Hyundai, Kia, Mercedes-Benz, Toyota recalling some 45,000 vehicles: ministry

Hyundai Motor Co. and three other companies are recalling about 45,000 vehicles to fix faulty components, the transport ministry said Wednesday. This is the latest in a series of recalls by carmakers operating in South Korea due to problems in components of vehicles they sell here. Hyundai Motor, Kia Motors Corp., the Korean units of Mercedes-Benz and Toyota Motor are recalling a total of 44,967 vehicles, the Ministry of Land, Infrastructure and Transport said in a statement. The potential

April 15, 2020

[News Focus] Renault Samsung, GM Korea conclude wage deals, but hurdles remain

Renault Samsung Motors and GM Korea have concluded wage deals with unionized workers -- a positive sign for the struggling automotive industry amid the COVID-19 outbreak -- but there are still hurdles, considering the ongoing global economic downturn and unstable management-labor union ties, industry sources said Wednesday.  According to Renault Samsung, 70.2 percent of the unionized workers voted to accept a wage freeze and cash bonuses of 8.88 million won ($7,320) per person for 2019. T

April 15, 2020

Renault Samsung union votes to accept 2019 wage deal

Unionized workers at Renault Samsung Motors Corp. voted Wednesday to accept an agreement with the company over wages for last year as the automobile industry is struggling to cope with the impact of the coronavirus outbreak. The company said 70 percent of the 1,700-member union voted to accept a wage freeze and cash bonuses of 8.88 million won ($7,320) per person for 2019.  The wage deal represents a consensus between the company and the union to make joint efforts to weather the impact

April 14, 2020

Hyundai Motor extends global plant shutdowns

The dampened economic situation is forcing South Korea’s top automaker Hyundai Motor Group to shut down facilities globally following weakened exports and restrictive regulations in major markets, according to industry sources Tuesday.  The business disruption in the auto industry is also hitting tire manufacturers, with major Korean companies suspending overseas plant operations. Hyundai said Tuesday that it has decided to extend the shutdown of its manufacturing plant in Turkey t

April 14, 2020

Renault Samsung adds connected function to mobile app for ‘untact’ service

Renault Samsung said Tuesday that it has added a connected function to customer membership mobile applications My Renault Samsung and My Renault to expand its “untact” service -- without face-to-face contact.  The apps allow customers to check information on the car, review membership benefits, reserve maintenance or after service online and conduct one-on-one chat on customer service.  The new connected functions enable remote control of the vehicle and search of c

April 14, 2020

[Behind the Wheel] G80 sets identity of Genesis luxury sedan

Hyundai Motor’s luxury brand Genesis launched a revamped third-generation G80 on March 30, seven years after the previous version was launched in 2013.  After releasing G70 in 2017 and the brand’s first sport utility vehicle GV80 earlier this year, Genesis has been diversifying its vehicle lineup to attract a wider range of customers.  As the flagship model, the latest G80 represents and cements Genesis’ brand identity. The Korea Herald had an opportunity to test

April 14, 2020

Korean Air suspends flights to Washington, DC amid virus fallout

Korean Air Lines Co. suspended flights on the Incheon-Washington route Monday due to the impact of the coronavirus. South Korea's national flag carrier did not provide a time frame when it will lift the temporary suspension. The move came amid the rising coronavirus death toll and infections in the United States. The COVID-19 pandemic has killed more than 22,100 people in the US, including 50 in Washington, DC. Currently, Korean Air flies from Incheon to only five US cities -- Los Angeles, N

April 13, 2020

Kia Motors mulls suspending three domestic plants due to coronavirus disruptions

Kia Motors Corp., South Korea's second-biggest carmaker, is considering temporarily suspending some of its plants in the country later this month due to the fallout from the novel coronavirus pandemic, industry sources said Sunday. It is planning to halt operations of three factories -- two in Gwangmyeong, south of Seoul, and one in Gwangju, 330 kilometers south of Seoul -- from April 23-29, according to the sources. The company runs nine domestic manufacturing facilities, including one as a j

April 12, 2020

[Newsmaker] SsangYong Motor to receive W40b from Mahindra & Mahindra

SsangYong Motor will receive 40 billion won ($32 million) in special funds this month from its major shareholder, Indian carmaking conglomerate Mahindra & Mahindra, to urgently address liquidity issues, the Korean automaker said Sunday. SsangYong said it finalized its plan to raise 40 billion won in new funds at an extraordinary general meeting Friday. Mahindra will first invest in SsangYong as a loan, which will be converted to equity later upon Indian and Korean government agencies&rs

April 12, 2020

Hyundai, Kia set to report poor Q1 results on virus impact

Hyundai Motor Co. and its affiliate Kia Motors Corp. are set to suffer a sharp decline in their first-quarter earnings due to a growing coronavirus impact on production and sales, data showed Sunday. Hyundai Motor is expected to post an operating profit of 700 billion won ($577 million) for the January-March period, down 15 percent from 824.9 billion won a year earlier, according to data from Yonhap Infomax, a financial service arm of Yonhap News Agency. Before the outbreak of the new coronav

April 12, 2020

Renault Samsung, union tentatively OK wage deal for 2019

Renault Samsung Motors Corp. said Friday it has reached a tentative agreement with its union over wages for last year as the automobile industry tries to cope with the coronavirus outbreak, the company said Friday. Renault Samsung workers accepted a wage freeze and will be paid cash bonuses of 8.88 million won ($7,320) per person for 2019, the company said in a statement. "The company and the union have reached a consensus that they will have to make joint efforts to weather an industry-

April 10, 2020

Porsche Korea donates W200m for COVID-19 relief efforts

Porsche Korea said Friday that it has donated 200 million won ($166,000) to ChildFund Korea with its four authorized dealer partners -- Stuttgart Sports Cars, Autostadt, Deutsch Auto Co. and Yongsan Sports Automobile -- for coronavirus relief efforts. The donation will be used under two categories “Porsche Do Dream Safe Kit” and “Porsche Do Dream Safe Fund.” Recipients will be children in low-income families and vulnerable groups who have been experiencing difficulties

April 10, 2020

Busan mayor visits Renault Samsung’s Busan plant to encourage workers

Busan Mayor Oh Keo-don visited Renault Samsung’s Busan plant Friday to encourage workers amid the continued economic downturn caused by the COVID-19 outbreak. According to the automaker, Oh also met with Renault Samsung CEO Dominique Signora and the labor union, vowing to support them to overcome the current crisis. Renault Samsung said that he appreciated workers at the facility for working hard and focusing on manufacturing major vehicle lineups.  He also discussed with Signora

April 10, 2020

Kia’s midsized SUV Telluride named 2020 World Car of Year

Kia Motors’ midsized, eight-seat sport utility vehicle the Telluride is the 2020 World Car of the Year. This is the first time the Korean auto brand has won the top award. The automaker also took home the World Urban Car award for its subcompact crossover the Soul EV, which beat the Volkswagen T-Cross and the Mini Cooper SE Electric.  The Toronto-based World Car Awards, launched in 2004, are one of three major global automotive award programs, the others being the North American Ca

April 9, 2020

[News Analysis] If not India’s Mahindra, what can save SsangYong Motor?

Despite SsangYong Motor’s decision to go ahead with a self-rescue plan after its largest shareholder Mahindra & Mahindra scrapped the cash-strapped Korean unit last week, some experts say the South Korean automaker’s weak exports may have led to the latest crisis. On Friday, Indian auto empire Mahindra & Mahindra said it won’t invest 500 million won ($410 million) for a turnaround, as requested, considering the global economic downturn due to COVID-19.  The pare

April 8, 2020

Airlines struggle to tide over virus impact

South Korean airlines, one of the hardest-hit industries by the outbreak of the new coronavirus, are taking unprecedented measures, such as unpaid leave, job cuts and asset sales, to overcome the COVID-19-triggered crisis, industry sources said Wednesday. Korean Air Lines Co., the country's biggest airline, said Tuesday it will have 7 out of 10 workers take paid leave for six months beginning April 16 as part of the company's self-help efforts. In other self-rescue plans announced last month

April 8, 2020

[Behind the Wheel] New Sorento’s spaciousness threatens other family SUVs

Kia Motors’ mid-sized sports utility vehicle Sorento means a lot to the automaker, considering that its SUV lineup ranging from Niro to Mohave has begun to receive attention with popularity of Sorento. The first Sorento was launched in 2002, with the third generation of the car released in 2014. Six years later, an all-new Sorento was unveiled on March 17. The Korea Herald had the chance to test drive the fourth-generation Sorento on March 23 on a 25 kilometer route from Yeouido in Seou

April 7, 2020

[Feature] Used car sales become lucrative business for imported automakers

South Korea’s used car market has doubled in size over the past decade, with about 3.7 million vehicles registered for transfer last year.  With tech advancements, cars can be analyzed and auctions are made online, inviting more customers to sell and purchase secondhand cars. As the market grew, so did the market for imported cars, which are much coveted in the second-hand market. According to the country’s largest second-hand car company SK Encar, about 26 percent of used c

April 6, 2020

Eastar Jet to cut 20% of workforce on virus impact

Eastar Jet Co., a South Korean low-cost carrier, said Monday it will cut one-fifth of its workforce as it strives to stay afloat amid the growing impact of the coronavirus on the airline industry, but the proposed layoffs are smaller than originally thought. The planned job cut at Eastar raises concerns over the possibility of industrywide restructuring. The airline originally planned to cut some 750 employees out of its total 1,680-person workforce. Eastar Jet said it also plans to return 1

April 6, 2020

[News Focus] SsangYong Motor back on the brink after Mahindra scraps investment plan

Indian carmaker Mahindra & Mahindra has rejected a call for fresh funding for its cash-strapped Korean unit SsangYong Motor, leaving its future uncertain after 12 consecutive quarters of losses.  According to the board of directors of Mahindra, which has a 74.65 percent stake in Ssangyong, they held a special meeting in Mumbai on Friday and decided to reject SsangYong Motor’s request to invest 500 billion won ($404 million) over the next three years. Instead, it urged the Korean

April 5, 2020