The Porsche 911 GT3 Is the 2022 MatoCar Performance Vehicle of the Year
To the surprise of the few and the horror of those trying to purchase one for sticker price, the 2022 Porsche 911 GT3 is MotorTrend's 2022 Performance Vehicle of the Year. The competition was fierce for this year's inaugural award, but in the end most of the judges voted for the GT3. The two who didn't score it first had Porsche's latest and greatest in second place—quite a close second place, at that. And yes, the word "greatest" is apropos here. That is, until the next GT3 iteration drops—which should be any time now. Why so dominant, why so loved, why so great? Several reasons, but first let's go backward.
We considered ourselves fortunate to attend the launch of the old 991.2 911 GT3 in Spain back in 2017. Fortunate not only because that GT3 generation (the new GT3 is the 992.1) was magnificent but also because attendees got to chase rally legend Walter Röhrl around a racetrack for five laps. Life was good. On a personal note, I mention this because I distinctly remember writing this next part before I drove the 991.2 version: "[The 991.1] GT3 marked the first time in my career I had nothing negative to say about a vehicle." Followed by, "I don't have the foggiest idea how the wizards of [Weissach] can make the GT3 any better than it already is. Although I suspect Porsche will tell me once I get to Spain."
In other words, it was impossible to conceive how Porsche could even kind of improve upon the already spectacular 991.1 GT3. But it sure did. Fast-forward to hours before the 2022 PVOTY competition began, and our judging panel collectively thought the same thing. Guess what? The unfathomable has been achieved. Again.
A sampling of initial comments from meine Kollegen once they spun a turn behind the Porsche's wheel: "This is pure driving pleasure," features editor Scott Evans said. "Honestly, it's the only car that made me lose my breath." Features editor Christian Seabaugh added, "My gosh, this is such a good car." Deputy editor Alexander Stoklosa recounted, "I took this on two laps of the winding road circuit at the Hyundai Proving Ground, and by the time I exited, I was sweaty and feeling absolutely jacked, wanting more." Good thing for him we then went to the racetrack, no? Director of editorial operations Mike Floyd said, "Holy hell, this thing is amazing. Wow."
Head of editorial Ed Loh went a bit cerebral trying to explain what's so great about the GT3: "It makes you feel sharper and more in tune with everything—from the soles of your feet to the pads of your fingertips, all the way to the base of your skull and the lizard part of your brain that ensures you don't die in your sleep." Executive editor Mac Morrison was more succinct, simply offering, "Sheeeeeezus H. Porsche. Maaaaannnnnnn."
Yeah, friends, this car is absurdly great. It serves up unbelievable levels of performance paired with unbelievable levels of grip, head-ringing aural thrills thanks to a 502-hp humdinger of a 4.0-liter naturally aspirated flat-six that revs all the way to 9,000 rpm, and perhaps most important, the best manual transmission in automotive history. Hashtag fight us. Did we mention the gobs and bushels and duffel bags full of both horsepower and revs? Perhaps the 992 GT3 is not as laser-guided or quick as the other two big wingers present (the Lamborghini Huracán STO and the Mercedes-AMG GT Black Series), a whole host of McLarens, or even Porsche's own upcoming GT3 RS. However, this car boasts a solidity, an everyday ease of use, and the resulting desire to just drive it more and more that separates the GT3 from the rest of the frontrunners for this year's PVOTY trophy. The 2022 911 GT3 is a deeply satisfying sports car that just so happens to have supercar reflexes.
But what about the criteria? Oh yes, we are fully aware that transitioning away from our old Best Driver's Car competition to one of our signature Of The Year formats means any winner is subjected to our six key criteria. In case this is your first time, they are: Advancement in Design, Engineering Excellence, Performance of Intended Function, Safety, Value, and Efficiency. Even when keeping every one of these in mind when picking our winner, the Porsche excels. Hell, forget excels; the GT3 dominates.
