GM Korea’s Trax exports exceed 800,000 units

[THE INVESTOR] GM Korea said on July 15 that more than 800,000 units of its compact sport utility vehicle Trax have been exported since 2012. The Trax, which shares the same platform with the Opel Mokka, topped the list of South Korea’s exported car models with 12,542 unit sales in the first half of this year. Its accumulative number reached 804,977 vehicles globally. The 2016 Chevrolet TraxThe car’s annual exports have continued to grow, with 42,090 in 2012, 193,764 in 2013, 222,440 in 2014 and

July 15, 2016

Volkswagen has no plans to exit Korean market

[THE INVESTOR] Volkswagen Korea said it does not intend to abandon the Korean market amid growing speculation that the automaker could be forced out over the emission scandal. “I apologize for causing trouble for our partner dealers and customers,” Tomas Kuel, CEO of VW Korea said in a letter sent out to the dealers on July 14. “Although we are in a difficult situation, we will keep a strong foothold in the Korean market and pursue future plans.”He stressed that the Korean market is very importa

July 15, 2016

Prosecutors seek to question VW execs in Germany

[THE INVESTOR] Prosecutors have requested the former chief of Audi Korea Trevor Hill and executives of Volkswagen headquarters in Germany to be present for questioning on their involvement in the widening probe into the German carmaker’s cheating emission scandal. Seoul Central District Prosecutors’ Office on July 14 said it has sent a request to the seven executives, including Hill, through the lawyer of Audi Volkswagen Korea on July 11. Trevor Hill, former chief of Audi Korea / The Investor“We

July 14, 2016

Hyundai Motor chief rules out plant expansion in Korea

[THE INVESTOR] Hyundai Motor president Chung Jin-haeng on July 14 made it clear that the nation’s largest carmaker has no immediate plan to expand its production line in Korea. “Considering the investment situation in Korea and overseas, there is no room for expansion here,” he told reporters after a business meeting. Hyundai Motor president Chung Jin-haeng(left) / The Investor(Park Hae-mook)The Gwangju City government requested Kia Motors, Hyundai’s smaller affiliate, to elevate its production

July 14, 2016

Hyundai Motor records lowest Q1 operation rate in 5 years

[THE INVESTOR] Hyundai Motor recorded the lowest domestic capacity utilization rate in five years during the first quarter of this year, data showed on July 14. The carmaker’s regulatory filings showed that its domestic capacity utilization rate came in at 98.4 percent, down from 104 percent recorded in the same period last year. Hyundai Motor’s first-quarter capacity utilization rate has hovered between 99.6 percent and 104 percent since 2012. Hyundai Motor headquaters in SeoulThe company attri

July 14, 2016

VW Korea likely to face W320b penalty for emissions rigging

[THE INVESTOR] Audi Volkswagen Korea is likely to be slapped with a heavy penalty of up to 320 billion won (US$279.51 million) for submitting false documents with intentions to cheat on the government’s emissions tests. The Ministry of Environment will hold a hearing for its final decision on the punitive measure on July 22. Of the 32 Audi and Volkswagen models subject to the penalty, 27 models are currently on sale. Following the decision, the Korean unit could face sales ban on its top-selling

July 14, 2016

Hyundai Motor, BASF to collaborate on high-performance concept car

[THE INVESTOR] Hyundai Motor and German chemical producer BASF will collaborate in building the high-performance concept car N, industry sources said on July 14.  Hyundai Motor concept car N. Hyundai MotorAccording to sources, Hyundai Motor plans to reveal the N concept at the Paris Motor Show in October. BASF’s role in the project is reported to be developing lightweight materials and boosting the engine’s output. The two companies had collaborated in 2010 in developing the midsized concept i-f

July 14, 2016

Hyundai Motor union approves strike

[THE INVESTOR] Hyundai Motor’s labor union approved strike plans in a vote on July 13.The union said that more than 76 percent of its 48,800 members approved the strike.Hyundai Motor’s union plans to participate in a rally on July 20 led by the hardline umbrella union the Korean Confederation of Trade Unions in Ulsan. The July 20 rally will be the first time in 23 years that Hyundai Motor and Hyundai Heavy Industries’ unions are cooperating for industrial action. The carmaker’s union also plans

July 14, 2016

Prosecutors to summon Volkswagen chief

[THE INVESTOR] South Korean prosecutors will soon summon Johannes Thammer, the CEO of Audi Volkswagen Korea, to question him over his involvement in the widening probe into the German carmaker’s cheating emission scandal. Seoul’s Central District Prosecutor’s Office on July 13 said Tamer is suspected of colluding with a VW executive, identified only by his surname Yoon, to manipulate software of the gasoline model Golf 1.4 TSI to meet the emission and noise level standards. Audi Volkswagen Korea

