United States vs. South Korea Automobile Companies

United States vs. South Korea Automobile Companies
United States vs. South Korea Automobile Companies Image link: https://en.wikipedia.org/wiki/Speed_limits_by_country
C O N T E N T S:

KEY TOPICS

  • In South Korea, vehicles made in the United States are a niche market, and most foreign models sold in 2017 were German and Japanese, according to South Korean vehicle registration data provided to Reuters.(More...)
  • WASHINGTON -- The U.S. will be able to sell more vehicles and auto parts in South Korea under a deal the Trump administration Tuesday hailed as the first significant victory from its "America First" policy of imposing stiff tariffs on steel imports.(More...)

POSSIBLY USEFUL

  • Now, annual production of more than 18 million automobiles exceeds that of the United States and Japan combined, or that of the EU. 20 21 Moreover, with total sales of 13.64 million, China became the largest automobile market in the world for the full year 2009, overtaking the United States.(More...)
  • "South Korean exporters depend heavily on China and the U.S. It will be one of the hardest hit economies in the world if an all-out trade war breaks out," Kim said.(More...)
  • Higher tariffs in the United States would affect not only the European companies that supply car factories in Europe, but also those that export parts to U.S. factories.(More...)
  • The labor union at South Korea's largest auto company said in a statement that if President Donald Trump goes ahead with imposing 25 percent auto tariffs, it will hurt Hyundai's U.S. sales and jeopardize some 20,000 jobs at a Hyundai factory in Alabama.(More...)

RANKED SELECTED SOURCES

KEY TOPICS

In South Korea, vehicles made in the United States are a niche market, and most foreign models sold in 2017 were German and Japanese, according to South Korean vehicle registration data provided to Reuters. [1] The South Korean automobile industry is today the sixth largest in the World in terms of production volume (concedes to China, United States, Japan, Germany and India only) and the sixth largest in terms of export volume, achieved more than 4.6 million vehicles produced in 2011. [2]

After a few name changes and partnerships, GM Korea is now the third largest automobile company in South Korea. [3] Recent data published by the OICA (International Organization of Motor Vehicle Manufacturers) states that South Korea produced over 4.2 million auto vehicles in 2016, which includes 3.9 million units of passenger cars and 0.37 million units of commercial vehicles. [3] RSM is now mainly an export-oriented auto manufacturer, supplying about 132,541 cars globally in 2013 and cumulatively selling 1.5 million units in South Korea from the year 2000 to late 2015. [3]

To help your automotive business stay at the peak of the industry, BizVibe provides unbeatable support when sourcing products and making deals with top passenger car manufacturers in South Korea. [3]

Some of the Malaysian companies produce some models in collaboration with Japanese, Chinese- BYD, South Korean or European manufacturers, while also developing fully indigenous Malaysian made cars. [2] BizVibe presents the list of the top five South Korean car manufacturing companies below. [3]

In addition to increased access for American vehicles that meet U.S. but not necessarily South Korean safety standards, U.S. officials said they won reductions in non-tariff barriers to U.S. vehicle sales in the world's 11th largest vehicle market, including elimination of duplicate environmental testing requirements and recognition of U.S. replacement parts standards. [1] In post-Soviet times, UzDaewooAuto, SamAuto, GM Uzbekistan new auto producing plants were built with South Korean and American help. [2]

The top South Korean auto manufacturer is headed for even better performance in 2018 led by some of the most reputable companies around. [3] The nation?s leading position in the global automotive industry is attracting a significant number of buyers and traders from large and small companies all over the world, all of whom are hoping to source from the best business deals in the country and with the leading South Korean car brands. [3]

While domestic trucks, buses and trolleybuses continues to be made, production of self-designed cars (such as ZAZ Tavria ) decreased and now Ukraine assembles mainly Europe -, China - BYD and South Korea -developed cars. [2] South Korea is expected to be a highly-influential automotive manufacturer as the country continuously proves to be one of the most innovative nations in the progress of eco-friendly car technology. [3] GM Uzbekistan, a joint venture, with manufacturing operations in Asaka features three vehicle assembly lines and one stamping operations plant with a growing local supply base supplemented by commodities and automotive parts largely from Asia Pacific region (e.g., steel coil from Russia, advanced technology parts from South Korea, etc.). [2] Despite current labor cost issues, South Korea is producing some of the highest quality cars available on the market today while vastly contributing to green vehicle technology. [3] Hyundai is the largest car manufacturing company in South Korea and the fourth largest in the world. [3] Assembly line at Hyundai Motor Company car factory in Ulsan, South Korea. [2]

The main duo, Hyundai, and Kia shipped over 7.88 million vehicles from their factories worldwide in 2016, making South Korea a main competitor in the competitive automotive industry. [3] South Korea is currently the 6th largest vehicle producer in the world, following China, the USA., Japan, Mexico, and Germany. [3] Unlike other Asian industrial former "dragons" (Japan and South Korea) and new "dragons" (Thailand, Indonesia, and Malaysia), the Taiwanese automotive industry was oriented for domestic and international use. [2]

It wasn?t easy to get to where GM Korea is today, truly a first for many South Korean car brands. [3]

The United States and South Korea agree to revise a trade pact sharply criticised by U.S. President Donald Trump, with Korean steelmakers hit with quotas but avoiding hefty tariffs. [4] Under the renegotiated KORUS, South Korea also will allow the U.S. to extend its 25% tariff on imports of Korean pickup trucks by an additional 20 years to 2041. [4] South Korea will increase its annual quota for cars that meet U.S. safety standards but not Korean standards to 50,000 per manufacturer, from 25,000 per manufacturer. [5] South Korea will double -- to 50,000 -- the number of U.S. vehicles entering the country annually that don't have to meet Korean safety standards as long as they met U.S. standards. [4]

In 2016, U.S. companies exported $42 billion in goods to South Korea and imported $70 billion in goods, for a trade deficit of $28 billion. [6] Workers walk past parked General Motors Co. (GM) Chevrolet automobiles bound for export at the Port of Incheon in Incheon, South Korea, on Friday, April 19, 2013. [7] The push for South Korea to maintain steel quotas increases the role of the Korean government in that economy. [5] A subway ad in Seoul, South Korea, from 2011 taught Koreans how to pronounce "Chevrolet." [6]

Ssangyong Motor Co., the Korean unit of India's Mahindra & Mahindra and the only auto brand in South Korea that produces pick-up trucks, said it expects little impact from the revision of the trade deal because it does not plan to enter the U.S. market. [8]

"So, South Korea will reduce the amount of steel that they send into the United States as part of this." [4] South Korea's top negotiator said Monday that the move will have little impact on the local auto makers because there are currently no domestically produced pick-up trucks exported to the United States. [8]

South Korea's Trade Minister Kim Hyun-chong said although the United States will end 25 percent tariffs on South Korean-made pick-up trucks 20 years later than earlier planned, no local auto companies export pick-up trucks made in South Korea to the United States. [9] On automobiles, the biggest source of trade tensions between the countries, the negotiation delivered modest victories that were likely to be welcomed by American carmakers who have long sought to sell more cars in South Korea. [10] The revised agreement does ease environmental regulations that American carmakers face when selling vehicles in South Korea and makes American standards for auto parts compliant with South Korean regulations. [10] WASHINGTON -- President Trump scored his first significant trade deal this week, securing a pact with South Korea that represents the type of one-on-one agreement that Mr. Trump says makes the best sense for American companies and workers. [10]

WASHINGTON -- The U.S. will be able to sell more vehicles and auto parts in South Korea under a deal the Trump administration Tuesday hailed as the first significant victory from its "America First" policy of imposing stiff tariffs on steel imports. [4] Plants in South Korea produce cars mostly for export to dozens of countries -- including Buick sport-utility vehicles sent to U.S. dealerships. [11] More than 90% of U.S. cars exported to South Korea have been "large" cars, or those with engines bigger than 2,000cc. [6] The U.S. will be able to sell more autos in South Korea under a deal the Trump administration hailed as a victory from its "America First" trade policy. [4] The deal also calls for South Korea to eliminate a number of environmental and "country-of-origin" labeling regulations on U.S. imports that have made it difficult for American-made auto parts to be sold. [4]

GM has three other factories in South Korea, which has long been one of the Detroit auto giant's core units because of its export business and other engineering operations it acquired when it took over the remnants of Daewoo's bankrupt automotive company 16 years ago. [11] It?s also important to remember that GM has made and sold cars in South Korea for 15 years. [6] Although GM?s sales are down in South Korea this year, the Detroit automaker had still sold 102,504 cars there through September. [6]

If there?s a segment of the South Korean auto market where Detroit could work to close its trade gap with South Korea, it?s there. [6] Kia Kia cited its 25,000 American employees as evidence that the South Korean automaker is a net benefit to the U.S. economy rather than a detriment. [12] It attempts to give U.S. drug companies equal footing with South Korean firms on the sale of premium pharmaceutical products in the southeast Asian country. [4] Trump may want a better trade deal, but it?s unclear how he?s going to get it without making Hyundai Sonatas, Samsung Galaxy smartphones and LG flat-screen TVs more expensive for the American consumer, or make it extra tough for American companies to sell their goods to Korean consumers at competitive prices. [6]

While Korean concessions appear to have been minimal, these were negotiations conducted under threat and at a time when South Korea was particularly vulnerable, given the situation with North Korea. [5] The real problem at the heart of the automotive trade gap between South Korea and the U.S. is customer taste and a market that?s only recently been opened to the world. [6] South Korea will escape the U.S. tariff on steel but officials said no deal was reached to remove the one on aluminum. [4] While some complained about concessions in the auto sector, South Korea did win an exemption from recently announced import tariffs on its steel products. [8]

