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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.

Kia Sedona shows off new 'comfortable and futuristic' interior

Last month Kia coined a new, fourth-generation minivan and the term "Grand Utility Vehicle" to go with it. Known as the Carnival in its home market of South Korea, and as the Sedona here, Kia's given us a look at the "comfortable and futuristic" interior we can expect when the model goes on sale. We like the current Sedona, but the imminent upgrade is immediately clear and comprehensive even in photos. The automaker calls the interior design theme "Spatial Talents," which sounds like a superpower your home mover or the guy at U-haul has, but it refers to the how designers made the most of a slightly larger body and roomier interior. The minivan's wheelbase grows 1.2 inches, overall length extends by 1.6 inches, 1.2 of that being rear overhang, and width gets an extra pip of 0.4 inches. Depending on market, seating arrangements for seven, nine or 11 people will provide more room for every occupant in every row. The star draw is the instrument panel, where Kia placed the 12.3-inch digital gauge cluster and 12.3-inch infotainment screen in a cohesive enclosure under a single pane of glass. A full-width horizontal band separates the upper and lower areas of the instrument panel, vents tucked discreetly into the contrasting divider. Below that, dedicated buttons and another screen offer radio and climate controls, a shift-by-wire rotary knob set atop the transmission tunnel where a bulkier shift lever currently sits. More upscale materials are laid throughout the cabin. Second-row passengers benefit from new USB outlets on the front seatbacks, nets to hold electronic devices, and a storage drawer at the base of the rear console.     The only engine available in our Sedona is a 3.3-liter V6 with 276 horsepower and 248 pound-feet of torque. The next-gen Sedona will likely follow the powertrain lead of the new Sorento. That means a 2.5-liter turbocharged four-cylinder putting out around 277 horsepower and 310 pound-feet, and a 1.6-liter turbocharged four-cylinder hybrid with 227 hp and 259 lb-ft.   The Carnival goes on in South Korea in the third quarter of this year, with rollout to global market following that. Related Video:

Hyundai and Kia settle lawsuit over hybrid technology

Hyundai and Kia will end Paice's patent infringement lawsuit by signing a licensing agreement to use the firm's hybrid technology for their vehicles, according to Bloomberg. A statement by Paice says that this new contract ends any legal disputes between the companies, but doesn't disclose the cost of the settlement. A Hyundai spokesperson declined to comment about the case's resolution to Autoblog. Paice and the Abell Foundation, an investor, brought the case against Hyundai and Kia in 2012 over the tech in the Sonata and Optima Hybrids, and the court sided in the patent holder's favor in October 2015. The jury ordered the automakers to pay at least $28.9 million, but the judge could have tripled that amount because the infringement was allegedly intentional. Hyundai pledged to appeal the ruling. Paice's patents come from the work of Alex Severinsky and cover ways to make engines and electric motors work together. The company has a history of defending its tech, including settlements with Toyota and Ford. It also filed another case against the Blue Oval in 2014 over the hybrid or plug-in systems in the C-Max, Fusion, and Lincoln MKZ. Hyundai and Kia sign licensing agreement with Paice Paice, a pioneer in hybrid electric vehicle technology, has reached an agreement to license all of its hybrid vehicle technology to Hyundai Motor Co. and Kia Motors Corp. Paice has now licensed all or part of its hybrid vehicle technology portfolio to Toyota, Hyundai/Kia, and Ford – three of the world's six largest automakers. These three companies currently account for 90% of all hybrid vehicle sales in the United States. "We are gratified to reach a licensing agreement with Hyundai and Kia, who are among the undisputed leaders in the hybrid industry. This agreement further validates the importance of our technology, and we hope to reach additional agreements with other major automakers," said Frances Keenan, chairman of the Paice Board of Directors. The confidential licensing agreement with Hyundai and Kia brings an end to all litigation between the companies. Paice and the Abell Foundation, a Baltimore-based non-profit organization that invested in Paice, filed a patent infringement lawsuit against Hyundai and Kia in U.S. District Court in 2012. After an eight-day jury trial earlier this year, the jury sided with Paice and Abell, awarding $28,915,600. Hyundai and Kia currently rank third in U.S. hybrid car sales.