+++ GENERAL MOTORS and HYUNDAI seem very different automakers. One is a South Korean juggernaut known for its efficiency, while the other is a symbol of American muscle, built on a century of dominance in trucks and SUVs. Yet earlier this month, these 2 giants signed a sweeping partnership. “In a time of intense competition from Tesla and an ever-growing Chinese threat, Hyundai and GM are probably betting that their combined strengths will allow them to stay relevant well into the electric future”, said automotive analyst Im Eun-young from Samsung Securities. The Hyundai-GM partnership spans nearly every aspect of their operations: from joint development of electric and hybrid technologies to shared battery sourcing and factory utilization. “Hyundai brings to the table its hybrid and electric platforms, while GM can help Hyundai mitigate political risks in its US expansion. Their ability to create synergies will depend on focusing on these complementary strengths”, analyst Im said. The writing on the wall has been clear for some time. Tesla has not only revolutionized electric mobility but is also building an insurmountable lead in the infrastructure that supports it. As of mid-2024, Tesla controlled about 60 percent of fast chargers in North America, making its proprietary North American Charging System the de facto standard in the region. Other automakers, including Hyundai and GM, have had little choice but to adopt NACS alongside the conventional Combined Charging System. “Simply put, no automaker can sell EVs at scale in North America without playing by Tesla’s rules”, said senior researcher Kim Kyeong-yoo from the Korea Institute for Industrial Economics and Trade. Meanwhile, China’s EV sector is exploding, with over 50 percent of vehicles sold in the country being electric as of mid-2024. Chinese automakers like BYD and Nio are flooding their domestic and international markets with low-cost, high-tech electric cars, making it harder for legacy automakers like Hyundai and GM to compete on price and technology. For Hyundai and GM, the US is now their most critical market. Hyundai generates 60 percent of its profits in the US, largely thanks to its popular EV models like the Ioniq 5 and Kia EV6. Despite losing ground in China and Europe, Hyundai’s fortunes in the US have held firm. General Morors has been retreating from international markets for more than a decade. After exiting Europe, Russia and India, the automaker now relies almost exclusively on the US and China for the majority of its sales. With its Chinese operations faltering, GM’s future hinges on maintaining dominance in its home market. One of the biggest advantages for Hyundai in this alliance is GM’s influence in the US. As the top-selling automaker in its home market, GM carries significant political weight. This is especially important in an increasingly protectionist climate, where US-China trade tensions could create regulatory risks for foreign automakers like Hyundai. By aligning with GM, Hyundai gains a buffer against political risks and ensures a stronger voice in any policy decisions that could impact the US automotive market. For example, Toyota faced severe scrutiny after sudden acceleration incidents and brake recalls in the US in 2009, with its chairman Akio Toyoda tearfully testifying in 2010. The Volkswagen emissions scandal in 2015, which also originated in the US, further underscored the risks. “Interestingly, despite GM’s ignition switch recall causing more deaths than Toyota’s brake issues, GM faced fewer repercussions, with no public hearings and relatively smaller fines”, said analyst Im. For GM, the partnership is a lifeline, particularly in hybrid technology. Despite its ambitious pivot to EVs, the US market is still seeing significant growth in hybrid sales, as consumers gravitate toward vehicles that balance range and fuel efficiency. GM has largely missed out on this trend, as it has focused almost entirely on full EVs. “Hyundai has been one of few competent automakers in hybrid technology for nearly 2 decades. By partnering with Hyundai, GM can quickly gain access to hybrid technology and meet the rising consumer demand for these vehicles”, added analyst Im. The alliance also helps GM access Hyundai’s advanced EV platform, enabling it to offer more attractive, dedicated electric vehicles, rather than mere derivatives of its internal combustion models, like GM’s Ultium EV platform. “In short, this is a partnership of necessity. Both Hyundai and GM recognize that time is running out as Tesla’s dominance grows and Chinese automakers expand globally. They may not have the time to develop the capabilities needed to compete in these areas independently, but together, they have a fighting chance”, KIET researcher Kim explained. +++
