Korea confirms BMW’s defective EGR cooler as cause of car fires

South Korea’s Transportation Ministry confirmed Monday the cause of BMW engine fires that sent jitters across the country this summer was the faulty exhaust gas recirculation cooler, and slapped an 11.2 billion won ($9.9 million) fine on the German carmaker for concealing and downplaying the defect. The investigation team consisting of government officials and auto professionals released the final result, including plans to file criminal charges against the German luxury automaker and for the ad

Dec. 24, 2018

Large sedans, SUVs gain popularity amid weaker demand for smaller cars: data

South Korea's domestic car market moved in two different directions this year with the rise in popularity of large sedans and sport utility vehicles standing in contrast to weaker demand for smaller vehicles, industry data showed Sunday.In the January-November period, Hyundai Motor Co., Kia Motors Corp., GM Korea Co., Renault Samsung Motors Corp. and SsangYong Motor Co. sold a combined 698,326 units, up 0.3 percent from 696,403 cars sold a year earlier, the data showed. (Yonhap)It said demand fo

Dec. 23, 2018

After months of debate, GM Korea to launch R&D unit next month

GM Korea’s new research and development entity, dubbed GM Technical Center Korea, is expected to officially launch early next year, after its second-largest shareholder gave the green light despite strong opposition from its union, the company said Friday.The local unit of US auto giant General Motors said in an official notice that the “due date for the spinoff has been decided as Dec. 31 at a board meeting held on Dec. 18, and registration is slated for Jan. 2.”  (Yonhap)Roughly 3,000 workers

Dec. 21, 2018

GM Korea to launch research spin-off unit early next year

GM Korea, the South Korean unit of General Motors Co., said Friday that it plans to launch a separate R&D company early next year after completing the necessary procedures.Early this week, GM Korea held a shareholders meeting to approve the plan as the Korea Development Bank, the second-biggest shareholder in GM Korea, backed the carmaker's plan to spin off a research unit in a reversal of the state lender's opposition to the plan. (Yonhap)In a regulatory filing, GM Korea said the research unit,

Dec. 21, 2018

KAI apologizes, vows thorough inspections after chopper crash

Korea Aerospace Industries, the nation’s sole aircraft manufacturer, said Friday that it would accept the findings of an investigation identifying a defective part as the cause of a Marine Corps chopper crash in July.After a monthslong probe, a team of civilian, government and military experts said a defective rotor mast on the Marineon chopper had caused the crash that killed five military personnel. (Yonhap)The chopper crashed after the main rotor became detached from the airframe due to a cra

Dec. 21, 2018

Transport Minister suggested taxi drivers adopt Uber system, got no response

Transport Minister Kim Hyun-mee proposed in July that taxi drivers adopt an IT system similar to that of Uber in order to streamline their operations, but received no response, she said in a radio interview on Friday.“If you look at Uber service abroad, it is built to make reservations and pay through an IT platform and the drivers get (paid) for various supplementary services,” she said. “I believe that the nation’s taxi service will be improved if such a system is adopted,” she said, adding th

Dec. 21, 2018

Seoul court slaps $2.4m fine on Mercedes-Benz Korea

A South Korean court on Thursday slapped a 2.8 billion won ($2.48 million) fine on Mercedes-Benz Korea for selling some 7,000 vehicles equipped with unauthorized parts in violation of Korea’s Clean Air Conservation Act and customs law.The Seoul Central District Court said a Benz employee surnamed Kim “has been arrested and sentenced to eight months in jail for failing to straighten out the matter for three years and a half on top of four penalties levied.” Kim was in charge of receiving approval

Dec. 20, 2018

Posco hires ex-Daelim CEO for future growth

Steel giant Posco has hired former the CEO of Daelim Industrial to seek the company’s future growth, it said Thursday in a statement.  Oh Gyu-seokOh Gyu-seok, former president of the local builder, will take charge of the newly established future growth division assigned to pave the way for the 50-year-old steelmaker struggling to find alternatives amid declining market demand for metal. Oh is the first outsider to take the top-level executive position at Posco. Along with Oh, Posco named Park S

Dec. 20, 2018

Automakers to face slower sales in domestic, global markets in 2019

South Korea’s automakers will see lackluster sales in their three major overseas markets next year as well as at home due to slowing economies, trade disputes and rising lending rates, a research institute affiliated with Hyundai Motor Group said at a seminar Thursday. Hyundai Motor’s Global Business Intelligence Center predicted that vehicles sales in the US would be about 17 million next year, down 1.4 percent from an estimated 17.25 million this year. Sales in Europe would drop 0.2 percent to

Dec. 20, 2018

Car-sharing services offer discounts amid taxi protest

Car-sharing services in South Korea on Thursday intensified their marketing efforts while taxi drivers held a massive rally in protest of the planned launch of commercial carpool services.Kakao Mobility offered 10,000 points to carpool drivers who joined its trial service, in addition to 5,000 won ($4.50) worth of points per service, in an effort to encourage them to continue operating despite fierce opposition from taxi driversAnother ride-sharing service, SoCar, offered an 87 percent discount

Dec. 20, 2018

Hyundai expects weak car sales in 3 major markets in 2019

Hyundai Motor Group, the world's fifth-biggest carmaker by sales, said Thursday it is bracing for weak sales in three major markets next year due to the slowing global economy, trade disputes and rising lending rates.In a seminar held at the carmaker's headquarters in southern Seoul, the Global Business Intelligence Center, a think tank under the South Korean carmaker, forecast global vehicle sales will fall 0.1 percent to 92.49 million units in 2019 from an estimated 92.44 million units this ye

Dec. 20, 2018

[Advertorial] Hyundai Capital’s car-sharing platform Delivery Car launches

Hyundai Capital said Wednesday it has officially launched its car sharing platform Delivery Car on Dec. 7 after running a beta service since September last year.The platform allows customers to have vehicles delivered at a time and place of their choice and to return the car at any location of their choice. The company has partnered with some 200 small and midsized rental car companies nationwide for the service. (Hyundai Capital Newsroom)Since running the beta service, the company has made sign

Dec. 19, 2018

Hyundai’s Kona named Car of Year in Spain

Hyundai Motor’s compact SUV Kona was named the car of the year by a Spanish national daily newspaper, beating Peugeot’s 508 and Honda CR-V, the company said Wednesday.According to ABC, the newspaper based in Madrid, Kona topped the list with 312 points, followed by Peugeot 508 and SEAT Arona, with 264 and 182 points, respectively.Also by a UK-based auto magazine Next Green Car.com, the electric version of Kona was named the car of the year and the family car of the year, citing its reasonable pr

Dec. 19, 2018

Regulator dismisses concerns about GM Korea's spin-off plan

The head of the financial regulator on Wednesday dismissed concerns about a controversial spin-off plan by the South Korean unit of General Motors Co., saying that the move is not a prerequisite for GM to shut down its manufacturing facilities here. Choi Jong-ku, chairman of the Financial Services Commission, made the remarks a day after the state-run Korea Development Bank, the second-largest shareholder of GM Korea Co., decided to support the carmaker's plan to spin off its research unit.  (Yo

Dec. 19, 2018

[Newsmaker] KDB onboard with GM’s spinoff plan, union prepares strike

GM Korea was given the green light Tuesday by the Korea Development Bank to proceed with the controversial setup of an independent research and development entity here, ending a monthslong tug-of-war since GM shut down a factory here this February as part of global restructuring. In return, GM Korea reaffirmed its long-term commitment, which centers on its plan to make Korea General Motors’ production base for all-new sub-compact SUVs and all-new crossover utility vehicles. GM Korea’s unionized

Dec. 18, 2018

Hyundai Glovis sets record of selling 1m used cars via auction

Hyundai Glovis has sold a record-breaking 1 million second-hand vehicles via auctions as of the end of November, according to the company on Tuesday.The logistics unit of Hyundai Motor Group has auctioned 1,000,382 used cars since it first started its automobile auction service in 2001. Members participate in an auction where the 1 millionth used car was put up for sale at Hyundai Glovis’ Sihwa auction house on Nov. 30 (Hyundai Glovis)In the past six years, the company has seen an average 4.8 pe

Dec. 18, 2018

Govt. to provide W3.5tr in support for auto parts makers

South Korea will provide financial assistance for cash-strapped auto parts makers to help them tide over the liquidity squeeze amid auto industry slump, the government said Tuesday.The Ministry of Trade, Industry and Energy announced plans to provide 3.5 trillion ($3.1 billion) worth of funding and loan guarantee for local auto parts makers, which have been grappling with shrinking sales at home and abroad. (Yonhap)South Korea's auto industry is going through a hard time after GM Korea shut down

Dec. 18, 2018

Hyundai Motor’s GBC construction to begin H1 2019

Hyundai Motor Group, the world’s fifth-largest automotive group, is slated to begin construction of its new headquarters, dubbed the Global Business Center, in southern Seoul in the first half of next year, with the government moving to clear regulatory hurdles for the project that had hit a snag for years.The development comes as part of government plans shared at the economy-related ministers’ meeting, led by President Moon Jae-in on Monday, on fostering economic growth in 2019 by encouraging

Dec. 17, 2018

[BEHIND THE WHEEL] Don’t be swayed by BTS -- the Palisade is the ultimate family car

It’s practically a taboo for a car company, particularly South Korean carmaker Hyundai Motor, to hire a celebrity as the face of a new vehicle. It’s supposed to be all about the car, not the star. Breaking this unspoken rule, Hyundai Motor brought a global sensation -- Korean boy band BTS -- into its all-out efforts to promote the large SUV it launched last month, seeking a rebound for its global sales. But the Palisade is a car with a target market that goes beyond BTS’ young fan base, extendin

Dec. 17, 2018

Hyundai records highest-ever SUV market share in US

Hyundai Motor’s market share in the US sport utility vehicle segment rose to a record high of 3.7 percent as of November, industry sources said Sunday. That marks the South Korean auto giant’s strongest showing since it entered the market in 2000. Hyundai sold 271,377 SUVs between January and November, a 14.1 percent increase from the same period last year.The company’s SUV market share had headed downward in recent years after peaking at 3.6 percent in 2009. The figure hit bottom in 2015 with 2

Dec. 16, 2018