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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 recalls 305k Sonatas for brake lights that stay on

Hyundai will recall 304,900 examples of the 2011-2012 Sonata because a problem with a part of the brake pedal might not allow the brake lights to shut off. The campaign specifically affects units with build dates between Dec. 11, 2009, and June 30, 2011, but the company has no reports of accidents or injuries from this issue. The brake pedal stopper pad on these vehicles can potentially deteriorate and allow the brake light switch to remain active after a driver releases it. If this happened, the lights would stay on at the back, and a person could shift out of park without depressing the pedal. The recall campaign will begin Jan. 11, and dealers will fix the problem with an improved version of the stopper pad. RECALL Subject : Brake Pedal Stopper Pad Deterioration Report Receipt Date: NOV 16, 2015 NHTSA Campaign Number: 15V759000 Component(s): SERVICE BRAKES, HYDRAULIC Potential Number of Units Affected: 304,900 All Products Associated with this Recall Vehicle Make Model Model Year(s) HYUNDAI SONATA 2011-2012 Details Manufacturer: Hyundai Motor America SUMMARY: Hyundai Motor America (Hyundai) is recalling certain model year 2011-2012 Sonata vehicles manufactured December 11, 2009 to June 30, 2011. In the affected vehicles, the brake pedal stopper pad can deteriorate allowing the stop lamp switch plunger to remain extended when the brake pedal is released. CONSEQUENCE: If the brake light switch plunger does not retract as it should when the brake pedal is not being pressed, the brake lights may stay illuminated preventing accurate communication to rearward following vehicles that the vehicle is slowing or stopping. Additionally, if the brake switch plunger is not retracted, then the transmission can be shifted out of PARK without depressing the brake pedal. Either condition increases the risk of a crash. REMEDY: Hyundai will notify owners, and dealers will replace the brake pedal stopper pad with an improved part, free of charge. The recall is expected to begin on January 11, 2016. Owners may contact Hyundai customer service at 1-855-671-3059. Hyundai's number for this recall is 136. NOTES: Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to www.safercar.gov.

Hyundai pickup truck sounding more likely

Hyundai looks poised to get into the pickup market, according to the latest report from Automotive News. The Korean automaker revealed the Santa Cruz concept at the Detroit Auto Show this past January, previewing a vehicle that combines the best attributes of a pickup truck with those of a small crossover – sort of like a Honda Ridgeline, but smaller. It's an idea whose time has come, says Hyundai's US chief Dave Zuchowski. "We're assuming that it's going to get done," he told AN. "It's just not officially done yet." He expects it to be approved sometime within the next decade, and when it does enter production, Zuchowski said it could emerge as the first diesel-powered Hyundai offered in America. The biggest challenge, however, may not lie in convincing the head office in Seoul to give it the green light. The company's plant in Montgomery, AL, is strained enough producing the Sonata, Elantra and Santa Fe. In order to produce the pickup as well, Hyundai would need to either expand the current plant or build a new one.