Hyundai is aware that its dealers overcharge for their vehicles. What Hyundai will do about it is another matter entirely. The Morning Shift for February 23, 2022, will cover all of this and more.
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Hyundai discontinues its engine development division in favor of electric vehicles
Hyundai made the announcement that it is ceasing development of internal combustion engines in order to concentrate on electric vehicles.
The Korean carmaker has stopped creating internal combustion engines for use in its line of vehicles after 40 years of doing so.
According to The Korea Economic Daily, Park Chung-kook, Hyundai’s new R&D leader, announced in an email to staff that the company is stopping work on new engine development.
“Now, conversion to electrification is unavoidable. Although the construction of our own engine is a fantastic accomplishment, we still need to make systemic changes in order to build future innovation off of the great asset from the past.”
According to reports, Hyundai employed 12,000 employees to develop engines, however they have now been moved to concentrate on EV powertrains:
“Only a few of the researchers from the engine design unit are still working on modifying current engines because the majority have transferred to the electrification design center. The powertrain performance development center is evolving into an electrification performance development center, while the powertrain system development center is evolving into an electrification test center.”
On the modification, Park added:
“The immediate challenge is to create cutting-edge automobiles that can rule the market in the future. This restructuring will serve as a crucial springboard for further development in the coming year.”
Hyundai has previously been hesitant to make a complete commitment to electric vehicles.
The manufacturer is still significantly involved in hydrogen fuel cells, but with the release of the Ioniq 5, it is starting to see some success with battery-electric vehicles.
As the manufacturer increases its investment in the technology, which most industry experts say will soon power the entire automotive industry, a full portfolio of Ioniq battery-electric vehicles is anticipated to follow.
Column: Hyundai denounces SoCal dealer that abandoned customers’ vehicles during the pandemic
We can all relate strange coronavirus-related events. One of the strangest may belong to Olivia Vera.
Due to engine issues, she left her automobile at a Culver City dealer in March. When the COVID-19 outbreak forced businesses in the area to close, the dealer ordered the car to be taken away.
Following that, Vera received a bill from the towing business for thousands of dollars in costs for accepting the abandoned car.
The 26-year-old Westwood resident faced the very real possibility that her car would be sold off this week if she didn’t show up at the storage yard with a bag of cash, as if things couldn’t get much worse (and cash only, no checks or credit cards).
Vera informed me, “This is definitely not what I anticipated when I dropped off my car at the dealer. Who would have thought such a thing would happen?
Since the coronavirus ended consumer life as we knew it, I’ve spoken with a lot of people, and I’ve heard all kinds of complaints, from refunds that haven’t been given to businesses that can’t be reached because they’ve laid off practically everyone.
Shares could decline much further.
According to Sung Yop Chung, regional head of automobiles and components at Daiwa Capital Markets, retail investors have purchased shares of Hyundai Motor and Kia totaling about 915.7 billion Korean won ($817 million) and 798.8 billion won (about $713 million), respectively, since the Jan. 8 rumors about a potential collaboration with Apple.
“I mean, there could’ve been a little bit of a conflict of interest from Hyundai’s side and Kia’s perspective,” he remarked. They were hoping to benefit from Apple’s superior software capabilities, not just become a subcontractor of Apple, according to me.
Because Hyundai stated in its regulatory filing that it was in talks with several companies, Chung clarified that it was still feasible for both parties to revisit the agreement at a later time.
“I wouldn’t say that this is the end of it, I would say that the negotiation between the two factions has temporarily halted, if you like,” he remarked.
There have been several rumors about Apple entering the auto industry for years, but nothing solid has happened.
Some Wall Street experts believe that the auto industry is a new market that Apple can expand into, but others warn against the reality of producing an Apple-branded automobile because it might need significant investments with minimal returns.
Does Hyundai still make cars?
Additionally, despite the prolonged interruptions to car production, demand is not too bad. Since the beginning of the year, Hyundai Motor has gradually increased the number of cars it produces each month. In January, it produced 285,133 cars, and it gradually upped that number to 322,767 in April.
Has Kia stopped operating?
The second-largest South Korean automaker is Kia Motors or Kia Motors Corporation. Its headquarters are in Seoul, the South Korean capital, and its annual sales in 2015 were more than 3.3 million units. Hyundai, a minority shareholder with a holding worth more than $6 billion, owns a minority ownership interest in the business.
When it was first established, the company was known as Kyungsung Precision Industry. At the time, it specialized in the production of steel tubing and bicycle parts. It was the first business in Korea to manufacture bicycles domestically. In 1952, the business changed its name to Kia Industries. What values does Kia uphold? It stands for KI, or “To Rise From,” and A, or Asia. It signifies for to ascend from Asia, in other words.
The business began making small motorcycles and trucks with a Mazda license in 1957. The Sohari Plant of Kia Industries was inaugurated in 1973. Four years later, it started producing small-sized Brisa cars, but soon had to halt production.
Kia Industries stopped concentrating on producing passenger cars and started producing compact trucks. Around this period, it also began producing automobiles under Fiat and Peugeot licenses. In 1982, around 100,000 of these vehicles were produced.
The company then collaborated with Ford Motor Company to produce vehicles that were based on Mazda automobiles. The Kia Pride and the Avella were two of its models. The former was a Mazda derivative.