+++ As Chinese companies aggressively expand into HYDROGEN vehicle technology, automakers from South Korea, the United States, Japan and Europe are responding with increased collaboration to maintain competitiveness in future mobility. While electric vehicles have gained significant momentum, hydrogen vehicles and advanced technologies are emerging as the next frontier of the related industry. However, due to their current lack of economic viability, automakers are joining forces to reduce costs and risks in this mid-to long-term investment. During a recent meeting in Munich, Jürgen Guldner, head of BMW Group’s hydrogen technology division, highlighted the rapid growth of Chinese companies in the hydrogen fuel cell vehicle market. He explained that BMW’s recent 10-year partnership with Toyota to co-develop hydrogen vehicles reflects the broader trend of carmakers forming collaborations in response to competitive pressures in the industry. “At this stage, a few companies such as BMW, Toyota and Hyundai are leading the early hydrogen vehicle market”, Guldner noted. “However, the increasing number of Chinese companies developing hydrogen vehicle technology, alongside the rapid expansion of hydrogen refuelling infrastructure in China, deserves attention”. Hydrogen vehicles, seen as the successor to electric cars, use fuel cells to generate electricity by reacting hydrogen with oxygen. While their high cost and limited infrastructure are current barriers, they offer advantages such as faster refuelling times and longer driving ranges compared to electric vehicles. With the support of government funding, Chinese companies are making their presence felt in the hydrogen vehicle market, following their dominance in electric vehicles. Global automakers, who had been leading the development of hydrogen vehicles, are becoming increasingly worried. Last year, China overtook S. Korea (34.7%) to claim the top spot in the global hydrogen vehicle market share with 37.1%. In addition to the BMW-Toyota collaboration, the Hyundai Motor Group has formalized future vehicle partnerships, including hydrogen cars, with General Motors (GM) in the U.S. and Skoda in the Czech Republic. There are even speculations that Hyundai may partner with Toyota in the future. Furthermore, BMW has hinted at the possibility of cooperating with Hyundai on hydrogen refuelling infrastructure through the Hydrogen Council, where Hyundai plays a central role. GM has been collaborating with Honda to expand its hydrogen fuel cell operations. Their joint production facility in Michigan, U.S., became operational this January, marking a significant milestone as the first partnership of its kind in the automotive sector. In June, Honda resumed hydrogen vehicle production in the U.S. with the CR-V e, about 3 years after halting production in Japan. In the advanced technology sector, alliances aimed at countering China’s growing influence are also emerging. In August, Honda, Nissan and Mitsubishi formed an alliance in Japan to develop a Software-Defined Vehicle (SDV) platform. According to Gartner, a U.S.-based IT research firm, Chinese companies like NIO, Xpeng and Geely are gaining prominence in rankings that evaluate the level of digital transformation in the automotive industry for 2024. Meanwhile, automakers from South Korea and Japan have seen little change in their scores or have even dropped compared to the previous year. +++
+++ HYUNDAI executive chairman Chung Euisun visited the manufacturing plant in the Czech Republic, emphasizing the importance of the facility as the automaker’s key outpost for the European electric vehicle (EV) market, the group said. Chung visited Hyundai Motor Manufacturing Czech (HMMC) in Ostrava on Thursday and held meetings with executives and employees to express his gratitude for their work. Chung visited the Czech Republic as part of a business delegation accompanying President Yoon Suk Yeol during his recent visit to the European nation. “I want to express my gratitude to the members of HMMC for their commitment, expertise and strong support”, Chung was quoted as saying. “As the key hub for future investments in our eco-friendly mobility vision and technology, HMMC plays pivotal roles for the sustainable success of Hyundai Motor Group despite the growing uncertainties in the global market”. HMMC was established in 2008 and now stands as Hyundai Motor Group’s only European base capable of manufacturing EVs. Since it began assembling EVs and hybrid vehicles in 2020, the plant has delivered more than 466.000 eco-friendly vehicles as of last month. Chung visited HMMC as uncertainties grow in the European electric vehicle (EV) market, the second largest in the world after China. With key European economies like Germany and the U.K. facing a slowdown, carmakers are pulling back on their EV strategies, concerned that weakened demand may persist longer than anticipated. According to the European Automobile Manufacturers’ Association, industrial demand for electric vehicles in Europe edged up 0.6% year-on-year during the first seven months of this year, compared to a 28.2% growth for the entire year of 2023. “Although we are facing difficulties due to the volatility of the EV market, we will have to double our efforts to facilitate innovation and sustainable growth”, Chung said, promising that the group will spare no investments for product quality and safety in order to retain HMMC’s productivity and profitability. The Hyundai Motor Group said it aims to navigate the current downturn by responding swiftly and flexibly to market fluctuations. In terms of manufacturing and sales, Hyundai Motor plans to increase flexibility in its production line-up, which includes internal combustion engines, hybrids, and EVs, to better adapt to the shifting market conditions in Europe. To address the slowdown in EV demand, Hyundai plans to fill the sales gap with competitive hybrid SUV models. Hyundai said it seeks to reclaim its leading position in the EV market with the Inster, set to launch in Europe later this year. Kia, the affiliate of Hyundai, will release an upgraded version of its EV6 and introduce a more affordable trim for the EV9. The company also plans to expand its electric vehicle line-up with the launch of the EV3, which will make its global debut in Europe later this year. The Hyundai Motor Group said both brands, Hyundai and Kia, will adopt a more resilient growth strategy to address the volatility in the European EV market. The Hyundai Motor plans to gradually increase the production of locally manufactured EVs to align with industrial demand in preparation for a recovery in the European EV market. Kia is also accelerating efforts to establish a local EV production facility in Slovakia, with plans to begin operations in the second half of next year. +++
+++ According to the European Automobile Manufacturers’ Association, HYUNDAI and KIA ’s combined sales in Europe during this period were down 2% from the previous year, with a total of 563.862 vehicles sold. Hyundai’s bestselling models were the Tucson (64.254 units), Kona (42.151 units) and i20 (32.220 units). Kia’s topsellers were the Sportage (88.789 units), Ceed (61.860 units) and Niro (38.846 units). +++
+++ KIA said Friday it has completed building Hyundai Motor Group’s first manufacturing facility dedicated solely to electric vehicles, which boasts an annual capacity of producing 150.000 units. Kia held a ceremony for the Kia Gwangmyeong Evo Plant, located at Kia Autoland in Gwangmyeong, just south of Seoul, which is tasked with mass producing Kia’s new EV3 model and the upcoming EV4 model. Kia invested 401.6 billion won ($304.4 million) in the 60,000 square-meter facility, completely rebuilding it on an existing plant site to facilitate the company’s next-generation vehicle production. The event was attended by around 150 guests, including Choi Jun-Young, executive vice president and head of domestic production at Kia, and Gwangmyeong Mayor Park Seung-won. The EVO Plant is characterized under the theme of pursuing maximum change through minimal expansion, taking into consideration its location in the city center and other environmental factors, such as the protection of green spaces. In addition, the plant has been constructed with a full-scale conversion to electrification in mind, focusing on eco-friendly and worker-friendly elements. Mass production of the EV3, the brand’s compact all-electric SUV, began in the first half of this year. In the first half of 2025, Kia plans to introduce the EV4, the brand’s upcoming mid-sized electric sedan. Choi said in a welcoming speech that the completion of the plant “solidifies Kia’s first step as an EV leader following the company’s brand relaunch in 2021”, “With the goal of providing sustainable mobility solutions, we will lead innovation in the EV market and fulfill our responsibilities in helping to deliver a sustainable future”, he added. +++
+++ MERCEDES-AMG is hatching plans for a spectacular electric supercar that will launch the performance brand into the EV age. The new performance halo model was previewed by last year’s retro-inspired Vision One-Eleven concept, and it is described as a “brand-defining successor to the SLS Electric Drive”, the 750 hp quad-motor EV that was launched in 2013 and which cost €380.000. But while that car was limited to just 9 examples, the new AMG supercar is planned for significantly higher production numbers when it arrives later this decade. Making its flagship less of an exclusive offering is central to AMG’s evolving electrification strategy. It has already launched powered-up versions of the EQE, EQE SUV, EQS and EQS SUV, with specific motors and battery technology separate from those of their standard siblings. The new electric supercar is considered a key part of Mercedes-AMG’s future, despite CEO Michael Schiebe moving to extend the life of some of AMG’s more profitable combustion-engined models amid slower than expected sales of its EVs. However, Schiebe leaves little doubt about the company’s ultimate trajectory, telling: “It’s clear that we are going all-electric”. The new supercar will be charged with cementing AMG’s performance credentials as it switches from high-output combustion engines to electric power. it is likely to outpace the 1.070 hp Mercedes-AMG One, whose Formula 1-derived, V6/electric hybrid set-up is good for 0-100 kph in 2.9 seconds. Despite being tipped for higher production numbers than the SLS Electric Drive, the forthcoming supercar will be priced well above the new AMG GT and is likely to take the brand into exclusive territory, competing with the Porsche Mission X and Alfa Romeo 33 supercars. The production version of the Vision One-Eleven (itself inspired by Mercedes’ experimental C111 supercars from the 1970s) is set to use the AMG.EA architecture, which has been engineered specifically for AMG’s electric models. The platform is modular in its design, with varying lengths, wheelbases and track widths