2023 Kia Seltos S on 2040-cars

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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.

NHTSA looking into non-Takata airbag shrapnel case

The global airbag inflator recall from Takata has been one of the biggest topics in auto safety for months. Now, the National Highway Traffic Safety Administration is opening a preliminary evaluation into the components from Arc Automotive to investigate whether two reported ruptures and two injuries signal a wider problem. So far, only the 2002 Chrysler Town & Country and 2004 Kia Optima are believed to be affected. If a safety campaign is deemed necessary, it could cover an estimated 420,000 of the minivans and 70,000 of the Korean sedans. NHTSA first noticed these ruptures in December 2014. The agency received a complaint of a 2009 case in Ohio about the bursting of the driver's side inflator in a 2002 Town & Country. According to the report, the incident broke the woman's jaw and sent shrapnel into her chest. The government investigated the case, and this was found to be the only known occurrence in these vehicles. The analysis indicated the part's gases were possibly blocked somehow and caused the component to explode. FCA US spokesperson Eric Mayne told Autoblog that the company is "cooperating fully" with NHTSA. "Also, we no longer use that inflator," he said. A second incident came to NHTSA's attention in June 2015 with the driver's side rupture in a 2004 Optima in New Mexico. The agency lists fewer details about the case, and a root cause isn't known. This is also the only currently known example in a Kia vehicle. According to a statement from Kia to Autoblog, "We are taking this matter very seriously and support NHTSA's action and will continue working cooperatively with the agency and suppliers throughout the process." Arc's components are sealed within a steel housing that's meant to protect them from "external atmospheric conditions," according to NHTSA. Multiple suppliers also use them. In the Chrysler, the airbag module came from Key Safety Systems and from Delphi in the Kia. In a statement to Autoblog the company said, "We have received NHTSA's notification and are cooperating fully with its Preliminary Evaluation." At this time, NHTSA admits that it doesn't know for certain whether these two cases are linked. The agency is conducting this preliminary evaluation to learn more.

Kia Seltos crossover: Aimed at millennials, named from mythology

In news that touches on proper placement of carts and horses, Kia announced that its new global compact crossover will be called the Seltos. This should surprise no one, since we posted a batch of "spy" shots last week of a naked Seltos that was decorated with Seltos badges and placards. What might surprise is the inspiration for the name: Greek mythology. Kia says we have the legend of "'Celtos,' the son of Hercules" to thank for the moniker. In case you ever need to take a test on this, you should know that Heracles was the Greek god. Hercules was the later Roman version, and the Romans focused more on Hercules' early, dismal relationships. Herc, as the story goes, got tricked by a princess named Celtine during a stint herding cattle, when he stopped by her father's place. The episode resulted in a boy named Celtus (or Celtos), one of his multitudinous brood, and that boy became the mythological father of the Celts. The Seltos crossover has a job almost as challenging as fathering a nation, that of being a lure to millennials the world over. Kia's tried to give the little people hauler a head start on the job by changing the first letter of Celtos' name to "S," said to imply speed and sportiness. Conveniently, that also fits into the carmaker's crossover and minivan naming scheme that already includes Soul, Sportage, Sorento and Sedona. Without details on available engines, we can't tell how much speed or sportiness there will be, but the design looks sophisticated enough. Designers have managed to put plenty of muscle and flourish into a small space without making a mess. With the exterior matching the sketches faithfully, we expect the same handsome results inside, led by the 10.25-inch infotainment touchscreen. Kia says it will reveal the Seltos later this month. Sales will begin in South Korea in the latter half of the year, with other markets to follow.