July 13, 2016

S. Korea orders recall of Mercedes-Benz’s trucks

[THE INVESTOR] South Korea’s Ministry of Land, Infrastructure and Transport on July 13 ordered the of recall Mercedes-Benz’s heavy-duty trucks Arocs and Actros after detecting a problem in the exhaust pipe system. Daimler Trucks Korea, which sells Mercedes-Benz trucks here, will recall 157 units of Arocs manufactured from Aug. 26, 2014, to April 4, 2016, and 443 units of Actros, from July 30, 2014, to April 8, 2016. A component in the exhaust pipe was discovered to be faulty, which can potential

July 13, 2016

Yamaha recalls 900 motorcycles in Korea

[THE INVESTOR] Japanese motorcycle manufacturer Yamaha is carrying out a recall for over 900 motorcycles in Korea to rectify a clutch malfunction. The recalled motorcycles are 761 units of YZF-R3 RH07 manufactured Dec. 6, 2015, to April 4, 2016, and 161 units of MT-03 RH07, from March 16 to April 4 in 2016. The motorcycles have been identified as being affected by the defect in clutch pressure plate, causing the engine to stall. Bike owners can get their motorcycles fixed at the Hankook Motor Tr

July 13, 2016

S. Korea orders recall of Ford Mustang over air bags

[THE INVESTOR] South Korea’s Ministry of Land, Infrastructure and Transport said July 13 that it has ordered a recall of Ford’s sports car Mustang as part of an expanded recall to replace faulty air bags made by Japanese supplier Takata.The authorities will recall a total of 948 vehicles manufactured from April 6, 2004, to January 10, 2012.  MustangThe recall is part of a global expansion of an ongoing Takata air bag recall, which could see as many as 100 million vehicles recalled globally, by m

July 13, 2016

Peugeot to recall subcompact convertible 207 in Korea

[THE INVESTOR] French automaker Peugeot is carrying out a recall on its subcompact convertible 207, according to the Ministry of Land, Infrastructure and Transport on July 13. Hanbul Motors, the importer of Peugeot, has been ordered to recall a total of 591 units after discovering that the failed heating system in the seats can potentially cause fire. Peugeot 207The automaker will recall 587 units of Peugeot 207CC manufactured from Feb. 12, 2007, to Oct. 23, 2008, and 4 units of Peugeot 207, fro

July 13, 2016

Hyundai Motor, HHI unions to vote on strike plans

[THE INVESTOR] The labor unions of Hyundai Motor andHyundai Heavy Industries will put their strike plans to a vote on July 13. The two unions, which also plan to form a coalition if they strike, expect the plans to be approved.  Hyundai Motor's union put their srike plans to a vote on July 13.The 47,000 members of Hyundai Motor’s union will cast their ballots at various locations across the country. With the ballots being counted at Hyundai Motor’s plant in Ulsan, the results are expected late i

July 13, 2016

Hyundai Solaris tops Russian car market in H1

[THE INVESTOR] Hyundai Motor’s subcompact car Solaris topped the Russian market in the first half of the year, industry data showed on July 13. Called Hyundai Accent in Korea, Solaris was designed for the Russian market and launched in in 2011. According to industry data, 45,930 units of the Solaris were sold in Russia during the first six months of the year to become Russia’s best-selling vehicle.  Called Hyundai Accent in Korea, Solaris was designed for the Russian market and launched in in 20

July 13, 2016

Hyundai, Kia car sales show new vigor in China

[THE INVESTOR] After months of sluggish sales in China, Hyundai Motor and its affiliate Kia Motors have seen a turnaround in car sales in the all-important market in June. According to industry data on July 12, Hyundai sold a combined 523,000 vehicles in the first half of this year, up 2.5 percent from the same period last year. The carmaker suffered slowing sales in recent months but its car sales soared a whopping 61.6 percent in June alone by launching new models in the month. Hyundai Motor’s

July 12, 2016

Volkswagen Korea receives sales ban notice

[THE INVESTOR] Volkswagen Korea has received an official order from the Ministry of Environment to stop sales and cancel the registration of its vehicles that cheated on emission tests, the company said on July 12. “We received the notice,” Lee Soo-jin, a spokesperson of Audi Volkswagen Korea told The Investor. “But in order (for the ministry) to go ahead with revoking the registration, there will be a hearing session for us to explain. We will come up with an action plan after the hearing.”The

July 12, 2016

Hyundai Motor union readies for strike

[THE INVESTOR] Hyundai Motor’s labor union on July 11 announced that an industrial dispute has occurred, setting the stage for strikes in this year’s labor-management negotiations. Under local laws, a union can legally take industrial action after a 10-day review by the state labor committee. Any industrial action also needs the approval of union members. The carmaker’s union, which applied for labor committee’s review on July 5, plans to put the strike plans to a vote on July 13. If approved by

July 11, 2016

Foreign investors’ buying spree boosts Mando’s share price

[THE INVESETOR] The stake held by foreign investors in Mando, the automotive parts maker of Halla Group, has nearly doubled over the past months. As of July 11, foreign investors own 31.3 percent stake in the company, compared with 17.94 percent in March. During the same period, its share price also soared from 142,000 won (US$123) to 230,500 won. Analysts say the company has made big investments in recent years and investors are now showing keen interest in its business. Among other things, the

July 11, 2016