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Hyundai, Kia earmark $760 million to settle U.S. lawsuits over engine fires

SEOUL — Hyundai and affiliate Kia have earmarked 900 billion won ($758 million) to settle U.S. class action litigation and address engine-related issues including fires and failures in the United States and South Korea. The move marks the South Korean auto giant's first major effort to resolve years of trouble over engine defects that have also sparked probes by the U.S. safety regulator and prosecutors. Hyundai Motor will make a provision of about 600 billion won in its July to September earnings while Kia will book one for about 300 billion won, they said on Friday. Hyundai and Kia said in a statement that under the U.S. settlement they would install software to monitor for symptoms of engine failure and take other steps, including offering compensation options and lifetime warranties. A total of 4.17 million Hyundai and Kia models equipped with Theta II gasoline direct injection (GDI) engines, which were sold in naturally aspirated 2.0-liter and 2.4-liter displacements, and had a turbocharged derivative, will be affected by the U.S. settlement. Hyundai and Kia, together the world's fifth-biggest automaker by sales, recalled nearly 1.7 million vehicles in the United States to address the possibility of engine fires. In November, Reuters reported that U.S. federal prosecutors had launched a criminal investigation to determine if the recalls had been conducted properly. Since 2017, the U.S. safety regulator has been investigating whether the recalls covered enough vehicles and were conducted in a timely manner. The investigation comes after Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in 2016 to tell the National Highway Traffic Safety Administration (NHTSA) the companies should have recalled more vehicles over the problem, citing an internal report. Hyundai Motor at that time denied allegations. The NHTSA this year opened a fresh investigation into 3 million Hyundai and Kia vehicles after reviewing reports of more than 3,000 fires that injured more than 100 people. That probe came in response to a petition seeking an investigation filed in June by the nonprofit Center for Auto Safety.

Cars we're thankful we drove in 2019

We drove a lot of cars in 2019, and there's still a month to go. We drove them in our home office in Michigan, at our remote offices in Seattle, Portland, Ore., and Columbus, Ohio, and throughout the globe on myriad press launches. We could count them, but hey, that seems boastful.  Instead, we want to be thankful. Not only for the opportunity to do this wonderful task some might describe as a "job," but for the new, shiny cars that brighten our days (and most hopefully yours). We asked our fellow editors which car they were most thankful to drive in 2019 ... here are our answers. 2019 Hyundai Veloster N Performance Senior Editor Alex Kierstein Every once in a while a car comes along that changes the narrative on a company or its segment, and everyone scrambles to experience it for themselves. This year, for me, that car’s the Veloster N Performance, perhaps the most transformative car the companyÂ’s ever built. Everyone whoÂ’s driven it, here and elsewhere, says it captures all those intangibles that make great driving hatchbacks great. And IÂ’m thankful that I got a go in it before all of them left the fleet, because it does. It upends the segment long dominated by the GTI, a car that nails its brief. The N is rowdy and loud, sure, but it also has some of the most deftly tuned suspension IÂ’ve come across in a front driver. My advice: if youÂ’re in the market for something fun and unique, go test drive a Veloster N. I think youÂ’ll be thankful you did. 2019 Hyundai Veloster N View 47 Photos 2019 Audi E-Tron Senior Editor, Green, John Beltz Snyder IÂ’m pleased that I got to drive the Audi E-Tron. ThatÂ’s high praise for a year in which I also drove the stellar Jaguar I-Pace. The E-Tron, while not as sporty as the Jaguar, is excellently executed, and feels like a more refined, polished offering. ItÂ’s quick, whisper-quiet, comfortable, stylish inside and out, and incredibly sturdy. Some may lament that it doesnÂ’t do much to stand out from ICE vehicles, but I donÂ’t think it needs to. What it does need to do is win over the electro-skeptical, and I think Audi put its best foot forward with a crossover that can do just that, and more. So, yeah, not only am I thankful that I got to drive it, IÂ’m glad that itÂ’s compelling enough that itÂ’ll hopefully make potential customers feel the same. 2020 Audi E-Tron View 13 Photos 2013 Peugeot 508 West Coast Editor James Riswick My choice totally sucks.

Autoblog Minute: VW finds CO2 'irregularities', Takata dropped by automakers, SEMA recap

Volkswagen's diesel emissions scandal gets a new wrinkle, US regulators hit Takata Corporation with a substantial fine, and we head to Las Vegas for a look at tuner paradise at the 2015 SEMA show. Autoblog senior editor Greg Migliore reports on this edition of Autoblog Minute Weekly Recap. Show full video transcript text [00:00:00] Volkswagen's diesel emissions scandal gets a new wrinkle. US regulators issue a significant fine to Takata Corporation. And we take a peek inside tuner paradise at the 2015 SEMA show. I'm senior editor Greg Migliore and this is your Autoblog Minute Weekly Recap. The VW diesel emissions scandal, first brought to light in September, gets a new wrinkle, as an internal investigation by the German automaker revealed [00:00:30] irregularities in CO2 emissions that could affect approximately 800,000 vehicles. VW estimates the issue could pose a 2-billion euro economic risk. VW claims that most of the vehicles affected have diesel engines, but industry analysts say a 1.4-liter gas engine is also affected. VW says that fuel consumption figures were set too low during the CO2 certification process. During all of this, sales of some diesel-powered Volkswagen, Audi, and Porsche models [00:01:00] have been halted. Takata Corporation is back in the news in connection with its deadly airbag scandal. Federal regulators fined Takata $70 million. If the parts supplier does not comply, the fine could balloon to $200 million. Takata was also dropped this week by its biggest customer, Honda. And now, Toyota and Mazda will be following Honda's lead in dropping Takata. We're also hearing that Mitsubishi and Subaru are considering a switch in air-bag inflator suppliers. SEMA 2015 [00:01:30] came and went. We saw offerings from Mopar, like the AWD Challenger concept. Honda unveiled a Ridgeline that it will race at the Baja 1000, which gives us a hint at what future production model could look like. The celebrity presence was also felt in Vegas as it always is. Kid Rock brought a Duramax Diesel Chevy Silverado, and Acura restored and presented Ludacris with his now famous 1993 Acura Legend. Those are the highlights from the week that was. Be sure to come back on Saturday for my full recap, [00:02:00] where I'll have some added insight into Hyundai's foray into the luxury sector. For Autoblog, I'm Greg Migliore. Autoblog Minute is a short-form video news series reporting on all things automotive.