The Korea Times

Foreign carmakers expand presence in local commercial car market

By Park Jin-haiLocal and foreign carmakers are intensifying their competition to take a bigger bite out of the commercial vehicle market.Foreign carmakers are introducing trucks and buses, aiming to take the lead in the lucrative commercial car market in line with the toughened Euro 6 environmental regulations that took effect last month.Volvo Truck Korea will launch full Euro-6 engine lineups ― including its flagship FH, FM and FMX models ― in March. They debuted in Europe last year.Since it started accepting preorders in late January, it has received more than 320 orders in less than 20 days. Considering the Swedish carmaker’s last year sales figure of 1,600 vehicles, the initial response from customers is said to be “explosive.” “For the new fleet with upgraded engines and features, we have limited the price hike to about 3 percent, while our rivals are expected to raise prices around 10 percent,” a Volvo Truck Korea official said. Daimler Truck Korea will also launch new truck lineups with Euro 6 engines on Thursday.Those cars are all new m

Feb 23, 2015By Park Jin-hai

Companies

Kia Soul tops domestic EV sales

Kia Motors’ Soul EVBy Park Jin-haiKia Motors’ Soul became the best selling electric vehicle (EV) in Korea last year. Of the 1,183 EVs sold last year, Kia’s hatchback topped the list selling 414 vehicles, accounting for more than a third of the local EV market, according to the Korea Automotive Manufacturers Association. Renault Samsung Motors’ SM3 ranked second with 309 SM3 Z.E.s sold, followed by Kia’s Ray with 202 sold.Kia’s two flagship EVs together accounted for more than half of the fast-expanding local electric vehicle market. The Soul EV’s popularity stems largely from the 148 kilometers the company claims the car can travel on a single charge, which is longer than the rival SM3 Z.E.’s 135 kilometers and the Nissan Leaf and BMW i3’s 132 kilometers. “Rival models’ batteries tend to lose battery efficiency in cold weather. But, the Soul EV ― thanks to its heat pump system ― is losing less efficiency and that is another plus point,” said a Kia official. The Soul also has a 10-year warranty, a market

Feb 23, 2015By Park Jin-hai

Companies

Hyundai to invest W2 tril. for commercial vehicles

By Park Jin-haiHyundai Motor will invest 2 trillion won in facilities and research to boost its commercial vehicle segment over the next five years.It will expand its Jeonju plant’s annual capacity to 100,000 by 2020, it said Monday.The 2 trillion won breaks down to 400 trillion won for investment in plants, and 1.6 trillion won for research and development in the field.The plant will crank up its capacity to 85,000 by 2017, and 100,000 or up 54 percent from last year, by 2020.It currently produces 65,000 cars.When completed, the plant will manufacture high-end commercial vehicles as well as strategic models for emerging markets, becoming the production center for the company’s commercial vehicles.The company intends to export upscale commercial models to western European nations and the North American market it has not yet entered.The commercial vehicle sector has been forecast to grow 27 percent into a nearly 4 million market by 2020, from 3 million in 2014.  The sector has been expanding at a rate of 4.2 percent per year.The world’s fifth-largest carmaker ca

Feb 16, 2015By Park Jin-hai

Companies

Hyundai recalls 60,000 cars

By Park Jin-haiThe nation’s largest carmaker Hyundai Motor and its smaller sister firm Kia Motors are recalling over nearly 60,000 vehicles, including the Grandeur Hybrid, the land ministry said Monday.Hyundai Motor is recalling 10,604 Grandeur Hybrid, produced between Dec. 24, 2013 and Oct. 24, 2014.The recall is known to have a faulty electronic program in the vehicle's brake system that may fail to warn the driver of a leak or lack of brake fluid, leading to the brake system failure, according to the Ministry of Land, Infrastructure and Transport.Kia Motors is also recalling Bongo 3 flagship commercial truck. The vehicles’ faulty brake system is said to be veering the vehicle left, potentially leading to a loss of control or even an accident.A total of 47,347 Bongo 3 vehicles, produced between Dec. 2, 2007 and Dec. 1, 2013, are subject for the recall.Free repair services is available from Tuesday at Hyundai and Kia service centers throughout the country.

Feb 16, 2015By Park Jin-hai

Companies

Lotte pledges W7.5 tril. investment

By Park Jin-haiLotte Group, the nation’s fifth-largest conglomerate, said Sunday that it will make record investments this year to aggressively seek out future growth engines amid the economic slump.The group said that it will invest a total of 7.5 trillion won ($6.82 billion), up more than 30 percent than the previous year, and is planning to hire more people this year.The company will invest 3.4 trillion won in beefing up its retail business; 1.5 trillion won in construction and chemicals; 1 trillion won in food; and 1.1 trillion won in the tourism and services sectors.Total investment is 32 percent more than last year and exceeds the previous record of 7 trillion won in 2010.The company will also hire 15,800 people this year, slightly more than last year.The conglomerate has been faced with a double whammy of falling sales and rumors involving Lotte World Tower, the nation’s tallest building, currently under construction in southern Seoul.“Despite a tough market environment, including slow economic growth and regulations on the distribution industry, we wanted to

