Hyundai Mobis’ earnings slump in Q1

Hyundai Mobis said Friday that it has logged an operating profit of 360.9 billion won ($291 million) in the first quarter, down 26.9 percent on-year.  Hyundai Motor Group’s auto parts making unit cited market contraction over impact of COVID-19 as a reason. According to the company, its first-quarter sales came at 8.4 trillion won, down 3.6 percent on-year, while its total net profit recorded 348.8 billion won, which fell by 28.2 percent on-year.  Hyundai Mobis said its main

April 24, 2020

Kia Motors’ Q1 net profit halves despite increased sales

Kia Motors said Friday that its net profit in the first quarter this year has halved, while further losses are expected in the second quarter over the economic impact of COVID-19 pandemic.  The automaker’s disclosure showed that its sales from January to March came at 14.5 trillion won ($11 billion), up by 17.1 percent on-year. Its operating profit fell 25.2 percent to 444.5 billion won, while net profit plummeted by 59 percent to 266 billion won.  The huge profit drop can be

April 24, 2020

Renault Samsung XM3 tops 10,000 units sales milestone

Renault Samsung Motors said Friday that its sport utility vehicle XM3 has recorded accumulated sales of 10,000 units in 49 days, the shortest period since the new model was launched on March 9.  A total of 5,581 units were picked up in the month, while from April 1-13, a total of 4,419 units were sold. The company said prior to XM3, its midsized sedan SM6 broke the record of selling over 10,000 units in the shortest period of time after launch in 61 days.  During the preorder perio

April 24, 2020

Kia to suspend 4 domestic plants on virus impact

Kia Motors Corp., South Korea's second-biggest carmaker by sales, said Thursday it will temporarily suspend four of its nine domestic plants due to the coronavirus impact. Kia plans to halt operations at its two Sohari plants in Gwangmyeong, just south of Seoul, from April 27 to May 8 and again from May 22-25 to keep inventories at manageable levels, a company spokesman said by phone. In addition, two plants in Gwangju, 330 kilometers south of the capital, will also be shut down: No. 2 plant

April 24, 2020

Hyundai Motor launches ‘quieter, stronger’ 2020 Sonata

Hyundai Motor Group’s steady-selling sedan the Sonata has been upgraded with “quieter, stronger” features for 2020, the automaker said Thursday.  The company said it has applied thicker fixed glass to the front row and windshield molding that surrounds the vehicle, for a quieter driving experience. On the gasoline 2.0 model, the company additionally applied double-glaze glass to minimize road noise in the car. Also, Hyundai Motor said it has changed the gearshift patter

April 23, 2020

Hyundai starts to sweat from pandemic woes

Hyundai Motor Group posted a mixed earnings report Thursday, with a rise in operating profit overshadowed by the effects of the novel coronavirus.  The carmaker said its first-quarter sales amounted to 25.3 trillion won ($20.5 billion) and operating profit 863.8 billion won, having respectively risen by 5.6 percent and 4.7 percent on-year amid product improvement and the weak Korean won.  But currency factors also weighed on the auto giant’s net profit, which plunged 42.1 perc

April 23, 2020

Antitrust watchdog approves Jeju Air-Eastar Jet merger

South Korea’s antitrust watchdog has approved low-cost airline Jeju Air’s takeover of the management of struggling Eastar Jet, officials said Thursday. Early last month, Jeju Air signed a deal with Eastar Holdings, the largest shareholder of Eastar Jet, to acquire the airline for 54.5 billion won ($45 million). The firm acquired 4,971,000 common shares for a 51.17 percent stake. “The Fair Trade Commission conducted the review as promptly as possible, considering the circu

April 23, 2020

Hanjin Group sells rent-a-car unit to focus on logistics business

Hanjin Group said Wednesday that it has sold a rent-a-car unit to Lotte Rental to focus on strengthening its core business in logistics and parcel services.  According to the company, it has clinched a deal to transfer 60 billion won ($48 million) of assets to Lotte Rental, which also runs a rent-a-car business. Hanjin also handed over some 3,000 vehicles. The deal was discussed in mid-February, while the finalization process is to take place by May, Hanjin Group said.  “We w

April 22, 2020

[Photo News] New Volkswagen

Stefan Krapp, head of Volkswagen Korea, poses with the automaker’s brand new logo and design unveiled on Wednesday.  According to VW Korea, the new logo indicates the company’s goal to become “New Volkswagen,” under its core brand values: human-focused and digital-centered.  Krapp said during the logo unveiling ceremony that the company will make VW become “a more friendly brand that anyone can have access to.”  The new logo will be applied

April 22, 2020

Korean Air sells Jeju housing complex for employees amid liquidity crisis

Korean Air, the main cash cow for the transport and logistics company Hanjin Group, has sold a housing complex it built for its employees on Jeju Island, industry sources said Wednesday. The move was seen as a way to secure capital amid a liquidity crisis stemming from the COVID-19 pandemic.  The airline reportedly clinched a contract worth 40 billion won ($32 million) for the complex, which comprises 22 two-story houses on 9,450.9 square meters in the Yeon-dong neighborhood. The buyer&rs

