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Hyundai, Kia earmark $760 million to settle U.S. lawsuits over engine fires

SEOUL — Hyundai and affiliate Kia have earmarked 900 billion won ($758 million) to settle U.S. class action litigation and address engine-related issues including fires and failures in the United States and South Korea. The move marks the South Korean auto giant's first major effort to resolve years of trouble over engine defects that have also sparked probes by the U.S. safety regulator and prosecutors. Hyundai Motor will make a provision of about 600 billion won in its July to September earnings while Kia will book one for about 300 billion won, they said on Friday. Hyundai and Kia said in a statement that under the U.S. settlement they would install software to monitor for symptoms of engine failure and take other steps, including offering compensation options and lifetime warranties. A total of 4.17 million Hyundai and Kia models equipped with Theta II gasoline direct injection (GDI) engines, which were sold in naturally aspirated 2.0-liter and 2.4-liter displacements, and had a turbocharged derivative, will be affected by the U.S. settlement. Hyundai and Kia, together the world's fifth-biggest automaker by sales, recalled nearly 1.7 million vehicles in the United States to address the possibility of engine fires. In November, Reuters reported that U.S. federal prosecutors had launched a criminal investigation to determine if the recalls had been conducted properly. Since 2017, the U.S. safety regulator has been investigating whether the recalls covered enough vehicles and were conducted in a timely manner. The investigation comes after Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in 2016 to tell the National Highway Traffic Safety Administration (NHTSA) the companies should have recalled more vehicles over the problem, citing an internal report. Hyundai Motor at that time denied allegations. The NHTSA this year opened a fresh investigation into 3 million Hyundai and Kia vehicles after reviewing reports of more than 3,000 fires that injured more than 100 people. That probe came in response to a petition seeking an investigation filed in June by the nonprofit Center for Auto Safety.

2018 Kia Niro PHEV Review | More MPG than an SUV, less weird than a hybrid

PORTLAND, Ore. — It seems like such a no-brainer. The 2018 Kia Niro PHEV has the body of a little SUV, which is just the thing that everyone, their mother, brother, and friend named Phil are clamoring for at the moment. The rest of the plug-in hybrid segment is dominated by slug-shaped eco mobiles that ape the Toyota Prius or that are literally a Toyota Prius. Personally, I don't want to drive a slug. I also don't want to deal with weird interior controls, weirder interior design or four-person back seats. The Niro is very normal by comparison. Get in, press start, slide completely normal PRNDL shifter into D, and go. Better still, the PHEV doesn't suffer from the laggardly throttle response of the regular hybrid Niro that hampers drivability and makes its EPA-estimated 49 mpg combined a bit of a mirage. You'll either get that mpg and live with an accelerator pedal seemingly unattached to the powertrain, or slot the shifter into Sport and live with fuel economy in the low 40's. That's far superior to the 20-something you'd get in comparably sized SUVs, but still short of the 50-something-mpg in the Toyota Prius, Honda Insight or the Niro's mechanically related Hyundai Ioniq cousin. Compared to a typical, disconnected-feeling PHEV throttle, the Niro PHEV's throttle is perfectly normal, leaving Sport to those moments when you want a little extra zest from your plug-in hybrid (such a moment never seemed to arise). One can assume this is due to the larger battery that allows for greater electric input even when the plug-in battery range is depleted. When filled to the brim, it offers an EPA-estimated all-electric range of 26 miles, a figure I bettered by 1 mile during my evaluation route. That's nearly half of what you can get out of a Chevy Volt or Honda Clarity PHEV, but is similar to the Toyota Prius Prime and Ioniq PHEV. And really, how much you drive in all-electric mode makes the biggest difference. If your daily commute is in the 20-mile range, it doesn't really matter which of the above-mentioned plug-ins you choose. If it's more, though, the others will make more sense. The Volt and Clarity can run on electricity longer, and the Prius Prime and Ioniq are more efficient once their plug-in range is depleted. In the end, though, isn't this really just splitting hairs?

2018 Kia Rio First Drive | Keep compact and carry on

When Kia announced that it would bring the fourth-generation Rio to the United States, we were rather surprised. The subcompact segment in which it competes isn't exactly hot here, and small cars have tight profit margins. It makes more sense to concentrate on tiny crossovers that are more popular and can sell for more cash. Ford seems to be taking this tack with the impending introduction of the EcoSport, and the delayed introduction of the new Fiesta in America. Even Kia itself has experienced success with sub-compact crossovers with the Soul. Kia seems determined to stick with the segment, though. A Kia representative told us that, even though the U.S. subcompact market may not be booming, it still accounts for about 500,000 cars a year. Plus, if any manufacturers leave the segment, that's an opportunity to pick up some conquest sales. He also said that regardless of the size of the market, Kia still sees a portion of the car-buying public that will always want a budget subcompact, and that it can be a good introduction to the brand. So with that in mind, is the Kia Rio a good introduction to the Korean car company? In general, yes, and we were introduced to it in and around Baltimore, Md., where we were able to try out a top-level Kia Rio EX on everything from cobblestone streets to winding country lanes. And at first glance, the Rio is a handsome little machine. While the previous generation was round and bubbly, the new model looks more aggressive, and has a shape more akin to larger vehicles. Thank the longer, more horizontal grille, slender, swept-back headlights, lower belt line, large lower grille and jutting lip. The hatchback is the more attractive version of the car, but the sedan is far from ugly, which is no small feat for a subcompact. Compared with the European version of the Rio, and even the previous-generation model, though, there are visual differences that reveal the fourth-generation U.S.-spec Rio has succumbed to cost-cutting measures. The first tipoff is the wheels. The alloys on the Rio EX, the only model with alloy wheels, are a minuscule 15 inches. Though admittedly adorable, and probably a boon to ride quality, they do look disappointing when compared to the available 17-inch units on the European model, or even those on the old Rio. The headlights and taillights are plain and simple, too. The headlights are reflector halogen lamps, and the taillights and turn signals use incandescent bulbs.