by "Wobbles the Mind" (wobblesthemind)
Published 08/23/2017 at 09:55
by "Wobbles the Mind" (wobblesthemind)
Published 08/23/2017 at 09:55
Tags: Free Trade
STARS: 5
The US-Korea Free Trade Agreement went into force on the 15th of March, 2012. Under this agreement, and with the unanimous consent of the US Big 3 Automakers, the tariff on importing light trucks from Korea to the US would originally be phased out after five years in 2017 until it was completely eliminated in 2019. However, the deal was extended to seven years, with the 25% tariff on imported light trucks which we call the “
Chicken Tax
,” now being phased out beginning in 2020 until it is completely gone in 2022.
Here is the important part from Section IV from Facts About the Korea-US Free Trade Agreement :
“Korea will eliminate it’s 10 percent tariff immediately, and the 25 percent U.S. tariff will remain until the eighth year and then be phased out by the 10th year.”
So Korean imported light trucks to the US are exempt from the Chicken Tax starting in 2022. This is the reason I don’t understand why Hyundai would be launching a Tucson-based crossover pickup (CPU) in 2020 for the US when they have open season for the kind of truck Australia, South America, South Africa, South East Asia, the US, and pretty much every market in the world wants just two years later.
Unless they are building the Santa Cruz CPU as well as a global pickup truck... That, I could sort of see. But here’s the thing, Hyundai Motor Group has a ridiculous amount of things going on until 2021. Let me catch my breath, you all are about to get a Sub-Article!!!
Kia is completely overhauling all of its military vehicles .
Hyundai is in the middle of launching its commercial vehicle lineup globally which is being lead by the Xcient.
Hyundai Automotive Group is likely going to convert into a Holding Company structure. This is a huge DEAL!!
The Genesis luxury brand is completely splitting off from Hyundai. That means it won’t be Hyundai’s luxury brand, Genesis will be a stand alone brand. There will be no Genesis is to Hyundai as Lexus is to Toyota, Cadillac is to Chevy, or even Audi is to Volkswagen. Completely separate brand! I called this move last year when I attempted to explain that Hyundai-Kia-Genesis relationship being three separate entities synergizing like no trio has ever synergized before. I guarantee Renault-Nissan-Mitsubishi are taking notes.
!!! UNKNOWN CONTENT TYPE !!!
So HMG (Hyundai Motor Group) has this entire luxury brand being created with a lineup that will be larger than Tesla or Acura’s in less than six years of even being announced as becoming a brand plus launches all over world.
While we are on the topic of Genesis, remember that they don’t share any platforms or drivetrains with any Hyundai vehicles nor plan to. They do however share with Kia’s “premium range.” You won’t even be able to have warranty service done on your entry-level G70 sedan in a Hyundai dealership by the end of this decade. But a Kia dealer could probably service your car so it makes you wonder if it’s really a very elaborate cover for Kia-Genesis (it’s not though).
Then remember that Hyundai is launching its N Performance Brand. Hopefully it will have better luck than Infiniti’s IPL.
Kia is creating an upmarket lineup in the Stinger, K900 successor, and future Telluride SUV (and they say Cadenza too but that’s right on the line). They are also revising the GT Line and reworking their lineup to become the benchmark on ride and handling .
Then South Korea announced that it would revise the qualifications for its EV incentive and those revisions will go into effect this September. This means that long range electric vehicles like the Model S will enjoy a $23,000 credit off MSRP! Hyundai Motor Group has already announced they are going to bump up from two battery electric cars to eight (including a luxury long range vehicle for Genesis) plus continue building hydrogen fuel cell cars as well as expand their hybrid and plug-in hybrid offerings.
HMG just beat Honda this year and became the second largest green car producer in the world . Still way behind No. 1 Toyota though.
The bulk of all this stuff is being done from 2015 to 2020 on top of keeping the cars already being sold competitive, working on autonomous tech, building their own transmissions (6DCT, 7DCT, possible 8DCT, 8AT, 10AT coming soon and etc.), and still trying to convince people that the cars are ok.
