Hyundai - Kia Group Targeting a 10-Percent Increase in Sales for 2011

For the Hyundai Motor Group and its affiliate Kia Motors, the New Year brings a new sales target as the South Korea's largest automaker said on Monday it aims to sell 6.33 million cars in 2011, which represents a 10 percent increase over 2010 when the company sold a combined total of 5.75 million units. More specifically, Hyundai delivered 3.6 million cars (up 16 percent from 2009), while sold Kia 2.1 million vehicles (+40 percent over 2009) worldwide last year.

"Hyundai Motor Group's 2011 target appears to be conservative and fully achievable," Tong Yang Securities analyst Ahn Sang-jun told Reuters.

"Sales growth will be slowing because of a high base effect during the 2009 downturn, but Hyundai will still gain a share in the market, which is expected to grow 7 percent this year led by China and the United States," Ahn Sang-jun added.

In order to achieve its goal, the South Korean automaker is planning to roll out a variety if new or refreshed products in 2011 including the Hyundai Veloster small coupe, Azera sedan (Grandeur in South Korea), the European-market i40 SW and Saloon, as well as the Kia Picanto and pro_cee'd facelift. Last year the two companies overhauled their vehicle lineups with an array of new products such as the 2011 Hyundai Sonata and Elantra, and Kia Sportage CUV and Optima saloon.

Source: Reuters

Hyundai Launches First 4-D Commercial for New Azera Sedan

Hyundai is banking on the latest film technologies to promote its new Azera sedan, at least on its home turf. The automaker released a new advertisement for the mid-size saloon, which is named Grandeur in its home market, in select 4-D and 3-D movie theaters in South Korea.

For the creation of the advertisement, Hyundai turned to the makers of the Avatar movie. Even though this is not evident in the 2-D version of the advert seen in the video below, the 4-D movie shown in theaters combined a 3-D film with special physical effects such as vibrating seats, wind and steam which occur in synchronization with the film.

We'll have to wait and see if Hyundai will make use of the 4-D commercial for the North American version of the car when it arrives in the market later this year.

Hat tip goes to Jinhwan!

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Saudi Arabia Signs $500 Million Deal with Korean Company to Build Cars

The King Saud University (KSU) on Sunday announced a $500 million deal with South Korea's Digm Automotive Technology to set up Saudi Arabia's first car manufacturing company. The Saudi university recently made headlines with the Mercedes G-Class-based 'Gazal 1' (pictured above) after announcing that the SUV is heading for production.

The Saudi Press Agency reported that the university's investment arm, Wadi al-Riyadh Technology, will contribute 10 to 15 per cent of the financing for the new venture, with the South Korean firm providing 30 per cent, while the rest will be covered by investors.

“The move comes as part of the university’s efforts to transfer technology and establish a knowledge-based economy,” said KSU President Abdullah Al-Othman after signing the deal with Y.K. Jeon, president of Digm Automotive Technologies.

Al-Othman said the joint-venture's first vehicle will be an economical five-passenger model. “Our aim is to market a low-cost car of high quality priced at between SR35,000 and SR45,000, [US$9,300 to US$12,000]” Al-Othman told reporters.

He added the car will be ready within the next two years and that he hoped to export the country's first automobile to other Gulf states as well as North African countries.

Source: Arabnews , Reuters , SPA

Photo: Gazal 1

Korean Designer Mixes Science and Nature in a Saab Sports Sedan Concept for 2025

Earlier this year, Swedish automaker Saab was saved from the scrapheap by Spyker and a loan from the European Investment Bank. In spite of this, nothing much has changed. The stylish new 9-5 has gone on sale overseas, with the 9-4X crossover following in Q2 2011. And the aging 9-3 trundles on, blissfully unaware that anything has happened.

Korean design student Youngho Jong is looking towards Saab’s future with his 2025 Advanced Warning System Vehicle concept: a rakish, four-door saloon with coupe-like styling. And no headroom, by the looks of it, but that’s a forgivable oversight. More interesting to us, however, is how he used his knowledge of nature and human psychology to come up with a vehicle that isn’t just smart, it’s downright sinister.

Jong’s goal was to design a vehicle that would warn other drivers of impending danger. With his research showing that 50% of vehicles accidents are caused by carelessness, excessive speed and tailgating, Jong wanted to create a car that would warn other drivers to back off and drive with care.

If you are following the 2025 concept too closely, for instance, slits open up in its rear panels revealing amber hazard lights. Patches of the car’s skin also darken, warning you that you are too close. The same amber slips are found on the front and sides of the vehicle. Jong took his inspiration from nature’s Fire Salamander, which uses its bright, menacing colours to ward off potential predators.

Jong also incorporate sharp edges and the colours red and yellow to further emphasises the possible danger. He also mentions that the vehicle’s skin is constructed of a soft, impact absorbing material that reduces pedestrian injuries and vehicle damage in collisions.

All in all, it’s a very clever, if far-fetched solution to a very real problem we face in the world today. The technology isn’t quite there yet, but it’s not too hard to believe that cars twenty years hence will use a system like this. As for the design, I leave the final verdict up to you, the readers.

By Tristan Hankins

Sources: Umea Institute & Cardesign

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Hyundai Evaluating the Creation of a Separate Genesis Brand to Compete with Lexus, May Build a BMW 3-Series Rival

If you were wondering what's next on the Hyundai and Kia Group's agenda of world domination, the answer is the addition of a third brand to the firm's portfolio to compete head on with Japan's Lexus and Infiniti, and possibly even Germany's finest, including BMW and Audi.

The luxury arm would most likely be called Genesis and include the South Korean firm's current rear-wheel drive offerings such as the Genesis Sedan and Coupe, plus the soon-to-be-launched onto the American market, Lexus LS-rivaling Equus.

The automaker, which saw its U.S. market share increase by an overly impressive 50 per cent in the past two years, would further enhance the range of the Genesis brand with a compact sports saloon in the likes of BMW's best-selling model, the 3-Series, and a crossover utility vehicle to compete with the Lexus RX 350.

The creation of the luxury arm is more than just a thought as John Krafcik, president of Hyundai Motor America, told The Wall Street Journal that the company has two branding scenarios under consideration.

The first and most likely to happen would be for Hyundai to launch the Genesis as a sub-brand and sell the cars in separate parts of its own showrooms. The other is to follow in the footsteps of Lexus and launch the brand into separate dealerships. One third option would be for the company to develop the aforementioned sedan and SUV models but keep the Hyundai branding for the time being.

"One of the keys to this plan is how well the Equus does. We don't need to make a decision for some time", Mr. Krafcik said on the branding question during an interview with journalists.

While Hyundai remains open to all options, Mr. Krafcik said that he is most concerned about launching a spin-off brand due to the costs related to the creation of a new network of dealers and that the company would need to make an additional $6,000 in revenue per each car sold by the outlets.

There appears to be a lot of enthusiasm among Hyundai dealers who are almost certain about the creation of the Genesis brand.

"The dealers are excited about the Equus, and it being the lynch pin for this Genesis brand," said Scott Fink, an owner of two Hyundai dealerships in Florida. "We feel like we can do what others have been unable to do. We think we can sell a luxury brand within the house of the mainstream brand."

Source: Wall Street Journal

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