Advancement in Design
This one is as simple as … just look at it. At first glance and across but two dimensions, you may not "get" the nostrils on the GT3's hood. We assure you the two speed holes (they're actually part of the car's aerodynamics, similar to openings on the Lamborghini Aventador SVJ) grow on you after repeated viewings. Back to the launch of the old 991.2 GT3, I'll never forget something Porsche GT-division boss Andy Preuninger said during the press conference: "The GT3 has to be the most attractive 911." Targa fans might disagree, but the newest GT3 looks fabulous, even in muted orange sherbet (actual color name: Lava Orange). And that wing! A piece of functional sculpture. Anyone opting for the wingless GT3 Touring version is nuts. Ahem.
We also loved the interior's design, specifically the well-executed sparseness. Countless gallons of ink have been spilled, both actual and virtual, rightly chastising Tesla for that brand's signature near lack of an interior, but the GT3 isn't that. No, this car's guts represent minimalism done right. "I love how simple it is inside—just get in and go," Stoklosa said. "There's a button for ESC, one for the shocks, and that's pretty much it. No fiddling, all fun." Yes, you get right down to business inside the GT3, the business of woohoo!
Loh was particularly impressed. "The control layout is awesome," he said. "It's not as spaceship-weirdo-wild-looking as the Huracán STO. It's also not as plasticky as the AMG GT. I'm Goldilocks, and this supercar is juuuust riiiiight. Love the seats, love this vehicle. Awesome."
Not only is the layout awesome, but the controls themselves also inspire awe. We've only partially told you about the fabulous gear lever. One reason it's so spot on is that the transmission's synchros are made from brass, not plastic; when you shift gears, you're actually pushing metal through metal. So cool. But just holding the stick feels wicked. The clutch is perfectly weighted, too. Porsche truly nailed the small stuff. "It's a little thing, but I love the steering wheel," Seabaugh said. "It's a dinky little 7/8ths-sized thing that just feels perfect in your hands." Amen.
Engineering Excellence
The criteria's lines are easy to blur. For instance, the stick shift bleeds over from Advancement of Design into Engineering Excellence. So be it. As associate road test editor Erick Ayapana asked, "Why can't all shifters be like this?" It's no shock to say the latest from Porsche's freaking racing division—after all, that's what the GT crew does—is excellently engineered. But, brothers, sisters, this is one of those hard-to-overstate situations.
As an example, let's look at the car's grip. We were impressed. "The amount of mechanical grip, aided at times by the aero, is stupefying," Morrison said. "Like, it's just criminal, and I use that word as a positive. You should not be able to drive the front end into corners as hard as you can, and you should not be able to go back to power so hard and early and easily as the new GT3 allows you to."
Want to talk brakes? Evans does. "The brake feel is the real accomplishment here, and that's saying something," he said. "You can feel exactly how hard the pads are biting at every moment, intuit exactly how much braking you're using and how much you have left in reserve." Road test editor Chris Walton added, "The brakes are nuclear."
Grip and brakes, that's just tires, right? Well, partially, sure, but we promise you that while slapping the GT3's sticky Michelin Pilot Sport Cup 2 R N0s on your car will improve its performance, the GT3 is better engineered. It pulled 1.19 g (average) on our skidpad, tying it with the 2019 911 GT2 RS for the highest average number we've ever recorded. Its figure-eight time was just 0.2 second off the 720-hp AMG GT Black Series, a car that makes 218 extra horsepower. And the GT3 beat the incredible 630-hp Lambo STO here by 0.2. If that's not engineering excellence, what is?
Performance of Intended Function
The 911 GT3 crushes this category. This is the part where we break down both what a GT3 is and what makes a Performance Vehicle of the Year. Starting with the 911, it's the sportier, racier, harder-core, no-compromise version. And the 911 is a hell of a sports car to start with. From that not so humble origin point, the wizards and witches of Flacht work their magic, transforming a superlative sports car into an everyday supercar. Yes, supercar, because the GT3 certainly is.
The ride isn't soft, but you can live with this car. "Old dudes like me might have some trouble with ingress and egress," Floyd said, "but once you get yourself snug in the seat, you can easily drive the GT3 all day in slow traffic or on a long highway stretch. The clutch pedal action doesn't punish your left leg, and loping around town is a breeze."
You simply can't say the same about either the STO or the Black Series. Everyday? Maybe every track day, and even that's a stretch. For instance, assuming your head isn't too big, you might be able to fit your helmet—just one—into the Lambo's frunk. Emphasis on "might." The Black Series, while deeply impressive, is really just a bridge too far for a street car. The GT3? Let's just say we understand why people are paying $50,000 more than sticker for a street car that can also rip up a racetrack.
"It's just a joy to drive hard on a circuit, which is what the GT3 is absolutely made to do," Floyd said. "It's so obvious how long Porsche has been developing this car and the 911 in general. There's a next-level feel you just don't get with the Huracán or GT Black." In other words, it's a special 911 doing precisely what its maker intended. Talk about performance of intended function, indeed. That alone makes it a great candidate for Performance Vehicle of the Year.
Value
Income inequality must be causing mass psychosis for us to say a car with a base price of $164,150 and an as-tested kitty of $195,850 is a great value, but humor us for a moment. When you consider the two cars in this test that most closely compete with the Porsche—the $355,595 AMG and the $442,033 Lamborghini—the GT3 looks like a steal. Toss on that $50,000 ADM (adjusted dealer markup), and the Porsche is still a steal.
Efficiency
We cannot, however, with a straight face tell you a car that carries an EPA rating of 16 mpg combined is efficient. But this is Performance Vehicle of the Year; none of the competitors was designed with astounding efficiency in mind. Additionally, the GT3's fuel economy is in line with the other contenders in its performance plane. Hot tip: Opt for the extended-range gas tank, and you'll feel as if you're getting great mileage.
Safety
Cars like the Porsche 911 never get crash ratings, never mind the GT3. That's just how it is. So we can't tell you about its passive safety worthiness. However, a car that superlatively grips and stops the way the GT3 does is inherently safe in the hands of a skilled driver. Oh, and we seem to remember it has adaptive cruise control, too.
Dominant Winner Wins
There's so much more to say. We haven't mentioned the Davante Adams-like way the GT3 changes direction. Or the switch to a double control arm suspension up front. Or how for the first time in Porsche 911 history, you don't need to trail-brake your way into every corner, because (surprise!) the front suddenly has copious grip. The front end is like a race car, or as Seabaugh put it, "It digs hard into corners like a skate into ice." There's also the part about how with only 2 additional hp, the 992.1 GT3 is nearly 18 seconds quicker around the Nürburgring Nordschleife than the 991.2 GT3 it replaces. If only we could show you all the notes from all the judges, including our dedicated test team, just so you could see how consistently overwhelming the superlatives are. It's without end.
Anything we don't like? Evans and Loh thought the ride quality was lacking, to the point Evans recommends never putting the dampers into Sport. Not everyone agreed with him. But that's about it for the negatives. Looking over my own notes, one line caught my eye: "If the GT3 isn't second place, it's first." As much as I and the rest of the judges loved the Porsche, the Lamborghini STO was also exceptional. But by a vote of five judges to two, the GT3 claimed the crown.
Epilogue
After the vote, and because I was the judge writing this winner story, I took the new Porsche 911 GT3 home for about a week. A friend of mine owns a 991.2 GT3 Touring; we decided to drive them back to back. I figured this new GT3 would be slightly better, but I quickly learned it's about 70 percent better. The 2022 model made the old one feel like a couch. I'm not kidding. And remember, this was a couch that at one point in time we said was the best-driving car in the world.
If that's not enough, I'll leave you with something 20-year veteran auto scribe and motorsports/track-driving aficionado Morrison wrote in his notes. "This might sound nuts," he said, "but I thought hard about it for several days after our PVOTY activities concluded: I'm not sure I've ever driven a better car. In my entire career."
Nicely played, Porsche, and congrats on winning the first MotorTrend Performance Vehicle of the Year award. Now comes the hard part: Do it again next year. As I wrote before about the 991.2 GT3, "How do you take something with no apparent flaws, no visible weaknesses, and improve upon it anyway?" None of us knows the answer, but we're sure Preuninger and the gang have some ideas. We can't wait to test them out.
POWERTRAIN/CHASSIS 2022 Porsche 911 GT3 SPECIFICATIONS DRIVETRAIN LAYOUT Rear-engine, RWD ENGINE TYPE Direct-injected DOHC 24-valve flat-6, alum block/heads DISPLACEMENT 3,996 cc/243.9 cu in COMPRESSION RATIO 13.3:1 POWER (SAE NET) 502 hp @ 8,400 rpm TORQUE (SAE NET) 346 lb-ft @ 6,100 rpm REDLINE 9,000 rpm WEIGHT TO POWER 6.4 lb/hp TRANSMISSION 6-speed manual AXLE/FINAL-DRIVE RATIO 3.09:1/2.72:1 SUSPENSION, FRONT; REAR Control arms, coil springs, adj shocks, anti-roll bar; multilink, coil springs, adj shocks, anti-roll bar STEERING RATIO 11.2-14.2:1 TURNS LOCK-TO-LOCK 2.4 BRAKES, F; R 16.1-in vented, drilled, carbon-ceramic disc; 15.4-in vented, drilled, carbon-ceramic disc WHEELS, F;R 9.5 x 20-in; 12.0 x 21-in forged aluminum TIRES, F;R 255/35R20 97Y; 315/30R21 105Y Michelin Pilot Sport Cup 2 R N0 DIMENSIONS WHEELBASE 96.7 TRACK, F/R 63.0/61.1 in LENGTH x WIDTH x HEIGHT 180.0 x 72.9 x 50.4 in TURNING CIRCLE 34.1 ft CURB WEIGHT (DIST F/R) 3,188 lb (40/60%) SEATING CAPACITY 2 HEADROOM, F/R 37.9/ — in LEGROOM, F/R 42.2/ — in SHOULDER ROOM, F/R 52.6/ — in CARGO VOLUME 4.6 cu ft TEST DATA ACCELERATION TO MPH 0-30 1.5 sec 0-40 2.0 0-50 2.8 0-60 3.4 0-70 4.2 0-80 5.2 0-90 6.2 0-100 7.3 PASSING, 45-65 MPH 1.5 QUARTER MILE 11.4 sec @ 126.0 mph BRAKING, 60-0 MPH 93 ft LATERAL ACCELERATION 1.19 g (avg) MT FIGURE EIGHT 22.1 sec @ 0.95 g (avg) TOP-GEAR REVS @ 60 MPH 2,500 rpm CONSUMER INFO BASE PRICE $164,150 PRICE AS TESTED $195,850 AIRBAGS 8: Dual front, front side, front curtain, front knee BASIC WARRANTY 4 yrs/50,000 miles POWERTRAIN WARRANTY 4 yrs/50,000 miles ROADSIDE ASSISTANCE 4 yrs/50,000 miles FUEL CAPACITY 23.7 gal EPA CITY/HWY/COMB ECON 14/18/16 mpg RECOMMENDED FUEL Unleaded premium ON SALE Now Show AllYou may also like
aston-martin dbx Full OverviewMeet the 2023 Aston Martin DBX707, the world's fastest, most powerful gas-fed SUV. What you need to know up front is that when Tobias Moers left AMG to take the top job at Aston, he almost immediately set the company's sights on Lamborghini. Not, as you might expect, by announcing a new supercar. No, Moers instead figured Lamborghini's first ever SUV, the Urus, presented a juicier target.Moers had liked what he'd seen of Aston's own SUV debutante, the DBX, during his due diligence prior to making the jump from AMG. The DBX's fundamentals were good, he thought—all it needed were some powertrain and suspension upgrades, plus a couple of other changes, and Lamborghini's snarling, extrovert Urus could be knocked from its perch as the world's fastest, most powerful SUV.The suffix in "DBX707" refers to the number of European ponies under the shapely Aston's hood. In America, that's 697 hp, 56 more horses than the Urus musters. (Though shy of the Dodge Durango SRT Hellcat's 707 hp, remember: That SUV was a one-and-done 2021 model that lacks a 2022-or-beyond followup. Also, we specify "gas-fed" because Tesla's Model X Plaid and Rivian's upcoming R1S pack much more hp.) And Aston Martin claims this DBX707 has a top speed of 193 mph, making it 4 mph faster than the Urus (and far faster than a Model X Plaid, which tops out at 163) at full throttle on an