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5 Hyundai and Kia models have higher-than-average fire insurance claim rates

DETROIT — Owners of five Hyundai and Kia cars and SUVs file fire insurance claims at a rate far higher than the average for comparable vehicles, according to an insurance industry study. The Highway Loss Data Institute, which analyzes data from insurers representing about 85 percent of the U.S. industry, found that some Hyundai and Kia vehicles equipped with four-cylinder engines have double the noncrash fire claim rates than the average of comparable vehicles. Last week the South Korean brands announced they would recall about 168,000 vehicles to fix a fuel pipe problem that can cause fires. The problem stems from improper repairs during previous recalls for engine failures. They also announced additional sensor software for another 3.7 million vehicles. Hyundai and Kia started recalling 1.7 million vehicles in 2015 — about 618,000 of which are Kias — because manufacturing debris can restrict oil flow to connecting rod bearings. That can cause bearings in 2-liter and 2.4-liter four-cylinder engines to wear and fail. The problem can also cause fires. The repair in many cases is an expensive engine block replacement. Results of the Arlington, Virginia-based institute's study have been turned over the U.S. National Highway Traffic Safety Administration, which is investigating engine failures and fires in Hyundai and Kia vehicles. The agency is mostly closed this week due to the partial government shutdown. Hyundai said Tuesday that the majority of its models in the study are already being recalled or are part of additional actions to keep customers safe. "Hyundai actively monitors and evaluates potential safety concerns, including non-collision fires, with all of its vehicles and acts swiftly to recall any vehicles with safety-related defects," spokesman Michael Stewart said. Kia spokesman James Bell said the company is cooperating with NHTSA "and will take any necessary corrective action in a timely manner." Many of the fires involve vehicles included the engine failure recall and could have been prevented if owners had the recall repairs done, he wrote. The institute began studying fire claims after the Center for Auto Safety petitioned NHTSA last year seeking a wider recall of Hyundai and Kia vehicles. The center had found a higher-than-normal number of consumer complaints about Hyundai and Kia fires in the agency's database. NHTSA has used Highway Loss Data Institute studies in the past to help make recall decisions.

Auto sales in March and first quarter down nearly across the board

Nearly every major automaker reported weak U.S. sales for March and the first quarter of 2019, citing a rough start to the year, but said a robust economy and strong labor market should encourage consumers to buy more vehicles as 2019 rolls on. GM, which no longer releases monthly sales figures, saw first-quarter sales fall 7 percent, with declines across all brands. Sales of Silverado pickup trucks fell nearly 16 percent and the high-margin Chevy Suburban large SUV dropped 25 percent. Ford also no longer releases monthly sales numbers, but is due to release its first-quarter sales figures on Thursday. According to industry data, Ford's sales fell 2 percent in the quarter and 5 percent in March. Ford representatives did not immediately respond to requests for comment. FCA reported a 7 percent fall in U.S. sales in March and a 3 percent drop for the first quarter. All of FCA's brands dropped in March, except for Ram, which saw a 15 percent increase in pickup truck sales. "The industry had a tough first quarter, but with spring finally starting to show its face and continued strong economic indicators ... we are confident that new vehicle sales demand will strengthen going forward," FCA's U.S. head of sales, Reid Bigland, said in a statement. Toyota reported a 3.5 percent fall in U.S. sales in March and 5 percent for the first quarter, hurt by declining demand for its Corolla sedans and Camry vehicles. "While some of our competitors are abandoning sedans, we remain optimistic about the future of the segment," Toyota said in a statement. Nissan posted a 5.3 percent drop in sales in March, and its first-quarter sales were down 11.6 percent. Honda and Hyundai bucked the trend. Honda's U.S. sales rose 4.3 percent in March and 2 percent in the quarter, while Hyundai's were up 1.7 percent and 2.1 percent, respectively. Passenger-car sales suffered throughout the January-March quarter compared with the same period in 2018 as Americans continued to abandon them in favor of larger, more comfortable pickup trucks and SUVs, which are far more profitable for automakers. The battle for market share in the particularly lucrative large-pickup truck market intensified in the quarter, as Fiat Chrysler Automobiles' Ram brand outsold the U.S.' No. 1 automaker General Motors' Chevrolet-brand trucks. The two automakers have both launched redesigned pickup trucks.

Hyundai Azera fate in question for US

The Azera has been consistently outsold by its rivals. Through June, Hyundai has shifted just 4,191 units.
Hyundai's dealers call the Azera the "nicest car nobody knows about." That's according to Mike O'Brien, Hyundai Motor America's vice president of corporate and product planning. Indeed, the fullsize sedan is a handsome, well-rounded machine, loaded with creature comforts. Yet it's not selling well, and its space in Hyundai showrooms is about to get a whole lot more crowded thanks to the newly spruced-up 2015 Sonata. No surprise, then, that company officials admit that the model's future in the US is uncertain.