (US$1=W1,076). GM Korea’s domestic sales plunged 50 percent for three months running, while Ssangyong’s sales fell 3.9 percent last month compared to March.

In the U.S., Hyundai and affiliate Kia’s combined first-quarter sales fell seven percent and 14 percent compared to the same period of 2017 and 2016. The reason was their failure to shift their model lineup to respond to the growing craze for SUVs and other recreational vehicles.

The situation is even worse in China, where their sales plunged 34 percent from the first three months of 2016.

Meanwhile imports are grabbing a bigger slice of the domestic market, which used to be completely dominated by Korean cars.

In 2010, imported cars accounted for just 6.9 percent of the domestic market, but that had risen to 18.4 percent in the first quarter of this year. Imported car dealers have been offering a wider range of discounts, resulting in more cars that cost under W50 million. Industry watchers expect imported cars to account for more than 20 percent of the market in two or three years.

Analysts say Hyundai’s biggest mistake was its failure to invest in new models. Hyundai and Kia spend W4-W5 trillion a year on research and development, a whopping 60 percent of Korean automakers’ total investments in R&D.

But it pales in comparison what their foreign rivals like Daimler, GM and Toyota spend each year, which is about the double the amount. Lee Hang-koo at the Korea Institute for Industrial Economics and Trade said, “German auto parts maker Bosch spends some W7 trillion a year on R&D. You can develop a new vehicle for W500 billion, and Hyundai needs to bolster its R&D spending.”

High wages and falling productivity are also to blame. It takes an average of 26.8 hours for a Korean factory to roll out a car, compared to 21.3 hours at GM in the U.S. and 24.1 hours at Toyota. Yet salaries here have already surpassed those of rivals abroad and are expected to continue rising in line with the minimum wage hike.

Even in acute crises, militant unions regularly down tools demanding higher pay and better benefits.

Kim Soo-wook at Seoul National University said, “The issues of militant unions and low productivity have been highlighted because of the crisis at GM Korea, but those problems are rampant across the industry here.”

The strengthening won is also hurting Korean automakers, who export 80 percent of the cars they make, because it makes them more expensive. A Hyundai staffer said, “Due to the exchange rate and other factors, it will be difficult for us to achieve 10-percent-range operating margins from now on.”

And Kim Yong-geun, the president of the Korea Automobile Manufacturers Association, said, “The labor market and government regulations are diminishing the appeal of Korea as an automotive production base. Without a major overhaul, car production in Korea will continue to drop, and the nation’s manufacturing industry as a whole will shrink.”

The auto industry is a microcosm of Korea’s entire manufacturing sector. Now the engines that have propelled Korea’s economy — steel, shipbuilding and display industries — are slowing down, and China, which was once the biggest market for Korean exports, has become a main rival across the board.

And in every sector the problems are the same — high wages, low productivity and too much red tape.

The Original Posted By Ryu Jung, Kim Seong-min, Jeon Soo-yong/Chosunilbo & Chosun.com

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[Photo provided by Kia Motors Corp.

Kia Motors Corp. revealed the all-electric version of its Niro crossover ahead of its official July rollout in South Korea, its latest lineup in clean, zero-emission vehicles.

The country’s second largest automaker and its larger affiliate Hyundai Motor Co. on Wednesday unveiled their new fleet of green vehicles at the 5th International Electric Vehicle Expo held at Jeju Island, which runs until Sunday.

The Niro EV comes in two battery models – the 64-kilowatt hour (kWh) model that can travel up to 380 kilometers (km) on a single charge and the 39.2-kWh model that can run up to 240 km. It is also equipped with the latest driver assistance and safety features, including front collision avoidance, lane keeping assist, smart cruise control and highway driving assistance, according to the company.

Pre-orders topped 5,000 in just three days, said Kia Motors, adding that it hopes the addition of the EV line would further boost Niro sales. The automaker announced it sold a total of 23,647 Niro hybrids and plug-in hybrid models last year.

Hyundai Motor also showcased its all-electric Kona and Ioniq, as well as the hydrogen-fueled Nexo. The Kona Electric compact SUV is powered by a 150 kilowatt (204 horsepower) electric motor that delivers a maximum torque of 40.3 kilogram-meters. A 64-kWh model can run up to 406 km on a single charge, which is enough to cover one way from Seoul to Busan.

The company on Wednesday also signed an agreement with Lotte Rental Co. to supply Kona Electric vehicles, the car’s first partnership with a rental company.

Hyundai Motor Group announced last year it aims to triple its green car lineup from 13 to 38 by 2025.

The Original Posted By Kim Jung-hwan and Kim Hyo-jin/maeil Business News

The post Kia Motors unveils Niro EV crossover, due out July appeared first on Auto Cluster.

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The government and state-run Korea Development Bank agreed on Thursday to inject W810 billion into cash-strapped GM Korea (US$1=W1,080). The last-minute agreement is likely to save 156,000 jobs at GM Korea and subcontractors.

KDB, the largest shareholder, was initially expected to invest some W500 billion into the Korean subsidiary, but GM headquarters demanded more to improve production facilities.

KDB said the agreement was motivated by concerns over the worsening financial woes of parts suppliers. The government and KDB obtained a legally binding pledge from GM to keep its remaining Korean plants open for at least another decade and make long-term investments.

GM apparently agreed to include a clause banning it from selling the Korean unit without the approval of KDB and to invest W3.89 trillion over the next 10 years, while swapping W2.91 trillion in loans to GM Korea into equity.

The agreement will be finalized around the middle of next month, when the due diligence is complete. But neither KDB nor GM revealed details of the agreement, fueling suspicions of backroom dealing and lack of transparency in handling taxpayers’ money.

Although KDB will maintain a 17-percent stake in GM Korea, most of the stake apparently does not entail voting rights. A KDB staffer said, “The stake that GM headquarters will gain in GM Korea also has no voting rights.”

Many obstacles remain until GM Korea returns to normal operations. The new models GM is to roll out here will not be available until late next year or 2022. In the meantime, there is no source of fresh revenues.

GM Korea suffered a major blow to its brand image due to the latest crisis.

The Original Posted By Kum Won-sub/The Chosunilbo

The post Gov’t Agrees Massive Bailout for GM Korea appeared first on Auto Cluster.

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A car loaded with eARS (left) leans less in a zigzag drive compared with the one without eARS. (photo courtesy: Hyundai Mobis)

Hyundai Mobis has successfully developed an advanced suspension system that reduces vehicle body roll and improves ride comfort.

The company announced on April 24 that it has developed an electrical Active Roll Stabilization (eARS) device, an electronically controlled suspension component. The eARS device is a component that stabilizes the vehicle body while driving. It eases a lean of a vehicle due to a centrifugal force during a sharp turn and relieves shocks caused by an irregular road surface.

In particular, Hyundai Mobis said that its new component improves body stabilization by about 40% and reduces the size of the suspension system by 5% compared with products from its competitors. The company added that they developed a 12V and a 48V power system for eco-friendly cars.

eARS is a next generation electric motor control method that replaces the current hydraulic control type. The product is a high-priced high-end vehicle part, so is applied to some luxury cars only. Hyundai Mobis plans to develop and popularize economic models loaded with its new core technology.

The company says its new suspension technology will improve the safety of autonomous driving system by enhancing control accuracy

The Original Posted By Jung Min-hee/Business Korea

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