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Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.

Hyundai's all-new 2018 hydrogen-powered CUV comes into focus

It's no secret that Hyundai has plans for hydrogen-powered vehicles beyond the currently available Tucson Fuel Cell. Ever since the debut of the Intrado concept at the Geneva Motor Show in early 2014, Hyundai has been dropping hints about what the new big-ish H2 vehicle will offer. We say "big-ish" because Hyundai Motor Group's director of eco-vehicle development, Ahn Byung-ki, told Automotive News that the next-gen hydrogen powertrain will find a home in a "totally new" model that will be "somewhere between a CUV and SUV." So, whatever fancy new automotive segment that phrase happens to define – MUV, for middleweight utility vehicle? – is what Hyundai's new hydrogen offering will be. Under the hood, the upcoming vehicle will use a fuel cell that doesn't need as much platinum and will have a bigger battery and a smaller motor. We had originally heard that this new hydrogen CUV/SUV would arrive in 2020, but Ahn said that the 2018 Winter Olympics, which will be held in Pyeongchang, South Korea will be "a big event. That's always a good opportunity for PR." With the Intrado concept, Hyundai said it was, "far more than a styling exercise." We've since heard that Hyundai believes that a CUV/SUV model offers the best option for customers buying a fuel cell vehicle. Earlier this year, Hyundai's head of the company's fuel cell research, Sae-Hoon Kim, said that, "all customer feedback says range and boot space are the priorities." The Intrado concept had a supposed range of around 375 miles. What that would translate to outside of the fictional auto show universe is unknown, but it sounds like Hyundai is ready to make all of this more real. Related Video: Featured Gallery Hyundai Intrado Concept: Geneva 2014 View 16 Photos News Source: Automotive News – sub. req. Green Hyundai Green Automakers SUV Hydrogen Cars h2 hyundai intrado

Hyundai And Kia Penalized $350 Million For Overstated MPG Claims

Nearly two years after Hyundai and Kia announced they exaggerated fuel economy numbers for several of their most popular models, the two Korean automakers have paid a heavy penalty for the transgressions. The Department of Justice and Environmental Protection Agency announced a settlement Monday that will cost the two car companies approximately $350 million. The financial sum includes a $100 million fine, the largest ever levied under the Clean Air Act, and about $200 million in forfeited greenhouse-gas emissions credits. At a time when car buyers rank fuel economy as a top concern when they head to dealerships and the federal government has mandated increased efficiency, Attorney General Eric Holder said the settlement should serve as a warning to automakers not to fudge their numbers. "This will send a strong message that cheating is not profitable," he said. The settlement ends a federal lawsuit filed against the automakers in U.S. District Court, but it's important to note that it doesn't end a class-action lawsuit filed on behalf of consumers. A preliminary settlement in that case, based in Los Angeles, was approved last month, but final approval isn't expected until July 2015. Officials with the EPA said the $100 million figure roughly equals the economic benefits the two companies received from exaggerating the mileage claims on the window stickers of new cars. Fuel-efficient boasts helped Hyundai and Kia establish a strong foothold in the U.S. marketplace. Advertisements for the Hyundai Elantra stated the vehicle achieved 40 miles per gallon in highway driving, and helped the car win the prestigious North American Car Of The Year honors at the Detroit Auto Show for its 2012 model. In July 2011, the advocacy group Consumer Watchdog began receiving complaints from consumers that the Elantra and other Hyundai models fell short of their stated mileage claims in real-world driving. The group wrote to the EPA and Hyundai, asking both to investigate. Government officials said Kia had overstated the mileage on its popular Kia Soul crossover by 6 miles per gallon, and more than a dozen overall models were affected. On Monday, EPA administrator Gina McCarthy said the violations were "egregious." Based on the exaggerations, the EPA calculated that Hyundai and Kia had underreported the greenhouse gas emissions of their fleets by about 4.75 metric tons over the estimated lifetime of the vehicles. That figure aided in the $200 million credit forfeiture.