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Kia recalls 507,000 vehicles in U.S. for airbag issues

WASHINGTON — Kia Motors Corp said on Friday it was recalling more than 507,000 vehicles in the United States because an electronic glitch may prevent airbags from deploying in a crash. The recall follows an announcement in March by the National Highway Traffic Safety Administration (NHTSA) that it was investigating why some airbags had failed to deploy in Kia vehicles and its affiliate Hyundai after crashes in which four people were killed and another six were injured. The two Korean automakers have now recalled nearly 1.1 million U.S. vehicles to address the issue. NHTSA said in March that it was aware of six serious crashes in which airbags failed to deploy in frontal crashes, including four in 2011 model Hyundai Sonatas and two in 2012 and 2013 Kia Forte vehicles. The crash of the 2013 Forte occurred in Canada. Kia's recall issued on Friday covers 2010-2013 Kia Fortes, 2011-2013 Kia Optimas and 2011-2012 Kia Optima Hybrid and Sedona vehicles. The company said the airbag control unit may short circuit because they may be susceptible to electrical overstress, preventing the frontal airbags and seat belt pretensioners, which pull the driver and front seat passenger firmly back into their seats, from deploying. The company said it does not yet have a fix, but is working with its supplier on the issue. Kia spokesman James Bell said the company "is attempting to have a remedy by the scheduled owner notification date of July 27. If Kia does not have a remedy by that date or if any customer feels unsafe in his/her vehicle, we will provide a rental car until the repair has been completed." Hyundai in February issued a recall for 154,000 U.S. Sonatas after non-deployment reports were linked to electrical overstress in the air bag control unit. In April, Hyundai recalled an additional 425,000 U.S. vehicles to address the same issue. Hyundai said in March that it was aware of reports of two deaths in its vehicles, which occurred in head-on collisions at extremely high rates of speed. NHTSA said the airbag control module under investigation was built by ZF Friedrichshafen AG, a German auto supplier. ZF said on Friday that it has worked with Kia and "continues to cooperate and support NHTSA and its customers in the investigation." The safety agency also said that electrical overstress appeared to be the root cause in a 2016 recall by Fiat Chrysler Automobiles NV of 1.4 million U.S. vehicles for airbag non-deployments in significant frontal crashes.

Hyundai Genesis to get twin-turbo V6 in 2017 or 2018

Hyundai is looking to turbocharged power as ways to downsize its engines for better emissions and fuel economy while maintaining power. Among the new mills slated to launch is a twin-turbo V6 that's likely going into the Genesis in a few years. "You're going to see smaller displacement, more use of turbocharging. A lot of it is weight-related, all of it is CAFE-related," Hyundai Motor America CEO David Zuchowski said to Automotive News about the company's powertrain future. The Korean brand is hardly alone in this move towards downsizing, though, and practically every major automaker is moving in this direction, even Honda with the next Civic. According to Zuchowski, the twin-turbo V6 will make its way into the Genesis sedan in 2017 or 2018. The company is aiming for power to be on par from the luxury model's current 420-horsepower, 5.0-liter V8. The new engine should weigh less, though. The shift towards turbos is planned for the entire model lineup, not just Hyundai's higher-end vehicles. For example, the recently announced US-spec version of the 2016 Tucson now offers a boosted 1.6-liter four-cylinder with 175 hp and 195 pound-feet of torque. Several years ago, there were rumors about a possible turbocharged V6 for a future Genesis Coupe.

Why BMWs are cheaper than Hyundais in Korea

Bloomberg reports shifting tariff regulations have upended the traditional automotive pecking order in Korea. Thanks to cheaper import taxes, foreign brands have seen market share jump from 28 percent to 41 percent over the last two years. BMW, Mercedes-Benz and Audi have all capitalized on the shift, with domestics like Hyundai and Kia suffering at the hands of their German rivals.
Taxes on European imports have fallen from 8 percent in 2011 to just 3.2 percent today. Over the next few years, tariffs will all but be eliminated for most imports, and taxes on US-made vehicles are expected to fall to just 4 percent in 2014. By 2016, that number will be zero. Needless to say, Hyundai and Kia are concerned about the shift.
Hyundai has seen profit fall by 15 percent last quarter, and the company says it is on pace to see the slowest sales growth since 2007. The company's shares have fallen by 12 percent. In order to stem the losses, Hyundai has discounted its midsize sedans and started working on diesel engine options.