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Car buyers are paying big money for technology they don't use

J.D. Power released the results of its Tech Experience Index study that measures "how much owners like [in-car] technologies and how many problems they experience with them." Among the study's findings, automakers are loading vehicles with more software and digital experiences that owners claim they never learn how to use or decide they don't need. For example, owners report to J.D. Power that gesture controls, like those used by BMW (spinning a finger, for instance, can raise or lower the audio volume), don't improve the overall ownership experience. In fact, gesture controls received the lowest overall satisfaction score in the study for a second consecutive year. In another example, the study found that 61% of owners claim never having used "in-vehicle digital market technology," while 51% of respondents said they didn't need it. Driver/passenger communication technology was another sore point with users, with 52% saying they have never used the technology, and 40% of those saying they have no need for it. (10 Features owners say they want, and 7 they really don't). Conversely, some technologies are well received by owners. For American owners, rear-view cameras and so-called "ground view" cameras were among the top three desired technologies. We assume that "ground view" is a surround-view or 360-degree camera system. The one-pedal driving possible in a number of EV's with adjustable regen braking also scored very high marks and few claimed issues.  While it could be argued that owners who don't want to use a specific piece of technology should just avoid using it, the reality is that all of these unused features add cost to the final price of any vehicle. Considering that the average transaction price of a new vehicle hit a record $45,031 in September of 2021, controlling spiraling costs is a big deal. J.D. Power's survey results found that dealerships can play a big role in explaining new technology to buyers. Scores for some technologies like trailer assistance received higher scores from owners who received training from their dealers. Unfortunately, 71% of owners say they were taught how to use tech from outside sources whereas only 30% learned from a dealer. The results of this study are the product of responses from 110,827 owners of current model-year vehicles that J.D. Power surveyed after 90 days of ownership from February through July 2021.

Hyundai, Kia recall 640,000 vehicles for leaks that can cause fires

DETROIT — Korean automakers Hyundai and Kia are recalling over 600,000 vehicles in the U.S. and Canada to fix a brake fluid leak that could cause engine fires. The recalls cover more than 440,000 Kia Optima midsize sedans from 2013 through 2015 and Kia Sorento SUVs from 2014 and 2015. Also covered are 203,000 Hyundai Santa Fe SUVs from 2013 to 2015. The affiliated automakers say brake fluid can leak inside a hydraulic control unit for the anti-lock brakes, possibly causing an electrical short that can lead to fires. Kia's recall will start Oct. 15, while Hyundai's will start Oct. 23. Dealers for both companies will inspect the control units for leaks and replace them if needed at no cost to owners. In company documents posted Thursday by U.S. safety regulators, Hyundai said it had 15 reports of engine fires caused by the fluid leaks, while Kia said it had eight. Hyundai said it's not aware of any injuries, and Kia said it had none. Hyundai said in a statement that there's no need to park vehicles outdoors before the problem is fixed, but if the anti-lock brake warning light comes on, owners should not drive their vehicles and should contact a dealer. They also should disconnect the 12-volt battery by removing the positive cable, the company said. Hyundai documents said the company received its first complaint about an engine fire in a 2014 Santa Fe in April 2018, and it started an investigation. Kia began investigating after getting a complaint of a melted control unit in a 2015 Sorento last February. The recalls are the latest in a series of engine fire problems that have plagued the two automakers and have touched off investigations by the U.S. National Highway Traffic Safety Administration. In February, Hyundai recalled nearly 430,000 small cars for a similar but apparently unrelated problem. The company said water can get into the antilock brake computer, cause an electrical short and possibly an engine fire. That recall covered certain 2006 through 2011 Elantra and 2007 through 2011 Elantra Touring vehicles. The company said the electrical short could cause a fire even when the cars are turned off. Hyundai said the latest recall is not related to the previous recalls or the U.S. investigations.

Hyundai-Kia forecasts slowest sales growth in 8 years

Even with the arrival of the new Hyundai Genesis Sedan (above) and the expected introduction of at least two other new vehicles in 2014, Hyundai-Kia is estimating its sales will only increase by about 4.1 percent this year. Bloomberg has found that figure, which works out to a total of 7.86 million vehicles worldwide, to be lower than average analyst estimates of eight million vehicles. If the automaker is correct, that figure will represent the most sluggish growth for the Korean brands since 2006.
Based on an exchange rate of 1,050 won to the dollar - right now it's trading at anywhere from 1,050 to 1,052 depending on where you look - Hyundai is predicting a 3.8-percent uptick for sales of 4.9 million units, while Kia is expecting a 4.7-percent uptick for sales of 2.96 million units. That exchange rate is predicted to be part of what will hamper sales this year, with a stronger South Korean won making Japanese cars more price-competitive when cross-shopped. It's unclear how Hyundai derived its exchange rate, but 1,050 won to the dollar almost matches the 52-week high for all of 2013.
The company chairman mentioned a "low growth era" in the world economy, and weaker US sales are rumored to at least part of the reason John Krafcik recently vacated the post of Hyundai Motor America CEO, a post that has been filled by executive vice president of sales, David Zuchowski. That unexpected news capped a year in which two top execs resigned over quality issues and recalls and Hyundai agreed to settle a consolidated lawsuit over inflated fuel economy ratings for $395 million.