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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.

The Kia Rio has never looked this good

The word "Rio" immediately conjures images of the Olympics, which ended just days ago. But recalibrate your brain. It's Kia's best-selling model around the world and it will be revealed in September at the Paris Motor Show. The fourth-generation Rio gets a fresh look inside and out. It has a longer wheelbase with a longer hood and front overhang, which Kia says is meant to convey confidence. The sketches released today look similar to the current generation – as we'd expect – but Kia designers dressed it up with a fancier front end and "straight lines and smooth surfacing" which is evident on the sides. Kia also touts the new Rio's safety, connectivity, and improved handling, though it didn't specify the features. You can compare the sketches with the spy shots of a Rio caught running around this week. Rumors also suggest a hotter Rio GT hatch could arrive for 2018. The sketches show the hatchback variant. Kia also sells the Rio as a sedan in the US market. Globally, the Korean automaker moved more than 473,000 Rios last year, and the new model will launch production near the end of this year for Europe. Timing for launches in other markets was not announced. Despite low fuel prices and consumer demand for crossovers, Rio sales have inched up slightly this year to 18,699 units, 1,637 ahead of last year's pace through July. Much of those gains came last month, when Kia sold 1,104 more Rios than it did in July 2015. The Rio was last updated in the US market for the 2016 model year. Related Video:

Kia Niro EV concept coming to CES

Kia announced that it will show a new electric concept car at this year's Consumer Electronics Show. The announcement didn't explicitly say what the vehicle is, but that's fine, because the teaser images above reveal the car's "secret" identity. At the back of the car are bright glowing letters spelling out the name "Niro EV." Even without seeing the name, the images make it pretty clear this is a Niro of some sort. The profile fits the production hybrid and plug-in hybrid production cars, especially the upright and wide rear hatch. It also has the Niro's distinct hood with twin creases above the headlights. There are a number of styling changes, though, mainly up front. The headlights look to be more swept back and have LED strakes for style. The taillights mirror this design, and they add a center portion between the main elements to make the lights full width. Additional three-pointed fog lights are also added front and rear. The grille at the front is no longer a grille, instead now featuring a bunch of little lights. This may have something to do with the "motion graphic" lighting technology Kia will show on the car, since it looks like the pattern and intensity could change. The shape of this faux grille panel also looks wider and slimmer than that on the production Niro. On the topic of production Niros, we wouldn't be surprised if this full EV Niro makes it to market. The Niro is based on the Hyundai Ioniq, which itself offers normal hybrid, plug-in hybrid, and full electric variants. And since the Niro is already available in hybrid and plug-in versions, a full EV would round out the model nicely. It wouldn't be without work, since the electric version of the Ioniq has a torsion bar suspension rather than the multi-link setup in the hybrid Ioniqs and Niros in order to fit the larger battery pack, but it's far from impossible. Stay tuned for more info on the concept and any news on a production version. Related Video: