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U.S. appeals court preserves $210M Hyundai-Kia fuel economy class settlement

A U.S. appeals court restored a $210 million nationwide class-action settlement for hundreds of thousands of owners of Hyundai Motor Co and Kia Motors Corp vehicles whose fuel economy estimates were inflated. By an 8-3 vote on Thursday, in a case closely watched by class-action lawyers, the 9th U.S. Circuit Court of Appeals in Pasadena, California, said vehicle owners had enough in common to let them settle as a group. It also rejected arguments by owners opposed to the settlement that the claims process was too burdensome, and that lawyers for the class had colluded with the automakers to extract a "sweetheart deal" that undervalued their claims. The case began after the U.S. Environmental Protection Agency found flaws in Hyundai's and Kia's testing procedures, prompting the automakers to lower fuel efficiency estimates for about 900,000 vehicles from the 2011, 2012 and 2013 model years. Lawyers for objecting drivers had no immediate comment. Hyundai said it was grateful for the decision. Kia and its lawyers did not immediately respond to requests for comment. The decision by Circuit Judge Jacqueline Nguyen upheld a settlement approved in June 2015 by U.S. District Judge George Wu in Los Angeles. Wu "made careful findings, which the objectors here largely do not challenge, and which more than support the judgment," Nguyen wrote. The decision reversed a divided three-judge 9th Circuit panel's January 2018 rejection of the settlement and decertification of the class action. That panel said Wu failed to assess whether differences in state laws prevented certification of a nationwide class. It also said used car owners should have been excluded because it was unclear whether they had relied on the South Korean automakers' fuel economy claims. Lawyers had said it would become much harder to obtain nationwide settlements if the panel ruling stood. Nguyen had dissented from the panel ruling. Circuit Judge Sandra Ikuta, who wrote it, dissented on Thursday. Ikuta accused the majority of failing to determine what law should apply to the nationwide class or how the settlement, and thus attorneys' fees, should be valued. "The majority's failure to correct these errors may be beneficial for the class action bar, but it detracts from compliance with Supreme Court precedent," Ikuta wrote. The 9th Circuit covers nine western U.S. states, Guam and the Northern Mariana Islands.

Kia Trail'ster Concept brings traction for the Soul in Chicago

Kia teased its hybrid all-wheel drive Trail'ster concept prior to the 2015 Chicago Auto Show debut, but the company kept some of this off-road Soul's biggest features a secret. Designed both to go off the beaten path and drive efficiently in the city, the company's designers in California added 2.5-inches of extra ground clearance and aluminum skid plates to give the hatchback a more rugged appearance. Drivers can also let the weather into the cabin thanks to a retractable canvas roof. However, the Trail'ster's most intriguing feature is its drivetrain. With a platform still based on the production Soul, up front there's a 1.6-liter turbocharged four-cylinder with stop/start churning out 185 horsepower and 185 pound-feet of torque through a six-speed automatic gearbox. The gas engine exclusively runs the front axle; at the rear there's an electric motor with 35 hp and 100 lb-ft with a 1.2-kWh lithium-ion polymer battery under the cargo floor providing assistance. The whole system produces a total output of 220 hp and 285 lb-ft of twist, and the Kia claims, the concept could even run two or three miles purely on electric power. There's no physical connection between the internal combustion engine at the front and electric in the rear. Under low-throttle situations, the electric motor runs exclusively, but under most driving conditions, the all-wheel drive system provides extra traction and a bit more acceleration. Kia claims that if it put this layout into production it would offer 25-30 percent better city fuel economy and a 5-10 percent improvement on the highway compared to the current 2.0-liter powertrain in the Soul. That works about to about 30 miles per gallon city and 34 mpg highway, based on the maximum figures. The automaker isn't saying anything official yet, but it's at least hinting that a system like this could end up in the Soul one day. "The Trail'ster concept is a near-future look at how the production Kia Soul would logically evolve into an AWD-capable version that's built to escape the city streets and roam into the mountain wilderness," Tom Kearns, chief designer at the Kia Design Center of America, said in the model's announcement.

The 2018 Kia Rio makes a quiet debut in New York

While the 2017 New York Auto Show might be dominated by another variant of the Dodge Challenger, the new 2018 Kia Rio sedan proves that the show isn't all about horsepower and quarter-mile times. We saw the latest iteration of the littlest Kia last fall in Paris, but we all know how much America loves sedans, so the Korean automaker saved the four-door debut for the US. The Rio gets a ground-up redesign for what will be its fourth generation. The design predictably looks like a shrunken version of the midsize Optima. Its handsome, if not exactly groundbreaking. All Rios ride on 15-inch wheels. Although they provide plenty of sidewall to soften the ride, they look just a little too small for the car. Both the sedan and five-door models are slightly longer than the previous models, meaning there's a bit of extra leg and trunk space than before. Inside, like the current Optima, expect a stark improvement over the previous generation when it comes to fit, finish, and interior materials. From the A pillar forward, the Rio sedan is essentially the same as the five-door. Notably for the segment, top-trim Rios have a touchscreen infotainment system with Apple CarPlay and Android Auto. Power comes solely from a 130 horsepower 1.6-liter inline four, a decent amount of power for this class. Drivers have the option of either a six-speed manual or six-speed automatic. Fuel economy numbers haven't been announced, but expect it to meet or exceed the previous model's rating of 27 city and 36 highway. The sedan and five-door models are set to go on sale later this year. Related Video: