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Hyundai-Kia fuel-economy errors trigger $300M in federal penalties [w/video]

This amount includes $100-million in civil penalties, the largest such fines in EPA history.
Hyundai and Kia are getting more than a slap on the wrist for overstating the fuel economy of an estimated 1.2-million vehicles in their 2011-2013 model ranges. The Environmental Protection Agency, the Department of Justice and the California Air Resources Board are hitting the automakers with collective penalties valued at around $300 million for Clean Air Act violations. This amount includes $100-million in civil penalties, the largest such fines in EPA history. Specifically, Hyundai is paying a $56.8 million penalty and relinquishing 2.7-million greenhouse gas emissions credits. Kia is paying $43.2 million in penalties and giving up 2.05-million credits.

Hyundai Fined $17.35 Million For Delayed Recall

Hyundai has agreed to pay a $17.35 million fine for delayed reporting of a brake defect affecting Genesis luxury cars, the National Highway Traffic Safety Administration said Thursday. The defect involves corrosion in critical brake system components that can reduce braking effectiveness and increase the risk of a crash, NHTSA said. Hyundai was aware in 2012 that brake fluids used in the model year 2009-2012 Genesis cars did not sufficiently inhibit corrosion in key components of the vehicle's brake system, the agency said. But rather than issue a recall, Hyundai instructed dealers to change the brake fluid in affected vehicles without explaining the consequences that failure to take that action might have, NHTSA said. Hyundai also did not inform Genesis owners of the potential safety consequences, the agency said. Hyundai recalled 27,500 of the cars in October 2012 just hours before the government opened an investigation. "Hyundai failed to act to protect their customers and others that were harmed in an accident, and must change the way they deal with all safety related defects," David Friedman, head of the safety administration, said in a statement. About 70 percent of the affected Genesis cars have been repaired so far, the safety administration said. Hyundai is committed to ensuring immediate action in response to potential safety concerns, including the prompt reporting of safety defects, said Jim Trainor, a senior group manager for Hyundai Motor America. "In order to mitigate a situation like this in the future, Hyundai is instituting new organizational and process improvements, and enhancing the ability of its U.S. leadership team to readily respond to regulatory reporting requirements," he said in an email. In May, the safety administration slapped General Motors with a record $35 million fine Friday for taking more than a decade to disclose an ignition-switch defect in millions of cars that has been linked to at least 13 deaths. Earlier this year, after a four-year criminal investigation, the Justice Department made Toyota pay $1.2 billion for concealing unintended acceleration problems from NHTSA. No individuals were charged with a crime. Related Gallery Safest Crossovers For The Budget-Conscious Family View 10 Photos Recalls Genesis Hyundai NHTSA brakes

Strange, unfunny Hyundai N Performance commercials badly miss the mark

Take a minute and watch the video above. After, you might have questions. I will try to help you with these. But first, here are some questions for you: No matter whether you thought the ad was good or not, does it get you excited about the N Performance subbrand? Do you want to find out more about it? I suspect the answer is "no" for most of you reading. Unfortunately, reading what Hyundai and the ad agency said about these ads isn't going to help much. Intended to skewer traditional luxury advertising tropes, the agency says, these ads are a "tongue-(stuck firmly)-in-cheek poke at automotive and luxury brands taking themselves too seriously." R/GA is the ad agency behind these ads, and its chief creative officer, James Temple, told AdAge, "We want people to rethink their views of Hyundai as a practical, compromise choice, to a brand which shows people through the power of 'N' that they make cars that are fun to drive and which aren't like anything else out there." OK. So, poke fun at luxury and automotive advertising that takes itself too seriously. And to be fair, this sort of thing has been done before to great success and general acclaim. Remember Volkswagen's "Unpimp The Auto" campaign? It cleverly took aim at a then-trendy aspect of the tuner culture and literally crushed it with a new GTI. This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. The message was clear: Your over-tuned Ford Focus is both gaudy and inferior. Step up to a GTI, which by the logic of the ad, you don't need to throw tuner parts at to have fun. It built excitement for the hot hatch while earning some automotive credibility by throwing shade at MTV's over-the-top " Pimp My Ride," at that point rapidly losing its halo of tuner coolness. "Pimp My Ride" was a big, easy target to mock. And the relationship to automotive performance (or lack thereof (most were plays on the "Yo dawg I heard you like ..." theme, anyways) made the analogy work. Where the Hyundai ads step off is the target for ridicule. R/GA claims it's roasting automotive brands, and they can say that all they want — I don't see it. I see a childlike understanding of how to dismantle the tropes of a classic Calvin Klein ad — monotone, lots of black, shirtless models, personal beauty products — over which the lightest veneer of automotive reference is applied. So the perfume smells like burning tires. That's still a humorous ad about perfume.