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Hyundai And Kia Penalized $350 Million For Overstated MPG Claims

Nearly two years after Hyundai and Kia announced they exaggerated fuel economy numbers for several of their most popular models, the two Korean automakers have paid a heavy penalty for the transgressions. The Department of Justice and Environmental Protection Agency announced a settlement Monday that will cost the two car companies approximately $350 million. The financial sum includes a $100 million fine, the largest ever levied under the Clean Air Act, and about $200 million in forfeited greenhouse-gas emissions credits. At a time when car buyers rank fuel economy as a top concern when they head to dealerships and the federal government has mandated increased efficiency, Attorney General Eric Holder said the settlement should serve as a warning to automakers not to fudge their numbers. "This will send a strong message that cheating is not profitable," he said. The settlement ends a federal lawsuit filed against the automakers in U.S. District Court, but it's important to note that it doesn't end a class-action lawsuit filed on behalf of consumers. A preliminary settlement in that case, based in Los Angeles, was approved last month, but final approval isn't expected until July 2015. Officials with the EPA said the $100 million figure roughly equals the economic benefits the two companies received from exaggerating the mileage claims on the window stickers of new cars. Fuel-efficient boasts helped Hyundai and Kia establish a strong foothold in the U.S. marketplace. Advertisements for the Hyundai Elantra stated the vehicle achieved 40 miles per gallon in highway driving, and helped the car win the prestigious North American Car Of The Year honors at the Detroit Auto Show for its 2012 model. In July 2011, the advocacy group Consumer Watchdog began receiving complaints from consumers that the Elantra and other Hyundai models fell short of their stated mileage claims in real-world driving. The group wrote to the EPA and Hyundai, asking both to investigate. Government officials said Kia had overstated the mileage on its popular Kia Soul crossover by 6 miles per gallon, and more than a dozen overall models were affected. On Monday, EPA administrator Gina McCarthy said the violations were "egregious." Based on the exaggerations, the EPA calculated that Hyundai and Kia had underreported the greenhouse gas emissions of their fleets by about 4.75 metric tons over the estimated lifetime of the vehicles. That figure aided in the $200 million credit forfeiture.

2021 Kia K5 is a Stinger-inspired midsize sedan

Love the idea of the rear-wheel-drive Kia Stinger but just can't swing the price tag? The 2021 Kia K5 promises to be the next-best thing, while also delivering the practicality and comfort expected of a modern midsize sedan.  "K5" has been the name of the Korean-market Optima since its major redesign in 2010, and with the 2021 model, that name is coming to America. With this re-branding comes a major overhaul to Kia's four-door family car, including available all-wheel drive and a new performance GT model that will likely be met with approval by fans of the Stinger sport sedan.  On the outside, the K5 looks like, well, an Optima. Kia seems content with its current "tiger face" design. The new K5 design has obvious influences from the Stinger, but that car's design wasn't really all that much of a departure from the previous-generation Optima's, so the family resemblance remains strong. As with any major redesign, there's plenty more action underneath the K5's sheet metal. The new sedan will be offered with two turbocharged engines and, for the first time in a front-wheel-drive Kia sedan, an all-wheel-drive option will be offered for those who want a little more all-weather functionality.  The base engine will be a 1.6-liter four-cylinder producing 180 horsepower and 195 pound-feet of torque. On the base-model LX, it will be paired exclusively with an eight-speed automatic transmission (no CVT here, at least not yet) and front-wheel drive. On the LXS and GT Line, all-wheel drive will be available.  For those who want performance, the GT model is your ticket. Powered by the company's new 2.5-liter turbo-4, the GT will boast 290 hp and a class-leading 311 lb-ft of torque paired with an eight-speed dual-clutch automatic transmission. Kia says this combo will be good for a 0-60 time of 5.8 seconds.  Inside, the K5 gets numerous upgrades over the outgoing Optima. Shown here in GT-Line and GT guise, the interior will be available with perforated leather seating options with contrast stitching for a little added pizzazz. The flat-bottom steering wheel pictured is also exclusive to the GT-Line and GT trims. Other available features include wireless device charging, heated and ventilated front seats, and a heated steering wheel. The base infotainment system will be an 8-inch touchscreen unit with a 10.25-inch upgrade available; both will be powered by the latest revision of Kia's excellent UVO software suite.

Production version of Kia Imagine concept due in 2021

In an interview with Automotive News Europe, Kia Europe COO Emilio Herrera said the Imagine concept that debuted at this year's Geneva Motor Show should turn into a production model "in one or two years." Gregory Guillaime, Kia's European VP of design, said the Imagine is a "large C-segment car" intentionally blurring the distinctions between body types, a press release describing the concept as "drawing together elements of a muscular sports utility vehicle, a sleek and athletic family saloon, and a versatile and spacious crossover." Herrera didn't give any details on how the production version will differ from the concept. Flourishes like the windshield glass flowing uninterrupted into the roof and the 21 interior screens aren't likely to make it out of the studio. We do know that Kia plans a new, pure EV architecture shared with Hyundai. This will support larger, more powerful electric offerings that boast more range than products like the Kia e-Niro and Soul EV. The e-Niro is rated at 282 miles on Europe's WLTP cycle, it's said Kia wants to hit 500 miles of range. The automaker would only say of the Imagine's powertrain that it is "a low-mounted, induction-charged battery pack that powers a compact drivetrain." More importantly, the powertrain will focus on performance, "approaching electrification purely from an emotional point of view,” and pitched by Autocar as competing against EVs like the Polestar 2. As a C-segment competitor like the Ford Focus or Volkswagen Golf, the chances of the Imagine making it to the U.S. are unknown. Herrera made his comments in a conversation about Europe's impending CO2 emissions regulations. At one point, Herrera explained the five methods he sees for dealing with the emissions caps, and we can already divide automakers among those five tactics. The Imagine, and other Kia vehicles with alternative powertrains on the way, are how the Korean automaker will avoid fines. The full interview is worth a read. Herrera lays out some of the difficulties in the EV landscape, such as achieving the necessary volumes, pricing, and battery supply, and explains why he doubts some competitor's claims about launching inexpensive subcompact EVs. Related Video: