11 Kia Optima Ex Sedan Silver Panoramic Roof Navigation Back Up Cam Loaded on 2040-cars

Auto blog

Hyundai finally settles inflated fuel economy claims lawsuit for $41.2 million

Remember when Hyundai and Kia changed their claimed fuel economy numbers for a bunch of models? That happened back in 2012, and Hyundai has finally settled a lawsuit concerning the economy adjustment with a payment of $41.2 million. The lawsuit was filed by 33 state attorneys general, as well as one from Washington D.C. Each state will decide how to use its money from the settlement. According to Hyundai, this settlement was an "amicable agreement," and the company also denies any wrongdoing in changing claimed fuel economy numbers. Hyundai also reports that the agreement was reached, in part, due to the reimbursement program instituted after the economy adjustment. This program allows owners to be reimbursed the extra fuel cost, with payments determined by miles driven. The payments are sent after an owner has an affected car's odometer checked by a dealer. In addition, Hyundai also offered lump-sum payments as an option after the results of a class-action lawsuit. So far, the company reports about 75 percent of eligible owners have participated in the program. This isn't the only major payment Hyundai has made concerning the fuel economy issue. In 2014, Hyundai paid roughly $300 million in fines to the EPA. The company was also sued for inflated fuel economy claims in South Korea. In the US, models affected by the adjustment include the Hyundai Santa Fe, Accent, Veloster, Sonata Hybrid, Tucson, Genesis and Azera, along with the Kia Soul, Rio, Sorento, Sportage and Optima. Related Video: Image Credit: Patrick T. Fallon/Bloomberg via Getty Images Government/Legal Green Hyundai Kia

Goes Both Ways: Free-trade pact sees South Korean brands losing share at home

France has been vocal, but not alone, in noting the rise of the South Korean automakers in Europe. The signing of a free-trade pact in 2011 between South Korea and the EU, along with the especially value-conscious buyers in a crisis-stricken Europe, has seen market share increases measuring in the double digits for Hyundai and Kia - analysts expect 14-percent growth for the two in 2012.
A report in Bloomberg has found that there's pain at the other end, too: The pact more than halved import tariffs on European cars headed to South Korea to 3.2 percent, and prices are now close enough to domestic offerings for more South Koreans to pay the premium for foreign luxury nameplates and the cachet they confer. Products sold by the five domestic automakers hogged 92 percent of the market last year, and sales have dropped 5.2 percent this year whereas import sales have risen by 24 percent. This will mark the first year that imports claimed ten percent of the market; compare that to 2002, when domestic market share in the world's 11th largest auto market was 99 percent.
The Germans are at the head of the arrow, counting for 65 percent of imported car sales, but every foreign maker has seen double-digit gains. Analysts think foreign makes could ultimately grab 15 percent of the market.

Kia recalls 507,000 vehicles in U.S. for airbag issues

WASHINGTON — Kia Motors Corp said on Friday it was recalling more than 507,000 vehicles in the United States because an electronic glitch may prevent airbags from deploying in a crash. The recall follows an announcement in March by the National Highway Traffic Safety Administration (NHTSA) that it was investigating why some airbags had failed to deploy in Kia vehicles and its affiliate Hyundai after crashes in which four people were killed and another six were injured. The two Korean automakers have now recalled nearly 1.1 million U.S. vehicles to address the issue. NHTSA said in March that it was aware of six serious crashes in which airbags failed to deploy in frontal crashes, including four in 2011 model Hyundai Sonatas and two in 2012 and 2013 Kia Forte vehicles. The crash of the 2013 Forte occurred in Canada. Kia's recall issued on Friday covers 2010-2013 Kia Fortes, 2011-2013 Kia Optimas and 2011-2012 Kia Optima Hybrid and Sedona vehicles. The company said the airbag control unit may short circuit because they may be susceptible to electrical overstress, preventing the frontal airbags and seat belt pretensioners, which pull the driver and front seat passenger firmly back into their seats, from deploying. The company said it does not yet have a fix, but is working with its supplier on the issue. Kia spokesman James Bell said the company "is attempting to have a remedy by the scheduled owner notification date of July 27. If Kia does not have a remedy by that date or if any customer feels unsafe in his/her vehicle, we will provide a rental car until the repair has been completed." Hyundai in February issued a recall for 154,000 U.S. Sonatas after non-deployment reports were linked to electrical overstress in the air bag control unit. In April, Hyundai recalled an additional 425,000 U.S. vehicles to address the same issue. Hyundai said in March that it was aware of reports of two deaths in its vehicles, which occurred in head-on collisions at extremely high rates of speed. NHTSA said the airbag control module under investigation was built by ZF Friedrichshafen AG, a German auto supplier. ZF said on Friday that it has worked with Kia and "continues to cooperate and support NHTSA and its customers in the investigation." The safety agency also said that electrical overstress appeared to be the root cause in a 2016 recall by Fiat Chrysler Automobiles NV of 1.4 million U.S. vehicles for airbag non-deployments in significant frontal crashes.