empty autobahn. Take that, Lamborghini.With its 697 hp and 664 lb-ft of torque, the 2023 Aston Martin DBX707 packs a significantly bigger punch than the regular DBX. The extra power and performance come courtesy of a revised spec of the M177 4.0-liter V-8 used in the exhilaratingly rapid Mercedes-AMG GT 63 S 4-Door Coupé. The GT 63 S version of the engine, which has twin-scroll ball-bearing turbochargers for faster response, makes "only" 630 hp, but its torque output is identical.The Aston Martin DBX707 engine drives through the same Speedshift MCT wet-clutch nine-speed automatic transmission used in high-power, high-torque Mercedes-AMG cars. The transmission includes a Sport+ mode with launch control and a full manual control mode. A new e-diff has been fitted to the rear axle to handle the high torque loads and deliver a quicker locking rate. The final drive ratio is shortened by 7 percent compared with the regular DBX to help get the DBX707 to 60 mph in less than 3.5 seconds.Suspension upgrades include compression and rebound damping that is increased by 20 percent and 10 percent, respectively, on the front shocks, and 15 percent and 5 percent on the rears. The electronic active roll system is recalibrated to deliver 50 percent more torque on low body motions, and the roll control is now more rear-biased at higher cornering speeds to reduce understeer.To ensure the stiffer suspension works effectively, the stiffness of the front shock top mounts is upped by 55 percent with the addition of a cross brace, and the front control arms are fitted with hydraulic bushings to improve ride comfort and bump isolation without compromising dynamic performance. A 0.16-inch-thick underbody panel improves torsional stiffness by 1.3 percent for better steering response and impact control.As you'd expect in a 5,000-pound-plus SUV capable of 193 mph, the standard brake setup features carbon-ceramic rotors: 16.1-inch units clamped by six-piston calipers up front, 15.0-inch items at the rear. Standard wheels measure 22 inches and are shod with Pirelli P Zero tires. You can order all-season tires if you want, but that means the Aston Martin DBX707's stop speed is restricted to a mere 186 mph. Exclusive to the DBX707 is a new and optional 23-inch wheel, though you can't get all-season tires for it.Grafting iconic sports car graphics onto a big two-box SUV is a challenge—just ask Lamborghini—but Aston Martin chief creative officer Marek Reichmann's team of designers has, by and large, succeeded in making the regular DBX look as glamorous as the rest of the Aston Martin family.The new DBX707 adds muscle to the glamour. The roof spoiler is bigger. A new front fascia features a bolder grille, larger cooling intakes for the brakes, and a more aggressive front splitter. The rear fascia is new, too, with quarter-panel vents integrated into the bumper, and a large diffuser underneath flanked on either side by dual exhaust outlets. The sportier styling details don't compromise practicality, though: Front and rear departure angles remain the same as the standard DBX, and the 707 can be ordered in Europe with a retractable tow hitch.Inside, the 2023 Aston Martin DBX707 can be had with either sport or comfort front seats, the former offered with a unique herringbone perforation pattern on the backrest and squab. A vertically mounted rotary controller is added to the center console to allow rapid selection of drive modes.The 2023 Aston Martin DBX707 is expected to arrive in the U.S. in the middle of 2022, with prices starting from $235,086.Looks good! More details?2023 Aston Martin DBX707 Specifications BASE PRICE $235,086 LAYOUT front-engine, AWD, 4-door, 5-passenger, SUV ENGINE 4.0L/697-hp/664-lb-ft twin-turbo direct-injected DOHC 32-valve V-8 TRANSMISSION 9-speed automatic CURB WEIGHT 5,000 lb WHEELBASE 120.5 in L x W x H 198.4 x 78.7 x 66.1 in 0-60 MPH 3.4 sec (MT est) EPA FUEL ECON (CITY/HWY/COMB) 14/20/16 mpg (est) EPA RANGE (COMB) 360 miles (est) ON SALE Summer 2020 Show All