GM?s four factories in South Korea have exported more than 1 million cars for 120 countries. [7] Nearly 80% of all car sales in South Korea have typically come from "small" cars, or those with engines smaller than 2,000cc. [6] After two years of grandiose promises, the early reports of a reworked South Korea deal suggest that the Trump administration may have paid a steep price to get nothing of value. [5] South Korea Trade Minister Kim Hyun-chong announced the deal as well on Monday in Seoul. [4] Japan and South Korea both overcame humble automotive beginnings to become top-tier automakers. [13] The administration gained additional leverage by threatening South Korea with the Section 232 steel and aluminum tariffs. [5] While those shipments will not be subject to tariffs, the result will still be to raise prices of steel types for which South Korea is a major supplier. [5] South Korea will limit its steel exports to 70% of the annual average from 2015 to 2017. [5] President Trump will visit South Korea during his 12-day tour of Asia that begins today, and most attention will deservedly center on what he says and tweets about North Korea. [6]

Kim Yun-hee, a senior trade commissioner from the Korea Trade-Investment Promotion Agency (KOTRA) office in Beijing, said South Korean companies had raised concerns over the trade frictions, including firms that did not have products on the U.S. tariff list. [14] Trade experts said that American companies had not come close to meeting their existing quota last year, and that American carmakers had not done enough to tailor their products for South Korean consumers, who prefer smaller vehicles. [10]

"The agreement with South Korea to better level the playing field on steel and autos is an encouraging sign that the administration?s trade strategy is achieving results," said Scott N. Paul, the president of the Alliance for American Manufacturing. [10] South Korea also will ease emission standards for American cars shipped from 2021-2025, when the Asian country is due to set new import regulations. [9] South Korea would limit its steel exports to the United States and open its markets to more American-made cars and trucks under a preliminary agreement to revise the 2012 bilateral trade deal between the countries, the White House said Tuesday. [15] In return, South Korea agreed to adhere to a quota of 2.68 million tons of steel exports to the United States a year, which it said was roughly equivalent to 70 percent of its annual average sent to the United States from 2015 to 2017. [10] The deal also doubles the number of vehicles the United States can export to South Korea without meeting local safety requirements to 50,000 per manufacturer. [10] The third-largest steel exporter to the United States after Canada and Brazil, South Korea was among 12 countries whose exports of steel and aluminum Trump recently said would be hit with heavy tariffs. [9] South Korea has agreed to further open its auto market to the United States as the two countries prepare to amend their six-year-old trade agreement following complaints by President Donald Trump. [9] The auto sector is among the most contentious issues in South Korea's trade dealings with the U.S. Yet, the revised agreement will likely have little immediate impact on South Korea's exports to the United States. [9] U.S. trade negotiators have said that South Korean car exports to the United States — namely Hyundai, Daewoo and Kia — are contributing to what the administration called a trade imbalance. [15] The deal, which is expected to be formally announced on Wednesday, opens the South?s market to American autos by lifting existing limits on manufacturers like Ford Motor and General Motors, extends tariffs for South Korean truck exports and restricts, by nearly a third, the amount of steel that the South can export to the United States. [10] The new deal doubles--to 50,000--the cars each U.S. automaker can export annually to South Korea, reduces bureaucratic barriers to American products and extends a 25 percent U.S. tariff on South Korean pickup trucks by 20 years, through 2041. [16]

U.S. carmakers have accused South Korea of manipulating its currency at times to keep South Korean vehicles priced at artificially lower levels than U.S. goods. [15] No American car brand sold more than 10,000 vehicles in South Korea last year. [9] The United States ran a $10.3 billion trade deficit with South Korea last year. [9] The agreements in principle were announced Monday just hours after Trump said Friday that the United States was on the verge of revising its trade agreement with South Korea, which took effect in 2012. [9] Update: The United States and South Korea formally announced the trade agreement in a joint statement on Wednesday, and said that it "represents important progress in improving U.S.-Korea trade and economic relations." [10] Through the agreement, South Korea -- the third-biggest exporter of steel to the United States in 2016 -- is permanently exempt from the White House?s global tariffs of 25 percent on steel. [10] The deal will also establish a side agreement between the United States and South Korea that is intended to deter "competitive devaluation" of both countries? currencies -- which can artificially lower the cost of imports bought by consumers -- and to create more transparency on issues of monetary policy. [10] The top import origins of South Korea are China ($87.2B), Japan ($46.4B), the United States ($41.9B), Germany ($19.3B) and Other Asia ($16.2B). [17] The top export destinations of South Korea are China ($121B), the United States ($70.1B), Vietnam ($32.6B), Hong Kong ($31.6B) and Japan ($23.8B). [17]

In a report published in October, the Treasury Department declined to label South Korea a currency manipulator, but placed it on a "monitoring list" for its currency practices and large trade surplus with the United States. [10] Winning the deal may have had more to do with the geopolitical realities confronting the United States and South Korea as America embarks on tricky nuclear discussions with North Korea. [10] "But the result that South Korea would be exempted means that the United States considers South Korea as its main ally and we believe that it would pave the way for good results in future negotiations," the Korea Iron & Steel Association said in a statement. [9] Under this approach, Congress does not have to approve the final agreement between the United States and South Korea. [15]

South Korea will change its pharmaceutical payment program for innovative drugs to make U.S. companies eligible for reimbursements. [15] Under the pact, which still needs to be finalized, South Korea would allow U.S. automakers to double their vehicle exports to 50,000 a year, while Seoul would win a permanent exemption from the 25 percent tariffs on steel imports President Donald Trump announced March 8. [15] To avoid the steel tariff, South Korea would limit U.S. shipments of the metal to about 2.7 million tons a year, the ministry said. [18]

The government will allow U.S. manufacturers to sell up to 50,000 cars in South Korea that don’t meet local standards. [18] The top exports of South Korea are Integrated Circuits ($68.3B), Cars ($38.4B), Refined Petroleum ($24.8B), Passenger and Cargo Ships ($23B) and Vehicle Parts ($20.1B), using the 1992 revision of the HS (Harmonized System) classification. [17] Currently, no car company exports these vehicles from South Korea to the U.S., which factored into the talks, Kim said. [18]

China and the United States accounted for 24.8 per cent and 11.9 per cent, respectively, of South Korea?s total exports last year, according to the Korea International Trade Association (KITA). [14] The trade deal came as the Chinese state news media reported that North Korea?s leader, Kim Jong-un, made an unannounced visit to Beijing to meet with President Xi Jinping weeks before planned summit meetings with American and South Korean leaders. [10] Another source close to KOTRA said some of the agency?s overseas offices had been asked to prepare reports assessing the impact of a possible trade war on South Korean companies. [14] "Electronics and semiconductors are included in second set of tariffs, which would then put South Korean companies under substantial pressure," Kim said. [14] That compares with the tariffs on the product specifically applied to South Korean companies such as Lotte Chemical at 7.5 per cent, and LG Chem and SK Global Chemical both at 6.6 per cent. [14] "This latest measure boosts the comparative advantage of many of the South Korean petrochemical companies in the Chinese market," the person said. [14]

A South Korean soldier stands guard at the Unification Observatory just south of the demilitarized zone in Goseong, South Korea, on August 20, 2018. [19] South Korea's Trade Minister Kim Hyun-chong answers a reporter's question during a briefing at Foreign Ministry in Seoul, South Korea, Monday, March 26, 2018. [9] The most recent exports are led by Integrated Circuits which represent 13.2% of the total exports of South Korea, followed by Cars, which account for 7.45%. [17] Nor is it likely to have much impact on U.S. exports to South Korea. [9] South Korea will no longer require additional testing for U.S. vehicles certified to meet U.S. standards. [15] South Korea will consider U.S. vehicle emission standards in formulating its emissions standards for 2021-2025. [15] The U.S. agreed to revise its trade deal with South Korea and spare the country from President Donald Trump’s steel tariff, as the allies sought to resolve disputes before planned meetings with Kim Jong Un. [18] South Korea is currently among six countries and the European Union with temporary exemptions from a 25 percent steel tariff on imports ordered by Trump. [15] The impact would be a result of the U.S. reducing imports from China, which in turn buys intermediate - producer or semi-finished - goods from South Korea. [14] Chips from South Korea accounted for 25.3 per cent, or US$65.5 billion, of the total imported by China last year, according to the Institute for International Trade in Seoul. [14] Even if the damage is reduced by China making compromises in its trade row with the U.S., South Korea will still take a hit. [14] As of 2016 South Korea had a positive trade balance of $117B in net exports. [17] During the last five years the exports of South Korea have decreased at an annualized rate of -1.8%, from $563B in 2011 to $515B in 2016. [17] South Korea agreed to allow the number of U.S.-made vehicles to be imported without being subject to local safety regulations to double to 50,000 a year. [9] During the last five years the imports of South Korea have decreased at an annualized rate of -4.6%, from $501B in 2011 to $398B in 2016. [17] This treemap shows the cultural exports of South Korea by city, as proxied by the production of globally famous historical characters. [17] South Korea borders North Korea by land and China and Japan by sea. [17] Trump criticized the U.S.’s six-year-old trade deal with South Korea as a “ job killer,” and opened negotiations, even as he sought President Moon Jae-in’s help to pressure North Korea over Kim’s nuclear weapon’s program. [18] The deal with South Korea, he said, "is a big victory resulting from the president?s smart tariff policies." [10]

The Korean Automobile Manufacturers Association praised the government's efforts to protect South Korean automakers and avoid major changes on sensitive issues such as adjusting tariffs. [9]

Under the new terms, South Korea would double the import quota for American-made cars that meet U.S. safety rules--but not Korean ones--to 50,000 from 25,000 per U.S. car maker each year, the statement said. [20] It recently reached agreements with Japan and South Korea, two major automobile producers, showing that the European Union is becoming more open to including this sensitive sector in its trade talks. [21] Trade in autos has been especially lopsided: South Korea last year exported to the United States 929,000 passenger vehicles worth $15.7 billion. [16] With the deal, South Korea escapes America?s new 25 percent tariff on imported steel but must accept quotas on steel exports equal to 70 percent of its average annual shipments to the United States from 2015 to 2017. [16] The United States says South Korea has used nontariff barriers, such as rigorous customs inspections, to block U.S. products. [16]

The Donald Trump administration said it has widened United States access to South Korea?s car market while providing American manufacturers protection from South Korean imports. [16] "South Korea will reduce the amount of steel that they send into the United States as part of this. [20]

