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NHTSA opens probe into 3 million Kia, Hyundai vehicles for fire risks

The National Highway Traffic Safety Administration said on Monday it would open a new safety defect investigation into three million Hyundai and Kia vehicles for fires not caused by crashes. The investigation is in response to a petition seeking a probe by the Center for Auto Safety. The auto safety agency since 2007 has been investigating some Hyundai and Kia vehicles for fire risks. The South Korean automakers have recalled more than 2.3 million vehicles since 2015 to address various engine fire risks. Hyundai did not immediately comment, while Kia did not immediately respond to a request for comment. NHTSA said the decision to initiate the additional safety defect probe was based on its analysis of information received from multiple manufacturers, consumer complaints and other sources. Last month, Connecticut Attorney General William Tong said a group of U.S. states is investigating Hyundai and Kia for potential unfair and deceptive acts related to reports of hundreds of vehicle fires. In November, Reuters reported that federal prosecutors had launched a criminal investigation into Hyundai and Kia to determine if vehicle recalls linked to engine defects had been conducted properly. Reuters reported in January that the companies would offer software upgrades for 3.7 million vehicles not being recalled. A South Korean whistleblower in 2016 reported concerns to NHTSA, which has been probing the timeliness of three U.S. recalls and whether they covered enough vehicles. 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 the time, Kia did not recall its vehicles, which share the same "Theta II" engines. In March 2017, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with those Theta II engines, citing the same issue involving manufacturing debris. On the same day, Kia also recalled 618,000 Optima, Sorento and Sportage vehicles, all of which use the same engine.Reporting by David Shepardson.

Hyundai, Kia ratchet up fleet sales as retail transactions slide

Automotive News reports both Hyundai and Kia have stepped up fleet sales in an attempt to offset disappointing first quarter results. The Korean automakers saw their sales decline by nine percent compared to last year, while all major competitors managed to increase their sales. That situation marks an inversion of two years ago, when both gained ground after Japanese rivals suffered production and inventory shortages after the country's earthquake and tsunami tragedies.
Now, Hyundai can't come up with enough volume models in popular trim configurations to satisfy buyers, and lower-volume models are also in a snag. At the moment, Hyundai can only build 20-30 percent of Veloster hatchbacks with turbocharged engines while the US market would apparently support closer to 70 percent.
In order to reverse the sales slide, Hyundai and Kia have stepped up fleet sales of the vehicles they do have by some 50 percent, ringing up a total of 42,400 units in the first quarter. By contrast, Automotive News reports the seven largest automakers increased retail volume by seven percent and fleet sales by four percent as a group.

Hyundai partners with tech startup Smartcar to expand mobility apps

A new technology partnership between Hyundai and a Silicon Valley startup will expand the automaker's connected-car service offerings on its 2018 model-year vehicles, making it possible for owners to do everything from getting their car washed and detailed to fueling up, all without having to actually be there for it. Hyundai announced the partnership with technology startup Smartcar (not to be confused with the automaker) at the L.A. Auto Show to launch its Blue Link All-Access program. The platform aims to give Hyundai owners access to a broad array of new third-party connected-car applications, similar to how users download apps for mobile devices, by giving Smartcar access to its API. That means the automaker can offer new services more quickly, since it won't have to do a separate new integration for every new connected-car service, said Manish Mehrotra, Hyundai Motor America's director of digital business planning and connected operations. "We will develop Blue Link not as standalone system, but as an open platform that can seamlessly integrate the best ideas from inside and outside the company," Mehrotra said. App developers will work with Smartcar, based in Mountain View, Calif., as the single point of integration. Hyundai's Blue Link platform already had allowed owners to do things like sync addresses from their phones to their in-vehicle navigation systems via voice command, start and warm up the car remotely, and locate the vehicle when the driver forgets where he parked it. The new service will be offered on every 2018 model-year Hyundai free of charge for the first three years of ownership. Hyundai also announced a new pilot program in Southern California with an Orange County startup called Washos, which offers mobile car washing and detailing. Other time-saving existing or future applications include being able to get your dry cleaning or groceries delivered to your car while at work. Because the future is going to be BUSY. As further evidence of what he called "our deepening relationships with the technology community," Mehrotra also discussed the recent launch of Cradle, Hyundai's new venture-capital arm.