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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.

2014 Hyundai Elantra

The reality of growing up and living in Detroit is an interesting one. You're essentially born with minute traces of gasoline in your veins and everyone you know is associated with the auto industry in some way. That's not an exaggeration. They might be the child of a line worker at the local auto plant, or they may hold down a job at a restaurant frequented by employees at a big supplier, but no matter what, everyone is part of the auto-industry ecosystem.
Because of this, the stories you may have heard about Detroiters and their distaste for foreign cars is, frustratingly, true. Simply put, Toyota and Honda are blatantly disliked by most, while BMW and Mercedes-Benz are merely tolerated. For a car reviewer who prides himself on making egalitarian recommendations, it's a frustrating environment to live in, particularly when friends and family ask that inevitable question - which is followed by an equally inevitable qualifier - "What should my next car be?" and "One more thing - it can't be foreign." It's this attitude that's perhaps the reason no one I know even considered buying a Hyundai Elantra.
Despite the fact that the compact sedan is built in Montgomery, AL and that Hyundai maintains a shiny, new, sprawling tech facility less than 45 minutes outside of downtown Detroit, the Elantra's status as a "foreign" car immediately precludes it from most Motown buyers' shopping lists. This is to their detriment, as I discovered during a week of testing the refreshed-for-2014 Hyundai Elantra.

2019 Hyundai Veloster | Overdue overhaul, and this just in: N

Hard to believe the Hyundai Veloster is only now coming into its second generation after eight years on the market. Our surprise is likely due to the fact that the Veloster, like the ancient American Alligator mississippiensis, lives mostly out of the way and hasn't changed much in its time here. Hyundai planners worked up a restrained evolution for the 2019 Veloster that takes place mostly in the cabin and under the skin in the standard and middle models. The 2019 Veloster's dimensions grow by fractions: Length grows by 0.8 of an inch, width by 0.4, front overhang by 0.8. Height holds steady at 55.1 inches, but rear headroom gets a few hairs' improvement, increasing by 0.6 of an inch. The three-door wears a new face, that wider, hexagonal grille — and especially that hood shutline connecting the headlights — reminding us of the Ford Focus, a competitor. Elsewhere, details work to make the most of massaged sheetmetal, like the rear of the hood and the A-pillar squeezed rearward "to create a long hood profile," and the liftgate handle moved from the rear hatch sheetmetal to the backlight. Two engines suit up for duty, a 2.0-liter Atkinson-cycle four-cylinder in the base model, with 147 horsepower and 132 pound-feet of torque. That's a bonus of 15 hp and 12 lb-ft over the naturally-aspirated 1.6-liter in the current Veloster and Veloster Value Edition. The next trim rung gets the 1.6-liter turbocharged GDI engine, with no increase in output at 201 hp and 195 lb-ft. View 11 Photos The 2.0-liter comes in either standard or Premium trims. The entry-level gets a choice of either a six-speed manual or a six-speed automatic transmission, the Premium only comes with the automatic. The Turbo comes in three flavors, R-Spec, Turbo, and the new Turbo Ultimate. The R-Spec gets the six-speed manual, Turbo comes with a seven-speed dual-clutch transmission, Turbo Ultimate buyers get their choice of manual or DCT. Moments before the reveal of the Veloster at the Detroit Auto Show, photos leaked of a Veloster N performance version. We've read rumors that the truly hot Veloster N could get anywhere from 250 hp to the same 271 hp as in the i30 N; our guess is that Hyundai wants to leave plenty of room in the middle for revolution at the top of the range. The interior benefits from an overdue overhaul sprinkling available goodies like a full-featured heads-up display, an eight-inch infotainment screen, wireless charging, and Infinity audio.