Arrest warrants sought for 3 GM Korea employees over corrupt hiring

[THE INVESTOR] The prosecution investigating irregularities in GM Korea’s hiring process in 2015 and 2016 filed for arrest warrants on three GM Korea employees.According to the Incheon District Prosecutors’ Office, three GM Korea employees including a former union official have been taken into custody, and that applications for arrest warrants on all three have been submitted on charges of violating the Labor Standards Act.It has been alleged that three GM Korea employees received as much as 100

July 8, 2016

S. Korean auto parts makers must reduce dependence on local group: report

[THE INVESTOR] South Korean auto parts makers need to reduce their dependence on local carmakers in order to advance on the international stage, an industry report said on July 8.“Korean auto parts makers have a high dependence on local automotive groups, therefore (they) need to make an effort to grow in the global market,” Korea Automobile Manufacturers Association said in its latest report. South Korean auto parts maker Hyundai Mobis“In order to become global parts makers, (Korean companies)

July 8, 2016

Hyundai Motor establishes guidelines for ‘smart leader’

[THE INVESTOR] Hyundai Motor Group announced new leadership measures to push employees to shape the corporate culture that drives innovation, the company said on July 7. Hyundai Motor’s 300 managers and high-level officials gathered at the company’s headquarters in Yangjae-dong, southern Seoul, on July 6 to participate in the seminar titled “Hyundai Motor Work Smart Leadership Seminar.” At the seminar, the company introduced 10 guidelines to become a “smart leader” in the workplace. “Lead the or

July 7, 2016

Gov’t eyes annual 200,000 EV exports by 2020

[THE INVESTOR] The government will roll out measures to help local carmakers’ electric vehicle exports to hit 200,000 units in 2020, and raise domestic sales to 80,000 units by the same year, plans revealed on July 7 show. According to the plans, the government will raise EV subsidy to 14 million won in order to boost sales. The government will launch a project for developing EV batteries that will raise the driving range to over 400 kilometers during the second half of the year. Hyundai Motor E

July 7, 2016

Prosecutors to summon former chief of Volkswagen Korea again

Prosecutors said Wednesday they will summon a former managing director of the local branch of Volkswagen for a second time later this week over the German carmaker‘s alleged irregularities that came to light following last year’s emissions scandal.　The Seoul Central District Prosecutors‘ Office said it will summon Park Dong-hoon on Friday for questioning over his alleged involvement in the cover-up of problems found in vehicles sold in the country. 　The 63-year-old was first summoned Tuesday as

July 6, 2016

FIRST OWNER OF IONIQ ELECTRIC

The first Korean consumer (center) of Hyundai Motor’s electric vehicle Ioniq Electric poses with the company’s domestic sales chief Chang Jae-hoon (left) on Wednesday at the company’s office in Gangnam-gu, Seoul. The all-electric model, which is able to drive up to 191 kilometers on a single charge, hit the market in June. (Hyundai Motor)

July 6, 2016

[Decoded] Hyundai Motor challenged at home

Hyundai Motor is facing increasing challenges on home ground, with Korean consumers looking at other options and rivals intensifying competition. The market share of the nation’s largest automaker reached 80 percent in the early 2000s after acquiring Kia in 1999. However, its market share dropped to 68 percent last year, with the figure for Hyundai falling below 40 percent for the first time.  Source: Hyundai Motor“Hyundai’s market share here will further go down -- albeit slowly. It is difficul

July 6, 2016

Volkswagen’s H1 sales hit by diesel scandal

[THE INVESTOR] Volkswagen’s sales in South Korea in the first six months slipped from a year ago, hit by the widening investigations into the German automaker’s emission scandal, industry data showed on July 6. The number of VW vehicles sold in January-June came in at 12,463 units, a 33.1 percent decrease from the same period last year, according to data from the Korea Automobile Importers and Distributors Association.  Volkswagen store in Seoul, South Korea/ The InvestorJune sales plummeted by

July 6, 2016

[Decoded] Hyundai Motor dragged down by chronic labor dispute

Hyundai Motor’s chronic labor disputes, which loom year after year, are taking a toll on the automaker already struggling from declining sales.Hyundai’s labor union said Tuesday it would stage a strike this year again after their wage negotiations with management collapsed. This time, they are seeking an alliance with Hyundai Heavy Industries’ union. Hyundai Motor’s union members protest the failure of wage negotiations with the management in Ulsan on Tuesday.(Yonhap)The recurring strikes from 1

July 6, 2016

Toshiba takes on Samsung with US$14.6b investment deal

[THE INVESTOR] Japanese tech firm Toshiba and US hard-disk maker Western Digital will jointly invest 1.5 trillion yen (US$14.6 billion) over the next three years to beef up their flash memory production. The partnership is expected to help Toshiba catch up with Samsung Electronics in the 3-D NAND flash memory sector. Under the latest deal, Toshiba and Western Digital will add a new chip fabrication facility in their existing joint chip-manufacturing plant in Japan’s Yokkaichi complex of Mie Pref