Feb 15, 2015By Park Jin-hai

Companies

Chinese visitors lift retailers ahead of Lunar New year

A range of discount products was available at Lotte Department Store in Myeong-dong, central Seoul, on Sunday as part of a marketing campaign aimed at visiting Chinese shoppers ahead of the Lunar New Year. Customers with Chinese passports get a 12 percent discount. / YonhapBy Park Jin-haiRetailers have enjoyed an unprecedented sales boom in the weeks before the Lunar New Year, which falls on Feb. 19, thanks to the surging number of Chinese tourists.More Chinese visitors are expected to visit Korea during their week-long holiday season, providing a further boost to department stores and other shops, which have been struggling with a prolonged consumption slump.To attract more Chinese customers, retailers have launched aggressive marketing campaigns, offering gold bars and other high-priced giveaways, as well as hiring “hallyu” stars to sell products.During the weekend ahead of the Lunar New Year holiday, or Chinese Spring Festival, on Feb. 18 – Feb. 24, Lotte Duty Free in Myeongdong central Seoul has been bustling with Chinese customers.The cosmetics corner

Feb 15, 2015By Park Jin-hai

Chinese visitors lift retailers ahead of Lunar New year

Companies

Carmakers compete for high speed transmission

Hyundai Motor’s new i40By Park Jin-haiHyundai Motor in its new i40 launch promoted the fact that the sedan has a seven-speed dual clutch transmission.Mercedes-Benz stressed in its E220 Bluetec launch that it has rolled out the first E class with a nine-speed auto transmission, while Chrysler touted that their 200 is a segment-first mid-size sedan with a nine-speed gearbox.For local carmakers, Hyundai’s Genesis and Equus luxury sedans and Kia K9 have the highest gear counts with an eight-speed gearbox.On the back of increasing demand for a higher fuel economy, the local car market is racing to offer more gears on a wider spectrum of cars as well.Transmission is the part that creates the power along with the engine. When the vehicle has a higher gear count it is like having more steps for climbing a building. It enables driving at lower revolutions per minute, thus consuming three to eight percent less fuel.But automakers cannot blindly chase for more gear counts, because it will make the gearbox heavy, thus compromising fuel efficiency.Fiat Chrysler Automotive is one of th

Feb 15, 2015By Park Jin-hai

Carmakers compete for high speed transmission

Companies

Tivoli speaks Ssangyong's next design language

Ssangyong Motor’s Tivoli SUVBy Park Jin-haiSsangyong Motor, the local unit of India’s Mahindra & Mahindra, has been making waves in the local market, with more than 8,000 preorders since its launch in January 13.The carmaker’s first compact SUV has a 1.6-liter gasoline engine and offers what first-time buyers normally want: style, function and price.The Tivoli represents a fresh start for the carmaker that almost went to the point of liquidation.Defying the conventional image that SUVs are heavy chunks of metal, Ssangyong Motor wants to stay cool with a sharp and unique design.The LED head lights give the car a stronger look, while its two-toned body reminds drivers of BMW’s MINI. Inside, along with the heated D-cut steering wheel, the two-toned seats conjures up images of a sports car. The six color cluster that drivers can choose from as their mood changes is another thing customers in their 20s and 30s will love about the car.  The Tivoli is packed full of features, maximizing its functionality, but saving costs on less important features

Feb 15, 2015By Park Jin-hai

Tivoli speaks Ssangyong's next design language

Companies

Korea is fastest growing Maserati market in Asia

Maserati Japan CEO Fabrizio Cazzoli, right, who will also represent Maserati in Korea, stands behind a Quattroporte Diesel, while Lee Gun-hun, CEO of Forza Motors Korea (FMK), which imports the Italian company’s cars, stands behind a Ghibli S, during a press conference at the Shilla Hotel, in Seoul, Thursday./ Courtesy of FMKBy Park Jin-haiItalian luxury brand Maserati said that local sales grew five times last year, making Korea the country with the fastest growth in the Asia Pacific region.“The largest market in the North East Asian Pacific region in terms of sales volume is Korea, taking 36 percent of the overall market,” said Maserati Japan CEO Fabrizio Cazzoli during a press conference at the Shilla Hotel in Seoul, Thursday. He also represents Maserati in Korea.The luxury carmaker sold 723 cars in 2014, up 470 percent from 127 the previous year. The growth rate surpasses the regional average of 252 percent by a large margin as well as its global growth rate of 136 percent. The explosive sales have been led by its entry level Ghibli, making up 70 percent of the

Feb 12, 2015By Park Jin-hai

Companies

Ssangyong's Tivoli popularity gains speed

By Park Jin-haiSsangyong Motor has sold more than 8,000 of its first compact sport utility vehicle, the Tivoli, in less than a month since its debut on Jan. 13.It is no small feat given the automaker, the local unit of India’s Mahindra & Mahindra, set an annual sales target of 38,500 vehiches.“At this rate, we will more than meet the sales target,” a company official said. “Already we have accomplished about a quarter of it.”In January, the Tivoli emerged as the best-selling car in the segment with 2,312 sold. In comparison, sales of Renault Samsung Motors’ QM3, the top-selling model last year, halved to 1,642.Ssangyong Motor expects Tivoli sales to hit 9,000 before the Lunar New Year, and 10,000 by the end of the month.Customers have to wait two months for delivery because of the high demand.Ssangyong Motor makes the Tivoli on the same line that produces the Korando C. The plant is working longer hours to meet demand.“Because Korando C sales are good, we need to maintain its production as well,” a company official said. “But

Feb 11, 2015By Park Jin-hai

Park Jin-hai

Read more

Foreign carmakers expand presence in local commercial car market

Kia Soul tops domestic EV sales

Hyundai to invest W2 tril. for commercial vehicles

Hyundai recalls 60,000 cars

Lotte pledges W7.5 tril. investment

Chinese visitors lift retailers ahead of Lunar New year

Carmakers compete for high speed transmission

Tivoli speaks Ssangyong's next design language

Korea is fastest growing Maserati market in Asia

Ssangyong's Tivoli popularity gains speed

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