The business began operations in America as Kia Motors America in 1992, and it sold its first cars there. Since then, the company has grown in America, now operating in 30 states through more than 100 dealers.
As of 1997, Kia was insolvent. A year later, it decided to collaborate with Hyundai Motor Company; as a result, Hyundai now owns 33 percent of the business.
Kia Motors began concentrating on the European market in 2005, and in 2006, it appointed Peter Schreyer as its lead designer. When Pope Francis visited South Korea for five days in 2014, he traveled in a Kia car (the Kia Soul). The firm received the top ranking in the US for model reliability in 2016, making it the first non-luxury automaker to do so since 1989.
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Why is the Hyundai stock declining?
The shares of Hyundai Motor Co., the largest automaker in South Korea, are likely to increase. When compared to its 52-week low of 162,000 won ($133.77) on March 15, the stock increased by 11.73%, rising 2.55% to 181,000 won ($149.46) on March 30.
In the ten trading days leading up to March 29, foreigners took the lead in the recovery, purchasing shares worth a net 31 billion won. On the other side, over the same time period, individuals and institutions sold a net amount of shares of 25.7 billion won and 3 billion won, respectively. Between March 2 and March 15, foreign investors sold shares of the automaker worth more than 300 billion won.
Since the second half of 2021, Hyundai Motor’s market share has decreased as a result of worries about inflation, chip shortages, interest rate increases, and the Russia-Ukraine conflict. On June 24, 2021, the stock price reached a 52-week high of 249,000 won. On March 15, it fell by 35% to 162,000 won.
The stock appears to have captured the mood of the market and is about to recover. With the decline in the price of oil and hopes for peace talks between Russia and Ukraine, the worries have subsided. Additionally, the short-term performance of the automobile is anticipated to benefit from the weakening of the Korean won.
Even if industry observers predict a little improvement in the shortfall in the second half of this year, the chip shortage problem is still not showing any signs of improvement. Some market observers predict that the low supply problem would last beyond 2022. However, observers believe that the chip shortage issue has already been reflected in the auto stocks and won’t worsen any more.
The stock price is rising as a result of favorable valuation and market expectations for Hyundai Motor’s success. In response to the supply chain issue, the carmaker has enhanced its pricing strategy by raising the prices of finished cars and raising sales of premium car models.
“The average selling price (ASP) increase at Hyundai Motor will help the company’s performance in the first half of 2022. Additionally, a further decrease from the current level of the stock price will be limited, “the analyst at Hyundai Motor Securities Co., Chang Moon-su, stated.
With 7.5 times of the 12-month forward price-to-earnings ratio, the valuation has improved. With low interest rates a year ago, the forward P/E ratio, which typically ranges between 8 and 10, reached 10 to 11 times.
The long-term growth of the Hyundai Motor stock will determine its potential. Investors haven’t been drawn to the automaker’s plan for its future mobility operations, according to market observers. Only 26% of the company is owned by foreign investors, which is a proportion comparable to the global financial crisis of 2009.
By developing more than 17 EV lineups by 2030, Hyundai Motor is hastening the transition to electric vehicles. Additionally, it intends to increase profitability by adopting “smart factories,” which are automated production facilities run by information technology and digital data. The operating profit goal for Hyundai Motor is 8% by 2025 and 10% by 2030. “The automaker needs to draw up more specific goals,” said Kim Dong-ha, an analyst at Hanwha Investment & Securities Co. The automaker’s mid- to long-term growth plan is desirable.
As a further potential growth engine, the automaker is creating robots. Hyundai Motor is the first manufacturer of finished vehicles to commercialize industrial wearable robots, including the CEX (chairless exoskeleton), which provides sedentary assembly workers with knee support, and the VEX (vest exoskeleton), a follow-up exoskeleton with support for the neck and shoulders. Last month, the parent company Hyundai Motor Group acquired temporary operating licences from the government for 193 of its self-driving taxis. Robots for EV charging and customer service are two more categories that are being developed.
Why is the production of Hyundai delayed?
According to Hyundai, the current semiconductor crisis is still causing a manufacturing bottleneck. Speaking to carandbike, Tarun Garg, Director of Sales and Marketing at Hyundai India, disclosed that due to the lack of semiconductors, the business has an order backlog of roughly 1.35 lakh units.
Has Kia acquired Hyundai?
No, but Hyundai and Kia are connected! In 1997, Kia declared bankruptcy after becoming a stand-alone autonomous company. In 1998, Hyundai Motor Group made the decision to buy the automaker in order to keep it viable. Although Kia and the Hyundai Motor Group don’t work together, Hyundai is Kia Motors’ parent company.
What are some typical Hyundai issues?
- engine tick in an elantra n.
- Defective ZF-TRW Crash Sensor.
- Fire ABS.
- Rats Chew the Soy Wiring from Hyundai.
- Seatbelts Disconnect in a Crash.
- Inflated MPGs for Hyundai.
- Acceleration of the Tucson dual clutch transmission.
- Standard Blue Link Feature
Is Hyundai a reliable investment?
The average 12-month stock price projection for HYMTF stock is $58.31, according to 37 stock analysts.
which anticipates a rise of 92.32%. The lowest and greatest goals are $27.71 and $72.02, respectively. Analysts give the HYMTF stock an average rating.