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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.

Hyundai CVVD engine brings another dimension to valve timing

A new technology from Hyundai Motor Group places another marker on the march to more efficient internal combustion engines. Called Continuously Variable Valve Duration, the innovation permits two options for how long the intake valves remain open during the combustion cycle. The feature adds a third take on valve chicanery, atop variable valve timing that changes when valves open, and variable valve lift that changes how far valves open. Hyundai says the feature returns a 4% improvement in performance, a 5% increase in fuel economy, and lowers emissions by 12%. Hyundai applied for two patents on the valvetrain process in South Korea in 2011 and again in 2015. The altered valve duration in this latest iteration is made possible by two movable arms inside the camshaft. Each arm is anchored at its base to a pin at the center of the camshaft, while the end of each arm extends toward the edge of the camshaft. Changing the position of the pin in the center of the camshaft changes the angle of the arms relative to one another, which moves the camshaft along its mounting rod. Voila, a new intake cam profile that either lengthens or shortens valve overlap.   During low-speed spells at low load, CVVD opens the intake valve from the middle to the end of compression stroke. The weaker detonation isn't a factor at low load, and the reduced friction during compression improves fuel economy. During heavy engine loads, the intake valve closes at the beginning of the compression stroke to maximize the amount of air mixed for detonation, boosting torque. Four additional features enhance the benefits of CVVD. A more powerful direct injection system increases fuel spray pressure from 250 bar to 350 bar. Hyundai doesn't go into details on its Integrated Thermal Management System, but says the ITMS "quickly heats or cools the engine to the optimal temperature." Low-friction components lower overall engine friction by 34 percent. And a low-pressure exhaust gas recirculation layout diverts low-pressure exhaust gas from the traditional EGR route to the turbocharger compressor under high load for better fuel efficiency.   The first engine to boast the new tech is the Smartstream G1.6 T-GDi four-cylinder, which produces 180 horsepower and 195 pound-feet of torque. It will appear in the 2020 Hyundai Sonata Turbo going on sale in South Korea later this year.

Kia Sportage MSRP up by almost 14 percent for 2014, starting at $21,600*

When Kia introduced the updated 2014 Sportage back in September, one of the biggest things that stood out to us was that the base model was dropped. Not only did this mean the Sportage would no longer be offered with a manual gearbox, but we also expected a price increase to follow. We were right.
The entry-level trim for the 2014 Sportage is now the LX, which starts at $21,600 (not including $850 for destination). This is only a $400 increase over the 2013 Sportage LX, but it represents a $2,600 jump (13.6 percent) in the Sportage's starting price point. At this new price, the Sportage is now priced higher than the Mazda CX-5, Hyundai Tucson and Mitsubishi Outlander Sport and lower than many other compact crossovers like the Ford Escape, Chevy Equinox, Nissan Rogue, Jeep Cherokee and Toyota RAV4. Pricing for the 2014 Sportage EX has increased by $800, starting at $25,000, while the sportier, turbocharged Sportage SX holds steady at $26,900.
In addition to other minor changes like slightly refreshed exterior styling, a sportier suspension setup for the LX trim level and more available cabin tech, the other key update made to the 2014 Sportage is the addition of direct injection to the base 2.4-liter four-cylinder engine. This brings a slight bump in power output (from 176 horsepower and 168 pound-feet of torque in 2013 to 182 hp and 178 lb-ft for 2014), but, for some reason unknown to us, it dings fuel economy. With ratings of 21 miles per gallon in the city and 28 mpg on the highway, the front-wheel-drive Sportage loses 2 mpg for the highway rating compared to 2013, while the all-wheel-drive model's 19 mpg city and 26 mpg highway is a drop of 1 mpg for both figures.