I mean there’s still more to type but forget that, you get the idea!
Again, all is pretty much finishing up by the end of 2020. FCA is still wondering what FCA is doing with any of their vehicles while HMG is overflowing with fresh products that are all better than the last car that just came out two month prior. And the craziest part is that all these products, no matter the scale or market, actually have a tendency to work and are praised for their quality.
All this without any brand cache, no prestige, no hertitage, no enthusiast support, no help from other automakers, no Chinese market advantage, too few utilities, awful dealerships, and relatively little coverage from the automotive media to even let people know the breadth of brands.
Last I checked, for 2017, the list of Largest Automakers in the World went:
Renault-Nissan
VAG
Toyota
GM
HMG
The fifth largest automaker in the world is actually attempting to build the things we ask for, but at the end of the day and everyday the story is the same...the badges ruin the everything.
That’s how important branding is, kin. We know everything about the only all new Tesla coming out and nothing about the 30-plus completely new cars coming in from the Korean brands that sponsor all of our sporting events.
Kia shouldn’t have the Power to Surprise, we have the internet.
"Sweet Trav" (thespunbearing)
08/23/2017 at 09:20, STARS: 3
Having worked with Hyundai, after seeing their engineering requirements, after seeing what they expect from suppliers I can say this.
I will NEVER drive a Hyundai.
Cost always wins out with them, over quality, over performance, over comfort, over SAFETY. I’m willing to accept that all corporations are cost driven, but if I go to Ford and say that we have safety concerns about a design, they will stop the presses immediately. The same is not true of HMG.
"BahamaTodd" (bahamatodd)
08/23/2017 at 09:26, STARS: 0
How much you wanna bet reversing that decision on the Chicken Tax is part of the discussion to revise the FTA with Korea.
"CalzoneGolem" (calzonegolem)
08/23/2017 at 09:29, STARS: 0
I think a truck based on the Soul would be awesome. Stretch the wheel base and overhang for bed space and maybe adapt 4wd. They could even develop a 4wd Soul at the same time.
"RamblinRover Luxury-Yacht" (ramblininexile)
08/23/2017 at 10:03, STARS: 2
I need a Kia retake on the Subaru Brat. In my pants.
"Dark chocolate" (amghybridss)
08/23/2017 at 10:12, STARS: 1
You do understand who you’re responding to, right? “Wobbles-my-mind” breathes/eats/ sleeps Hyundai/ Kia. He thinks (and proudly wastes an hour or so writing an article) that his Amanti is in some way similar to a luxury marque, just cheap (like 1% of the value). And that the upcoming Stinger GT is an end all to all AMG / M and RS models, well in his opinion it offers 90% of the performance at 70% of the cost.. really it does wobble my mind. No offense intended.
Yes I have driven a K900 / Equus as well as the G80 and G90. Even the latest Cadenza. I was trying to buy one. But (every) test drive (on each of them) out me off so much. There’s a good reason why people don’t flock to the bargain pricing of these cars and still flock to the much more expensive (Germans) or reliable (Lexus) options. But then WMM will chip in with an argument: “They do buy them enough for Hyundai / Kia to offer these.!!!” Yes and Taco Bell does sell “Mexican food” and makes shit loads of profit too!
I genuinely wanted G80 / G90 / K900 to succeed, cause I wanted one for my 120 mile s day commute. the selection / combination / quality of materials etc just ruined it all. You really do get what you pay for.
Ended up with a CPO 7 series.
Sorry for the rant. Again, no offence intended.
"fintail" (fintail)
08/23/2017 at 10:17, STARS: 0
Genesis may be legally spun off, but if there is any parts bin or personnel sharing, it’s a distinction that exists only on paper. The goofy idea of having Hyundai Genesis models first for many years, then a Genesis brand with Germanic alphanumeric models (where it should have been the brand to begin with) will also not be quickly forgotten by the market.
Regarding what we ask for, some help is still needed with design, too. The awkward KDM flair is gone, which is a good thing, but some things like the FCEV are treading on copycar thin ice, and the Stinger IMO is not daring enough. Regarding the ride and handling benchmark - good luck! Poaching a BMW guy is a nice start, but everyone else is moving, too. Maybe should have been done with the Genesis debut, which was widely panned for suspension tuning. Maybe put sports sponsorship money to better use.
I like small trucks (even if I don’t plan to buy one), we can hope orange smallhands doesn’t launch a trade war and implements new stumbling blocks so his fans can keep “winning” and making things great.
"John-Palazzo" (John-Palazzo)
08/23/2017 at 10:33, STARS: 1
I’m pretty sure it will be based on a crossover, probably really similar to the concept or something like the Fiat Toro, which, at least here in Brazil, is selling quite well.
If I had to use my magical designer powers to predict future style trends, I would say that crossover based pick-up trucks are the next big thing, especially among brands that have no “truck heritage”.
"Chuckles" (chucklesw37)
08/23/2017 at 10:44, STARS: 0
I will now forever think of Hyundai/Kia as the Taco Bell of cars. Sales volume doesn’t equal a good product.
"LongbowMkII" (longbowmkii)
08/23/2017 at 10:49, STARS: 2
Ford. stops the presses for safety.....
riiiight.
"PS9" (PS9)
08/23/2017 at 10:59, STARS: 5
He thinks (and proudly wastes an hour or so writing an article) that his Amanti is in some way similar to a luxury marque, just cheap (like 1% of the value). And that the upcoming Stinger GT is an end all to all AMG / M and RS models, well in his opinion it offers 90% of the performance at 70% of the cost....
I’ve Been reading (and criticizing) his content for a least a couple of years and have never seen anything even remotely close to what you are accusing him of here. he does like the stinger a lot, but he never claimed it would ‘end’ anyone or anything. He did compare his Amanti to a flying spur, but that was as a joke. You 90/70 ratio is way off, but ‘offering a lot of car compared to a luxury marque for a discount’ is what the stinger is going for, and point that out does not make someone a fanboy.
WTM is a Kia fan. Kia Fanatic, even. But I’ve yet to see him post information he knows to be inaccurate just because it favors Kia. This is oppositelock; it is completely fine to post a long-winded article about your favorite car band here, and how much time you’ve spent on it shouldn’t matter to anyone.
"B/Xmrrmvr" (davidedumass)
08/23/2017 at 11:00, STARS: 0
GM virtually got away with its ignition switch defect that they knew about and Ford knew about the Firestone tire defects back in the day. I can’t understand how you can say what you’re saying.
"Sweet Trav" (thespunbearing)
08/23/2017 at 12:35, STARS: 0
I’ve only been working with the OEM’s for about 4 years now, I can’t speak to “Old GM” or Mid-90's Ford, but I can tell you that safety is taken much more seriously by the US and German (particularly the Germans) than the Korean automakers. Even the safety factors to be used on engineering calculations differs.
"Dark chocolate" (amghybridss)
08/23/2017 at 12:40, STARS: 0
yes. It is fine. That’s why I still read his articles. cause I like to shake my head. And I may have commented once on those. Cause I don;t want to rile up shit based on someone’s choice.
Again, as i repeatedly mentioned, no offence intended. And he can definitely write what he wants.
How much something should matter to me is none of your business.
:)
"SilentButNotReallyDeadly...killed by G/O Media" (silentbutnotreallydeadly)
08/24/2017 at 01:22, STARS: 0
2020 to 2022 is the time period given by Hyundai Oz for the launch of a light truck to take on Hilux, Ranger et al. So I tend to agree with your assessment.
By the way , all HMG vehicles in Oz get local chassis development to set Oz appropriate suspension settings. Typically they start with the European rather than US settings and work from there. Even the Kia Stinger is copping a feel. The only one not getting touched is the new N Series i30 - but even it was tested first before the decision was made.