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Hyundai outlines EV strategy as it struggles with cost of engine defects

SEOUL — South Korea's Hyundai Motor pledged to boost sales of electric vehicles to over half a million by 2025 as part of a bid to focus on new technologies and catch up with rivals, but some analysts saw the target as conservative and warned of the costs. The announcement by Hyundai, the world's fifth largest car maker along with affiliate Kia Motors, underscores the accelerating strategy shift under Euisun Chung, who became the motor group's executive vice chairman last year. Hyundai announced a $35 billion investment last week in mobility and other auto technologies by 2025, less than a month after unveiling a $1.6 billion deal to develop self-driving vehicle technologies with Aptiv. The firm said on Thursday it plans to launch 16 EV models by 2025 to boost sales of such vehicles 17-fold to 560,000 by that year. Still, that would be equivalent to just over 10% of its projected global sales this year. The projection compares with more bullish forecasts offered by its bigger rivals. Volkswagen AG expects to make 22 million EVs over the next decade, while General Motors aims to sell 1 million EVs annually by 2026. "That is not an ambitious target. If Hyundai fails to boost volumes fast enough, costs of electric cars will weigh on profitability," Lee Jae-il, an analyst at Eugene Securities & Investment. Hyundai said that the EV market would face intensifying competition and oversupply soon and automakers failing to meet toughening European emissions regulations will face heavy penalties and suffer a serious blow to their reputation. "EV supply is expected to surpass demand from the second half of next year," Ka Suk-hyun, vice president of Hyundai Motor, told an earnings conference call. Quality issues Hyundai's third-quarter net profit rose 59% to 427 billion won ($365 million), well below the average 684 billion profit estimate of analysts based on Refinitiv data, due to 600 billion won provisions it earmarked to address potential engine defects in the United States and South Korea. Quality issues have been a major drag in Hyundai's attempt to steer a recovery from six consecutive annual profit declines and constrained its financial firepower to invest in future technologies. It is still under investigation by U.S regulators and prosecutors over potential faulty engines in some models. Total retail sales fell 3% in the third quarter, as higher U.S.

Hyundai finally settles inflated fuel economy claims lawsuit for $41.2 million

Remember when Hyundai and Kia changed their claimed fuel economy numbers for a bunch of models? That happened back in 2012, and Hyundai has finally settled a lawsuit concerning the economy adjustment with a payment of $41.2 million. The lawsuit was filed by 33 state attorneys general, as well as one from Washington D.C. Each state will decide how to use its money from the settlement. According to Hyundai, this settlement was an "amicable agreement," and the company also denies any wrongdoing in changing claimed fuel economy numbers. Hyundai also reports that the agreement was reached, in part, due to the reimbursement program instituted after the economy adjustment. This program allows owners to be reimbursed the extra fuel cost, with payments determined by miles driven. The payments are sent after an owner has an affected car's odometer checked by a dealer. In addition, Hyundai also offered lump-sum payments as an option after the results of a class-action lawsuit. So far, the company reports about 75 percent of eligible owners have participated in the program. This isn't the only major payment Hyundai has made concerning the fuel economy issue. In 2014, Hyundai paid roughly $300 million in fines to the EPA. The company was also sued for inflated fuel economy claims in South Korea. In the US, models affected by the adjustment include the Hyundai Santa Fe, Accent, Veloster, Sonata Hybrid, Tucson, Genesis and Azera, along with the Kia Soul, Rio, Sorento, Sportage and Optima. Related Video: Image Credit: Patrick T. Fallon/Bloomberg via Getty Images Government/Legal Green Hyundai Kia

2021 Kia Seltos prices possibly leaked

An anonymous tipster sent Motor1 a list of MSRPs for all six trims of the 2021 Kia Seltos. We can't know if the prices are all correct, but Motor1 seems to have solid underground connections into Kia's back rooms lately, and if nothing else, the numbers give us a reference for when official pricing drops. When the Seltos debuted at last year's L.A. Auto Show, the carmaker said the all-wheel drive variant of the base-model LX and the front-wheel drive version of the S will both start under $22,000. Based on the anonymous figures, a $10 bill makes Kia an honest source, both trims starting at $21,990 before destination. The reported $1,120 fee for handling takes the sum to $23,110, and puts the Seltos $2,000 under the similarly sized but more powerful Sportage. Claimed pricing for the entire lineup after destination runs: LX AWD $23,110 S FWD $23,110 S AWD $24,610 EX AWD $26,410 S 1.6L Turbo $26,610 SX 1.6L Turbo $29,010 At the time of writing, Kia has the Seltos on its U.S. website, but the information isn't all laid out yet. The starting MSRP is listed as $21,990 at the top of the page, but near the bottom of the page, the SX Turbo is listed for that price, which can't be correct. The relevant links all lead to broken pages. The base LX packs the base 2.0-liter with 146 horsepower and 132 pound-feet of torque running power through a CVT, yet clearly isn't a stripper model; it adds adaptive cruise control, Apple CarPlay and Android Auto, and 17-inch wheels to its all-wheel drive system. The S forgoes the all-wheel system to plump up on options. Installing AWD to the entry-level motor requires an additional $1,500. The upgraded 1.6-liter with 175 hp and 195 lb-ft shifts through a seven-speed dual-clutch gearbox and only comes in AWD, and it takes the surcharge to $3,500. As Motor1 also notes, the Seltos LX AWD and S FWD are more expensive than FWD and AWD versions of the Hyundai Venue and Kona, Nissan Kicks, Ford EcoSport, Mazda CX-3, and Toyota C-HR. When it comes to practical concerns like fuel economy, though, the Seltos fares well. Looking at front-drive competitors, only the much more expensive Subaru Crosstrek Hybrid and the smaller, cheaper Nissan Kicks and Hyundai Venue top the Kia, and the Buick Encore ties it. With all-wheel drive, the Seltos is also competitive. The non-hybrid Subaru Crosstrek's 30 mpg combined beats the Seltos by just one, and the more expensive Honda HR-V is tied with the Kia.