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U.S. appeals court preserves $210M Hyundai-Kia fuel economy class settlement

A U.S. appeals court restored a $210 million nationwide class-action settlement for hundreds of thousands of owners of Hyundai Motor Co and Kia Motors Corp vehicles whose fuel economy estimates were inflated. By an 8-3 vote on Thursday, in a case closely watched by class-action lawyers, the 9th U.S. Circuit Court of Appeals in Pasadena, California, said vehicle owners had enough in common to let them settle as a group. It also rejected arguments by owners opposed to the settlement that the claims process was too burdensome, and that lawyers for the class had colluded with the automakers to extract a "sweetheart deal" that undervalued their claims. The case began after the U.S. Environmental Protection Agency found flaws in Hyundai's and Kia's testing procedures, prompting the automakers to lower fuel efficiency estimates for about 900,000 vehicles from the 2011, 2012 and 2013 model years. Lawyers for objecting drivers had no immediate comment. Hyundai said it was grateful for the decision. Kia and its lawyers did not immediately respond to requests for comment. The decision by Circuit Judge Jacqueline Nguyen upheld a settlement approved in June 2015 by U.S. District Judge George Wu in Los Angeles. Wu "made careful findings, which the objectors here largely do not challenge, and which more than support the judgment," Nguyen wrote. The decision reversed a divided three-judge 9th Circuit panel's January 2018 rejection of the settlement and decertification of the class action. That panel said Wu failed to assess whether differences in state laws prevented certification of a nationwide class. It also said used car owners should have been excluded because it was unclear whether they had relied on the South Korean automakers' fuel economy claims. Lawyers had said it would become much harder to obtain nationwide settlements if the panel ruling stood. Nguyen had dissented from the panel ruling. Circuit Judge Sandra Ikuta, who wrote it, dissented on Thursday. Ikuta accused the majority of failing to determine what law should apply to the nationwide class or how the settlement, and thus attorneys' fees, should be valued. "The majority's failure to correct these errors may be beneficial for the class action bar, but it detracts from compliance with Supreme Court precedent," Ikuta wrote. The 9th Circuit covers nine western U.S. states, Guam and the Northern Mariana Islands.

Kia will unveil the new 2021 Sorento at the Geneva Motor Show

While the 2020 Chicago Auto Show is around the corner, Kia picked this year's edition of the Geneva show to introduce the next-generation Sorento. The popular crossover will arrive in time for the 2021 model year. The South Korean company explained it designed and engineered the new Sorento "to take on everything life can throw at it," and it published a pair of red-tinted teaser sketches to accompany its announcement. The images would normally give us our best look yet at the upcoming crossover, but spy photographers unabashedly ruined Kia's surprise by sending us a full gallery of images showing the soft-roader completely camouflage-free on the set of a commercial shoot.  The current-generation Sorento is one of the oldest cars in the Kia range, and the transformation is drastic. It receives a bolder, sharper look that falls in line with the company's current design language without copying its bigger or smaller siblings. Kia's design team has been on a roll in recent years, and the Sorento extends it. kia-sorento-teaser-24-1 View 2 Photos While our spies didn't get a look at the Sorento's interior, low-resolution spy shots published on Instagram confirm the transformation continues beneath the sheetmetal. The center console adopts a more rugged look characterized by brushed aluminum-like surfaces, and the infotainment system's touchscreen is now positioned on top of the dashboard instead of being embedded into it. We also expect to find nicer materials inside. What's between the fenders? Your guess is as good as ours, but Kia previously confirmed hybrid and plug-in hybrid models will join the range. Whether they'll be available at launch hasn't been made public yet. Additional information about the 2021 Kia Sorento will emerge in the coming weeks, and Autoblog will bring you live images of it straight from the show floor in Geneva on March 3. An American debut is likely scheduled for the New York Auto Show in April, and deliveries will begin shortly after. Pricing will start in the vicinity of $27,000. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.    

Kia and CarMax pull LA Clipper sponsorships in wake of alleged Sterling comments

There's fallout across the automotive advertising world today as companies react to alarming, racially insensitive statements alleged to have been made Donald Sterling, owner of the NBA's Los Angeles Clippers franchise. Last Friday, entertainment website TMZ published excerpts from an audio recording, allegedly between Sterling and his girlfriend V. Stiviano, in which the Clippers owner said, among other things, that he didn't want her to bring black people to his games, including LA Lakers legend Magic Johnson. Sterling has yet to respond publicly to the allegations.
The story quickly gained steam over the weekend, and this Monday it has seen Kia Motors, auto sales website CarMax and insurance giant State Farm all pull sponsorship activities with the Clippers.
In a statement Kia said the alleged statements by Sterling were, "offensive and reprehensible," calling them "inconsistent with our views and values." Kia says it is "suspending" its advertising and sponsorship activities with the team, though has yet to clarify if that suspension includes commercials featuring NBA star and Clippers power forward Blake Griffin.