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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.

Driving the Kia K5 and Mini Cooper JCW GP, plus an interview with Jimmy Chin | Autoblog Podcast #637

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Senior Editor, Green, John Beltz Snyder and News Editor Joel Stocksdale. They veer off right away into talking about their dream project garages. Next up is news, including some info on the next Nissan Z car, the Honda Fit being discontinued in the U.S., new Mercedes-Benz EQS details, and some talk about the new, electric GMC Hummer being adapted for the military. Then they talk about driving the new Kia K5 sedan and the Mini Cooper JCW GP, before they opine about the 1966 Pontiac GTO. Autoblog Senior Producer Chris McGraw interviews Oscar-winning filmmaker Jimmy Chin about his collaboration with Ford for the Bronco reveal, and more. Finally, our editors help a listener in the U.K. pick a used vehicle in the "Spend My Money" segment. Autoblog Podcast #637 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Some thoughts on project cars News Nissan suggests the next-generation Z won't be electrified at launch Fit Is Gone! Honda drops subcompact hatch in U.S. Mercedes-Benz announces the electric EQS will offer over 435 miles of range GMC's electric Hummer could someday serve alongside the Humvee in the U.S. Army Driving the 2021 Kia K5 Driving the 2020 Mini Cooper JCW GP 1966 Pontiac GTO: Love it or hate it? We talk Ford Bronco and other adventures with Oscar-winning filmmaker Jimmy Chin Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video:

2018 Kia Stinger GT Long-Term Update | Shake, rattle and roll

I look forward to the Detroit Auto Show almost every year. I moved out west, so traveling back for the show offers me a chance to visit the place I grew up, to see what some automakers are bringing to the roads in the upcoming year and to drive some of the long-termers that call our Birmingham office home. This year, that meant our sporty fastback, the Kia Stinger GT. As a senior video producer, I don't pack lightly. There's tons of photo and video equipment to haul around in addition to my luggage. Although the Stinger's hatchback cargo area has plenty of space, I still needed the back seat, which isn't as spacious as I expected for such a large car. Confirming that, when I offered to drive my family around, they took one look at the back seat and instead chose to sit in the third row of their Buick. Our Stinger is also shockingly red. The exterior is a gorgeous shade named HiChroma Red, but the interior's Nappa leather is red, too. This is a bit much for me and apparently I'm not alone since this combo is no longer available for 2019. After getting over the color, though, I found the interior to be quite comfortable. Both the front seats and steering wheel are heated, which is a blessing in frigid January Michigan weather. My only gripe is that, even on freshly paved Michigan roads, the rear window tends to rattle. Speaking of unwanted noises, after only 10,000 miles, the Stinger has a creak in the front passenger side door that can only be described as painful. I had been warned ahead of time by Associate Editor Reese Counts, but I was still taken aback by how bad it is. Expect an update on a potential remedy to that soon. The roads in western Michigan look nothing like those on the state's east side, with twisty, modestly hilly roads in favor of the flat, grid-like structures typical of Metro Detroit and other eastern cities. This made driving the Stinger a real treat. Its 365 horsepower and 376 pound-feet of torque is refreshing, and the eight-speed automatic disappears into the background, almost unnoticeable, which is the way I prefer automatic transmissions to perform. The Stinger's 3.3-liter twin-turbo V6 sounds quite good, too. Starting it up every morning put a smile on my face. A price of $46,620 may seem like a lot to pay for a Kia, but the Stinger feels worth it. That said, the MSRP isn't the only high cost associated with this car.