What North Korea wants: "Getting a reduction in joint exercises between the U.S. and South Korea" is something the North Koreans might agree to, according to Suzanne DiMaggio, who's directing an unofficial dialogue between the United States and the North Koreans. [22]

South Korea will now allow the U.S. to keep its 25% tariffs on pickup trucks in place for 20 more years. [20] In return, the U.S. agreed to give South Korea a permanent exemption from 25% import tariffs on steel. [20] In exchange, the deal includes a permanent exemption for South Korea from the recently announced 25 percent steel tariff, but not from the 10 percent duty on aluminum imports. [16] Under the terms of the renegotiated deal, agriculture is not impacted and U.S. pork will continue to flow to South Korea with no tariff. [16]

South Korea risks being left behind by China?s effort to shift to electric cars, and even more so by the advent of driverless vehicles. [23] In total, at least 36 BMW cars have caught fire in South Korea this year, according to media reports. [24] The agreement in principle is not formally part of KORUS but does include an agreement by South Korea to a product-by-product export cap of 70 percent of the average volume from the past three years. [16] South Korea was also the third largest market for U.S. DDGS, setting a new record for the fifth year in a row at 979,000 tons. [16] By contrast, the U.S. shipped to South Korea fewer than 53,000 autos, worth just $1.5 billion, according to the U.S. Commerce Department. [16] South Korea was the third largest market for U.S. corn in 2016-17, hitting a six-year high at 5.6 million metric tons (220 million bushels). [16] Speaking on "Fox News Sunday," Treasury Secretary Steven Mnuchin said the U.S. expected to sign the agreement with South Korea soon. [20] GM maintains less than 10 percent market share in South Korea, the Financial Times notes, where the market is overwhelmingly dominated by Hyundai and Kia. [25] A Hyundai storage yard in Ulsan, South Korea, earlier this year. [20] On one side, he says, China "is picking up technologically faster than we expected"; on the other, Japan has gained competitiveness owing to the weaker yen while South Korea is burdened by the strong won. [23] A report last year from the Mercator Institute for China Studies, a German think-tank, identified South Korea as the country most exposed to the resulting Chinese competition. [23]

A year-long Chinese boycott of South Korean goods, provoked by the deployment of an American missile-defence system, more or less ended in October. [23] "If South Korean car exports to the U.S. get blocked and hurt sales, the U.S. factory in Alabama that went into operation in May 2005 could be the first one to be shut down, putting some 20,000 American workers at risk of layoffs," the statement said. [26] Greater Access for U.S. Exports : Korea will double the number of U.S. automobile exports, to 50,000 cars per manufacturer per year that can meet U.S. safety standards (in lieu of Korean standards) and enter the Korean market without further modification. [27] South Korea, in contrast, has some of the world?s best public transportation despite also designing and manufacturing some of the world?s best selling vehicles. (Hyundai and Kia are Koran automobile companies.) [28] Seoul and Washington agreed to postpone the removal of tariffs on Korean pickup trucks by another 20 years, a measure that the auto industry was unhappy with but won South Korea an exemption from U.S. steel tariffs. [26] For the proposed auto tariffs, nearly 98 percent of the targeted car and truck imports by value would hit key U.S. allies: the European Union, Canada, Japan, Mexico, and South Korea. [29]

There are many cultural parallels between the USA and South Korea - some obvious, and some not so obvious. [28] Consumers in Japan, Germany, and the United States still favor traditional vehicle manufacturers; this is in contrast to consumers in South Korea, India, and China, who would most favor new autonomous vehicle manufacturers or existing technology companies. 24 One of the reasons for this difference could be tied to the relative strength of automotive brands in more mature markets. [30] If the United States and North Korea end the nuclear stand off and begin making amends, what will happen to the DMZ between North and South Ko. [28]

The U.S. also has missile defense systems in place that could potentially intercept North Korean missiles, such as THAAD in South Korea. [31] A North Korean soldier who defected to South Korea in early November was found to have dozens of unusual parasites (one as long as 10 inches) and raw corn kernels in his stomach. [31]

The global nature of the Section 232 tariffs would also affect vehicles and parts flows from critical non-NAFTA auto-trading partners, such as the EU, Japan, and South Korea. [32] The union said it expects South Korea to win an exemption from auto tariffs. [26] Now that North Korea and the U.S. have initiated a process towards peace, some relations with South Korea and NK denuclearization, do you think. [28] Vehicle and parts flows from the EU, Japan, South Korea, and all other countries would of course be affected. [32] Contrary to Trump's claim of a move to Detroit, the company will still have three other assembly plants in South Korea. [33] General Motors will close one of its four assembly plants in South Korea in May. [33] The labor union, which has 51,000 members in South Korea, said its contracts with Hyundai Motor mandate Hyundai to shut down overseas factories first before closing its plants in South Korea in the event that restructuring becomes inevitable. [26]

It is a similar story in South Korea (83 percent vs. 70 percent), and Germany (63 percent vs. 47 percent). 26 In response, several companies, including some of the largest tech companies in the world, have been testing autonomous technology for many years with relatively few issues, but it only takes one negative incident to destroy much of the goodwill, faith, and interest built up around these long-term R&D experiments. [30] The rate on companies in South Korea whose taxable income exceeds 300 billion won increased to 25 percent in 2018 from 22 percent. [34] In South Korea, the Corporate Income tax rate is a tax collected from companies. [34]

If Trump?s Korea deal is anything to go by, American car companies can count on U.S. consumers to keep paying the Chicken Tax for decades to come. [35] Toyota noted that international automakers assembling vehicles in the United States are based in countries including Japan, German and South Korea "that are America?s closest allies". [36] "China exports very few cars to the U.S. So Trump's Tweet is once again a bit of a red herring," said Bown, who noted that a similar disparity exists when comparing Chinese car exports to the European Union, Japan or South Korea. [37]

POSSIBLY USEFUL

Now, annual production of more than 18 million automobiles exceeds that of the United States and Japan combined, or that of the EU. 20 21 Moreover, with total sales of 13.64 million, China became the largest automobile market in the world for the full year 2009, overtaking the United States. [2] The United States was the world's largest automobile producer by volume from the early years of the 20th century until the 1980s, when it was overtaken by Japan. [2]

It has Soviet origins, evident in the subsequent practice of cloning foreign specimens, though in one recent automobile joint-venture, North Korea developed a wide-range automotive industry with production of all types of vehicles (an urban and off-road mini, luxury, SUV cars, a small, midi, heavy and super-heavy cargo, haulage, construction and off-road trucks, a mini buses, a usual and articulated buses, trolleybuses and trams). [2] After the Great Depression and World War II, these companies continued to prosper and the U.S. produced near 3/4 of all automobiles in the world at 1950. 20 21 However, after record of production near 15 millions in some 1970s years, at the beginning and middle of that decade, a combination of high oil prices, increased competition from foreign auto manufacturers, and increasing government regulation severely affected the companies. [2] Foreign vehicles manufacturers have been assemebling vehicles here for the past 30 years as well and now several automobile companies are in discussion to build automobile factories in the country. [2]

South Africa is traditionally the leader in Africa of the automotive industry and now produces more than half a million annually of all types of automobiles. [2] The other car manufacturers, such as the Bahman Group, Kerman Motors, Kish Khodro, Raniran, Traktorsazi, Shahab Khodro, and others together produced only 6%. 28 These automakers produce a wide range of automobiles including motorbikes, passenger cars such as Saipa's Tiba, vans, mini trucks, medium-sized trucks, heavy duty trucks, minibuses, large size buses and other heavy automobiles used in commercial and private activities in the country. [2] Vauxhall has been part of American carmaking giant General Motors since 1925, by which time it had switched car production from its original London plant to a new factory in Luton. [2]

Founded in 1944, this car company is the oldest in Korea and now produces over 3 million vehicles a year from its 14 manufacturing plants in 5 countries. [3] There aren?t many car manufacturers in Korea, but they all greatly contribute as global leaders in their industry. [3]

The North Korean motor vehicle production has military, industrial and construction goals mainly, and private car ownership by citizens is not allowed (all cars are serving government officials). [2] The government aims to help Korean car companies build over a million green vehicles by 2020, including an additional 1,400 EV charging stations and 80 hydrogen fuel stations across the country. [3] In the 1980s-1990s U.S. auto power was overtaken by rapidly growing Japanese auto industry but in the 21st century both of them are balanced and now are the second largest in the World (after China) with annual production of 8-10 millions. 20 In the ensuing years, the companies periodically bounced back, but by 2008 the industry was in turmoil. [2] The Largest automotive companies in India are Maruti Suzuki, Hyundai Motor India, Mahindra & Mahindra and Tata Motors (In 2008, it launched Tata Nano, the cheapest car in the world at $1,500). 25 Foreign auto companies with plants in India include, General Motors, Ford, Hyundai, Honda, Suzuki, Nissan Motors, Toyota, Volkswagen, Audi, Skoda, BMW, Renault, Mitsubishi, Jaguar Land Rover, Fiat and Mercedes Benz. [2] Most large global automakers have a presence in Brazil, including BYD, Fiat, Volkswagen Group, Ford, General Motors, Nissan Motors, Toyota, MAN SE, Mitsubishi, Mercedes-Benz, Renault, Honda, Hyundai etc. Brazil also has a number of emerging national companies such as Troller, Marcopolo S.A., Agrale, Randon S.A., Excalibur etc., some of which have produced replicas of classic cars upgraded with modern technology. [2] Some global companies are present in Argentina such as BYD, Fiat, Volkswagen Group, Ford, Iveco, General Motors, Nissan Motors, Toyota, Scania, Mercedes-Benz, Renault, Honda, PSA (Peugeot-Citroen), etc., and also some national companies such as Materfer, 84 TAT S.A., 85 Helvica, 86 Crespi, PurSang, 87 etc. The last have produced replicas of classic cars equipped with modern technology. [2]

Besides DAF Trucks and VDL buses, present Dutch auto production consists primarily of contract manufacturing for BMW and Mini by VDL Nedcar (formerly producing DAF, Volvo, smart and Mitsubishi 66 ), plus a few small sports car companies: Spyker Cars and Donkervoort. [2] The Irish industry in Ireland has a varied history and despite the small size of the island, a punitive tax on imported cars encouraged a wide range of companies to assemble their cars locally including Fiat, Ford and Renault. [2] After dissollution of the federation, new car assembly plants were built by foreign companies in Slovakia as in other countries in central Europe. [2] The largest companies are light vehicle producers AvtoVAZ and GAZ, while KAMAZ is the leading heavy vehicle producer. 11 foreign carmakers have production operations or are constructing plants in Russia. [2]

Thailand is more rapidly grown in the 2000s, largest in South-Asia and 14th in the World auto producent with annual output nearly 1.5 million (that is more than in such old and new auto makers as Belgium, United Kingdom, Italy, Czech Republic, Turkey) of vehicles developed and issued by foreign (Japanese, South Korean, etc.) assist. [2] The Philippines has a small auto industry with more than 60,000 Japanese and South Korean vehicles produced annually. [2]

This relationship developed in 1998 and has been beneficial to both South Korean car manufacturers. [3] Overall, however, South Korean consumers preferred American-made vehicles offered by German and Japanese brands. [1] The future of the South Korean automotive industry holds an abundance of eco-friendly vehicles to be unleashed on the roads including electric vehicles, hybrid vehicles, plug-in hybrid electric vehicles and fuel-cell electric vehicles. [3] Recently fast growing with European and then Japanese and South Korean help, the automotive industry in Turkey plays an important role in the manufacturing sector of the Turkish economy. [2] After dissolving of USSR Czech Republic has inherited most of its auto capabilities and then has grown many times by German, French, Japanese, and South Korean investments. [2] Hyundai and Kia both own a combined 70% of the South Korean auto market. [3] BizVibe has compiled a list of the top 5 South Korean car brands that will disrupt the industry in 2018. [3] Before we get to our list, here are some key industry trends expected to impact South Korean car brands and their investors in 2018. [3] Recently J.D. Power's quality study rated South Korean car brands numbers 1 in quality, ahead of their Japanese competitors. [3] One of the top Korean car models, the popular 2017 G90 retails starting at $84,000 -- forcing tother South Korean car brands to adapt their strategy to compete. [3] Why you should be networking with South Korean car brands on BizVibe. [3] Despite the back and forth, South Korean car brands have become synonymous with quality. [3]

Swedish automobile manufacturing is widely known in European and U.S. markets due to advanced and safe cars including Saab and Volvo brands, although their production (150-200 thousand per year) is not among the largest in Europe and the world. [2] Japanese zaibatsu (business conglomerates) began building their first automobiles in the middle to late 1910s, while designing their own trucks and producing European cars in Japan under license. [2] In 2009, 13.83 million motor vehicles were manufactured in China, surpassing Japan as the world's largest automobile producer. [2] Auto manufacturers in the Slovakia currently include 3 OEM automobile production plants: Volkswagen's in Bratislava, PSA Peugeot Citro"n's in Trnava and Kia Motors ' ?ilina Plant. [2] After the Second World War this factory was renamed Zastava Automobiles and the production of motor vehicles started again under license to FIAT. [2] The Algerian representative of the Japanese giant, in collaboration with Toyota Motor Corporation, account and conduct a study on the Algerian automobile market "to identify patterns that could be assembled locally." 10 Toyota Algeria also announced the launch of a production unit of brake pads and brake shoes, with a medium-term capacity of 200,000 units to 300,000 units respectively. [2]

High consumer prices and production inefficiencies characterized the Canadian auto industry prior to the signing of the 1965 Automotive Products Trade Agreement with the United States. [2] With annual output near 6 million now, Germany is absolute leader of auto production in Europe since the 1960s, and in World was the third during the 1970s - middle of the 2000s and fourth now (concedes to China, United States and Japan only). [2] Now the Czech Republic is one of the most significant European (5th) and World's (15th) auto maker, having annual output near 1.4 million and largest export to Western and Eastern Europe, other CIS and European countries and even to United States. [2]

Fifty years ago, its initial operations were merely the assembling of parts imported from Japan and the United States. [2]

Renault also had a controlling interest in American Motors Corporation during the 1970s and 1980s. 61 The other major vehicle manufacturer in France is Renault Trucks, which is primarily owned by Volvo AB. [2] The earliest ones were established by American companies, then various European and Japanese manufacturers followed. [2] Mexican production increased rapidly in the 1990s, thanks largely to NAFTA, which led to many American, European, and Japanese manufacturers to move the production of many of their USA-market and Canadian-market models to Mexico, putting Mexico at 8th place in the world in terms of units produced. [2]

The American automobile industry began in the 1890s and rapidly evolved into the largest automotive producer in the World through the use of mass-production. [2] SsangYong started out as two separate companies that eventually merged in 1963 to rebuild jeeps, trucks and buses to be shipped to the USA. The company was then bought out by SsangYong Business Group in 1986, who partnered with Daimler-Benz to build a luxury SUV that gave them a strong foothold in the global automotive market. [3] Magna Steyr is now a contract manufacture that has built a number of cars for foreign companies, most recently for Aston Martin and Mini. [2] Currently most companies have downsized or have paralyzed operations due to the difficulty in obtaining foreign currency to import necessary auto parts. [2] The industry began with hundreds of manufacturers, but by the end of the 1920s it became dominated by three large companies - General Motors, Ford and Chrysler. [2] The result has been the loss of all Spanish car brands manufacturers, which are now in hands of foreign companies. [2]

Currently some of the major world automakers have set up assembly plants or are in joint ventures with local companies, including Toyota, General Motors, Honda, Suzuki, and Nissan Motors. [2] The automotive industry in Croatia employs about 10,000 people in over 130 companies and generates profit of about US$600 million. [2]

Algeria's automotive industry is among the largest on the African continent (together with South Africa, Egypt and Morocco ) and can exceed 500,000 units a year. [2]

The debate behind Korean cars vs Japanese cars may never end. [3] Kia Motors would be #1 on this list of top Korean car brands if it wasn?t for the fact that Hyundai is its sister company and owns ? (33.88%) of Kia Motor Corporation. [3]

North Korea did not join the OICA, meaning that information about its motor vehicle industry is very limited and poor. [2] The Argentinian industry is regulated by the Asociaci De Fabricantes de Automotores (Adefa), 83 created in 1960, which includes makers of automobiles, light vehicles, trucks and buses. [2] The Brazilian industry is regulated by the Associao Nacional dos Fabricantes de Ve'culos Automotores (Anfavea), created in 1956, which includes makers of automobiles, light vehicles, trucks and buses, and agriculture machines with factories in Brazil. [2]

Now Romanian automobile manufacturing produces near 350 thousand vehicles per year and includes Dacia, Grivi?a, Igero, Roman and Ford (the former Daewoo and Oltcit manufacturing facility). [2] Now that production is more than 200 thousand per year, Uzbekistan exports automobiles to Russia and other CIS countries. [2]

The project is in partnership with the Chinese Jianghuaa Automobile Corporation JAC Motors and Emin Auto. [2] The Canadian auto industry traces its roots to the very beginning of the automobile. [2]

Russia has inherited a main part of automotive industry of the Soviet Union with near 1.8 million annual production of all types of automobiles in RSFSR. [2] Ukraine was one of two only Soviet republics having production of all types of automobiles and was second by volume in the automotive industry of the Soviet Union with more than 200,000 annual production. [2]

The automobile industry has been an active and growing field in Pakistan for a long time, however not as much established to figure in the prominent list of the top automotive industries, having a stable annual production of between 100,000-170,000 vehicles. [2]

Ukraine automobile manufacturers produces 100-200 thousand per year now and includes UkrAvto ( ZAZ, MeMZ ), Bogdan ( Bogdan Motors ), KrAZ, KrASZ, BAZ, ChAZ, Electron, Eurocar, Etalon-Avto, HalAZ, Anto-Rus and LAZ. [2]

This luxury car brand in Korea is headquartered next to its sole assembly site, which is equipped to build 300,000 cars per year. [3] The data does not include the 4,739 Chevrolet vehicles imported and sold by local manufacturer GM Korea last year. [1] Shinjin Motors became GM Korea back in 1972 after Toyota?s withdrawal from the company and General Motors purchasing a 50% stake. [3]

In addition to allowing more cars, the deal imposes a limit of about 2.68 million tons of steel Korea can export to the U.S. That amount is equal to about 70% of the annual average Korean steel exports to the U.S. between 2015 and 2017. [4] If they want to sell more cars in Korea, they need to keep getting better at making cars Koreans want to buy. [6]

The South Koreans are arguing that the trade pact is not the reason for the trade gap between the two nations; rather it is driven by the U.S. appetite for South Korea?s cars, steel and semi-conductors. [6] The South Korean automakers entered the U.S. market in 1986 and filled a gap that was missing at the time: value-oriented, entry-level cars. [13] Big U.S. automakers are trying to "kill the South Korean auto industry," it said. [8] That may be why, in two meetings between U.S. and South Korean trade representatives, little headway has been made. [6]

The Koreans would respond by hiking their tariffs on U.S. imports to almost 14%, pricing U.S. cars well above their Korean-made rivals. [6]

Many of the Japanese-owned American plants were built in response to limitations imposed on exports of cars to the United States by Japan?s Ministry of International Trade and Industry. [38] It was possible to begin building motor vehicles with a minimal investment of capital by buying parts on credit and selling the finished cars for cash; the cash sale from manufacturer to dealer has been integral in the marketing of motor vehicles in the United States ever since. [38] Another Japanese automaker, Honda Motor Company, followed with a car manufacturing operation adjacent to its motorcycle plant; it later added a second car facility in the United States and a car plant in Canada. [38] The restrictions followed threats of sanctions by the United States in the wake of Chrysler?s near collapse and heavy losses by Ford and GM. Called the Voluntary Restraint Agreement (VRA), it spelled out how many cars each Japanese producer could ship to the United States in a single year. [38] In the United States there was a legal battle between Ford and the Association of Licensed Automobile Manufacturers over the Selden patent, which the association claimed as a basic patent on the gasoline-powered car. [38] Although the automobile originated in Europe in the late 19th century, the United States completely dominated the world industry for the first half of the 20th century through the invention of mass production techniques. [38] In the United States the preparation for industrial mobilization was negligible until 1940; in fact, there was no serious effort even to restrict civilian automobile production until after the attack on Pearl Harbor in December 1941. [38] The Stanley brothers in the United States, however, continued to manufacture steam automobiles until the early 1920s. [38] The period from 1919 to 1939 also brought significant growth in automobile manufacturing in Europe, though on a considerably smaller scale than in the United States. [38]

The kind of interchangeability achieved by the "American system" was dramatically demonstrated in 1908 at the British Royal Automobile Club in London: three Cadillac cars were disassembled, the parts were mixed together, 89 parts were removed at random and replaced from dealer?s stock, and the cars were reassembled and driven 800 km (500 miles) without trouble. [38] What about the expanded quota for American car exports? The problem is that there is little evidence these quotas were the main obstacle to U.S. auto sales in the first place. [5] American Automotive Policy Council (which represents Ford, Chrysler, and GM): Auto tariffs "will undermine the enormous economic contributions the U.S. auto sector makes to our economy." [12] Ford has had 16 consecutive quarters of loss in South American markets, and experts say they may pull out. [7]

Japan took the American car industry by storm when it started making and selling cars in the United States. [13] Morris in fact turned to the United States for his parts, but these early efforts were cut short by World War I. In the 1920s Morris resumed the production of low-priced cars, along with his British competitor Herbert Austin and AndrGustave Citro"n and Louis Renault in France. [38] Automotive firms provided one-half of the machine guns and carbines made in the United States during the war, 60 percent of the tanks, all the armoured cars, and 85 percent of the military helmets and aerial bombs. [38] "All off these factors would substantially increase the costs of exporting passenger cars to these markets from the United States and deteriorate the market access for BMW in these jurisdictions, potentially leading to strongly reduced export volumes and negative effects on investment and employment in the United States," BMW's statement said. [12] This statistic displays Hyundai Motor Company's market share based on car sales in the United States from 2011 to 2017. [39] The United States regained the lead in vehicle production in 1994, since by that time Japanese manufacturers were building more of their products in factories in their major overseas markets, such as the United States, in response to economic and political pressures in those markets. [38] By the early 1980s the automotive industry in the United States was concentrated in four major firms--GM, Ford, Chrysler, and AMC--and one important manufacturer of commercial vehicles, International Harvester Company. [38] They fell into one of three well-defined categories: they were makers of bicycles, such as Opel in Germany and Morris in Great Britain; builders of horse-drawn vehicles, such as Durant and Studebaker in the United States; or, most frequently, machinery manufacturers. [38]

The European industry was moving in the same directions as the American industry, toward a mass market for motor vehicles, but it made slower progress for a variety of reasons: lower living standards with less purchasing power, smaller national markets, and more restrictions in tax and tariff policies. [38] Increasing competition from imported cars and from new manufacturing operations established by European and Japanese firms continued to reduce the share of the American market controlled by the four domestic manufacturers through the remainder of the 20th century. [38] Fewer people in the U.S. are driving Hyundais and Kias - their combined market share here has dropped from 8.9% in 2011 to 8.1% last year, largely owing to a sedan-heavy lineup that lacks the wide choice of SUVs and crossovers American car buyers now crave. [6] In 1954 Nash and Hudson joined to form AMC. The company enjoyed temporary prosperity in the late 1950s when it introduced the first American compact car, the Rambler, in response to growing imports of small foreign cars. [38] According to studies, auto tariffs would put American jobs at risk and hurt the U.S. economy. [12] Hyundai's labor union complained that the government gave in to U.S. President Donald Trump at a time when the American market represents big opportunities. [8] During the 1930s British automotive production continued to increase steadily, in contrast to American production, and so the smaller companies were not forced to compete for a shrinking market. [38] Although American production continued to grow, its share of world automotive production fell from about 80 percent of the total to 20 percent. [38]

By 1929 the Big Three supplied three-fourths of the American market for motor vehicles; most of the remainder was divided among the five largest independents--Hudson, Nash, Packard, Studebaker, and Willys-Overland. [38] In 1904 he assumed control of the ailing Buick Motor Company and made it one of the principal American producers. [38] I spent three years running global PR for Hyundai Motor as the only American at company headquarters in Seoul. [6] The new company stopped production in the United States in 1964 and in Canada two years later. [38] In less than 10 years the number of automobile manufacturers in the United States dropped from 108 to 44. [38] The United States will maintain its 25% tariff on light trucks for an additional 20 years, with full phase-out by 2041. [5] From a negligible position in 1950, Japan in 30 years moved past West Germany, France, Great Britain, and the United States to become the world?s leading automotive producer. [38] Hyundai and Kia, which belong to the world's fifth-largest automotive group, have been struggling as sales slow in China and the United States. [8] Across the board, they?re increasingly focused on China and the United States, the world?s two-largest auto markets. [7] In 1979 Renault of France acquired a 46 percent interest in AMC to increase its small presence in the United States and gain access to AMC?s line of popular Jeep vehicles. [38] The first problem is that such "voluntary export restraints" mean the United States gets the pain of the price increase but none of the tariff revenue. [5] A number of other Japanese manufacturers opened plants in the United States as joint-venture operations. [38] At the end of World War I, Ford was the colossus, dominating the automotive scene with the Model T not only in the United States but also through branch plants throughout the world. [38] The third member of the "Big Three" automotive manufacturers in the United States was created at this same time. [38] The latest Trump trade maneuver may have resulted in a workable settlement, but it surely did nothing to enhance trust or amity toward the United States. [5] A similar combination, the United States Motor Corporation, was formed in 1910, collapsed in 1912, and was reorganized as the Maxwell Motor Company. [38]

Henry M. Leland, founder of the Cadillac Motor Car Company and the man responsible for this feat of showmanship, later enlisted the aid of a noted electrical engineer, Charles F. Kettering, in developing the electric starter, a significant innovation in promoting the acceptability of the gasoline-powered automobile. [38] Most early automobile companies were small shops, hundreds of which each produced a few handmade cars, and nearly all of which abandoned the business soon after going into it. [38] These problems were eventually resolved, and automobile companies contributed significantly to aircraft production. [38]

Automotive industry, all those companies and activities involved in the manufacture of motor vehicles, including most components, such as engines and bodies, but excluding tires, batteries, and fuel. [38] A few producers of specialized vehicles remained, along with an assortment of companies that made automotive parts and components. [38]

GM would use Korea as an export hub for other Asian markets as well as Europe, where it was making a push to establish its Chevrolet brand with inexpensive, rebadged Daewoo cars. [11] After GM sold its European subsidiary Opel/Vauxhall to French automaker PSA, PSA announced that it would produce GM vehicles in Europe rather than Korea, as GM had done. [7] At 130,000 vehicles, Opel vehicles accounted for 22% of GM Korea?s total sales volume last year, according to local outlet Business Korea. [7]

GM Korea's operations also include several engine plants and an engineering center that did much of the work to create the Chevy Bolt electric car, considered the first relatively affordable vehicle that can travel a long distance -- about 240 miles -- on a single charge. [11]

With world-class value-for-money cars manufactured in-country by Hyundai and Kia, Korean car buyers have had little incentive to buy U.S.-made GM, Ford and Chrysler value models. [6] Last week, Hyundai and Kia?s achievement was made official: Korean cars had eclipsed Japanese autos in quality. [13]

Just as important, Korean car buyers have traditionally equated "foreign car" with "luxury car." [6]

GM has weathered several years of turbulent relations with a union that represents most of the auto maker's 16,000 Korean factory workers. [11] The appointment by GM Korea of a so-called "restructuring specialist," falling sales and the selling off of other major global subsidiaries are all pushing insiders to speculate that GM's Korean subsidiary will soon go kaput. [7]

Chad Brown, an Obama White House economist, told The Washington Post that a rejiggered KORUSFTA would likely lead the U.S. to raise tariffs on Korean products to 3.5%, from 0%. [6] If Korean manufacturers want to get around the tariffs, they can just set up facilities in North America. [5]

The company also said that the move could lead to layoffs at its plant in South Carolina and other U.S. facilities. [12] GM will also stop selling in South Africa after five years of falling sales. [7] While GM clearly struggled in India, South Africa and Europe, it has actually had consecutive record-breaking sales the past three years. [7]

Volvo Volvo is nearing the opening of a new South Carolina-based plant and warned that many of the jobs there are export dependent. [12]

Three major companies-- Hyundai Motor Company, Kia Motors Corporation, and Daewoo Motor Corporation--accounted for about 90 percent of the South Korean market, while the remainder was split among two minor producers and imports. [38] "It is a humiliating deal that accepts Trump's strategy to preemptively block South Korean pick-up trucks," Hyundai Motor's labor union said in a statement. [8] The auto maker said it will work with the union and South Korean officials to restructure the business, signaling it could demand labor concessions and public incentives to help shrink operating costs. [11] At the start of the 21st century, Daewoo appeared likely to become the first major South Korean company to be taken over by a foreign firm. [38] "We believe that GM is highly likely to withdraw from the South Korean market. [7] Of course, it can be assumed that this report made its way to South Korean President Moon Jae-in, so Trump has lost his negotiating advantage. [6] General Motors Co. is sending a tough message to thousands of South Korean workers during the Winter Olympics in Pyeongchang, saying it will close a Korean factory in May and pressure union officials for additional cost cuts to stem losses. [11]

The U.S. makes only two luxury brands - Lincoln and Cadillac - and neither enjoys the prestige in Korea that the German automakers do. [6]

The design of modern automotive vehicles is discussed in the articles automobile, truck, bus, and motorcycle ; automotive engines are described in gasoline engine and diesel engine. [38] The industry?s principal products are passenger automobiles and light trucks, including pickups, vans, and sport utility vehicles. [38] Fiat, founded in Turin in 1899 by Giovanni Agnelli, soon became one of Europe?s largest producers and exporters of automobiles and also made buses, trucks, airplanes, and military vehicles. [38] Attendees look at a Fiat Chrysler Automobiles NV Jeep Compass sports utility vehicle (SUV), manufactured by Guangzhou Automobile Group Co., on display at the China (Guangzhou) International Automobile Exhibition in Guangzhou, China on Saturday, Nov. 19, 2016. [7]

Except for Rolls-Royce, whose automobile production was only a very small part of the company?s business, British automobile output was then largely controlled by four firms: British Leyland, Ford, Vauxhall, and Rootes, which came under Chrysler control in 1967 but was sold off to France?s Peugeot-Citro"n in 1978. [38] Italian automobile manufacturers gained a reputation for highly engineered sports cars and racing cars, but Italy had no mass market and therefore achieved only small-scale production at that time. [38] The Rootes Group, based on Hillman and Humber, was a combine formed by a family that had built a large automobile sales concern and then moved from sales to production. [38] The most promising, Kaiser-Frazer Corporation, lasted some 10 years but lacked the financial, technical, and sales resources to compete when the automobile market returned to normal. [38]

The major developments of the 1920s were the merger of Daimler and Benz in 1926, after the founders of those firms had died (their bitter rivalry for the distinction of being the inventor of the gasoline automobile made any such union during their lifetimes unthinkable), and the entry of General Motors onto the German scene through the acquisition of the Adam Opel company in 1929. [38]

Leyland and the British Motor Corporation united in 1968 as the British Leyland Motor Corporation (later British Leyland Ltd. and, after 1978, BL Ltd. ); this move, sanctioned by the government, was intended to forestall possible American domination of the British automobile industry. [38] During the late 1970s and early ?80s, Japan?s principal automakers-- Toyota, Nissan, Honda, and T?y? K?gy? (later Mazda )--enjoyed impressive export gains in North American and western European markets. [38] For all of the belligerents the conversion of automotive facilities was an afterthought, improvised after the beginning of hostilities, and the American industry, involved only for a short time, never fully utilized its capacity. [38] "Over the next 60 years, just three generations, Toyota has become the company equivalent of the American 'rags to riches' story," the statement said. [12] The American automotive industry represented such a concentration of productive capacity and skill that, once its resources had been harnessed to war production, its contribution was tremendous. [38] Only a large firm could make the heavy investment in plant and tooling that the assembly line required, and Ford was already the largest single American producer when it introduced the technique. [38] American automakers begin from a disadvantage, dealing with a small import market. [6]

Campaigning as an anti-trade nationalist, Trump disparaged all major U.S. trade deals and publicly harangued U.S. companies that manufacture overseas. [6] These companies as well as Mitsubishi, Isuzu, Fuji, and Suzuki later opened manufacturing plants in major markets outside Japan to ease trade tensions and increase their competitiveness as the value of Japan?s currency soared. [38]

The auto maker said Monday the company is committed to keeping Korean operations, but the factory closure is a "first step" in a broader restructuring. [11] Combined with falling domestic sales, some analysts are certain that the Opel pullout means GM will shutter its Korean operations. [7]

GM Korea is suffering from big losses for the last few years, losing its market share to imported brands," another unnamed analyst told the Nikkei Asian Review in Sept. "There is no reason that the company keeps its business here." [7] In a span of 20 years beginning in the 1970s, South Korea?s automotive industry rose from a small government-controlled parochial industry to a significant place in the world market. [38] Kia, South Korea?s second largest automaker, was acquired by Hyundai in 1999. [38]

Matthew DeBord/BI The British automaker said that as a "niche, luxury automobile manufacturer" there is no way their imports are a threat to national security. [12]

"South Korean exporters depend heavily on China and the U.S. It will be one of the hardest hit economies in the world if an all-out trade war breaks out," Kim said. [14] In a background briefing with reporters, senior administration officials said the agreement in principle to the Korea-United States (KORUS) trade agreement will reduce South Korean regulatory and policy barriers that limited U.S auto sales. [15] Previously lifted tariffs on South Korean car exports won’t be reimposed, Kim said, and the nation planned to ease some of the safety and environmental regulations on imported U.S. cars. [18] The U.S. side agreed that annual exports of up to 2.7 million tons of South Korean steel products will be exempted from recently announced 25 percent tariffs. [9] The steel quota is unlikely to hurt South Korea’s exports since sales to the U.S. account for 11 percent of total overseas shipments of the metal, the South Korean ministry said. [18]

South Korean businesses are bracing for an impact from U.S. tariffs aimed at China, a senior trade official from Seoul has warned. [14] South Korean Trade Minister Kim Hyun-chong said the country’s tariff exemption was the first granted by Trump on the country level, and officials were still discussing with the U.S. whether it would be permanent or expire after a time. [18]

South Korea's top trade negotiator said Monday that the revised agreement calls for delaying the earlier agreed-to elimination of tariffs on South Korean-made pick-up trucks to 2041 from 2021. [9] In an interview with a government-backed website, South Korea’s Minister for Trade Kim Hyun-chong said the quota on steel and the agreement to allow more U.S. auto imports “removed the two biggest uncertainties through these negotiations. [15] The two countries also discussed changing the wording of the Investor-State Dispute Settlement and trade remedies, and Korea said it will review a request from the U.S. for Seoul to offer equal incentives to global pharmaceutical companies in developing new medicines. [18]

The American Automotive Policy Council says that historical practices like requiring lengthy car inspections of foreign-made vehicles and prohibiting existing car dealers from selling foreign cars have prevented foreign companies from gaining a large market share. [40] The country also agreed to double to 50,000 the number of U.S. cars that could be imported without meeting local safety standards, although American manufacturers sell far fewer cars in the market. [18]

The United States cannot afford a protracted trade standoff at a moment when it needs the South as an ally. [10] The dynamic contributes in part to the trade imbalance between the United States and Japan. [40] Mr. Trump has also made clear his disdain for the multicountry trade agreements that the United States has long championed. [10] "China?s middle class must grow for businesses to be successful, and the trade dispute between China and the United States certainly doesn?t help," the former manager said. [14] The top import origins are China ($87.2B), Japan ($46.4B), the United States ($41.9B), Germany ($19.3B) and Other Asia ($16.2B). [17]

The state news media in China and North Korea confirmed that Kim Jong-un, the North Korean leader, was in the mysterious train that pulled into Beijing on Monday. [10] U.S. Secretary of State Mike Pompeo named Stephen Biegun, vice president of international government affairs at Ford Motor Company, as the new U.S. special representative to North Korea. [19]

Korea’s trade surplus with the U.S. was about $18 billion last year, down from $23 billion in 2016, according to the Korea International Trade Association. [18] “Ultimately this is a good agreement for both sides,” said Troy Stangarone, senior director of congressional affairs and trade at the Korea Economic Institute of America in Washington. [18]

Importantly for the Trump administration, the agreement extends tariffs on imported South Korean trucks by 20 years to 2041. [10] South Korean automakers did not comment on the postponement of eliminating tariffs on their trucks. [9] The U.S. automaker will no longer file for bankruptcy protection for its South Korean unit. [41] The U.S. Treasury Department also is negotiating a side agreement with its South Korean counterpart with a goal of monitoring Seoul’s intervention in currency markets. [15] In the worst-case scenario of a full-blown trade war, South Korean exports would drop by 6.4 per cent - an estimated loss of US$36.7 billion, according to a KITA report. [14] A South Korean diplomatic source said Moon was trying to "diversify the country?s export destinations" to offset the impact of the trade conflict. [14] If China imports more semiconductors from the U.S., for example, South Korean chip exports could fall by US$4 billion annually - knocking 0.7 per cent off the value of its total annual exports, the KITA report said. [14] The South Korean automaker plans to invest more than 200m in its Slovakian operations this year. [41] The trade conflict could benefit some South Korean sectors, including producers of styrene monomer - a chemical used to make plastics. [14]

Find out more about South Korea's politics, economy, risk, regulation and business. [41]

U.S. tariffs of 25 percent on imported Korean pickups will remain in place until 2041 rather than phase out to zero over the next three years. [15] The U.S. Trade Representative’s Office is the lead negotiator on revising the Korean trade agreement. [15] Trade Representative Robert Lighthizer indicated that the phase out of tariffs on Korean automotive products and currency were in the mix. [15]

Foreign companies have begun to sell more cars in Japan, with few complaints about Japan?s trade policies. [40] Despite their complaints about trade barriers, U.S. companies haven?t made the same efforts. [40] U.S. companies set up shop in Japan in the first half of the 20th century, allowing Japanese carmakers to learn their technology. [40] "Many of these companies will be hit indirectly because they sell intermediate goods to China and are linked to U.S. companies in China," Kim said, adding that concern was growing among exporters. [14]

Multiple companies In the first six months of 2018 the automaker reported a 3% rise in sales in the Middle East, to over 241,000 units. [41]

The Korea Iron & Steel Association welcomed the deal while saying the quota was was smaller than the industry wanted. [18] While Japanese cars are right-hand-drive, requiring manufacturing modifications before American cars can be sold there, this is no different from many other markets where foreign cars are prevalent. [40] The problem is in large part that American car dealers have been hesitant to invest in the kind of dealer network that consumers like Shujiro Urata have come to expect. [40] This is also the line being touted by American carmakers, which accuse Japan of protectionist policies in its automobile market. [40] It recently made a "strategic decision" to target niche segments, she said, and offer Japanese drivers left-hand-drive American vehicles including the Cadillac ATS. [40] Those tariffs were set to phase out in 2021, which officials said would have harmed American truck makers. [10]

As a candidate, Mr. Trump had repeatedly threatened to withdraw from trade deals he said were unfair to the United States and its workers -- or even rip them up. [10]

Japanese brands account for about 90 percent of the domestic auto market in Japan, according to the Japanese Automobile Dealers Association. [40] In Japan, everything is about hospitality," Peter Kronschnabl, the CEO of BMW Group Japan and the chairperson of the European Business Council?s Automotive Committee and the Japan Automobile Importers Association, told me. [40]