This is The American Dream, the world's longest limo, at least according to the Guinness World Records organization. At 100 feet and 1.5 inches, we can't imagine it has too many challengers to its throne. But as impressive as this 25,000-odd pound, helipad-equipped, massive Cadillac is, what's even more impressive is that its restoration was completed at all. This limo was in terrible shape, a rotted hulk that would take a gargantuan effort to bring back to life.Abandoned in New York, it was first hauled to the Autoseum for an ill-fated restoration attempt. Then, with some difficulty (and a hood that flew off en route, never to be seen again), it was trucked down to the Dezerland Park car museum for another go—in several pieces—for another effort at revival. Here's what it looked like in 2013:Well, that effort has succeeded, as you can see. Michael Dezer—a prominent real estate developer in New York and Florida—and Michael Manning of Autoseum worked together to make it happen. Along the way, three Cadillacs were cannibalized, and untold amount of rust was removed, yards of leather and vinyl and carpet were employed, and the engine(s) were replaced. The subframe looks more like a bridge truss than anything you'd find in a vehicle, and in fact Manning admits rebuilding it was more of a civil engineering project than an automotive restoration.No fewer than six Eldorados were conjoined during the original construction of this 24-wheeled monster, conceived by Jay Ohrberg of Burbank, Calif.—the guy behind a few cars you may have heard of, like KITT from Knight Rider and the DeLorean time machine from Back to the Future. Originally, the vehicle had a swivel function, in order to attempt to navigate corners with more grace. It's not clear if that feature was retained in the restoration. Its tail housed a helipad, whose surface could be used as a putting green whenever the chopper wasn't around. In its original iteration, it also had two engines, dozens of windows, TVs, telephones, a lounge, a waterbed, a jacuzzi, and a swimming pool with a diving board. The American Dream is now functional, to the extent that it can be. With this length and an attendant cruise-ship-like turning radius, you can't simply drive this thing around. You need to carefully plan a route to make sure it has room to maneuver. Get it stuck and it'll take some creative towing to remove it. That said, whether stationary or on the go, Manning says there's room inside for 75, plus there's a pool on the back. The interior is mostly bare at the moment—in the video, Manning hints it could be built out to fit a customer—and it's so long the other end is barely visible from inside.There's no getting around it: The American Dream is excessive to the point of impracticality. But it's still the world record holder, taking the crown from itself with a 1.5-inch stretch. It's hilarious that a distance that small has any significance for a vehicle this large, but there it is. What happens to it next is anybody's guess, but we salute you, Floridians, for reviving The American Dream in all its excess.
