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Feds open investigation into recall of 1.7M Hyundais, Kias

US safety regulators have opened a formal investigation into the recall of nearly 1.7 million vehicles by Hyundai and affiliate Kia over engine defects, according to filings published Saturday. A South Korean whistleblower reported concerns last year to the National Highway Traffic Safety Administration (NHTSA), which will probe the timeliness of three recalls carried out in the United States and whether they covered enough vehicles. Fines could be imposed on the automakers if the NHTSA determines the recalls were not conducted properly. The agency did not immediately comment on the probe. A Hyundai spokesman in Seoul the company "has conducted recalls in compliance with US regulations and procedure" and will "sincerely" cooperate with the investigation. 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 that time, affiliate Kia did not recall its vehicles, which share the same "Theta II" engines. Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities. On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with "Theta II" engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine. The recall, which was also conducted in Canada and South Korea, cost the duo 360 billion won ($322.40 million). "TIMELINESS AND SCOPE" According to the filings published Saturday, the agency opened a probe May 18 into "both the timeliness and scope" of the "Theta II" engine recalls and their "compliance with reporting requirements." In August 2014, Hyundai agreed to pay a $17.35 million fine to settle a NHTSA investigation it delayed the recall of 43,500 Genesis cars to fix a brake defect linked to two injuries. NHTSA said in 2014 Hyundai "must change the way they deal with safety-related defects." Hyundai vowed to make improvements to how it handled safety issues after the fine. In 2015, the company retained former U.S. Transportation Secretary Ray LaHood as an adviser on safety issues.

2019 Hyundai Veloster | Overdue overhaul, and this just in: N

Hard to believe the Hyundai Veloster is only now coming into its second generation after eight years on the market. Our surprise is likely due to the fact that the Veloster, like the ancient American Alligator mississippiensis, lives mostly out of the way and hasn't changed much in its time here. Hyundai planners worked up a restrained evolution for the 2019 Veloster that takes place mostly in the cabin and under the skin in the standard and middle models. The 2019 Veloster's dimensions grow by fractions: Length grows by 0.8 of an inch, width by 0.4, front overhang by 0.8. Height holds steady at 55.1 inches, but rear headroom gets a few hairs' improvement, increasing by 0.6 of an inch. The three-door wears a new face, that wider, hexagonal grille — and especially that hood shutline connecting the headlights — reminding us of the Ford Focus, a competitor. Elsewhere, details work to make the most of massaged sheetmetal, like the rear of the hood and the A-pillar squeezed rearward "to create a long hood profile," and the liftgate handle moved from the rear hatch sheetmetal to the backlight. Two engines suit up for duty, a 2.0-liter Atkinson-cycle four-cylinder in the base model, with 147 horsepower and 132 pound-feet of torque. That's a bonus of 15 hp and 12 lb-ft over the naturally-aspirated 1.6-liter in the current Veloster and Veloster Value Edition. The next trim rung gets the 1.6-liter turbocharged GDI engine, with no increase in output at 201 hp and 195 lb-ft. View 11 Photos The 2.0-liter comes in either standard or Premium trims. The entry-level gets a choice of either a six-speed manual or a six-speed automatic transmission, the Premium only comes with the automatic. The Turbo comes in three flavors, R-Spec, Turbo, and the new Turbo Ultimate. The R-Spec gets the six-speed manual, Turbo comes with a seven-speed dual-clutch transmission, Turbo Ultimate buyers get their choice of manual or DCT. Moments before the reveal of the Veloster at the Detroit Auto Show, photos leaked of a Veloster N performance version. We've read rumors that the truly hot Veloster N could get anywhere from 250 hp to the same 271 hp as in the i30 N; our guess is that Hyundai wants to leave plenty of room in the middle for revolution at the top of the range. The interior benefits from an overdue overhaul sprinkling available goodies like a full-featured heads-up display, an eight-inch infotainment screen, wireless charging, and Infinity audio.

Ex-Hyundai CEO Krafcik joins TrueCar board amidst IPO plans

Former Hyundai Motor America CEO John Krafcik has had a tumultuous year. Last June, he won the Automotive Executive of the Year from DNV Business Assurance. Then in December, he suddenly announced he was stepping down from his leadership role at the Korean automaker on January 1, with some suggesting it was because the company's sales growth was too far below forecasts. Now, it looks like the exec has landed a new role on the board of directors of online car shopping website TrueCar.
According to The Wall Street Journal, Krafcik's role will be to build relationships with automakers and dealers, but the job at TrueCar won't be full time. Since leaving Hyundai, Krafcik has also been doing consulting work in Silicon Valley. "It's helped me understand what I might want to do, full, full time. I am just taking things at the appropriate pace," he said to the Journal.
Krafcik, who is widely considered one of the industry's top executives, took the helm at Hyundai America in 2008 and led it to an increase in sales and market share. He was with the company when it won North American Car of the Year awards in 2009 and 2012 for the Genesis and Elantra, respectively.