Amid the uncertainty, the South Korean government is already looking to other export destinations. [14] The South Korean automaker will invest US$240m in the Middle Eastern country over a five-year period. [41] The South Korean conglomerate's decision to scrap the plan came amid pressure from shareholders. [41] South Korean businesses are also closely watching what happens to China?s economy, which could have a knock-on effect for their operations in the country. [14] South Korean negotiators managed to avoid changes in treatment of its agriculture sector, a highly sensitive area in domestic politics. [9]

The disagreement threatened to drive a wedge between the two allies as Moon prepared to meet Kim next month, an encounter that Trump needs to pave the way for his own proposed summit with the North Korean leader. [18]

Higher tariffs in the United States would affect not only the European companies that supply car factories in Europe, but also those that export parts to U.S. factories. [21] Trade disputes with the United States will continue to give European companies additional reasons to look for new places to sell their cars. [21]

The European Union is pressuring the Common Market of the South (the South American trade bloc better known by its Spanish acronym Mercosur) and Australia to reduce their tariffs on European cars. [21] As the main producer of cars in Europe and the main exporter to the United States, Germany would be the biggest loser if the White House imposed higher tariffs on automobiles made in the European Union. [21] The automobile sector is a crucial part of Europe's manufacturing system and a large source of employment, and the United States is a major market for its cars. [21]

According to statistics of the Korea Automobile Manufacturers Association, it takes 26.8 hours to produce one car at an auto plant in Korea. [42] This will mark the first time that a wearable robot is put into an automobile production line in Korea. [42]

While not directly impacting agriculture, the renegotiated deal addresses vehicle exports between the countries and establishes a quota for South Korean steel exports to the U.S. The Asian nation remains exempt from tariffs the Trump administration recently imposed on steel and aluminum imports. [16] Car exports to China were in decline even before the boycott as the quality of Chinese cars improved and South Korean brands failed to match the appeal of Japanese and European ones. [23] The South Korean government is considering banning from the roads any BMW vehicle that has not been subject to a recall safety check after more than 30 incidents in which cars caught fire. [24] A group of 21 BMW car owners filed a legal complaint with police in central Seoul naming six top officials of the South Korean unit of the car manufacturer and its parent company and demanding an investigation into the fires. [24] Government insiders say they are aware of the limits of the relationship with China, and know that South Korean firms struggle to compete with Chinese industries that are financed and directed by the state. [23] Just as South Korean competition sent much of European shipbuilding into bankruptcy, China is now threatening to do much the same to South Korea?s industry. [23] He has also slapped punitive tariffs of up to 50% on imports of South Korean washing machines (along with tariffs on solar panels from China). [23]

President Donald Trump railed on Monday about Chinese tariffs on cars - pointing out the American cars are charged a 25% duty in China but Chinese-made cars are only subject to a 2.5% tariff in the U.S. (Shortly afterwards, Chinese President Xi Jinping responded by saying his country would lower import tariffs on vehicles). [43] Political friction in Europe would deepen should the Trump administration use the threat of higher car tariffs to pressure the European Union to open its agricultural markets to American exports. [21]

The United States, meanwhile, imposes a 2.5 percent tariff on imported passenger cars from the European Union, though the tariff is 25 percent for vehicles like pickup trucks. [21] Because of the large size of its car-making sector and its exposure to the U.S. market, Germany in particular stands to lose big if the United States imposes new tariffs on European cars. [21] The United States is the main destination of European cars, receiving 29 percent of exports in 2017, followed by China (17 percent) and Japan (6 percent). [21] They don't stand to gain as much as Germany from an agreement that preserves European exports of cars to the United States, and they are worried that the White House will push to include agricultural products ( a sensitive area in many EU member states ) in its trade negotiations with the European Union. [21] The effects of lower car sales to the United States would also be felt outside the European Union, since countries such as Turkey and Tunisia provide parts and services to the German car industry. [21] It is the second-largest exporter of cars to the United States after Germany, and the terms of its exit from the European Union will determine the future of its exports to America. [21] "When a car is sent to the United States from China, there is a Tariff to be paid of 2 1/2%," Trump wrote on Twitter early in the morning. [43] While Germany would be the biggest loser if the United States levied higher tariffs on EU cars, it would not be the only one. [21] While the United States is Germany's main destination in terms of value, Spanish or French exports to the United States are negligible, because these countries sell most of their cars in Europe and other markets. [21] Lower German exports to the United States would hit companies in Central and Eastern Europe harder than those in Southern Europe. [21]

In 2017, EU auto exports to America reached $38 billion, against only $6 billion in EU imports of American cars. [21] While the agreement defused the immediate danger of higher American tariffs on European cars, it did not eliminate the threat, and business and political leaders in the bloc remain nervous. [21] Higher American tariffs would hurt the European automobile sector, because exports to Europe's main customer would probably decrease. [21] It is perhaps no wonder that China has threatened to add automobiles to the list of American products that could face even greater tariffs in the fact of a trade wars. [43]

The complexity of Europe's automotive sector means that the impact of higher U.S. tariffs on EU cars would be felt not only in the countries that export the most automobiles to America but also along their supply chains. [21] Chinese-made cars made up just 0.76% of the $191.7 billion in new automobiles and light trucks that the U.S. imported in 2017, according to the International Trade Administration data. [43] OICA - (Organisation Internationale des Constructeurs d'Automobiles) - The International Organization of Motor Vehicle Manufacturers comprising 43 national trade associations around the world, including all major automobile manufacturing countries, thereby covering virtually the entire motor vehicle industry all over the world. [44] Cars (or automobiles) make up approximately 74% of the total motor vehicle annual production in the world. [44]

"Last year, the U.S. shipped $475 million of pork to South Korea--a 30 percent increase over 2016--making it the No. 5 U.S. pork export market. [16] The U.S. trade deficit in goods with South Korea--nearly $23 billion last year--widened after the original pact took effect in 2012, one reason Trump has denounced it. [16] The changes to the deal, which have been blamed by President Donald Trump for expanding the U.S. trade deficit, focus on rebalancing trade in the auto sector--a major source of South Korea?s trade surplus with the U.S., the ministry statement said. [20]

The U.S. Treasury Department is also in talks on a deal to prevent Seoul from deliberately pushing its currency lower to give South Korean exporters a competitive advantage. [16] This work has transformed the South Korean livestock and feed grain sectors over time and made the country one of the largest and most loyal customers of U.S. grain. [16] GM made its major move into South Korean manufacturing when it bought Daewoo Motors in 2002, and now that may be coming to an end. [25] Trump?s complaints about South Korean trade practices have caused friction between the two allies at a crucial time, as he prepares for a meeting with North Korea?s reclusive leader, Kim Jong-un. [16] South Korean yards were hit by a global slump, caused first by the financial crisis of 2007-08 and the fall in world trade. [23] At Hyundai Heavy Industries, the largest South Korean shipbuilder, officials note that orders are down from the usual 60-80 vessels and rigs a year to about 20 in 2016. [23]

It doesn?t help, either, that GM lost money on its Korean unit for the past three years running after it shut down its Chevrolet brand in Europe-mostly made up of small cars built at, you guessed it, GM Korea-right around then, too. [25]

U.S. Trade Representative Robert Lighthizer and Republic of Korea Minister for Trade Hyun Chong Kim announced the deal in a joint statement. [16] The nations have also agreed on terms for a country exemption for the Republic of Korea from tariffs imposed on steel imports under Section 232 of the Trade Expansion Act of 1962 pursuant to Presidential Proclamation 9705, as amended. [16]

"Companies found guilty of delaying recalls or hiding defects will face severe punishment that makes it difficult for them to sell their products in Korea again," he said. [24] Companies that make cars in America import most of their parts from Mexico, Canada, China and Japan, but they also obtain parts (such as gearboxes, engines and steering wheels) from Europe. [21] Because German companies also import parts such as suspension systems from Spain, gearboxes from France and brakes from Italy, some companies in those countries would be hurt even though carmakers in those countries do not stand to lose as much as Germany from higher U.S. tariffs. [21]

The United States in March began imposing the steel tariffs, saying imports jeopardized U.S. national security. [16] At the company level, the impact of higher U.S. tariffs would also be varied, because some European carmakers assemble their models in the United States. [21] Lower car sales to the United States would hurt the main European exporters directly and their suppliers indirectly. [21] Trade friction between the United States and the European Union has de-escalated since late July, when they agreed to study ways to eliminate non-auto industrial tariffs and reduce non-tariff barriers. [21] The evolution of the value of the dollar versus the euro could also play a role, because a stronger dollar could mitigate the effect of the tariffs, especially if the United States decides to introduce only a modest hike in tariffs (for example, a 10 percent tariff, which would put the United States at the same level as the European Union, instead of the 25 percent tariff that Trump recently mentioned). [21] Should the United States pressure the European Union to include agriculture in their trade negotiations, the move would lead to friction between Germany and France and reduce the chances of reaching an agreement. [21] Germany has been particularly supportive of reaching a trade agreement with the United States, while other EU members have been more skeptical. [21]

President Trump is committed to maintaining, but updating existing trade agreements so that they are best positioned to work well for American consumers, farmers, manufacturers and workers well into the 21st century," the AFF statement said. [16] VW to end Beetle output in 2019 With more and more Americans gravitating to light trucks, Volkswagen will end production of the venerable Beetle in 2019, closing another chapter for one of the auto industry's most storied nameplates. [45]

About 90 percent of the vehicles subject to the "Do Not Drive" warning are in the United States. [25] If the United States and the European Union reach a trade deal, the United Kingdom would be excluded as well. [21] The bilateral commission created by the European Union and the United States to explore a trade deal plans to release its report before 2018 ends. [21]

The Hyundai Motor Group will introduce wearable robots to automobile production lines late this year. [42] According to the automobile industry on March 23, the Hyundai Motor Group is pushing forward with the introduction of wearable robots to automobile production lines within this year. [42]

According to the European Automobile Manufacturers' Association, the sector represents about 7 percent of the EU gross domestic product and employs 12.6 million people, or 5.7 percent of the bloc's workforce. [21] Germany also accounts for 55 percent of all EU automobile exports. [21]