The Russian incursion into Ukraine this week has thrown European and global markets into a frenzy, as automakers work to determine how big an impact the war, and any economic sanctions against aggressor Russia, will have on supply lines, production, and workforces who could now be in direct danger. Europe's home automakers will be hit the hardest, as supply lines from Ukraine and Russia freeze up while bombs get dropped. However, Hyundai and Kia's massive manufacturing presence in Russia now presents a huge headache for the Korean group, as well.Multiple global automakers have reportedly halted shipments of local dealer orders to Russian partners, effective February 24, the date of the Russian invasion, according to letters apparently sent from the automakers and viewed by the Russian-language business paper Vedomosti. Russian dealers for Audi and Chevrolet reportedly received notices, and Vedomosti claims VW and Skoda are prepping notices of their own. Porsche and Land Rover's Tata Group had also halted shipments starting the date of the Russian invasion. If this is all true, and it likely is, it's unclear exactly what conditions forced the shut down—but it probably isn't going to be easy getting your car through Russian customs right now.The report says Audi will inform its partners on its plans to resume shipments down the road. Any inventory from automakers that's already passed through Russian customs will still be delivered. The quick move to halt shipments to Russia on the part of most automakers is likely precautionary and temporary, and more to do with establishing new logistics options adapted to an environment now at war, and in the environment of new global sanctions against Russia. Companies obviously face public pressure to not appear too cozy with a current aggressor, so the shipment freeze is likely an indefinite delay until everybody calms down.If you're wondering if the U.S. government and its allies' sanctions against Russia will further exacerbate the ongoing semiconductor shortage, the answer is of course. While no semiconductors or raw materials used to make them will be flowing into Russia, much of the raw materials come from Ukraine, which probably won't be exporting them for a while.Hyundai + Kia In RussiaThe Korean automotive sector is hugely reliant on Ukrainian-provided rare gases like neon, krypton, xenon, and more, everything from EV battery cells to superconductors are now on an even tighter supply line, and prices will go up. And speaking of gas, the kind you use to fill up your car at the pump likely will get more expensive in the coming weeks as energy prices rise globally, especially if European nations abstain from Russian fuels in response to its attack on Ukraine.Hyundai Group, which Kia also operates through, first established itself with a factory in St. Petersburg, Russia, in 2010 and recently purchased a former General Motors facility to renovate for Hyundai Tucson, Palisade, and Kia Sportage production for export to North America and the rest of Europe this year. The automakers combined currently produce more than 230,000 cars annually in Russia.That's just what they build there—Hyundai Group sold 373,132 vehicles in the Russian market in 2021, holding the largest market share; Hyundai accounts for 10.3 percent and Kia 12.3 percent of Russia's total vehicle market share.The outbreak of war and the onslaught of economic and financial sanctions against Russia now put all of Hyundai and Kia global business in jeopardy and will severely damage the national Korean economy, as well. The Korea Times says "Korean conglomerates" sold $2.5 billion worth of cars to Russia in 2021, plus an additional $1.45 billion worth of car parts and components.Cars and their parts previously accounted for 44 percent of Korea's annual export volume to Russia, which will likely be severely hindered by American and European sanctions looking to cut trade and handicap Russia's economy.Kia takes home four prizes at the annual Russian Car of the Year awardsHyundai + Kia in UkraineHyundai also operates a local sales office in Kyiv, Ukraine, and Kia produces the Rio sedan and hatchback at the ZAZ factory in Zaporozhye, Ukraine. On January 28, 2022, the Korean Ministry of Foreign Affairs announced a state of emergency in the region and established plans to evacuate Korean nationals out of Ukraine, the Korea Times reports.Hankook Tires, another Korean company, evacuated its sales office in the country. An official from Hyundai offered that the company has "been closely monitoring the situation as the Russian-Ukraine crisis is expected to bring about an economic slump and weak ruble," in a statement to the Korea Herald.The war in Ukraine could also severely impact global EV battery cell production, as the nation is the world's third-largest producer of nickel and aluminum, two highly valuable resources necessary in battery and EV components. Additionally, Ukraine produces almost 70 percent of the world's neon gas needed for components like chips, which are already suffering a shortage that has driven the average new vehicle transaction