The Korea Times

Tivoli receives top rating in vehicle safety test

By Park Jin-haiSsangyong Motor’s Tivoli compact SUV received the top score in the Korean New Car Assessment Program (KNAP), the automotive safety test conducted by the land ministry.It scored 91.9 points out of 100.The Ministry of Land, Infrastructure and Transport applied new standards for the tests. Five local and imported models were tested in the categories of crash safety, passenger protection, driving performance and accident prevention. The other vehicles were the Infiniti Q50 sedan, the BMW X3 compact SUV, the Kia Soul compact and the Hyundai Tucson SUV.The Tivoli, in particular, posted a strong result in the crash test, scoring 65.8 points, the highest among leisure vehicles since 2013.    “The 71.4 percent use of high-strength steel as well as 40 percent ultra-high-strength steel, the biggest in the segment, has made Tivoli’s body very rigid,” said Ssangyong Motor. “By having a perfect score on front and side crash tests, its crash safety has been verified.”Ssangyong’s popular compact SUV, since its launch in January,

Aug 21, 2015By Park Jin-hai

Companies

Porsche dealer refutes labor claims

By Park Jin-haiSSCL CEO Graeme HunterStuttgart Sports Cars Ltd (SSCL), the largest local Porsche dealer, hit back at its car dealers that are staging walkouts, saying they have distorted the truth and are playing games with the media.It said most of the union’s claims that the company unfairly dismissed union members and that dealers face poor working conditions are simply not true.“Unions insist on an unconditional retraction of the disciplinary action legally taken by the company. The recent dismissal of four dealers was a measure against individuals who violated not only ethical regulations of the company but also Korean law,” said Shin Ye-hwan, SSCL’s sales and marketing director, during a recent press meeting.The 49 union members out of the company total of 68 dealers have been on strike since Aug. 5, calling for the return of the four union members that were dismissed. The SSCL claims one of the union members was fired for abusing his position and committing sexual harassment on two occasions; another lost his job for a trademark violation; while th

Aug 20, 2015By Park Jin-hai

Companies

Hyundai Motor sacks executives amid struggles

By Park Jin-haiTan Tao-hung, head of China business strategyfor Hyundai-KiaLee Byung-ho, head of Beijing Hyundai MotorHyundai Motor Group, Korea’s biggest automaker, has sacked several senior executives in China as part of a corporate strategy to reverse falling sales in the world’s largest auto market.In a rare mid-year reshuffle of management, Sichuan Hyundai Motor’s Sales Division Vice President, Tan Tao-hung, was named new head of China business strategy for both automakers.Lee Byung-ho, vice president at Hyundai WIA, will be responsible for handling Hyundai's main joint venture in China, Beijing Hyundai Motor. Kim Gyun, vice president at Kia Motors, was given a mission to put its affiliate, Kia's China joint venture, Dongfeng Yueda Kia Motors, on track as quickly as possible, the company said Wednesday.In a measure to take full responsibility for the continued sales slump in China, the outgoing executives were demoted.“It is a move to change the organizational atmosphere in our China business as well as strengthening our ability to cope with market change

Aug 19, 2015By Park Jin-hai

Hyundai Motor sacks executives amid struggles

Companies

Volvo Group Trucks aims to double sales in Korea by 2020

By Park Jin-haiChristophe Martin, president of Volvo Group Trucks’ Asia-Oceania sales divisionA senior executive at Volvo Group Trucks Asia said the Swedish truck manufacturer plans to double sales of its products in the Korean market by 2020.“Volvo aims to double annual sales by 2020 focusing on medium and heavy-duty trucks. Volvo is confident in maintaining its leadership in the local truck segment thanks to strong brand awareness,” Christophe Martin, president of Volvo Group Trucks’ Asia-Oceania sales division, said in a recent interview.He stressed Korea is a “very unique” market for the group for two reasons. “Volvo was impressed to see the outstanding growth rates over the last few years unlike other truck brands. Also, the consistency and speed of this trend is very strong and impressive,” the executive said.Volvo said it holds between 45 percent and 50 percent market share in the imported heavy-duty truck segment in Korea. According to Martin, the release of its brand-new FL-series medium-duty truck lineup in Korea represen

Aug 19, 2015By Park Jin-hai

Volvo Group Trucks aims to double sales in Korea by 2020

Companies

Mercedes Financial offers zero-interest loans

By Park Jin-haiMercedes-Benz Financial Services has been offering zero-interest car loans to buyers since last month.Nine out of the 11 Mercedes official dealers, with the exception of Star Motor and Han Sung Motor, have joined Mercedes-Benz Financial Services, providing zero-interest car loans for small and mid-sized cars to woo younger customers.The massive no-interest car loan promotion is the first since Mercedes-Benz did something similar in 2012.The models affected are A-Class, CLA-Class and GLA-Class cars.When the car is paid off in 24-month installment plans, customers must pay 30 percent of the car’s price in a lump sum and then pay the rest interest-free over the remaining months. In the case of a 36-month installment plan, the initial payment must be 40 percent of the total car price.Dealers say they will decide whether to continue the sales policy after reviewing sales reports and customer reactions accepted until the end of this month.   When other imported luxury car makers, including BMW and Volkswagen, have competitively offered zero-interest loans to

Aug 18, 2015By Park Jin-hai

Companies

Hyosung, Kolon clash in luxury car market

By Park Jin-haiCompetition between Hyosung Group and Kolon Group is heating up as the two aggressively expand their dealerships to meet the needs of the lucrative luxury imported car market.In March, Hyosung ― the official dealer of Mercedes, Toyota and Lexus cars ― acquired FMK, which imports and sells Ferraris and Maseratis. It recently appointed Hyosung Vice President Cho Hyun-sang as FMK’s standing director along with two others last month.Cho, the third son of Hyosung Group Chairman Cho Suk-rae, was behind the conglomerate’s acquisition of FMK.Although Hyosung’s three sons shared stakes in The Class Hyosung (Mercedes dealer), Hyosung Toyota (Toyota dealer) and The Premium Hyosung (Lexus dealer), none of them had previously participated in the imported car business as a standing director.Industry insiders say that putting Cho in charge means that the company’s imported car business will further expand its territory here, clashing with Kolon Group, which has been holding the No.1 position for sales at an imported car dealership.“Cho was the

Aug 18, 2015By Park Jin-hai

Companies

Kumho Tire union stages strike against wage system

By Park Jin-haiUnionists of Kumho Tire, the nation’s second-largest tire maker, began their first full-day strike in three years Monday, as labor and management differ on a new peak wage system the company is trying to introduce.About 3,300 workers of Kumho Tire's three production facilities in Gwangju, Gokseong and Pyeongtaek, staged an eight-hour strike.In the annual wage talks, the company says it needs to adopt the peak wage system to raise competitiveness, while the unionists say the wage talks should be separate from the peak wage issue.  Under a peak wage system, employees must accept reduced salaries in return for a guarantee of employment until retirement. The system aims to allow the company to use the money saved to hire young workers.“The company has been destroying the labor-management relationship by enforcing the peak wage system,” said the Kumho Tire chapter of the Korea Metal Workers Union during a press briefing at its Gwangju plant, Monday.“We agree with the good cause of creating jobs for youth, but we think the decision on the new sys

Aug 17, 2015By Park Jin-hai

People & Events

'Korea lags behind in fintech industry'

Lee Suk-geun, a member of the National Economic Advisory CouncilBy Park Jin-haiLee Suk-geun, a member of the National Economic Advisory Council, a consultative body for President Park Geun-hye, said Korea lags behind in the burgeoning fintech field.  “Although what fintech can do is immense, we are slow in adopting it due to skepticism that fintech is just another form of what we have traditionally been doing, coupled with government regulations,” Lee said.Lee, an endowment professor at Sogang Univesity, said the banking industry is now moving to “bankless” services through the Internet and smartphones. Over the decade, while the United Kingdom has embraced fintech and has cut costs by reducing bank branches by 40 percent, Korea has seen only a 2 to 3 percent decrease in branch numbers.Lee graduated summa cum laude from Sogang University, majoring in business administration. Then he completed an MBA course at Chicago University.“Although now none face-to-face transactions make up more than 80 percent of all banking business, banks are hesitant

Aug 13, 2015By Park Jin-hai

Companies

Hyundai, Kia models top in July sales in Russia

By Park Jin-haiHyundai Motor and its affiliate Kia Motors were the two best-selling cars in Russia in July.Hyundai's Accent subcompact, known as the Solaris in Russia, sold 10,251 units in July, up 4.8 percent year-on-year, claiming the top-selling spot, according to the Association of European Business.Kia's Pride subcompact, called the Rio in Russia, came in second with 9,151 cars sold last month, up 33.5 percent from a year earlier, the association said.It is the first time the two were ranked in the top two spots in the world’s largest country.With the collapse of the Russian ruble last year, car manufacturers have been struggling with plunging consumer demand.Global car makers including General Motors have discontinued sales of certain models and have cut investment in the Russian market.In the first seven months of this year, total car sales in Russia were down 35.3 percent from the previous year, at 913,181 cars.However, Hyundai and Kia have maintained their marketing and dealerships, focusing on the strategic models the Solaris and the Rio, in the belief that when the R

Aug 12, 2015By Park Jin-hai

Companies

Volkswagen marketing head leaves for Renault Samsung

By Park Jin-haiBang SilVolkswagen’s first female marketing head Bang Sil is leaving the German carmaker to work for Renault Samsung Motors.Bang, a founding member of Volkswagen Korea in 2005, has been credited for the tremendous growth of the carmaker in the local market over the past decade.During her tenure, the carmaker’s sales have increased from 929 in 2004 to 30,719 in 2014, making Volkswagen Korea one of the fastest growing imported carmakers here.Bang has led the market by introducing small hatchbacks and diesels where big gasoline sedans had previously been dominant.She was promoted to the top marketing position last year.However, in recent months, she became embroiled in a conflict with the German headquarters while her team was under audit. She was suspended for one month in July during the audit over compliance issues, before she handed in her resignation.She will begin working for Renault Samsung from September.Bang majored in textile arts at Ewha Womans’ University and took an MBA course at Korea University.

Aug 12, 2015By Park Jin-hai

Park Jin-hai

Read more

Tivoli receives top rating in vehicle safety test

Porsche dealer refutes labor claims

Hyundai Motor sacks executives amid struggles

Volvo Group Trucks aims to double sales in Korea by 2020

Mercedes Financial offers zero-interest loans

Hyosung, Kolon clash in luxury car market

Kumho Tire union stages strike against wage system

'Korea lags behind in fintech industry'

Hyundai, Kia models top in July sales in Russia

Volkswagen marketing head leaves for Renault Samsung

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