Both companies plan to conduct joint research and development on safety and security systems for self-driving cars, which Hyundai seeks to roll out commercially by 2030, the report, which cited unnamed industry sources, said.

The agreement was signed on the sidelines of a business forum held in Seoul on Thursday by the South Korean government and China's Guangdong province, it said.

Hyundai and Tencent did not offer any immediate comments on the report.

The two companies are also exploring ways to utilise Tencent's popular WeChat messaging app in developing China-targeted car models, the newspaper said.

Hyundai, the world's 5th largest automaker together with affiliate Kia Motors, has been fostering partnerships with self-driving tech and social media firms as it aims to introduce highly automated vehicles by 2020 and fully autonomous vehicles by 2030.

Hyundai Mobis, another affiliate of the car maker, clinched an agreement last month with Russia's largest internet search engine Yandex to jointly develop control systems for driverless vehicles.

Shenzhen-based and Hong Kong-listed Tencent has also ventured into self-driving tech and had advertised to recruit engineers in Silicon Valley last year. </s> FILE PHOTO: The logo of Hyundai Motor is seen during the 2017 Seoul Motor Show in Goyang, South Korea, March 31, 2017. REUTERS/Kim Hong-Ji

SEOUL (Reuters) - South Korean automaker Hyundai Motor Co and Chinese technology firm Tencent Holdings have signed a preliminary deal to develop software for driverless vehicles, South Korea’s Maeil Business Newspaper reported on Saturday.

Both companies plan to conduct joint research and development on safety and security systems for self-driving cars, which Hyundai seeks to roll out commercially by 2030, the report, which cited unnamed industry sources, said.

The agreement was signed on the sidelines of a business forum held in Seoul on Thursday by the South Korean government and China’s Guangdong province, it said.

Hyundai and Tencent did not offer any immediate comments on the report.

The two companies are also exploring ways to utilize Tencent’s popular WeChat messaging app in developing China-targeted car models, the newspaper said.

Hyundai, the world’s 5th largest automaker together with affiliate Kia Motors, has been fostering partnerships with self-driving tech and social media firms as it aims to introduce highly automated vehicles by 2020 and fully autonomous vehicles by 2030.

Hyundai Mobis, another affiliate of the car maker, clinched an agreement last month with Russia’s largest internet search engine Yandex to jointly develop control systems for driverless vehicles.

Shenzhen-based and Hong Kong-listed Tencent has also ventured into self-driving tech and had advertised to recruit engineers in Silicon Valley last year. </s> SEOUL (Reuters) - South Korean automaker Hyundai Motor Co on Sunday denied a report that it had signed a preliminary deal with Chinese technology firm Tencent Holdings to develop software for driverless vehicles.

Hyundai’s comments come a day after South Korea’s Maeil Business Newspaper cited unnamed industry sources on Saturday saying that the two companies planned to conduct joint research and development on safety and security systems for self-driving cars, which Hyundai seeks to roll out commercially by 2030.

Both companies had not offered any immediate comments on Saturday.

Hyundai said in a statement on Sunday that its cooperation with the Chinese tech giant was focused on infotainment. Modern cars have so-called infotainment systems on a screen below the dashboard to provide services such as navigation and music. </s> Hyundai's comments come a day after South Korea's Maeil Business Newspaper cited unnamed industry sources on Saturday saying that the two companies planned to conduct joint research and development on safety and security systems for self-driving cars, which Hyundai seeks to roll out commercially by 2030.

Both companies had not offered any immediate comments on Saturday.

Hyundai said in a statement on Sunday that its cooperation with the Chinese tech giant was focused on infotainment. Modern cars have so-called infotainment systems on a screen below the dashboard to provide services such as navigation and music. </s> SEOUL: Hyundai Motor Co and Kia Motors Corp plan to recall tens of thousands of vehicles in South Korea and an "unidentified number" in the United States due to engine issues.

The two car companies will recall 171,348 vehicles in South Korea because of an engine defect that is likely to "hamper safe driving," the South Korean transport ministry said on Friday.

The South Korean automakers have also submitted plans to the U.S. authorities to recall an unidentified number of vehicles in the United States over a "similar" engine issue, a spokeswoman at the South Korean duo said, saying that the plans are subject to a approval by U.S. authorities.

