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U.S. appeals court preserves $210M Hyundai-Kia fuel economy class settlement

A U.S. appeals court restored a $210 million nationwide class-action settlement for hundreds of thousands of owners of Hyundai Motor Co and Kia Motors Corp vehicles whose fuel economy estimates were inflated. By an 8-3 vote on Thursday, in a case closely watched by class-action lawyers, the 9th U.S. Circuit Court of Appeals in Pasadena, California, said vehicle owners had enough in common to let them settle as a group. It also rejected arguments by owners opposed to the settlement that the claims process was too burdensome, and that lawyers for the class had colluded with the automakers to extract a "sweetheart deal" that undervalued their claims. The case began after the U.S. Environmental Protection Agency found flaws in Hyundai's and Kia's testing procedures, prompting the automakers to lower fuel efficiency estimates for about 900,000 vehicles from the 2011, 2012 and 2013 model years. Lawyers for objecting drivers had no immediate comment. Hyundai said it was grateful for the decision. Kia and its lawyers did not immediately respond to requests for comment. The decision by Circuit Judge Jacqueline Nguyen upheld a settlement approved in June 2015 by U.S. District Judge George Wu in Los Angeles. Wu "made careful findings, which the objectors here largely do not challenge, and which more than support the judgment," Nguyen wrote. The decision reversed a divided three-judge 9th Circuit panel's January 2018 rejection of the settlement and decertification of the class action. That panel said Wu failed to assess whether differences in state laws prevented certification of a nationwide class. It also said used car owners should have been excluded because it was unclear whether they had relied on the South Korean automakers' fuel economy claims. Lawyers had said it would become much harder to obtain nationwide settlements if the panel ruling stood. Nguyen had dissented from the panel ruling. Circuit Judge Sandra Ikuta, who wrote it, dissented on Thursday. Ikuta accused the majority of failing to determine what law should apply to the nationwide class or how the settlement, and thus attorneys' fees, should be valued. "The majority's failure to correct these errors may be beneficial for the class action bar, but it detracts from compliance with Supreme Court precedent," Ikuta wrote. The 9th Circuit covers nine western U.S. states, Guam and the Northern Mariana Islands.

Rimac will help Kia turn the Imagine concept into a high-performance flagship

The segment-bending Imagine concept Kia unveiled at the 2019 Geneva auto show will spawn a high-performance flagship in 2021. Rimac, which Kia and Hyundai jointly invested in, will help bring it to the market. "This car will have a significant effect on how consumers perceive Kia and its part in future electrification. We want it to demonstrate super-high performance levels but in a package that is different," affirmed Carlos Lahoz, the automaker's marketing chief, in an interview with British magazine Autocar. "Super-high performance" isn't a term we've ever used to describe a Kia, even the Stinger doesn't merit this label, so Lahoz's comments sketch an image of a model that breaks all ties with members of the company's current range. Croatia-based Rimac, an expert in making quick electric cars, will play a role in the development process. The extent of Rimac's involvement remains a mystery. Similarly, we don't know how Kia defines the term "super-high performance," and whether it alludes to straight-line speed, Tail of the Dragon-taming handling, or both. Like the Imagine concept (pictured), the production model will arrive as a sedan-crossover cocktail vaguely reminiscent of the short-lived Volvo S60 Cross Country, among other high-riding four-doors. Its front and rear ends will likely be toned down, but Kia stylists have been on a roll in recent years so we expect a head-turning design. As for the 21-screen infotainment system, which Kia labeled a "humorous riposte" to the industry's obsession with in-car displays, we're betting it won't make the leap from the show floor to the showroom floor.  The sheet metal will hide a new platform Kia is developing jointly with Hyundai specifically to underpin electric cars. Autoblog understands it will underpin future Genesis models, too. The architecture will be compatible with an 800-volt electrical system that charges the battery from 20% to 80% in 20 minutes, and Autocar reported the Imagine will offer up to 310 miles of driving range, though odds are that's on the optimistic WLTP testing cycle. Kia's announcement that the Imagine — a name the production version won't wear — will arrive in 2021 suggests it could land on our shores for the 2022 model year. The company hasn't revealed whether it will sell the model in the United States, however. Don't let the idea of a high-horsepower, quasi-luxury electric car from Kia fool you.

CES 2018 brings a buffet of automotive tech — here's a taste

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