July 6, 2016

Foreign carmakers' H1 sales show first year-on-year drop since 2009

[THE INVESTOR] Imported vehicle sales for the first half of the year dropped 2.6 percent from a year ago, industry data showed on July 6. This is the first time first half imported car sales have shown year-on-year decline since 2009. During the first half of the year, 116,749 units of imported cars were sold on the South Korean market, dipping 2.6 percent compared to the same period last year, Korea Automobile Importers and Distributors Association data showed.BMW320d / BMWJune sales declined 3

July 6, 2016

Prosecutors summon ex-VW Korea chief

[THE INVESTOR] Prosecutors summoned former head of Volkswagen Korea Park Dong-hoon on July 5, to question him over the German automaker’s emission scandal that hit the customers here and around the world. Park, who headed the company from its initiation in 2005 to 2013 before moving to Renault Samsung as the chief executive, appeared before the Seoul Central District Prosecutors’ Office as a key witness in the ongoing case over VW cheating emission tests for defective units. The prosecutors, how

July 5, 2016

Hyundai Motor union seeks alliance with HHI union for strike

[THE INVESTOR] Hyundai Motor’s union is preparing to stage a strike, and to this end has sought an alliance with workers from Hyundai Heavy Industries.The carmaker’s union announced on July 5 that a vote will be held on July 13 to decide whether to take industrial action over failed wages negotiations. Hyundai Motor union is also hoping to form an alliance with HHI union. If successful, it will be the first time the unions of the two companies will go on strike simultaneously. According to the u

July 5, 2016

EU-Korea FTA more beneficial for European automakers

[THE INVESTOR] European carmakers benefited more from the EU-Korea free trade agreement than their Korean counterparts, according to industry data on July 5. Data from the Korea Automobile Manufacturers Association showed that domestic car manufacturers exported 383,698 units of cars to EU countries in 2015, reflecting a 28.6 percent increase from the 298,263 units in 2010. The EU-Korea FTA went into effect in 2011. In 2010, a total of 59,242 European cars were sold in Korea according to the Kor

July 5, 2016

[DECODED] Can Genesis survive in the luxury car market?

[DECODED] Hyundai Motor’s aspirations to separate its premium brand Genesis from the globally recognized budget Hyundai image may take much longer than the company expects, market experts said. The nation’s largest automaker plans to completely separate Genesis by 2020 with six models so that luxury-seeking consumers no longer associate it with the cheap and mass-produced Hyundai brand when buying Genesis. “More than 10 years is expected for Genesis to be recognized as a truly separate brand fro

July 5, 2016

Hyundai Motor to operate self-driving taxis at research center

[THE INVESTOR] Hyundai Motor Group plans to operate self-driving taxis at its research center in Namyang, Gyeonggi Province, from later this month, a local newspaper reported on July 6. MoneyToday, citing unnamed company officials, reported that a total of five autonomous taxis, based on Hyundai’s fuel-cell sport utility vehicle Tucson ix and the Ioniq hybrid compact, will be operated. Hyundai’s Genesis sedans drive on autopilot mode at the carmaker’s Nevada research center. / Hyundai MotorThe N

July 5, 2016

Hyundai’s domestic SUV sales top 2 million

[THE INVESTOR] The number of Hyundai Motor ’s sport utility vehicles sold in South Korea has broken the 2 million mark, industry data showed on July 5. Hyundai is the first South Korean carmaker to sell more than 2 million SUVs in the local market. According to industry data, a total of just under 2.012 million units of Hyundai SUVs have been sold here since 1991 when the carmaker introduced its first SUV -- the Galloper based on Mitsubishi Pajero.  Apart from the Galloper, Hyundai has rolled ou

July 5, 2016

Consumer agency to take action against VW Korea

[THE INVESTOR] With Volkswagen’s decision not to offer further compensation to the Korean consumers hit by the emission-rigging scandal, a local consumer rights agency is taking action on behalf of any VW owners who were hit by the carmaker’s false advertisements, local news reported on July 4. Korea Consumer Association announced that it will begin consumer redress activities for VW owners who were deceived by the carmaker’s false advertising that promoted the cars as low-emission and environme

July 4, 2016

Lawmakers seek tougher penalties on carmakers manipulating fuel economy

[THE INVESTOR] South Korean lawmakers are seeking regulatory changes to force carmakers to give monetary compensation to consumers when they deliberately misrepresent the fuel economy of their vehicles. Rep. Kwon Sok-chang of the ruling Saenuri Party said on July 4 that he will propose a revised Motor Vehicle Management Act to include mandatory monetary compensation. At present, misrepresentation of a vehicle’s fuel economy is categorized as a “minor defect,” and consumers are not eligible for a

July 4, 2016

Hyundai Sonata gets top marks from U.S. consumer reviewer

Hyundai Motor Co.'s midsize sedan, the Sonata, has received the best evaluation from a U.S. consumer magazine, beating those by Toyota Motor and other foreign rivals, a report showed Monday.Hyundai Sonata Hybrid SE clinched the top spot in terms of the best combination of fuel economy and acceleration in a test by Consumer Reports in the midsized car category.Hyundai Sonata Hybrid SE is listed as 39 miles per gallon while it can go from zero to 60 miles per hour in 8.2 seconds.Ford Fusion SE Hyb

July 4, 2016