Yonhap News Agency said that the U.S. recall, which is currently under discussions with the U.S. National Highway Traffic Safety Administration (NHTSA), would reach some 1.3 million vehicles, which will be close to the duo's annual U.S. sales.

The recall may fuel quality concerns about Hyundai vehicles in Korea, which helped push its domestic market share to a record-low last year and bodes ill for the company already struggling with poor U.S. and Chinese sales.

The recall in South Korea covers Hyundai's Sonata, Grandeur sedans and Kia's K5, K7 and Sportage models equipped with a 2-liter or 2.4-liter Theta 2 gasoline engine produced before August 2013.

The ministry said metal debris in crankshafts could cause engine damage, leading to possible engine stalling.

Hyundai will replace a defective engine with a new one after inspection. The recall will start on May 22.

In 2015, Hyundai Motor said it would recall 470,000 Sonata sedans in the United States to replace faulty engine parts, sparking questions of safety back home.

But Hyundai and Kia said that engines produced at domestic factories were not defective, but extended the warranty period for five Theta 2-equipped models in South Korea. </s> South Korea agrees to further open auto market to US

SEOUL, South Korea (AP) — 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 free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will end tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. Each American carmaker will also be able to export 25,000 additional vehicles to South Korea each year without having to comply with domestic safety regulations. 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.

Kim said South Korea also won an exemption from increased import tariffs on steel products. 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 U.S. President Donald Trump recently said would be hit with heavy tariffs. But South Korea's steel tariff exemption is subject to a quota of about 2.7 million tons of steel products a year, about 74 percent of its exports in 2017.

The agreements in principle were announced Monday just hours after Trump said the United States was on the verge of amending its trade agreement with South Korea, which took effect in 2012. They came as a relief to South Korean industries, although the steel companies said they had wanted a larger quota of tariff-free exports to the United States.

The auto sector is among the most contentious issues in South Korea's trade dealings with the U.S. 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.

The revised agreement appears like significant concessions by South Korea but is expected to have little impact on its exports to the United States or its domestic auto market. No local auto companies export pick-up trucks made in South Korea to the United States, according to Kim.

While U.S. carmakers will be able to ship 50,000 cars to South Korea annually, 25,000 more than before, without being subject to domestic safety regulations no American car brand sold more than 10,000 vehicles in South Korea last year.

South Korean negotiators managed to avoid changes in treatment of its agriculture sector, a highly sensitive area in domestic politics.

The two allies started working on amending the free trade pact in August after Trump blamed the arrangement for causing the U.S. trade deficit with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

While the United States posted a trade surplus of $10.7 billion with South Korea in the services sector, it recorded a goods trade deficit of $27.7 billion in 2016, leaving an overall deficit of $17.0 billion.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week. </s> SEOUL, South Korea (AP) — South Korea has agreed to further open its auto market to the United States as the two countries reached an agreement in principle on amending their six-year-old free trade agreement, its top trade negotiator said Monday.

South Korea's Trade Minister Kim Hyun-chong said the United States will lift tariffs on South Korean-made pick-up trucks in 2041 instead of 2021. It will also be able to export 25,000 additional American vehicles to South Korea without having to comply with domestic regulations. South Korea will ease emission standards for American cars shipped from 2021-2025 when the Asian country sets new import regulations.

Kim said South Korea also won an exemption from import tariffs on steel products. The third-largest steel exporter to the United States after Canada and Brazil, South Korea was on the list of 12 countries U.S. President Donald Trump recently said would be hit with heavy tariffs on their exports of steel and aluminum products to the U.S.

The South Korean announcement came hours after President Donald Trump said the United States is on the verge of amending its trade agreement with South Korea.

The president told reporters at a Friday news conference that trade deals are being made with various countries and then highlighted South Korea, a key economic and national security partner in Asia. The United States ran a $10.3 billion trade deficit with South Korea last year.

After Trump's remarks, Commerce Secretary Wilbur Ross said he hoped a final agreement with Seoul would be announced next week.

The free trade pact between the United States and South Korea went into effect in 2012.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. </s> SEOUL, South Korea (AP) — Samsung Electronics' $8 billion acquisition of the U.S. auto electronics company Harman will instantly transform the South Korean tech company into a major player in the highly competitive and rapidly growing market for auto infotainment, software and connected car technology.