The quota has been set at 2.68 million tons a year, or 70% of South Korea?s annual average steel exports to the U.S., the statement said. [20] The agony of the shipyards, the country?s biggest exporters after its semiconductor and car industries, feeds South Korea?s disquiet about China. [23] Unions at South Korea?s two largest automakers, Hyundai Motor Co. and Kia Motors Corp., have already blasted the new agreement for blocking access to the fast-growing U.S. pickup truck market. [16] "It is a humiliating deal that accepts Trump?s strategy to preemptively block South Korean pickup trucks," Hyundai Motor Co.?s labor union said in a statement. [16] The South Korean unit of the Munich-based company is struggling to deal with the negative fallout from the engine fire problem. [24] The company has proposed to its key stakeholders -- including its labor union, the South Korean Government and key GM Korea shareholders -- a concrete plan to stay in the country and turn the business around that requires the full support of all parties. [25] The U.S., however, has set a quota to reduce South Korean steel imports. [20] Many South Korean firms are redirecting investments, towards America in large part. [23] This has undone the happy middle position that South Korean shipmakers thought they had found, beating Japanese rivals on cost and Chinese ones on quality. [23] The complaint named Kim Hyo-joon, head of the firm's South Korean unit, and Johann Ebenbichler, vice president of quality management, said Ha Jong-sun, a lawyer representing the plaintiffs. [24]

The Hyundai-Kia Automotive Group is the only Korean company developing wearable robots for their commercialization. [42]

GM Korea Company (GM Korea) announced today that it will cease production and close its Gunsan plant by the end of May 2018. [25]

Vehicle hauling giant United Road Services names new CEO United Road Services, one of the largest vehicle trucking companies in North America, said President Mark Anderson will succeed CEO Kathleen McCann, effective Jan. 1. [45]

The labor union at South Korea's largest auto company said in a statement that if President Donald Trump goes ahead with imposing 25 percent auto tariffs, it will hurt Hyundai's U.S. sales and jeopardize some 20,000 jobs at a Hyundai factory in Alabama. [26] Foreign Trade - U.S. Trade with Korea, South This Javascript allows the page in IE to resize to the minimum width of 853 pixels and no less. [46] In its discussions to improve KORUS, the United States achieved steps to improve the large trade deficit in industrial goods with Korea and to address KORUS implementation concerns that have hindered U.S. export growth. [27] Restrictions on U.S. Turkey Meat : Prior to January 2018, South Africa required that exports of U.S. poultry meat to South Africa be produced from U.S. birds hatched and raised within the United States. [27] The United States continues to urge Vietnam to adopt a competitive approach in which U.S. electronic payment companies are able to supply services without disruption or harm to commercial arrangements that have been in place for many years. [27] U.S. companies have applied to withdraw technologically advanced products from the market, but the requests have been rejected, forcing the United States to sell certain products at a loss. [27]

The warning adds to a mounting chorus of concerns about the impact of the heavy tariffs on cars and parts, which economists have warned may cost hundreds of thousands of American jobs and raise auto prices in the U.S. by roughly 10 percent. [26] Hyundai Motor Co.' s labor union is warning that steep auto tariffs the U.S. is considering could cost tens of thousands of American jobs, echoing concerns of the global auto industry as spiraling trade conflicts between the U.S. and other major economies heat up. [26]

Chicken Leg Quarters : The United States gained immediate tariff elimination for U.S. exports of fresh, frozen and chilled chicken leg quarters, zeroing out tariffs five years earlier than planned and creating market opening benefits for U.S. poultry exporters. [27] Movement of Data : In August 2017, following U.S. engagement, Colombia?s Superintendency of Industry and Trade (SIC) added the United States to the list of countries that provide an adequate level of data protection. [27] In 2017, the United States exported $51.1 billion of passenger cars, SUVs, and minivans primarily to Canada, China, and the European Union (table 5). [29] In 2017, the United States imported $183.8 billion of passenger cars, SUVs, and minivans, mostly from the European Union ($46.6 billion), Canada ($43.3 billion), and Japan ($43 billion) (table 3). [29]

Tariffs would raise the cost of these parts and domestic production, which makes products more expensive to consumers and lowers demand for them in the United States and abroad. [29] It is possible that some automakers may shift production locations to the United States to avoid tariffs. [29]

I would frequently get inquiries from Korean students are ISU, as I was on S. University St a couple blocks due South of the University as S. University (surprise) ran right thru the middle of main campus. [28] One sunny afternoon with a bright sun in the afternoon sky I described to a S Korean with an MS in Civil Engineering how to go straight South on S University from the center of campus a couple blocks to my split level house, the only split level house on the street. [28]

In January 2018, USDA and South African authorities reached agreement on an amendment to the USDA export health certificate for poultry to allow the importation of U.S. turkey meat produced from turkeys grown from Canadian poults under certain conditions. [27]

Recognition of U.S. Standards for Auto Parts : Korea will recognize U.S. standards for auto parts necessary to service U.S. vehicles, and reduce labeling burdens for parts. [27] For years, Korea had taken on a lot of U.S. culture for years, so there are quite a number of similarities, which have grown further and further closer over the years. [28] Pharmaceutical Reimbursements : In 2018, Korea will amend its Premium Pricing Policy for Global Innovative Drugs to make it consistent with Korea?s commitments under KORUS to ensure non-discriminatory and fair treatment for U.S. pharmaceutical exports. [27] Improvements to CAFE Standards : Korea will expand the amount of "eco-credits" available to help meet fuel economy and greenhouse gas requirements under the regulations currently in force, while also ensuring that fuel economy targets in future regulations will take U.S. regulations into account and will continue to include more lenient targets for small volume manufacturers. [27]

Harmonization of Testing Requirements : U.S. gasoline engine vehicle exports will be able to show compliance with Korea?s emission standards using the same tests they conduct to show compliance with U.S. regulations, without additional or duplicative testing for the Korean market. [27] This could get extremely complicated given the close proximity of North Korea to Russia and China, countries that would not benefit from a pro-America, unified Korean Peninsula. [31]

The U.S. also has plans in place to rapidly move personnel in the region--such as the 45,000 U.S. troops stationed in Japan --to the Korean Peninsula in the event of a war. [31] Seven of these export-oriented Korean businesses grew their asset values from May 2016 to May 2017, led by automotive industry titans KIA Motors (up 7.4%) and Hyundai Mobis (up 7.1%). [47]

The union also said that South Korean carmakers were already penalized during the renegotiations of the bilateral trade agreement. [26] The National Regulator for Compulsory Specifications, part of the South African Bureau of Standards, had been taking nearly a year to issue the required documentation. [27] In the analysis below, we compare South Korea?s top 10 export companies based on asset values, sales and profitability as of May 2017. [47] Five of South Korea?s largest export companies increased their year-over-year sales as of May 2017. [47] Three of South Korea?s 10 largest export companies operate in the global automotive industry. [47] Below are South Korea?s biggest export companies organized by asset value. [47] Perhaps reflective of an improving global economy, all of South Korea?s top 10 major export companies were profitable as of May 2017. [47] Seven of South Korea?s top 10 major export companies have their headquarters located in the country?s capital city, Seoul. [47]

Structural gaps and inconsistencies in intellectual property rights protection and enforcement allow Chinese entities to appropriate foreign IP. For example, misappropriation of trade secrets for the benefit of Chinese companies has occurred both within China and outside of China. [27] This article does not analyze the effects of this dynamic, but they should be considered by automotive companies whose products rely directly or indirectly on US-China trade flows. [32]

For the North American automotive industry, fallout from the tough new trade rules or U.S. withdrawal from NAFTA might not--by itself--be that serious. [32] The new rules will hit the North American facilities of all industry players--those headquartered in the U.S. as well as elsewhere. [32] Overall, it would not be as much of a challenge for the North American industry because most OEMs and tier one auto suppliers have manufacturing facilities in all three countries. [32] It is also possible that Commerce could decide that no auto tariffs should hit Canada and Mexico because they are allies and because they are elements of an integrated North American automotive manufacturing supply chain. [32] The price of a US-built car with typical features would rise on average by $2,000, while the price of an imported car would leap by $5,800, according to the American Automotive Policy Council. [32] President Trump is fulfilling his promise to promote fair and reciprocal trade for American farmers, ranchers and manufacturers by enforcing trade laws and holding our trading partners accountable. [27] Under his leadership, USTR will build upon these enforcement efforts and continue to identify and break down foreign trade barriers for American exporters. [27] Those moves come on the heels of Washington's imposing additional 25 percent duties on $34 billion of Chinese goods starting Friday, to which Beijing responded by increasing its own taxes on the same amount of American imports. [26]

Customs Improvement : Korea will address long-standing concerns with onerous and costly verification procedures through agreement on principles for conducting verification of origin of exports under KORUS and establish a working group to monitor and address future issues that arise. [27] In its Feb. 12 press release, GM Korea said "it will cease production and close its Gunsan plant by the end of May 2018" because the "facility has been increasingly underutilized, running at about 20 percent of capacity over the past three years, making continued operations unsustainable." [33] A GM Korea press release announcing the closure said that the Gunsan plant has been underused for years, "making continued operations unsustainable." [33]

Most defense experts would agree there's no question that the U.S. would win in a war with North Korea, but many have concluded that millions could die in the process, including hundreds of thousands of U.S. military personnel as well as civilians in Korea, Japan and Guam. [31]

To give some contextual perspective on recent company performance, the overall value of Korean exports declined by -9.6% from US$547.8 billion in 2012 to $495.4 billion during 2016. [47] Most of the fighting in such a conflict would fall on South Korean troops. [31] South Korean ISPs also censor (block) access to websites that promote homosexuality. [28]

China also conditions foreign investment approvals on technology transfers to Chinese entities; mandates adverse licensing terms on foreign IP licensors; uses anti-monopoly enforcement to extract technology on unreasonable terms; and subsidizes acquisitions of foreign high-technology firms to bring technology to Chinese parent companies. [27]

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