price in the U.S. to unbelievable new heights. It will likely only grow higher this year.Ukraine is also a critical global supplier of rare gases used in all sorts of high-tech equipment and components, and the war will severely hinder those supplies and likely cause prices to rise. This, too, will have a specific impact on the Korean economy, as the nation imports 30.7 percent of its krypton, 23 percent of its neon, and 17.8 percent of its xenon rare gases for component production from Ukraine, according to the Korea Herald. South Korean-based automaker SsangYong also imports raw materials like aluminum from the region.The Korean Automotive Manufacturer's Association fears up to 29 percent of its group sales could drop this year, anticipating a similar impact to when it witnessed a 62 percent drop in auto exports after the Russian incursion in Crimea in 2014, which also brought about international sanctions against Russia.New Sanctions on RussiaIn response to Russia's invasion of Ukraine, the U.S. Treasury Department announced it would immediately target the core infrastructure of Russian financial and some economic institutions. Sanctions target banks such as the state-backed Sberbank, VTB Bank, Otkritie, Sovcombank and Novikombank. The move is meant to ban any trading with U.S. institutions and freeze any U.S. assets held by the companies and their executives.This first wave of sanctions from the U.S. and its allies, announced on February 24, did not specifically target Russia's auto sector or any enterprises directly involved. However, some major economic enterprises related to autos were targeted, including Russia's Sovcomflot shipping company and Russian Railways, as well as much of the Russian energy sector.Russia is currently the third-largest supplier of nickel in the world and provides 40 percent of global palladium resources used for manufacturing catalytic converters, according to NBC. In return, Russia also relies on foreign supply lines for as much as 25 percent of its home automotive production, which could be heavily sequestered by new sanctions. The Russian Gaz Group has already announced that it will have to halt production as sanctions are levied against Russia.Analyst Sam Abuelsamid from Guidehouse Insights told NBC the big question regarding sanctions comes down to China: "If we put heavy sanctions on Russia, they might respond and cut us off from many of the things we need," including circuit boards and other raw materials, such as the lithium needed for electric vehicles. However, following the first wave of sanctions, this may not be a serious risk.J.D. Power and LMC Automotive analysts have downgraded projected global light vehicle production this year to 85.8 million units for 2022, a cut of 400,000 vehicles this year, Reuters says. However, the overall global volume of light vehicle sales is still expected to rise by 5 percent.Renault + Stellantis + Toyota Have Russia Trouble, TooOther major global automakers, including Renault and its affiliate brands, Stellantis and its affiliates, and Toyota, also have a significant manufacturing presence in the region. Renault has already announced that production in its Moscow, Russia, facility would have to stop from February 28 to March 5, citing "tighter border controls in transit countries and the forced need to change a number of established logistics routes," but failing to mention the Russian invasion of Ukraine outright, according to Reuters.Renault Group makes 8 percent of its core earnings in Russia, the automaker's second-largest market after its home of France. Russia's top automaker, AvtoVAZ, is partially owned by Renault, as well.Stellantis operates a car factory in Kaluga, Russia, where it also manufactures Mitsubishi models. Production of Peugeot, Citroën, and Opel cars reportedly doubled in Kaluga in 2021, and overall sales for Stellantis in Russia grew by 65 percent. There were plans earlier this year to start exporting commercial vehicles from the factory, which have now been interrupted.Stellantis CEO Carlos Tavares commented on the situation on a conference call earlier this week: "If we cannot supply the plant, if that is the reality, we have either to transfer that production to other plants, or just limit ourselves," via NBC. The factory only exported about 11,000 commercial vehicles last year, a fraction of more than 2 million total light commercial vehicles the company sold.A Stellantis spokesperson told MotorTrend that the company is "monitoring the situation carefully in real time, and if necessary we will take appropriate measures in the interest of our employees and their families. We currently see no significant impact on our business operations, including our manufacturing plant."Considering the light amount of commercial exports from the Kaluga factory, it's more likely Stellantis' local Russian operation takes the bigger hit, though broader supply chain issues will still negatively impact the global Stellantis portfolio.Toyota has been building the Camry in Russia for decades and has a
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