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Hyundai may be working on Theta III power for a mid-engine car

Hyundai's been showing off mid-engine concepts and flogging mid-engine prototypes for at least four years. The fanciful 2014 Passo Corto gave way to a Veloster Midship concept just a few months later, the following years bringing the RM15 N and RM16 N. The "RM" stands for Racing Midship, and spy photographers caught the RM16 N painting a new racing line at the Nurburgring. Korean outlet Motorgraph reports that Hyundai is currently developing its Theta III engine for release late this year or in 2019 in the next-generation Genesis G80, but the four-cylinder will be engineered to suit front-wheel drive, rear-wheel drive, and mid-engine applications. In the interests of more power, displacement in the Theta III will increase to 2.5 liters from the 2.0- and 2.4-liter displacements of the Theta II. Naturally aspirated and turbocharged versions are in development, both maintaining Hyundai's GDi direct injection. Front-wheel drive, turbocharged applications are predicted to output 280 horsepower, rear-wheel-drive turbo vehicles would get 300 horsepower. The turbocharged 2.0-liter Theta II in the current Sonata tops out at 245 hp, the same engine previously offered in the Santa Fe took that up to 264 hp. The mid-engine turbo Theta III would shrink to 2.3 liters, but rock a max output of 350 horsepower. That would put a mid-engine Veloster at the award-winning end of the competitive set, alongside the 350-hp Ford Focus RS and well in front of the 292-hp Volkswagen Golf R. Admittedly, it's early days for such talk, but with a motor in the middle and ex- BMW M boss Albert Biermann helming the chassis department, Hyundai might even aim for dynamic comparisons to the 350-hp Porsche 718 Cayman S. A potential super sporty offering from the N division needn't be a Veloster, either; that hatch might merely be an engine testbed. The Korean carmaker didn't poach two ex- Bentley, Bugatti, and Lamborghini designers so that it could think small. Related Video:

Hyundai And Kia Penalized $350 Million For Overstated MPG Claims

Nearly two years after Hyundai and Kia announced they exaggerated fuel economy numbers for several of their most popular models, the two Korean automakers have paid a heavy penalty for the transgressions. The Department of Justice and Environmental Protection Agency announced a settlement Monday that will cost the two car companies approximately $350 million. The financial sum includes a $100 million fine, the largest ever levied under the Clean Air Act, and about $200 million in forfeited greenhouse-gas emissions credits. At a time when car buyers rank fuel economy as a top concern when they head to dealerships and the federal government has mandated increased efficiency, Attorney General Eric Holder said the settlement should serve as a warning to automakers not to fudge their numbers. "This will send a strong message that cheating is not profitable," he said. The settlement ends a federal lawsuit filed against the automakers in U.S. District Court, but it's important to note that it doesn't end a class-action lawsuit filed on behalf of consumers. A preliminary settlement in that case, based in Los Angeles, was approved last month, but final approval isn't expected until July 2015. Officials with the EPA said the $100 million figure roughly equals the economic benefits the two companies received from exaggerating the mileage claims on the window stickers of new cars. Fuel-efficient boasts helped Hyundai and Kia establish a strong foothold in the U.S. marketplace. Advertisements for the Hyundai Elantra stated the vehicle achieved 40 miles per gallon in highway driving, and helped the car win the prestigious North American Car Of The Year honors at the Detroit Auto Show for its 2012 model. In July 2011, the advocacy group Consumer Watchdog began receiving complaints from consumers that the Elantra and other Hyundai models fell short of their stated mileage claims in real-world driving. The group wrote to the EPA and Hyundai, asking both to investigate. Government officials said Kia had overstated the mileage on its popular Kia Soul crossover by 6 miles per gallon, and more than a dozen overall models were affected. On Monday, EPA administrator Gina McCarthy said the violations were "egregious." Based on the exaggerations, the EPA calculated that Hyundai and Kia had underreported the greenhouse gas emissions of their fleets by about 4.75 metric tons over the estimated lifetime of the vehicles. That figure aided in the $200 million credit forfeiture.

2014 Hyundai Veloster Turbo R-Spec loses creature comforts, gains sporting equipment [UPDATE]

Hyundai unveiled the Veloster Turbo R-Spec at the LA Auto Show yesterday, and it's touted as a high-performance model without some of the standard features usually found on the Veloster Turbo, such as proximity-key entry with push-button start, premium gauge cluster, side-repeater mirrors, driver's auto-up window, high-gloss interior trim and heated leather seats.
Like the other three R-Spec models Hyundai has released (Genesis Coupe 2.0T R-Spec, Genesis Coupe 3.8 R-Spec and Genesis 5.0 R-Spec), the Veloster Turbo R-Spec skimps on interior appointments to keep the price down. But Hyundai thinks that people who buy it don't want that equipment anyway, and would rather install aftermarket goodies. The car is priced at $22,110 (including the $810 destination fee), which makes it the least expensive Veloster Turbo model.
The pared-down hatchback's special features include R-Spec-specific sport suspension, retuned steering and a B&M short-shifter for the six-speed manual transmission (the R-Spec isn't offered with an automatic). That's all great, but we can do without the red-accented side skirts and front splitter, which look just as tacky in person as they do in pictures.