making it suitable for a wide range of models. The upcoming production version of the Vision AMG (a 4-door replacement for today’s GT 4-Door Coupé that is due to be revealed next year) will be the first new model to use it. Like that car, the new supercar will use an 800 Volt electric architecture and a new cylindrical-cell lithium-ion battery featuring silicon-anode developments from US battery specialist Sila. Power will come from high-revving axial flux electric motors. To be used first in the electric GT 4-Door, they were originally developed by Yasa, before the British-based company was bought by Mercedes-Benz in 2021. Since then, the motors have been further advanced by a team of engineers from both Yasa and Mercedes-AMG. With a highly compact disc shape that allows them to be packaged in small spaces, they are roughly half the size and half the weight of the conventional synchronous and asynchronous electric motors employed by the AMG-fettled EVs currently on sale. Schiebe sees the axial-flux motor as a defining technical aspect of future electric AMG models, in the same way AMG’s various V8 petrol engines have been over the years. “Customers who came to the brand because of the V8 did not come because they just wanted to have a big engine”, said Schiebe. “They came because they loved the technology that we put into the car. So when it comes to electric driving, I’m pretty sure they will jump into that new technology because it will be the latest and greatest that you can get”. Yasa’s axial-flux electric motors have already featured in the plug-in hybrid systems in the 1.001 hp Ferrari SF90 Stradale and the 1.500 hp-plus Koenigsegg Regera. Yasa officials have revealed that the patented electric motor to be used by AMG offers more than twice the power of Yasa’s existing electric motors on a power-to-weight basis: up to 500 hp, with a weight of just 24 kg. They also revealed that a number of different drivetrain layouts have been developed, including a single- front and twin-motor rear set-up as well as a quad-motor arrangement with 2 front and 2 rear units. Depending on the layout, this confirms the next generation of electric AMG models will have a significant increase in power and performance over that of those models on sale today. Production of AMG’s axial-flux motors will take place at Mercedes’ Berlin-Marienfelde plant, starting next year. However, Schiebe said AMG will not abandon its ‘one man, one engine’ philosophy, adding: “This is part of our DNA. We will have something in the future which is comparable to ‘one man, one engine’, and it will not be just a marketing effort”. +++
+++ PLUG-IN HYBRID VEHICLES (PHEVs) are the fastest-growing eco-friendly vehicles in the global market. As the prolonged slowdown in electric vehicle (EV) demand and delays in charging infrastructure continue, PHEVs have emerged as a practical alternative due to their reduced charging needs. Equipped with both an internal combustion engine and an electric motor, PHEVs allow the motor to actively engage in driving, offering up to 100 km on electric power alone and an additional 1,000 km with the engine. This results in reduced charging inconveniences compared to pure electric vehicles, which typically have a range of around 700 km. Just 2 to 3 years ago, PHEVs received little attention due to their limited electric range of about 30 km and a price premium compared to regular hybrids. However, advancements in technology have led to the introduction of models with over 100 km of electric range, making them suitable for both city driving and long-distance travel. Chinese automakers like BYD have also launched PHEVs priced around 20 million won, enhancing affordability. According to the Korea Automobile and Mobility Association (KAMA) on Sept. 22, about 2.59 million PHEVs were sold globally in the first six months of this year, a 57% increase from 1.65 million last year. In contrast, sales growth for pure EVs and hybrids was only 8% and 17%, respectively. PHEV sales, which accounted for one-third of EV sales in the first half of 2022, have now reached half. Demand for PHEVs has surged in markets like China and the United States, where vast land areas necessitate long driving ranges. In China, PHEV sales nearly doubled to 1.91 million units, representing about 74% of the global PHEV market in the first half of the year, up from 62% last year. The U.S. also saw a nearly 20% increase in PHEV sales, reaching 160,000 units. PHEVs were previously priced higher than internal combustion vehicles and had smaller battery capacities compared to EVs, resulting in lower subsidies and reduced competitiveness. However, with Chinese firms actively developing PHEV technologies, prices have begun to decline. BYD introduced the Qin L and Seal 06 models in May, both priced around 20 million won and featuring an improved PHEV system. In July, Chery Automobile announced that its PHEV model, the Fulwin T10, set a Guinness record by traveling over 2.100 km without charging or refuelling. Global automakers are increasingly focusing on PHEVs as a transitional solution to EV adoption. General Motors, one of the U.S. Big Three, discontinued its PHEV line-up in 2019 but has since revised its strategy, announcing a new PHEV model for 2027. Supercar manufacturers, traditionally slower to adopt electric vehicles, are now prioritizing PHEV releases over pure EVs. Lamborghini unveiled its first PHEV, the Urus SE, in April, while postponing its full transition to EVs until after 2028. PHEVs have also emerged as a viable alternative to EVs in Europe. As subsidies for both PHEVs and EVs decline, PHEVs become more affordable without government incentives. In Germany, where EV subsidies were abolished at the end of last year, PHEV sales increased by nearly 14% in the first half of this year, while EV sales fell by 16%. +++
+++ STELLANTIS , the world’s fourth largest carmaker, slashed its earnings forecast on Monday, citing investments to turn around its U.S. operations amid a wider industry slump and increased Chinese competition. Stellantis said it was accelerating efforts to turn around North America, including bringing dealer inventory levels to no more than 300.000 vehicles by the end of the year, instead of the first quarter of 2025 as previously planned. The action is in the back of a decrease in shipments of 200.000 vehicles in the second half of this year compared with a year earlier, twice as many as the company had forecast. The company will offer higher incentives on 2023 and older models. In its profit warning, Stellantis said it expected to finish the year with a negative cash flow of 5 billion euros to 10 billion euros, instead of positive. The carmaker, which was created in 2021 from the merger of PSA Peugeot with Fiat Chrysler Automobiles, also dropped its operating profit margin guidance to 5.5% to 7.0%, instead of double digits. The struggling maker of Jeep and Ram is looking for a new CEO to succeed Carlos Taveres, who is under fire from U.S. dealers and the United Auto Workers union after a dismal first-half financial performance. The company has portrayed the search as a normal leadership succession plan. Stellantis is also under pressure in Italy, home to one of the main shareholders, due to production cuts. Autoworkers announced a one-day strike on October 18. The company reported that first-half net profits were down 48% compared with the same period last year. First-half sales in the United States were down nearly 16%, even though overall new vehicle sales rose 2.4%. +++
+++ Opposition to Toyota chairman Akio TOYODA has surfaced among some of the Japanese company’s biggest investors after a series of vehicle safety scandals gave rise to concerns about his leadership and the future of the world’s biggest carmaker. Nissay Asset Management voted against all 10 board members, including Toyoda, in June on the grounds their actions were “strongly in opposition to the needs of society”. Such incidents not only hurt public trust, it published on its website, but they can also damage the market’s valuation of the company. As big shareholders begin to disclose why and how they voted during Toyota’s annual meeting in June, their criticisms and fears are casting further doubt on Toyoda’s chances of reappointment next year. Domestic banks and brokerages, including institutional investors, account for almost 40% of Toyota’s shareholders. As the largest block, a change of heart among those ranks could have a decisive impact on the chairman’s tenure. +++
+++ TOYOTA said Friday its global production in August dropped 11.2 percent from a year earlier to 709.571 vehicles, falling for the 7th straight month, as output was partially suspended due to a vehicle certification scandal and a typhoon. Domestic output slid 22.2 percent to 185.680 vehicles as production of its popular Corolla Fielder, Corolla Axio and Yaris Cross models remained suspended after being halted in June. The figure was also weighed down by Toyota’s temporary production freeze at all its domestic factories due to an approaching typhoon in late August, the company said. The auto giant resumed production of the 3 models in early September after Japan’s transport ministry confirmed the vehicles’ safety and lifted its shipment ban on them, imposed after the automaker admitted to not fully following government standards in conducting vehicle tests. Its production outside of Japan also fell, declining 6.5 percent to 523.891 vehicles, following a recall of the Grand Highlander and Lexus TX in North America. The domestic quality scandal, coupled with stiff competition in China, also negatively impacted its global sales, sending the figure down 3.1 percent to 826,863 vehicles. Toyota sold 109.505 units in Japan, down 9.1 percent, as it was unable to ship the 3 models affected by the quality scandal. Sales in China declined 13.5 percent as local rivals offering more affordable electric vehicles continued to grab market share from Japanese automakers, leading to a 2.1 percent fall in overseas sales to 717,358 units. Japan’s 8 major automakers built a total of 1.85 million cars globally in August, down 10.2 percent from a year earlier, as they continued to face tough competition in China, according to the companies. Output at Nissan fell 15.5 percent to 236.016 cars due to weak sales of the X-Trail in China, while Honda saw an 11.3 percent decline to 307.870 vehicles. Combined global sales of the 8 automakers for the month fell 2.5 percent to 1.98 million cars, they said. +++