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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.

Hyundai, Porsche top J.D. Power APEAL study

Just as they did in the Initial Quality Study, Porsche and Hyundai have taken the premium and non-premium crown, respectively, for the 2014 J.D. Power APEAL study. This is the tenth consecutive year for that Porsche has been rated the best premium make in the APEAL study, which attempts to figure out how pleased owners are with their purchases. For 2014, it asked 86,000 owners of MY2014 cars to rate their vehicles in 77 different categories 90 days after their initial purchase. The resulting figures were plugged in deliver the APEAL score, which is rated on a 1,000-point scale.
The industry average sits at 794 points for 2014, although that's a one-percent decline over last year's rating. In this year's study, premium brands averaged 840 out of 1,000, while non-premium makes average 785. For their part, Porsche netted an impressive 882 points, while Hyundai earned an 804. Interestingly, only four non-premium brands (Hyundai, Ram, Volkswagen and Mini) finished above the industry average for 2014.
It's also interesting to see the clear delineation between premium and non-premium brands, with an eight-point gap between the non-premium champ, Hyundai, and the lowest-rated premium brand, Volvo.

Hyundai's Genesis luxury brand not going to Europe this decade

After dipping into the premium market with the Genesis and Equus sedans, Hyundai made headlines with the planned launch of a separate premium brand, Genesis. It starts with the renamed G80 (nee Genesis) and redesigned G90 (Equus) sedans here in the US, but European consumers will have to wait. "To launch a premium brand in Europe is a challenge and it's an even bigger challenge if you don't have the products you need for the market," Hyundai Europe Chief Operating Officer Thomas Schmid told Automotive News Europe. "Europe won't see it before 2019. The main reason is we need different powertrains." Powertrains aren't the brand's only shortcoming. With the G70 – a 3 Series competitor – coming as the third showroom product, the brand also won't have a competitor in the increasingly important crossover ranks. As Schmid told ANE, "we don't yet see the right moment to do it because at the end, we want to be successful, and successful also means profitable." Initially, Genesis will launch in North America, the Middle East, China, and South Korea. Pushing back the European launch to 2019 or 2020 should give Genesis some breathing room, ANE reports. By that point, the company will offer six different vehicles, including two CUVs. According to Schmid, the brand would launch in Europe with just five vehicles. At halfway through 2016 and nothing but the G70 on the radar, expect an aggressive product launch schedule in the coming years if Genesis is going to stick to that timeline. Related Video: Featured Gallery Genesis Hybrid Sport Sedan Concept View 10 Photos News Source: Automotive News EuropeImage Credit: Genesis Genesis Hyundai Crossover Luxury