Samsung announced Monday that it would pay $112 per share in cash for the Stamford, Conn., company. It's Samsung's largest acquisition by far and it will put the company in a strong position as the race to develop autonomous vehicles barrels forward.

Harman International Industries Inc. is already is a $7 billion-in-sales per year player in the automotive market. It makes touch screens that control vehicle functions and infotainment systems, and it's dominant in automotive sound systems with brands such as Harman Kardon, JBL, Infinity and Mark Levinson.

In recent years Harman has used acquisitions to move into over-the-internet software updates and cyber security.

Harman complements Samsung's work in electronic displays and computer processors and, because of its established reputation in the auto industry, gives Samsung a strong foothold there, said Sam Abuelsamid, senior analyst for Navigant Research.

Samsung plans to keep Harman as an independent subsidiary and retain its management team, the companies said. That allows Samsung to enter the auto business with a different and well-established brand, avoiding any image problems because of the recent Samsung Galaxy Note 7 cell phone battery fires.

"They're looking for other revenue streams not necessarily as dependent on consumer perceptions," Abuelsamid said.

Sophisticated telematics systems will be in most new cars by 2020 to support over-the-internet software updates and other functions, Abuelsamid said. Since Harman already supplies screens and software, Samsung can get in the door to sell computer chips, he said.

The deal also positions Samsung well as car computers take on more and more driving functions while en route to fully autonomous cars, Abuelsamid said. Last month, Samsung bought artificial intelligence firm Viv Labs, founded by creators of Apple's Siri. It also recently bought a cloud service company, a mobile payments firm and a connected home startup.

"They're putting together a lot of the pieces that they could integrate to supply some of these companies," Abuelsamid said.

More than 30 million cars already are equipped with Harman components, and most of its sales for the year that ended Sept. 30 came from auto-related technologies.

"Upon closing, the transaction will immediately give Samsung a significant presence in the large and rapidly growing market for connected technologies, particularly automotive electronics, which has been a strategic priority for Samsung," the company said.

Samsung is a late-comer to the market for connected cars. In December 2015, the company made its ambitions for the self-driving car sector known by announcing that it will create a business division to focus on auto systems and components for autonomous driving.

Samsung follows other tech companies rushing into the automotive space.

LG, one of Samsung's biggest competitors, already has aggressively entered the market, and that may have motivated Samsung to spend $8 billion to propel its entry into the sector, Abuelsamid said. LG, through its LG Chem battery unit, supplies batteries for General Motors electric cars, and through that relationship, LG sold a lot of other components to GM for the Chevrolet Bolt electric car, he said.

Google has already developed autonomous cars and has been testing them for several years. Google and Apple also are already working with global automakers to supply their auto systems, CarPlay and Android Auto, to integrate smartphones into automotive electronics. </s> South Korea's transport ministry said on Tuesday it would ban some 20,000 BMW vehicles from the streets amid mounting public fears about engine fires.

SEOUL: South Korea's transport ministry said on Tuesday it would ban some 20,000 BMW vehicles from the streets amid mounting public fears about engine fires.

The driving ban comes after 27 engines went up in flames between January and July, which prompted BMW's Korea unit to apologize last week and a recall of 106,000 diesel vehicles including the 520d from Aug. 20.

Amid public concerns over safety the government order will affect about 20,000 BMW cars that are part of the recall but yet to receive safety checks, according to the transport ministry.

"I am asking owners of the BMW cars subject to the recall to actively cooperate to prevent bigger accidents, despite your inconvenience," Transport Minister Kim Hyun-mee told a press conference.

Those who own the affected vehicles, however, can drive for safety checks, the ministry said, adding that the ban is intended for quicker safety checks rather than punitive action against the owners.

Officials at the German automaker identified the root cause as defects in the exhaust gas recirculation system, while the South Korean government is conducting a separate probe into the case and planning to take legal action if necessary.

The order would be effective as soon as owners of the affected cars receive a mail notice, as early as Aug. 15, the transport minister said.

BMW, which trails only Mercedes in imported car sales in South Korea, saw sales more than double to 59,624 vehicles last year, from five years ago.

South Korea is a relatively small market, ranking eleventh in global auto sales, but is a major market for lucrative, premium vehicles and is currently dominated by Hyundai Motor and Kia Motors .
South Korea's Hyundai Motor reaches an agreement with Tencent to partner on research and development of self-driving cars. Hyundai plans to roll such cars out commercially by 2030.