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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.

Recharge Wrap-up: Kia Niro caught at Nurburgring, Tesla & Ben & Jerry

The Kia Niro hybrid was spied testing at the Nurburgring. The prototype of the 2016 Niro — which originally appeared as a concept at the 2013 Frankfurt Motor Show — is heavily camouflaged, so it is hard to tell which exterior features have been carried over. Its plate is registered to a hybrid, but other powertrain details are unavailable (the concept was equipped with a 1.6-liter turbocharged engine and electric drive system good for 158 horsepower). When it goes on sale, positioned below the Soul in Kia's lineup, it will only be available as a hybrid, with a plug-in hybrid version expected in later years. See the video above, and read more at Autoevolution and at Hybrid Cars. A new report from IHS Automotive predicts the EV charger market to surpass 12.7 million units by 2020. In Japan, the number of EV charging stations has surpassed the number of gas stations. The Netherlands, UK and Norway are the leaders in EV chargers in Europe, while Germany and France are slow in their infrastructure growth, relative to their size. CHAdeMO is the more popular charging standard worldwide, but CCS is expected to close the gap. According to the report, PHEVs will become more abundant than BEVs in 2016, and will remain so for a while. Read more at Green Car Congress. Kandi Electric Vehicles has signed a strategic agreement with telecommunications company ZTE Corporation and EV leasing company Zhejiang ZuoZhongYou Electric Vehicle Service (ZZY). The three groups will work together to improve Kandi's "Micro Public Transportation (MPT)" carsharing program. They'll collaborate on promotion, creating a research institute, doing research and development for wireless charging and making their operating system easier to use, among other endeavors. "We are excited to connect Kandi's innovative MPT model with ZTE's cutting-edge technologies," says Kandi Chairman and CEO Hu Xiaoming. "By leveraging ZZY's premium services, our goal is to accelerate MPT's market penetration, maintain our leadership position and achieve greater success in China's booming EV industry." Read more in the press release below. Ben & Jerry's debuted a new ice cream flavor at the Tesla Motors factory in Fremont, CA. Tesla built a special Model S in honor of the event and the new flavor, which is called Save Our Swirled.

2014 Kia Optima Hybrid shows its freshened face

Think back to the 2013 New York Auto Show, and you'll recall that the already attractive Kia Optima midsize sedan was re-schnozzed for the 2014 model year. The hybrid version was left alone, visually, though its powertrain was updated to provide more oomph and slightly better fuel economy. And now, the whole thing comes full circle - the fresh-faced 2014 Optima Hybrid is making its debut here at the Chicago Auto Show.
The new look is really the only news here, with a reworked front fascia that combines restyled Hybrid-specific LED lighting elements and new enhancements that Kia says improves aerodynamics. A similar touch-up has been given to the rear end, and new 16- and 17-inch wheel designs are also available.
Under the hood, the Optima Hybrid's powertrain is unchanged, the four-cylinder gasoline-electric system still putting out a combined 199 horsepower and 235 pound-feet of torque. Fuel economy is also unchanged for 2014, with the LX model estimated to achieve 36/40/38 miles per gallon (city/highway/combined), and the higher-grade EX estimated to net 35/39/37 mpg.