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Hyundai, Kia add to 2.4 million cars recalled in U.S. over fires, engines

DETROIT — Hyundai and Kia have added more than a half-million vehicles to 3 1/2 -year string of U.S. recalls for engine failures and fires. Three recalls released Thursday by the government add new problems and vehicles to the Korean automakers' list of safety woes, which have brought hundreds of complaints about fires from across the nation. The companies have now recalled nearly 2.4 million vehicles for fire and engine failure problems since September 2015, and they are under investigation by the National Highway Traffic Safety Administration for potentially being slow to fix faulty vehicles. In addition, the companies are doing a "product improvement campaign" covering another 3.7 million vehicles to install software that will alert drivers of possible engine failures and send the cars into a reduced-speed "limp" mode if problems are detected. The largest of three recalls posted on the National Highway Traffic Safety Administration website Thursday covers nearly 379,000 Kia Soul small SUVs from 2012 through 2016 with 1.6-liter engines. Documents show that high exhaust gas temperatures can damage the catalytic converters, which control pollution. That can cause abnormal combustion and damage pistons and connecting rods. A failed connecting rod can pierce the engine block and cause oil leaks that can cause fires. In addition, Hyundai and Kia are recalling 152,000 Tuscon SUVs from 2011 to 2013 and Sportage SUVs from 2011 and 2012 to fix an engine oil pan leak that also can cause fires. Documents show that Kia had been investigating fires in Souls after the nonprofit Center for Auto Safety petitioned the government to look into the fires last year. In November, the automaker couldn't find any safety problem trends but it kept monitoring repair data and found the problem with the catalytic converters. All Souls with 1.6-liter engines made from July 8, 2011, through August 11, 2016, are being recalled. Dealers will replace a computer that prevents the catalytic converter from overheating. They'll also replace the catalytic converter and the engine if they have been damaged. Letters will be mailed to owners starting April 12. In the Tuscon and Sportage recalls, the fix for the oil pan problem is still being developed. Hyundai owners will be notified starting March 29, while Kia owners will get letters starting April 10.

Hyundai sticks to EV rollout plans, sees solid growth this year

SEOUL — Hyundai Motor said on Thursday it would not delay plans to roll out new electric vehicles and was upbeat about prospects for continued growth this year — a contrast to recent steps by rivals to cut back on EV output. Electric vehicle sales are growing strongly but not as much as carmakers had forecast, with demand hit by high interest rates. "We do not plan to dramatically reduce EV production or our line-up due to likely near-term hurdles as we believe EV sales will grow longer term," Seo Gang Hyun, an executive vice president at the South Korean automaker, told an earnings briefing for analysts. The Hyundai Motor Group, which encompasses the Hyundai, Kia and Genesis brands, said in April it plans to launch 31 EVs by 2030. This includes the launch of the Ioniq 7 SUV next year. Seo said Hyundai's EV sales next year could be slightly lower than previously expected, but the automaker had the production flexibility to boost output of gasoline engine cars if demand shifted that way and he did not expect a significant impact on overall sales. When asked about the impact on Hyundai Motor of the United Auto Workers (UAW) union reaching a tentative labour deal with Ford, Seo said the company expects the deal will have an impact on wage increases at its U.S. factories, but such costs could be covered as the automaker has been putting effort into reducing costs, such as in logistics. Hyundai Motor, which is not a member of the UAW, operates an assembly plant in Alabama and is building a factory to produce EVs in Georgia. For the third quarter, Hyundai booked a net profit of 3.2 trillion won ($2.4 billion), more than double its year-earlier result and beating an LSEG SmartEstimate of 2.9 trillion won, with the automaker helped by a favourable exchange rate. Sales also increased, climbing 8.7% to 41 trillion won on solid demand for high-margin gasoline SUVs. Sales of EVs and hybrids also grew, up by a third to 169,000 units. This month has seen a flurry of downbeat EV announcements. Citing flattening demand for EVs, GM said it would delay production by a year of Chevrolet Silverado and GMC Sierra electric pickup trucks at a plant in Michigan. Ford is temporarily cutting one of three shifts at the plant that builds its electric F-150 Lightning pickup truck. Tesla is also slowing plans for a Mexico factory, while GM and Honda announced on Wednesday that they were ending a $5 billion plan to develop lower-cost EVs together.

88,000 interested in Hyundai Tucson fuel cell, first units due in 60 days

Hyundai thinks it has a hit on its hands with the Tucson Fuel Cell CUV, an Internet hit at the very least. At the Washington Auto Show this week, Michael O'Brien, the vice president of corporate and product planning for Hyundai Motor America, announced that 88,000 people have visited the car's microsite. Since the company isn't yet taking orders for the vehicle, we'll have to take this as a sign that people are interested in a hydrogen-powered CUV. "The response surprised even us," O'Brien said. "The response surprised even us" Hyundai expects to deliver the first Tucson Fuel Cell to a "small group" of customers in the US within 60 days, O'Brien said. As we learned last year, Hyundai will lease the CUV for $499 a month (and $2,999 down) for 36 months. That price includes as much hydrogen refueling as you like, plus Hyundai's Valet Maintenance. The Tucson Fuel Cell is already in production and available in other markets (as the ix35 Fuel Cell), following 16 years of development and what O'Brien said were "hundreds of millions of dollars" spent on R&D. Hyundai has tested its fuel cell cars for over 2.4 million miles, including extreme heat, cold and altitude tests (but it hasn't shot a bullet into the tank a la Toyota). Hydrogen cars are "as clean and by some measures cleaner than today's EVs" but are more practical, with longer range and shorter refueling times, O'Brien said in DC. There's more in the press release below. Hyundai Receives Strong Consumer Interest With 88,000 Visitors To Its Dedicated Fuel Cell Microsite In Just Two Months $499 per month to drive the World's First Mass-Produced Fuel Cell Vehicle, Including Unlimited Free Hydrogen Refueling and At Your Service Valet Maintenance WASHINGTON, Jan. 22, 2014 /PRNewswire/ -- Hyundai is witnessing exceptionally strong consumer interest in its next-generation Tucson Fuel Cell CUV, with more than 88,000 unique visitors to its Hyundai.com fuel cell microsite since the program's November introduction. Consumers selected for the program can drive the Tucson Fuel Cell for just $499 per month, which includes unlimited free hydrogen refueling and "At Your Service" valet maintenance at no extra cost. For the first time, retail consumers will be able to put a federally-certified hydrogen fuel cell vehicle in their driveways, with availability beginning in late Spring 2014 at select Southern California Hyundai dealers.