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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.

2016 Kia Optima builds on third-gen car's sense of style, efficiency

When Hyundai launched the sixth-generation Sonata in 2009, it gave the world its first real taste of how good a Korean car could be. When Kia launched the redesigned Optima a year later, though, it showed the world just how good a Korean car could look. The handsome design of third-generation car has translated wonderfully to its fourth generation. The attractive sheet metal is evolutionary, rather than revolutionary, building on the looks of the previous car, with Kia's trademark grille treatment stretched wide, and better integrated with the headlights. Vertical foglight surrounds and an independent lower grille, meanwhile, make for a more aggressive fascia. LED taillights, an integrated diffuser and a pair of meaty oval exhausts are the highlights in back. Once again, the links to the current car are quite clear. The new Optima should boast some improvements to the current car's technology, as well. A six-speaker stereo is standard, although audiophiles will flock to the optional 14-speaker Infinity unit. Connectivity, being what it is, was also addressed, with Kia offering a new version of the company's UVO infotainment system. Running on an eight-inch touchscreen, the Optima's latest infotainment system integrates neatly with both Android Lollipop and iOS 8. Under hood, Kia will continue to offer a standard, naturally aspirated 2.4-liter four-cylinder, as well as an optional 2.0-liter, turbocharged four-cylinder. Power for both engines is estimated to be down compared to the current car, with the 2.4 dropping from 192 horsepower and 181 pound-feet of torque to 185 hp and 178 lb-ft, and the 2.0T losing 27 of its 274 hp and nine of its 269 lb-ft. Kia is claiming that both engines have been retuned for fuel economy, although it wasn't able to provide any figures to back up that argument. On top of the 2.4 and 2.0T, Kia will also offer a 1.6-liter, turbocharged four-cylinder, complete with the company's first seven-speed dual-clutch transmission (the previous two engines are mated to six-speed autoboxes). The 1.6, which Hyundai/Kia fans will know from the Veloster Turbo and Forte range, produces 178 hp in the Optima, which is paired with 195 lb-ft of torque. Have a look at the images of the all-new Optima, and then scroll below for the official press release.

2019 Kia Niro EV boasts 280-mile range

Kia first hinted at an upcoming fully electric Niro compact crossover with a concept at CES, and just a few months later, it's showing the production model. Unsurprisingly, it looks pretty much exactly like the normal hybrid models on sale now, eschewing some of the show car bits such as the grille with a message screen. It does have differences, though, such as the blocked-off, body color grille, which also houses the charging ports. It also has extra faux grilles on each end of the front bumper that have LED fog lights. They're mirrored by additional faux grilles on the rear bumper. Another difference from the show model is the estimated range. Using the WLTP estimate, Kia says the Niro EV with the 64 kWh battery will go about 280 miles on a charge. The concept shown at CES with the same size battery was estimated to have a range of 238 miles. We suspect that the latter number may be closer to the range on the U.S. test cycle. This is because the Hyundai Kona Electric with the 64 kWh battery the U.S. will get was rated for 292 miles on WLTP, but only 250 on the U.S. cycle. Also like the Kona Electric, the Niro EV will be offered with two battery choices. In addition to the aforementioned 64 kWh battery, a 39.2 kWh battery will be available providing about 236 miles of range on the WLTP cycle. If the Niro EV follows in the footsteps of its Hyundai cousin, we predict the U.S. will only get the model with the higher-capacity battery. There are still some details that have yet to be revealed, such as power, torque, and what the interior looks like. It will probably make the same 201 horsepower as the CES show car, and we wouldn't be surprised if it's the same electric motor as in the Kona Electric, since the power is the same and the battery size is the same. As such, it will probably produce 291 pound-feet of torque. Also, considering how much the exterior looks like the standard Niro, the interior will likely look basically identical, but perhaps different colors and perhaps a few extra premium features, again, a la Kona Electric. We should have all the details at the car's official debut in Paris. Related Video: