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Recharge Wrap-up: Hyundai/Kia fined $755M for exaggerated MPG ratings; BMW dealers want more i8s

The fine against Hyundai and Kia has grown to $755 million for overstating fuel economy ratings. $360 million of that fine comes from the EPA for violation of the Clean Air Act: $100 million is a civil penalty, $210 million is a forfeiture of greenhouse gas credits and another $50 million will pay for independent fuel economy audits on future models. The remaining $395 million is a settlement for customers who purchased the affected vehicles. A slew of 2011 to 2013 models were found to have fuel economy ratings overstated by one to six miles per gallon. Customers will be awarded funds to offset the unexpected fuel costs or to put toward a new Hyundai or Kia vehicle. Read more at Hybrid Cars. BMW dealers are awaiting details on new dealership standards - and BMW i8 models for their showroom floors. According to BMW National Dealer Forum Chairman Steve Late, BMW dealers are anxiously waiting to see what sort of updates they'll need to do to get in line with BMW's Future Retail 2016 program. As for the new EVs, Late says that the BMW i3 sales were slow to start, but that once people learned more about it, "wham, bam, it is taking off." The i8 shortage is a bigger problem: "I was allocated three for 2014, and I have a waiting list of 47 people. This year, maybe I will get eight or 10, and I still won't be able to fulfill them." Still, Late says he won't sell the cars at an upcharge. Read more at Automotive News. Opel is reportedly planning an electric version of its Karl hatchback. According to German automotive magazine Autobild, Opel will begin selling the diminutive Karl EV by the end of 2018. The electric car will offer a driving range of about 93 miles. The gasoline-powered version is expected to begin deliveries this June. Read more at Automotive News Europe. PSA Peugeot Citroen says it will keep its Hybrid Air program alive as it looks for a cost-sharing partner. Hybrid Air technology uses a compressed air hybrid system to improve fuel economy as we saw in the Peugeot 208 Hybrid Air concept. A French newspaper reported that Hybrid Air won't make it to commercialization, and that the program's team of engineers has been reduced. A PSA spokesperson confirms the change to the program, saying, "We are now waiting for another partner to help us begin the production stage." Read more at Automotive News Europe. Related Video:

Kia recalls 98,000 Sedona minivans for suspension corrosion

The Basics: Kia is recalling 97,884 Sedona minivans built between June 15, 2005, and Aug. 12, 2012 over potential corrosion of front lower control arms. This is the second time Kia has recalled Sedona vans of this era for suspension corrosion issues. It's also worth noting that the Korean automaker is also recalling certain Sedona models over hood latches that could corrode. The Problem: Vehicles registered in any of the 27 states that use salt to de-ice roadways (see the complete list below) could have prematurely worn suspension components that vibrate or even break. That, as you can imagine, could lead to an accident. Injuries/Deaths: None reported. The Fix: Dealers will inspect and, if needed, replace the minivan's front control arms. Additional anti-corrosion coatings will be applied to keep this problem from happening again. Owners should expect a notice around July 25. If you own one: You can contact Kia at 1-800-333-4542 (Kia's number for this recall is SC133), or the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 for more information. Related Video: RECALL Subject : Front Lower Control Arm Corrosion Report Receipt Date: JUN 01, 2016 NHTSA Campaign Number: 16V387000 Component(s): SUSPENSION Manufacturer: Kia Motors America SUMMARY: Kia Motors Corporation (Kia) is recalling certain model year 2006-2012 Kia Sedona vehicles manufactured from June 15, 2005, through August 14, 2012 and originally sold in, or currently registered in Alaska, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, North Dakota, Ohio, Pennsylvania, Rhode Island, South Dakota, Utah, Vermont, West Virginia, Wisconsin and the District of Columbia. In the affected vehicles, the front lower control arms may break due to corrosion from salt water exposure such as from road salt use. CONSEQUENCE: A broken control arm can result in the loss of control of the vehicle, increasing the risk of a crash. REMEDY: Kia will notify owners and dealers will replace the front lower control arms on 2006-2007 models. 2008-2012 models will either have their front lower control arms replaced or additional anti-corrosion coating will be applied. These repairs will be performed free of charge. The recall is expected to began on July 25, 2016. Owners may contact Kia at 1-800-333-4542. Kia's number for this recall is SC133.

Hyundai/Kia's Prius rival to arrive by 2017

The Toyota Prius is the undisputed king of the hybrid market, but Hyundai and Kia are hoping to challenge its reign in the coming years with their own dedicated model. However, in all likelihood this is the same technology being shared between them. "We will take the lead in the future by raising the competitiveness of our environment-friendly cars like hybrid-only cars, plug-in hybrid cars and fuel cell hydrogen cars," Hyundai Motor CEO Kim Choong-ho said to Reuters, during the launch of another vehicle in South Korea.
While Kim didn't say when the model would be ready, Autocar in Europe spoke to people at Kia, who said that the company's own hybrid was two years away and codenamed the DE. The initial vehicle is reportedly a five-door hatchback that's about 169-inches long, with more conventional styling than the Prius. Its powertrain is reportedly based around a 1.6-liter engine with electric assist. A plug-in version might follow later, and other bodystyles on the platform are possible. A recently spotted test mule might show the current state of development on the project (pictured above).
According to Reuters, the decision for the new vehicle comes in order to meet tighter emissions in some markets. However, it seems like a challenging move for the US market. Hyundai already sells its Tucson fuel cell in limited quantities and the Sonata hybrid, and Kia has the Optima hybrid and Soul EV. Industry analysts are also predicting that hybrids might have a hard time versus internal combustion engines in the coming years. In addition, Toyota is rumored to get fuel economy close to 60 miles per gallon for some versions of the next Prius. All of these factors make selling the models here a potentially difficult undertaking.