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Hyundai Kia asked to pay $28.9M in patent infringement case

After years of litigation, Hyundai and Kia have lost their hybrid technology patent infringement case against Paice LLC. The jury ordered the South Korean automakers to pay $28.9 million, but according to Bloomberg, because the violation was allegedly intentional, the judge could triple that amount. The automakers have announced plans to appeal the ruling. Paice's patent dates from 1994 on a piece of tech called the Hyperdrive, and it was a way to seamlessly switch between power from an electric motor and an internal combustion engine. This lawsuit was first filed in 2012 and covered the systems in the Hyundai Sonata Hybrid and Kia Optima Hybrid. According to Bloomberg, the companies tried to argue that the patent was no longer valid, but the strategy failed. "Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit," the company said in a statement to Autoblog. Paice is certainly no stranger to litigating over the Hyperdrive patent, though. It and Toyota had a similar court battle that lasted years. Eventually, there was a settlement, and the result was Paice getting royalties for each hybrid that the Japanese automaker sold. Similarly, there's a lawsuit pending against Ford over tech in the C-Max, Fusion, and Lincoln MKZ. Hyundai Statement: Hyundai believes that the verdict returned by the jury today in the matter of Paice v. Hyundai Motor Company et al., is not supported by the evidence. Accordingly, Hyundai has requested that the presiding judge enter a judgment in its favor notwithstanding the verdict. Hyundai strongly believes its position and will appeal any remaining adverse findings to the Federal Circuit.

Hyundai plans $388 million expansion at engine plant in Alabama

Hyundai says it is investing $388 million to build a new plant in Alabama to manufacturing engine heads and update technology in an existing engine plant to support production of new Sonata and Elantra sedans and the Santa Fe crossover. The investment will also include 50 new jobs at its manufacturing complex in Montgomery. About $40 million will go toward constructing a new 260,000-square-foot engine-head machining plant, which is expected to be completed in November and operational by mid-2019. Hyundai says the project will free up space to expand engine assembly lines in two existing engine plants in Alabama. Hyundai plans to begin producing the Theta III engine, likely a 2.5-liter four-cylinder (though Hyundai won't confirm the specs yet), in April 2019 for the Sonata and Santa Fe crossover. It will continue to build the 2.0-liter Nu engine for the Elantra at its plant in Montgomery. Together, the engine plants build about 700,000 engineers per year to support vehicle production in Alabama and Kia's manufacturing facility in West Point, Ga. Hyundai Motor Manufacturing Alabama started vehicle production in May 2005 and employs 2,700 full-time and 500 part-time employees. Related Video: Image Credit: Hyundai Plants/Manufacturing Hyundai Crossover Sedan hyundai santa fe

Hyundai, Kia consider body-on-frame SUVs aimed at Tahoe and Expedition

Hyundai and Kia are open to expanding their presence in the SUV segment by each releasing a body-on-frame SUV. Both models will be marketed as alternatives to the Chevrolet Tahoe and the Ford Expedition. "From a brand perspective, obviously that is thinkable. Now, whether it makes sense, and in what region, and with what particular concept remains to be seen," said Lorenz Glaab, Hyundai's head of global product management, in an interview with Australia's CarSales. "Nothing can be excluded. There is some dynamism in that segment you just described, and we are very much aware of that. We monitor it closely," he added. Hyundai and Kia sell the Palisade and the Telluride, respectively. Both are rather large, reasonably spacious, and relatively powerful, but they can't compete against body-on-fame SUVs like the Tahoe, the Expedition, and the Toyota Land Cruiser, among others. They feature unibody construction, so they're not as capable off-road. While neither firm has suitable underpinnings to build an SUV on, CarSales believes both new models will ride on a modular frame being developed internally, in part to underpin a pickup about as big as the Ford Ranger. Kia officials requested a bigger, more rugged SUV earlier in 2020. Damien Meredith, the chief operating officer of the firm's Australian division, said he wants "one or two bigger SUVs." He also confirmed Kia will launch a Ranger-baiting pickup, which lends credibility to the claim that the platform will also be used to underpin an SUV. Powertrain specifications are still up in the air. Rear-wheel drive will presumably come standard, and four-wheel drive will be either offered at an extra cost, or made standard on some variants. CarSales speculates a two-speed transfer case could be available, and it added the 3.0-liter turbodiesel straight-six developed for the Genesis GV80 will be the base engine in some global markets. It's reasonable to assume a hybrid option will appear, too. If the report is accurate, both SUVs could land in 2023, meaning they might be labeled 2024 models in the United States. They'd also be sold in Australia, where motorists have a healthy appetite for off-roaders, in the Middle East, where the Land Cruiser and the Nissan Armada reign supreme, and in Russia. Interestingly, posh spin-off Genesis could receive its own version of the SUV, much like Lexus gets a specific variant of the Land Cruiser. Deja vu?