2024 Kia Telluride Sx Prestige on 2040-cars

Auto blog

Hyundai, Kia add to 2.4 million cars recalled in U.S. over fires, engines

DETROIT — Hyundai and Kia have added more than a half-million vehicles to 3 1/2 -year string of U.S. recalls for engine failures and fires. Three recalls released Thursday by the government add new problems and vehicles to the Korean automakers' list of safety woes, which have brought hundreds of complaints about fires from across the nation. The companies have now recalled nearly 2.4 million vehicles for fire and engine failure problems since September 2015, and they are under investigation by the National Highway Traffic Safety Administration for potentially being slow to fix faulty vehicles. In addition, the companies are doing a "product improvement campaign" covering another 3.7 million vehicles to install software that will alert drivers of possible engine failures and send the cars into a reduced-speed "limp" mode if problems are detected. The largest of three recalls posted on the National Highway Traffic Safety Administration website Thursday covers nearly 379,000 Kia Soul small SUVs from 2012 through 2016 with 1.6-liter engines. Documents show that high exhaust gas temperatures can damage the catalytic converters, which control pollution. That can cause abnormal combustion and damage pistons and connecting rods. A failed connecting rod can pierce the engine block and cause oil leaks that can cause fires. In addition, Hyundai and Kia are recalling 152,000 Tuscon SUVs from 2011 to 2013 and Sportage SUVs from 2011 and 2012 to fix an engine oil pan leak that also can cause fires. Documents show that Kia had been investigating fires in Souls after the nonprofit Center for Auto Safety petitioned the government to look into the fires last year. In November, the automaker couldn't find any safety problem trends but it kept monitoring repair data and found the problem with the catalytic converters. All Souls with 1.6-liter engines made from July 8, 2011, through August 11, 2016, are being recalled. Dealers will replace a computer that prevents the catalytic converter from overheating. They'll also replace the catalytic converter and the engine if they have been damaged. Letters will be mailed to owners starting April 12. In the Tuscon and Sportage recalls, the fix for the oil pan problem is still being developed. Hyundai owners will be notified starting March 29, while Kia owners will get letters starting April 10.

How automakers stand to benefit from Iran

The big global news of late is a deal that sees a number of major powers easing some sanctions on Iran in return for the Middle Eastern nation scaling back its nuclear program. This thawing of relations between Iran and the West could have far-reaching impacts in both the near and long term, particularly on the auto industry.
As Bloomberg points out, foreign manufacturers, especially Kia and Peugeot, stand to win big by this short-term easing of sanctions. But the impact of opening up the Iranian market to larger-scale sales cannot be underestimated - Peugeot, for example, sold 457,900 units to Iran in 2011 as spare parts kits alone. Opening the Iranian market could also have a huge impact on the cost of oil, as the country was one of the largest producers in the OPEC consortium before firmer sanctions took effect in 2012. Still, as David Cohen, US undersecretary for terrorism and financial intelligence said, it's "not open season now for business in Iran."
Bloomberg has an excellent report of all the near-term effects an easing of sanctions has across a number of industries. Hop over and give it a look.

Kia negotiating to build $1.5B auto plant in Mexico

After a string of recent announcements from automakers, Kia may be the next business to break ground on a factory south of the border. The Korean company is reportedly nearly finished with negotiations to build a $1.5-billion plant near the city of Monterrey in the Mexican state of Nuevo Leon. The state's secretary of economic development confirmed the news to Reuters and anticipated talks to be completed in the first two weeks of August. Unnamed insiders also said that the location was aiming for an annual production capacity of 300,000 vehicles.
Rumors from a month ago first suggested the possibility of the new factory. It would reportedly build two models of small cars, and assembly could potentially begin as soon as 21 months after breaking ground. Currently, Kia only has one North American plant, in Georgia, that builds the Sorento and Optima.
In the last few years, Mexico has become of hotbed of North American automobile production. Mazda, Honda and Volkswagen all recently opened new or expanded factories to build cars there. There are even more on the way with a joint venture plant from Mercedes-Benz and Infiniti and BMW's announcement of its own $1 billion undertaking in Mexico.