Imported green cars showed meager sales in South Korea

[THE INVESTOR] Despite the recent expansion of the imported car market in South Korea, sales did not grow so fast. A total of 1.01 million imported cars were sold from January 2010 to May 2016, according to the Korea Automobile Importers and Distributors Association on June 26.But among them, only 41,466 units, or 4 percent, were eco-friendly vehicles. Out of the 26 carmakers selling imported cars, 15 did not sell eco-friendly cars at all.Only 0.4 percent of sales from BMW, the No.1 seller here,

June 28, 2016

Hyundai Motor Group heads for group-wide strike on July 22

[THE INVESTOR] Hyundai Motor Group’s labor union is set to take industrial action on July 22.One June 27, Hyundai Motor’s union said that the negotiations led by the Metal Workers’ Union broke down and a group-wide strike will take place on July 22. According to the unions, the talks fell apart after group companies rejected their call for the seventh round of talks. The Metal Workers’ Union is a subgroup of the hardline umbrella union Korean Confederation of Trade Unions. The unions of carmaker

June 28, 2016

Prosecutors to summon former VW Korea head

[THE INVESTOR] Prosecutors will soon summon Park Dong-hoon, former head of Audi Volkswagen Korea, to question him over the automaker’s emissions scandal, local news reported. Park, who is currently the chief executive of Renault Samsung, headed Volkswagen Korea from its initiation in 2005 to 2013 until he moved to Renault Samsung. Former head of Audi Volkswagen Korea Park Dong-hoon.  He is now the CEO of Renault Samsung.Prosecutors have found out that Audi Volkswagen Korea manipulated documents

June 27, 2016

Korea-US FTA triples auto imports from US

[THE INVESTOR] The number of automobiles imported from the US has more than tripled since the Korea-US free trade agreement took effect. According to local automotive industry data, the number of vehicles imported from the US went from 13,669 units in 2011 to 49,096 units in 2015, rising by a factor of 3.6. The Korea-US FTA took effect in 2012. In terms of value, automobile imports in 2011 came in at about US$363 million. The figure for last year came in at over US$1.24 billion. In comparison, K

June 27, 2016

VW faces another suit over emissions:South Korea

[THE INVESTOR] South Korean Customers of Volkswagen’s gasoline-powered vehicles have filed a suit against the German carmaker and its local unit over its manipulation of emissions tests, a lawyer said on June 27.Jason Ha, who represents 26 owners of the Golf 1.4 TSI at Barun Law, said he filed the suit, demanding the firm and its local unit refund the cost of their cars.The latest legal action came three days after prosecutors arrested an executive of Audi Volkswagen Korea for installing softwar

June 27, 2016

Hyundai, Kia eye green car expansion abroad

[THE INVESTOR] South Korea’s major automakers are seeking to expand their eco-friendly vehicles to other countries around the world this year, local news reported on June 26. Hyundai Motor plans to sell Ioniq Hybrid in the US and European markets in the second half of this year. Hyundai’s latest green car boasts a fuel efficiency of 22.4 km per liter, which is likely to compete with Toyota Prius, the market leader of hybrid vehicles. Ioniq Electric, the automaker’s first electric vehicle in the

June 27, 2016

GM Korea CEO warns employees over corruption

[THE INVESTOR] GM Korea chief executive James Kim warned that any employee found to be taking part in illegal activities will be dealt with sternly.“Any illegal activities or customs concerning the company will be dealt with sternly,” Kim said in an email sent to employees on June 23.GM Korea chief executive James Kim. “Remember that the actions of an individual can create negative situations for the entire organization,” Kim said, calling on GM Korea employees to focus on further raising domest

June 24, 2016

VW Korea official arrested over emissions scandal

[THE INVESTOR] An executive of Volkswagen Korea was arrested by prosecutors on June 24 for his alleged involvement in the firm’s irregularities in the emissions scandal.The Seoul Central District Court issued an arrest warrant for the official in charge of the vehicles’ certification process, surnamed Yoon, on a charges including forging documents and violating the Clean Air Conservation Act.The court said there are enough reasons indicating that he is responsible for the crimes.The 52-year-old,