April 22, 2020

Beleaguered automakers request liquidity, tax support

The five major Korean carmakers and auto parts makers on Tuesday asked the government for liquidity support for the automobile industry, which has been hit hard by low sales amid the COVID-19 pandemic, and measures to boost domestic demand. According to the Ministry of Trade, Industry and Energy, Minister Sung Yun-mo met with representatives of the country’s automakers, including Hyundai Motor Group President Gong Young-woon, Kia Motors President Song Ho-sung, SsangYong Motors President

April 21, 2020

Auto exports down 46% through mid-April amid pandemic

South Korea's exports of automobiles plunged a whopping 45.8 percent in the first 17 days of April from a year earlier, data showed Tuesday, apparently as the new coronavirus pandemic disturbed the global supply chain and weighed down demand. Outbound shipments of cars reached 48,800 units over the first 17 days of the month, falling sharply from 90,009 units posted last year, according to the data provided by the Ministry of Trade, Industry and Energy. The automobile output also slipped 19.2

April 21, 2020

Ssangyong Motor, union sign wage deal

SsangYong Motor and its union on Monday signed a wage deal for the year amid the rising impact of the coronavirus outbreak on the automobile industry. SsangYong workers agreed on a wage freeze as they see stable labor-management relations as key to putting the company back on track amid virus worries, the company said in a statement.    The maker of the Korando and G4 Rexton sport utility vehicles sealed a wage deal with the union for the 11th consecutive year without strikes since

April 20, 2020

Kia Motors launches upgraded K3 to target customers in 20s, 30s

Kia Motors said Monday that it has launched upgraded versions of its signature midsized sedans the K3 and K3 GT, targeting young drivers in their 20s and 30s. The automaker said the latest models offer features that customers in their 20s and 30s prefer, as well as competitive prices.  The 2021 K3 is available in three trims: standard, prestige and signature. A button-type smart key to start the car and artificial leather seats have been applied to all trims, the company said.  For

April 20, 2020

Korean Air mulls W1tr stock offerings to tide over virus impact: sources

Korean Air Lines Co., South Korea's biggest carrier, is considering stock offerings worth up to 1 trillion won ($820 million) as part of self-help measures amid the growing coronavirus impact on the airline sector, financial sources said Monday. Korean Air is in talks with major securities companies to raise up to 1 trillion won by selling new shares, an investment bank official familiar with the matter told Yonhap News Agency. "Stock offerings are one of various options the company is c

April 20, 2020

Asiana Airlines to extend unpaid leave as virus woes linger

Asiana Airlines Inc., the country's second-biggest carrier, on Sunday announced self-rescue plans, such as extending unpaid leave for employees, to minimize the fallout from the coronavirus pandemic. Under the measure, all employees will be advised to take at least 15 days of unpaid leave each month until business circumstances normalize, the company said in a press release. The company also plans to ask flight attendants and domestic airport employees to apply for two-month paid leaves. To

April 19, 2020

Government to roll out additional support plan for COVID-19-hit aviation industry

As continued losses in the second quarter are expected for the aviation industry over COVID-19 pandemic, the South Korean government is expected to roll out an upgraded support measure for cash-strapped air carriers this week, according to the government sources on Sunday.  According to the government, the fifth round of emergency economic council meetings presided over by President Moon Jae-in is set to take place this week.  President Moon has been reiterating the need to support

April 19, 2020

Airlines to apply no fuel surcharges on all routes in May

As oil prices continue to fall, airlines will not impose fuel surcharges on international and domestic airline tickets issued in May, according to the industry Friday. Fuel surcharges are imposed in steps when the average value per gallon (3.785 liters) of Singapore’s jet fuel is 150 cents and over. From March 16 to Wednesday -- the period that determines fuel surcharges for international routes for May -- the average price of Singapore’s jet fuel was $27.60 per barrel and 65.72 c

April 17, 2020

Air carriers resume domestic routes for spring travel season

South Korean air carriers have resumed their domestic operations for the spring travel season, according to industry sources Thursday.  While resumption of international flights is uncertain over prolonging concerns of the COVID-19 pandemic, local air carriers are planning to reopen flight services to popular tourism destinations across the nation, such as Jeju Island. According to budget airline Jeju Air, it has newly launched Gimpo-Yeosu and Yeosu-Jeju routes on Thursday. The routes wi

April 16, 2020

Airlines halt in-flight beverage service in domestic flights

Korean Air has suspended its in-flight beverage service for passengers on domestic flights, according to industry sources Thursday.  Free beverages -- including water, soda, coffee and tea -- have been suspended as the Transport Ministry recently requested airlines to minimize the number of passengers taking off their face masks in flights, in order to minimize the risk of COVID-19 infection. Korean Air said it will not provide beverages on domestic routes. Another full-service carrier

April 16, 2020