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First Hyundai N car coming to US in 2018, and we think we know what it is

SEOUL, South Korea - At the worldwide debut for the all-new Hyundai Kona compact crossover in South Korea, a group of journalists was given a sneak peek at Hyundai's new N performance car division. The group, led by Albert Biermann, has been tasked with giving Hyundai a performance image beyond the occasional car like the Genesis coupe or Veloster Turbo. Its first project, the i30 N, is nearly complete. Unfortunately, it's not coming to the US, though we will be getting our very own N car sometime next year. Now, Biermann and Hyundai will not say what that car is, but all signs point to the Veloster. Hyundai won't comment on future products, but we saw at least three distinct versions of the Veloster testing at Namyang during our visit. There was a standard model with center-mounted trapezoidal exhaust tips. There was a turbo-badged model with two round center-mounted exhaust tips. Finally, we saw what is surely the N model. This had a hidden N badge in the grille (in the same place as the i30 Ns that we saw) and exhaust tips that were pushed to the corners of the bumper. We weren't allowed to take photos of anything, but the new Veloster has the same basic asymmetric shape as before, as seen in some spy photos. The interior looks to be similar to the i30, with a floating infotainment display and a clean and simple layout. Unfortunately, most of the exterior was still covered in camouflage. Despite the parade of cars, there was nothing on the exterior that we haven't seen in spy photos. Other details are scarce, but look for the turbo model to retain the 1.6-liter turbocharged inline four, good for at least 200 horsepower. That should give the N model plenty of breathing room. We believe it will get the same engine as the i30 N, meaning a 2.0-liter turbocharged inline-four making at least 250 horsepower, possibly more. While we didn't get a chance to drive the i30 N, the cars made all the right noises when blasting about. According to Biermann, it was the sound of tuned Hondas and Kias blasting about Hyundai's R&D facility that really kicked things off with N. Engineers were buying other cars since there wasn't much on offer. Hyundai wanted to give people cars they could track and tune and be just as fast as the competition. We have high hopes for both the Veloster N and the N division as a whole. Biermann was formerly the vice president of engineering for BMW's M division and was in charge of the development of the M3, M4, and M6.

NHTSA opens probe into 3 million Kia, Hyundai vehicles for fire risks

The National Highway Traffic Safety Administration said on Monday it would open a new safety defect investigation into three million Hyundai and Kia vehicles for fires not caused by crashes. The investigation is in response to a petition seeking a probe by the Center for Auto Safety. The auto safety agency since 2007 has been investigating some Hyundai and Kia vehicles for fire risks. The South Korean automakers have recalled more than 2.3 million vehicles since 2015 to address various engine fire risks. Hyundai did not immediately comment, while Kia did not immediately respond to a request for comment. NHTSA said the decision to initiate the additional safety defect probe was based on its analysis of information received from multiple manufacturers, consumer complaints and other sources. Last month, Connecticut Attorney General William Tong said a group of U.S. states is investigating Hyundai and Kia for potential unfair and deceptive acts related to reports of hundreds of vehicle fires. In November, Reuters reported that federal prosecutors had launched a criminal investigation into Hyundai and Kia to determine if vehicle recalls linked to engine defects had been conducted properly. Reuters reported in January that the companies would offer software upgrades for 3.7 million vehicles not being recalled. A South Korean whistleblower in 2016 reported concerns to NHTSA, which has been probing the timeliness of three U.S. recalls and whether they covered enough vehicles. In 2015, Hyundai recalled 470,000 U.S. Sonata sedans, saying engine failure would result in a vehicle stall, increasing the risk of a crash. At the time, Kia did not recall its vehicles, which share the same "Theta II" engines. In March 2017, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with those Theta II engines, citing the same issue involving manufacturing debris. On the same day, Kia also recalled 618,000 Optima, Sorento and Sportage vehicles, all of which use the same engine.Reporting by David Shepardson.

Hyundai, Genesis, Subaru warn their dealers about markups

Six weeks ago, word got out that Ford's VP of sales for the U.S. and Canada wrote one of those "It has come to our attention..." e-mails to the automaker's dealer body. The VP's problem was dealers trying to get reservation deposits for the Ford F-150 Lightning well above the official $100 fee. The tomfoolery resulted in interactions "with customers in a manner that is negatively impacting customer satisfaction and damaging to the Ford Motor Company brand and Dealer Body reputation." Two weeks later, GM told its dealers to cut out the reservation gaming and the markups on the 2023 Chevrolet Corvette Z06, banditry that's been going on for two years. Two weeks ago, Ford was back at it, this time about markups on the Bronco. Last week, Asian automakers swept into the melee, with Hyundai and Genesis, Subaru, and Infiniti writing letters to their dealers to deliver some variant of, "Stop pissing off the customers." Automotive News reported an SVP at Hyundai Motor America and the COO at Genesis Motor North America sent letters to their dealers expressing disappointment at "certain pricing practices which, if left unchecked, will have a negative impact on the health of our brand." One of the practices mentioned was dealer markups, another was the bait-and-switch, with dealers advertising one price then charging a higher price once the customer showed up at the lot. The letters acknowledged that dealers are separate companies to the automakers and have the right to set their own prices. The automakers cannot interfere with that; their leverage is distributing allocations and perks such as advertising support and financial incentives. So, like a movie boss letting the protagonist go on a technicality, the brands wrote, "we cannot stand idly by watching the actions of the aforementioned dealers undo all the efforts we collectively have put into making these brands what they are today." Jalopnik got tipped to a letter Subaru of America CEO Thomas Doll sent to that brand's dealers. Doll's polite yet insistent tone was the result of a letter a loyal Subaru owner sent to the automaker's VP of Customer Advocacy. In the market for a third brand-new Forester, the owner said they encountered a "tax" labeled a "Low Inventory Surcharge" of as much as $6,000, putting the Forester out of reach.