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Kia negotiating to build $1.5B auto plant in Mexico

After a string of recent announcements from automakers, Kia may be the next business to break ground on a factory south of the border. The Korean company is reportedly nearly finished with negotiations to build a $1.5-billion plant near the city of Monterrey in the Mexican state of Nuevo Leon. The state's secretary of economic development confirmed the news to Reuters and anticipated talks to be completed in the first two weeks of August. Unnamed insiders also said that the location was aiming for an annual production capacity of 300,000 vehicles.
Rumors from a month ago first suggested the possibility of the new factory. It would reportedly build two models of small cars, and assembly could potentially begin as soon as 21 months after breaking ground. Currently, Kia only has one North American plant, in Georgia, that builds the Sorento and Optima.
In the last few years, Mexico has become of hotbed of North American automobile production. Mazda, Honda and Volkswagen all recently opened new or expanded factories to build cars there. There are even more on the way with a joint venture plant from Mercedes-Benz and Infiniti and BMW's announcement of its own $1 billion undertaking in Mexico.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.

Hyundai, Kia recall 640,000 vehicles for leaks that can cause fires

DETROIT — Korean automakers Hyundai and Kia are recalling over 600,000 vehicles in the U.S. and Canada to fix a brake fluid leak that could cause engine fires. The recalls cover more than 440,000 Kia Optima midsize sedans from 2013 through 2015 and Kia Sorento SUVs from 2014 and 2015. Also covered are 203,000 Hyundai Santa Fe SUVs from 2013 to 2015. The affiliated automakers say brake fluid can leak inside a hydraulic control unit for the anti-lock brakes, possibly causing an electrical short that can lead to fires. Kia's recall will start Oct. 15, while Hyundai's will start Oct. 23. Dealers for both companies will inspect the control units for leaks and replace them if needed at no cost to owners. In company documents posted Thursday by U.S. safety regulators, Hyundai said it had 15 reports of engine fires caused by the fluid leaks, while Kia said it had eight. Hyundai said it's not aware of any injuries, and Kia said it had none. Hyundai said in a statement that there's no need to park vehicles outdoors before the problem is fixed, but if the anti-lock brake warning light comes on, owners should not drive their vehicles and should contact a dealer. They also should disconnect the 12-volt battery by removing the positive cable, the company said. Hyundai documents said the company received its first complaint about an engine fire in a 2014 Santa Fe in April 2018, and it started an investigation. Kia began investigating after getting a complaint of a melted control unit in a 2015 Sorento last February. The recalls are the latest in a series of engine fire problems that have plagued the two automakers and have touched off investigations by the U.S. National Highway Traffic Safety Administration. In February, Hyundai recalled nearly 430,000 small cars for a similar but apparently unrelated problem. The company said water can get into the antilock brake computer, cause an electrical short and possibly an engine fire. That recall covered certain 2006 through 2011 Elantra and 2007 through 2011 Elantra Touring vehicles. The company said the electrical short could cause a fire even when the cars are turned off. Hyundai said the latest recall is not related to the previous recalls or the U.S. investigations.