Autoblog

Since Hyundai/Kia has dropped the idea of a pickup truck, Kia's new assembly plant in West Point, Georgia will instead turn out small cars. The first vehicle that will roll off the assembly lines in 2009 is Kia's Sorento, with body on frame construction well suited to a pickup. What doesn't seem primed for a pickup, however, is a softening market, so Kia has decided to redouble its efforts on small cars.

No details about the upcoming car were discussed, only that we should expect a Spectra-sized C-segment vehicle that may be shared with Hyundai. Hyundai CEO Kim Dong-Jin confessed to the organization losing its way slightly by slacking off on small, high volume cars and going after larger vehicles to bolster the brand images and offerings. A return to its roots will please dealers, and the Genesis Coupe will kick off a turbocharging frenzy at Kia, which will focus on small displacement forced induction engines.

[Source: Automotive News - Sub. Req.]

As the fallout from the Korean government's investigation into Hyundai Motor Co. begins to impact company operations, both Hyundai and subsidiary Kia Motors have postponed construction of new manufacturing facilities in Europe and the U.S.

Kia Motors said Thursday that it was delaying its $1.2 billion Georgia facility indefinitely, and a spokesperson said the company could no longer guarantee that production at its first U.S. plant would begin as scheduled in 2009.

In a separate announcement, Hyundai Motor, which only today signed an agreement with the government of the Czech Republic to build a $1.28 billion factory, said it was delaying the start of construction for the Czech facility.

By most accounts, it would appear that the indictment of Hyundai's chairman, and the pending indictment of his son, the president of Kia, is creating the leadership vacuum feared by analysts. It will be interesting to see how long it takes both marques to get back on track.

[Source: Reuters]