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Feds open investigation into recall of 1.7M Hyundais, Kias

US safety regulators have opened a formal investigation into the recall of nearly 1.7 million vehicles by Hyundai and affiliate Kia over engine defects, according to filings published Saturday. A South Korean whistleblower reported concerns last year to the National Highway Traffic Safety Administration (NHTSA), which will probe the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Fines could be imposed on the automakers if the NHTSA determines the recalls were not conducted properly. The agency did not immediately comment on the probe. A Hyundai spokesman in Seoul the company "has conducted recalls in compliance with US regulations and procedure" and will "sincerely" cooperate with the investigation. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities. On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with "Theta II" engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine. The recall, which was also conducted in Canada and South Korea, cost the duo 360 billion won ($322.40 million). "TIMELINESS AND SCOPE" According to the filings published Saturday, the agency opened a probe May 18 into "both the timeliness and scope" of the "Theta II" engine recalls and their "compliance with reporting requirements." In August 2014, Hyundai agreed to pay a $17.35 million fine to settle a NHTSA investigation it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai "must change the way they deal with safety-related defects." Hyundai vowed to make improvements to how it handled safety issues after the fine. In 2015, the company retained former U.S. Transportation Secretary Ray LaHood as an adviser on safety issues.

2020 Toyota Highlander vs other 3-row crossovers: There can only be one!

We've done quite a few spec comparison posts involving three-row family crossovers, and when included, the Toyota Highlander has always been the runt of the group. While the rest increasingly seemed to be benchmarking each other toward greater girth, the Highlander was the outlier.  That changes a bit for the 2020 Toyota Highlander, but only a bit. It's now larger and more competitive, specifically in regards to the amount of cargo space aft of the third-row seat. As you can see below, this aligns the Highlander most closely to its long-time competitor the 2020 Honda Pilot. However, let's see how it stacks up to others in the segment, which is heavily populated now, so for the sake of space, we've selected the newest entries: Kia Telluride, Hyundai Palisade, Subaru Ascent and Ford Explorer. The order in which they are presented is random.  Performance and fuel economy The 2020 Highlander is more than 200 pounds lighter than its predecessor, but has the same 295-horsepower V6 engine that was already one of the strongest in the segment. We'd say that would give it a leg up, but the Pilot and Explorer have proven to be sprinters, delivering 0-60 times in the low-6 range by some publications' stopwatches (or VBoxes, whatever). We don't expect the Highlander to beat them, but it may dip into the 6's. The heavy, less-powerful Subaru Ascent is most likely to take up the rear. It's fuel economy of 23 mpg combined also matches the Highlander and Explorer for segment-best. Remember, however, that the Explorer's turbocharged inline-four engine is likely more susceptible to differences in driving style (read: a heavy foot).  Of course, if you're really interested in fuel economy, the Highlander and Explorer are the only vehicles in the segment to offer hybrid versions. The Ford Explorer Hybrid puts a greater emphasis on performance, however, resulting in lower estimates of 25 mpg combined (AWD) and 28 mpg combined (FWD). By contrast, the new 2020 Toyota Highlander Hybrid is estimated to return 36 mpg combined.  Passenger and cargo space According to Highlander chief engineer Yoshikazu Saeki, he had a choice of two directions with the new Highlander. He could have indeed made it bigger, matching these very competitors, especially in terms of third-row and cargo space. Or, he could have maintained a smaller-than-average size. He obviously chose the latter. First, it was the size customers had come to expect. Would they be put off by something bigger?

Hyundai and Kia announce $3.1-billion investment in US facilities

Update: A US spokesperson for Hyundai had no further information, but called the reports about the automaker's investments accurate. Hyundai and Kia announced this morning a plan to invest $3.1 billion into its US facilities over the next five years. According to Automotive News, the new investment is a 50-percent increase over what Korea's two largest automakers have brought to the US in the last five years. The automakers already have several large-scale manufacturing bases in the US, but the new investment could bring another plant into the fold. There is the possibility of producing a Genesis product in the US or building a new plant for a US-specific crossover. The announcement is the latest US investment plan as President-elect Donald Trump prepares to take office Friday. Trump has singled out automakers for not building cars in the United States, and Ford, General Motors, and Fiat Chrysler all announced plans to invest in the US since the beginning of January. Skeptics say these moves would have to be years in the making, though Trump has been quick to take credit for them. Not all of the new money will go toward building new plants. Hyundai and Kia could simply expand the already busy plants in Montgomery, AL, and West Point, GA. Beyond that. The automakers could further their research into electric and autonomous vehicles. Like many other automakers, the two Korean giants have backed down from planned expansions into Mexican manufacturing. Although many automakers currently build or were planning to build new vehicles in Mexico, threats of importation fees appear to be causing caused automakers to refocus some of their efforts toward US production. With all this new investment in the US, Kia and Hyundai said there will be no jobs moved to Mexico. Meanwhile, this morning GM announced plans to bring truck axle manufacturing back from Mexico. As with all of the recent announcements, Hyundai and Kia stated that Trump's upcoming presidency played no part in the decision to reinvest in the US. Related Video: News Source: Automotive News Plants/Manufacturing Genesis Hyundai Kia Mexico Trump jobs investment