June 24, 2016

Volkswagen to recall 2,425 Passat sedans for engine oil pump failures

[THE INVESTOR] Audi Volkswagen Korea -- the local importer and distributer of Germany‘s Volkswagen Group -- will recall 2,425 units of its Passat sedans for an engine oil pump failure, the South Korean transport ministry said on June 24.A defect in the oil pump shaft may result in low or no oil pressure, which could cause the engine to stop without warning. The government said 2,425 units of the Passat 2.0 TDI sedans produced between July 13, 2005, and May 16, 2008, are eligible for free repair

June 24, 2016

VW offers apology with no mention of Korea

[THE INVESTOR] Volkswagen held its first annual shareholders meeting in Hanover, Germany, on June 22 (local time), the first in nine months since it became embroiled in the emissions rigging scandal.While the senior management and directors apologized and explained its ongoing recall plans in Germany and the US, there were no mention of compensatory measures for victims from other countries, including Korea, where 125,522 units were affected. “On behalf of the Volkswagen Group and everyone who w

June 23, 2016

Hyundai’s i30 compact Australia’s best-selling car for 3 months in row

[THE INVESTOR]  Hyundai Motor’s i30 compact maintained it spot as Australia’s best-selling vehicle for the third consecutive month in May, government data showed. The data compiled by Australia’s Federal Chamber of Automotive Industries showed that South Korea’s top automaker sold 3,771 units of its i30 compact in Australia in May, up 126 percent from a year earlier.                                                               i30Toyota Motor’s Hilux took the second place with sales of 3,675 un

June 23, 2016

Assembly of Hyundai commercial cars in Algeria to begin in July

[THE INVESTOR] Hyundai Motor announced on June 22 that a commercial vehicle assembly line in Algeria, and that the facility will being production next month. The facility was built by Global Motors, Hyundai’s commercial vehicle vendor in Algeria.The US$63 million facility will assemble knockdown kits of Hyundai’s commercial vehicles including Mighty and Trago. The facility’s annual production capacity is 15,000 units. Mighty.The facility was built to bypass tougher regulations on imported vehicl

June 22, 2016

Hyundai Mobis retains 6th place in world’s auto parts market

[THE INVESTOR] Hyundai Mobis maintained its place as the world’s sixth largest auto parts maker in 2015, industry data showed on June 22. According to the rankings by sales compiled by Automotive News, Hyundai Mobis recorded sales of US$26.262 billion to retain the sixth place for the third consecutive year. The top place was retained by Robert Bosch with US$44.825 billion. Japan’s Denso rose to the second place with US$36.03 billion, followed by Canada’s Magna International with US$32.134 billi

June 22, 2016

Prosecutors seek arrest warrant for VW Korea executive

[THE INVESTOR] Prosecutors on June 21 filed for an arrest warrant for the head of certification unit of Audi Volkswagen Korea over the automaker’s emission rigging scandal. The head, identified by his surname Yoon, has been charged with fabrication of private documents and obstruction of justice, Seoul Central District Prosecutors’ Office said. Yoon is the first executive in the snowballing case for whom prosecutors are seeking an arrest warrant. According to prosecutors, Yoon is suspected of ma

June 22, 2016

Korean authorities scrutinize Euro 6 vehicles in VW emissions probe

[THE INVESTOR] The prosecution team looking into Volkswagen’s emissions manipulation case are now inspecting models advertised as meeting Euro 6 emissions standards, a local daily reported on June 22. According to reports, Seoul Central District Prosecutors’ Office has requested 2015 Audi A1 vehicle to be inspected, making it the first Euro 6 vehicle to be included in the probe.About 280 units of 2015 A1 have already been sold in Korea. The 2015 Audi A1 lineup includes engines shared with 2016 A

June 22, 2016