Kia’s Chinese joint venture is grappling with the challenge of “complete capital erosion,” struggling to break free from the quagmire. In this situation, local car sales remain sluggish, and with expenses continually increasing, the scale of debt has grown further.According to Kia’s quarterly report
SKIET announced on April 1 that it has signed a memorandum of understanding (MOU) on strengthening cooperation including the supply of battery separators with Sunwoda, the ninth-largest company in the global battery market.SKIET will supply separator products produced at its Changzhou plant to Sunwo
Jiangsu Yueda Kia, Kia Corp.'s subsidiary in China, fell into a state of complete capital impairment at the end of the third quarter of this year. The company is in a dire need to receive support funds again in nine months since its first complete capital erosion at the end of 2021. Analysts say
Kia Corp. will break up with its joint venture partner in China, Dongfeng Motor Corp., after 20 years of partnership.Dongfeng Motor, one of China’s four major state-run automobile groups, is producing automobiles in China under the Dongfeng Yueda Kia brand. Dongfeng Yueda Kia is a three-way joint ve
Hyundai Motor Co. and Kia Corp. are enjoying strong sales in the United States and Europe. But the two Korean carmakers are struggling in the Chinese market.Hyundai Motor and Kia sold a combined total of 249,233 vehicles in China in the first half of 2021. This is a 10.8 percent decrease compared to
Hyundai Motor’s IONIQ 5 loaded with batteries from SK Innovation are expected to receive subsidies from the Chinese government starting from the second half of 2021.Hyundai Motor has decided to use pouch-type lithium-ion batteries designed and developed by SK Innovation for the IONIQ 5 in China. The
ToyotaIn Nov 2020, Toyota rolled out the second-generation Mirai FCEV. Built on a rear-wheel drive platform, the model’s body is lower, longer, and wider than the first-generation model, maximizing driving performance. It can drive 402 miles on a single charge, which is around 90 miles more than the
Hyundai Motor Co. and Kia Corp. posted nearly 2 trillion won in operating losses in China in 2020. It was the worst business performance since the two Korean carmakers entered China in 2002.Hyundai Motor announced on March 10 that Beijing Hyundai, its subsidiary in China, logged 6.87 trillion won in
Kia Motors will recall its first electric vehicle (EV) model, the KX3 (Seltos in the Korean market), in China due to faulty parts. Kia’s recall, which follows that of its sister company Hyundai Motor Co., raised concerns about a blow to the brand image of Hyundai Motor Group in the Chinese market.Do
SK Innovation is growing rapidly in the electric vehicle (EV) battery market through aggressive investment. It increased its production capacity five times in a year, chasing the world’s top three battery makers –- Korea’s LG Chem, China’s CATL and Japan’s Panasonic. SK Innovation set the goal of ov
South Korean companies are in deep worry as the U.S. government is pressuring the South Korean government to participate in an economic bloc aimed at isolating China.Keith Krach, undersecretary of state for economic growth, energy, and the environment said on Wednesday that he and South Korean offic
The author is an analyst at NH Investment & Securities. He can be reached at soohong.cho@nhqv.com. -- Ed. Concerns are rising towards instability in China’s automotive supply chain stemming from the Covid-19 outbreak. While short-term uncertainty in Chinese auto demand is likely to increase on deter
SK Innovation is planning to build an electric vehicle (EV) battery manufacturing plant in Yancheng, China by investing US$1.05 billion. It is likely to become SK Innovation’s second EV battery manufacturing plant in China behind its plant in Changzhou.SK Innovation’s plan has to do with Kia Motors’
Last year, Hyundai Motor reduced the number of its workforce in China by about 1,000 as its sales in China remained sluggish. Kia Motors also laid off 300 employees in China during the same period.According to the sustainability reports of the two companies, Hyundai Motor reduced its employees in Ch
Kia Motors' first plant in China will eventually close down at the end of this month due to a sharp drop in sales. A similar situation is also taking place at Hyundai Motor’s first plant in China. The plant is open but workers are loitering.Kia will lease Dongfeng Yueda Kia's Yancheng Plant
Hyundai Motor and Kia Motors continue to suffer from sluggish sales in China.In April, Beijing Hyundai, Hyundai Motor's joint venture in China, sold 46,000 cars, down 34 percent from a year ago, while Dongfeng Yueda Kia, Kia Motors' local joint venture, posted 24,000 units in sales, a drop o
LG Chem and Samsung SDI failed again to receive electric vehicle (EV) battery subsidies from the Chinese government. This has continued for three years since the THAAD deployment in South Korea in 2016. On the contrary, Chinese EVs and EV batteries are receiving subsidies in South Korea.The Ministry
Kia Motors will shut down its Yancheng Factory 1 in China this May. Following Hyundai Motor, Kia Motors began to step up its efforts to streamline its production facilities in China due to sharp drops in sales in China.Yancheng Factory 1 was set up in 2002 by Dongfeng Yueda Kia, a joint venture laun
Hyundai Motor has been struggling in the Chinese market this year, continuing from last year. Hyundai Motor was relegated out of the top 10 in the Chinese passenger car market in February this year due to the rising competitiveness of local Chinese automakers and aggressive marketing by Japanese aut
South Korean companies are withdrawing from China as it has become difficult to do business there amid Beijing’s growing economic retaliation against Korea’s deployment of a U.S. Terminal High Altitude Area Defense (THAAD) missile defense system. However, SK Group has aggressively made an investment