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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.

Is Hyundai's conservative new Sonata struggling out of the gate?

"But so far, Sonata sales are up compared with last year even while we're still ramping up to full speed," - Jim Trainor
According to Reuters, the redesigned-for-2015 Hyundai Sonata is not enjoying the same degree of success in the early going as the previous sixth-gen model, which proved to be one of the most important models in the company's history and ushered in the company's so-called "Fluidic Sculpture" design language that we still see today. Citing a recent review from The New York Times that called the car's more conservative styling "bland" and "boring," Reuters also points to analysts who claim the higher price of the new Sonata, as well as smaller rebates and incentives, are hurting sales. Honda and Toyota both offered anywhere from $600 to $800 more on the hoods of their Accord and Camry sedans last month.

2017 Hyundai Elantra First Drive [w/video]

Here's the thing: It's tough to get excited about a mainstream compact car. We tried. Hyundai's latest Elantra is better than the last Elantra, a car that got few people excited. Not a ton has changed, but there's fresh sheetmetal, improved efficiency, and more options than before, all on top of a revised chassis. That's kind of the trend in new cars these days. The last one was fine, this one is more fine. The Elantra engineers at least resisted the urge to make the car larger. Its interior and cargo volume figures are within tenths of last year's figures, which means they once again put the Elantra into the EPA's midsize bracket. With that comes a midsize feature set, including a few items no other "compact" car offers. For now, Hyundai is offering the 2017 Elantra in base SE and top-of-the-line Limited trims. Both come with a 2.0-liter four-cylinder (more on that below). The SE offers a Popular Equipment Package that most people will want and many will choose (hence the name). It includes a seven-inch touchscreen head unit with Android Auto and Apple CarPlay functionality, as well as a rearview camera, automatic headlamps, audio controls on the steering wheel, Bluetooth, cruise control, heated side mirrors, 16-inch wheels, and a hood insulator to keep some engine noise from making it to your ears. An SE tech package adds things like blind-spot monitoring and rear cross-traffic alert. For now, Hyundai is offering the 2017 Elantra in base SE and top-of-the-line Limited trims. Step up to a Limited, and you get leather, a power driver's seat, 17s, and a bunch of other stuff. The Limited also unlocks option packages: one that revolves around an eight-inch nav touchscreen and another that adds safety items like radar cruise control and auto braking with pedestrian detection. That last one is a segment exclusive, if you're keeping score at home. To get all of the stuff you can't in any other car in this class, you'd be shopping in the next segment's price range anyway. And speaking of segment firsts, cars with the proximity key (SE with Tech Package and above) come with a hands-free trunk release. It lets you pop the trunk lid by just standing near it with the key, but it only releases it and doesn't fully open wide like on some cars with power trunk open and close. So it sort of solves a problem. The engine and available transmissions are nothing groundbreaking. In contrast to the features, the engine and available transmissions are nothing groundbreaking.