2017 Kia Sportage Lx on 2040-cars

Auto blog

Hyundai, Kia looking to cut costs

Hyundai and Kia are off to roaring starts in the United States this year, underscored by Kia's best sales month ever in May. But globally the situation for the South Korean siblings hasn't been nearly so positive. Recently, they reported their fourth consecutive quarter of decreasing operating profits worldwide, and now they're "making efforts to cut costs," according to a statement in a joint email obtained by Bloomberg. However, the companies aren't detailing where they would make the cuts or how much they want to save. The amount could be significant, though. An unnamed Hyundai senior executive reportedly told a South Korean newspaper that the business might be aiming for up to 30 percent in reductions. According to Bloomberg, Hyundai and Kia are facing falling total sales worldwide. Making the situation worse is that the strong Korean won versus the weaker Japanese yen gives competitors an advantage. The automakers also angered investors enough last year to prompt a stock buyback after paying $10 billion for the land for a future headquarters. The prognosis doesn't look utterly dire, though, and new products are on the way. For example, the Hyundai Santa Fe is being refreshed in South Korea, and the next-gen Elantra debuts at this year's Los Angeles Auto Show. There's also the Creta on the way for foreign markets. Additionally, several models are still awaiting the green light, including a Hyundai Genesis-based luxury crossover, a compact CUV, and the Santa Cruz unibody pickup. Meanwhile, the Kia GT is reportedly close to production, too. Related Video:

NHTSA looking into non-Takata airbag shrapnel case

The global airbag inflator recall from Takata has been one of the biggest topics in auto safety for months. Now, the National Highway Traffic Safety Administration is opening a preliminary evaluation into the components from Arc Automotive to investigate whether two reported ruptures and two injuries signal a wider problem. So far, only the 2002 Chrysler Town & Country and 2004 Kia Optima are believed to be affected. If a safety campaign is deemed necessary, it could cover an estimated 420,000 of the minivans and 70,000 of the Korean sedans. NHTSA first noticed these ruptures in December 2014. The agency received a complaint of a 2009 case in Ohio about the bursting of the driver's side inflator in a 2002 Town & Country. According to the report, the incident broke the woman's jaw and sent shrapnel into her chest. The government investigated the case, and this was found to be the only known occurrence in these vehicles. The analysis indicated the part's gases were possibly blocked somehow and caused the component to explode. FCA US spokesperson Eric Mayne told Autoblog that the company is "cooperating fully" with NHTSA. "Also, we no longer use that inflator," he said. A second incident came to NHTSA's attention in June 2015 with the driver's side rupture in a 2004 Optima in New Mexico. The agency lists fewer details about the case, and a root cause isn't known. This is also the only currently known example in a Kia vehicle. According to a statement from Kia to Autoblog, "We are taking this matter very seriously and support NHTSA's action and will continue working cooperatively with the agency and suppliers throughout the process." Arc's components are sealed within a steel housing that's meant to protect them from "external atmospheric conditions," according to NHTSA. Multiple suppliers also use them. In the Chrysler, the airbag module came from Key Safety Systems and from Delphi in the Kia. In a statement to Autoblog the company said, "We have received NHTSA's notification and are cooperating fully with its Preliminary Evaluation." At this time, NHTSA admits that it doesn't know for certain whether these two cases are linked. The agency is conducting this preliminary evaluation to learn more.

2020 Kia Telluride crossover moves the brand upscale, and a bit off-road

Kia added its newest and largest entrant to its lineup, unveiling the designed- and made-in-America Telluride as its new flagship. It's a handsome and sporty midsize three-row SUV that seats eight, offers upscale interior perks and safety technology, plus off-road capability. The reveal brings the Telluride full circle from its origins as a concept first shown in Detroit three years ago. Kia will emphasize its rugged looks and comfortable, well-appointed interior when it goes on sale later this year as a 2020 model and takes on well-entrenched competitors like the venerable Ford Explorer (itself redesigned for 2020) and the Jeep Grand Cherokee. Designed at Kia's studio in Southern California, the Telluride deliberately harkens to the boxy appearance of O.G. SUVs like the aforementioned Explorer, with a long hood and wide grille, a clean side profile and upright windshield. Nameplates adorn both the leading edge of the hood, atop the grille, and on the liftgate, with stacked headlights, inverted L-shaped taillamps and a sculpted rear skid plate with integrated twin exhaust tips. The Telluride is powered by a 3.8-liter direct-injection V6 making 291 horsepower and 262 pound-feet of torque mated to an eight-speed automatic. There's four-wheel independent suspension and stiff, torsionally rigid body structure owing to an advanced high-strength steel monocoque shell. The rear suspension is self-leveling, with the ride height automatically calibrated depending on the load to benefit control and stability. Four driving modes are offered — Smart, Eco, Sport and Comfort — plus Snow and AWD Lock settings when needed. On-demand all-wheel drive will be an option, distributing torque between the front and rear wheels depending on road conditions and the driver's input. Kia says it's based on electro-hydraulic AWD coupling and constantly redistributes power between the front and rear wheels depending on drive mode — for example, splitting it 65 percent to 35 percent between the front and rear wheels in Sport mode. Inside, there's a wide console that emphasizes the horizontal, with an available 10.25-inch color touchscreen. There's simulated brushed metal and matte-finished wood, interior hooks to hang packs and bags, ceiling-mounted climate control in the second row and reclining third-row seats.