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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.

2021 Kia K5 fuel economy tops out at 32 mpg combined

In May, the EPA's FuelEconomy.Gov site listed three sets of initial fuel economy figures for the 2021 Kia K5, a move that helped confirm the end of the Optima name. The EPA has fiddled with the data set since then — the site doesn't list an all-wheel drive K5 anymore, for instance — but Kia has done us the favor of providing complete mpg numbers for every K5 trim except the flagship GT. The entry-level K5 LX with front-wheel drive gets 29 miles per gallon in the city, 38 on the highway, and 32 combined. This lines up with a model on the EPA site that's listed with stop/start on the 1.6-liter turbocharged four-cylinder. Most notably, the K5 LX sips a lot less fuel than the entry-level 2020 Kia Optima LX. The Optima LX houses a 2.4-liter four-cylinder with 185 horsepower and 178 pound-feet of torque — five horses up but 12 lb-ft down on the K5 — and gets 24 city, 32 highway, 27 combined. And the K5 only costs $100 more than the Optima. Among the competitive set, the in-house rival Hyundai Sonata in entry-level SE trim gives up one mile per gallon in the city to the LX, otherwise the two are equal. The Sonata SE, though, gets motivated by a 2.5-liter four-cylinder with 191 hp and 181 lb-ft. The Sonata SEL Plus with the same 1.6-liter as the Kia but costing $4,000 more returns 27 city, 36 highway, 31 combined. Outside the fold, the Toyota Camry ultimately evens out the fuel economy score in delivering 28 mpg city, 39 highway, 32 combined. The Honda Accord edges all comers with 30 mpg city, 38 mpg highway, and 33 combined thanks to its continuously variable transmission; the other three shift through eight-speed automatics. The front-wheel drive K5 LXS, EX, and GT-Line all return 27 mpg city, 37 mpg highway, and 31 mpg combined. The figures match a K5 model on the EPA site that omits the stop/start system on the 1.6-liter, but we can't see where Kia has mentioned a stop/start system in its K5 release materials. About 100 pounds difference in curb weight covers all four trims that we have info on so far. This would appear to indicate the lack of the fuel-saving tech on the three trims causing slightly lower fuel economy as opposed to extra luxuries weighing matters down. Only two trims for now come with the option of all-wheel drive, the LXS and GT-Line. When the K5 GT arrives, it will only come with all-wheel drive. Check the box to send power to all the wheels, and both variants deliver 26 mpg city, 34 mpg highway, 29 mpg combined.

Trump encouraged by talk of 'a level playing field' on trade with South Korea

South Korea is a longstanding American ally, but President Donald Trump has spoken harshly about U.S. trade imbalances and threatened to tear up the bilateral trade pact. "We will do more to remove barriers to reciprocal trade and market access," Trump said, adding that the two leaders had talked about the thorny trade areas of steel and autos. Trump said he was encouraged by South Korea's President Moon Jae-in's assurances that he would seek a level playing field for American workers and businesses, particularly automakers. A joint statement said the two sides had agreed to work together to reduce over supply of basic materials such as steel and non-tariff barriers. It also said Trump had accepted an invitation from Moon to visit South Korea this year. Bonnie Glaser, senior adviser for Asia at the Center for Strategic and International Studies think tank, said it was unwise for Trump to air the trade issue so publicly. "Public complaints by Trump about unfair trade and inadequate defense spending provide opportunities for China and North Korea to drive a wedge between the allies," she said. The U.S. goods trade deficit with South Korea has more than doubled since the U.S.-Korea free trade pact known as KORUS took effect in 2012. The agreement was forecast to boost U.S. exports by $10 billion a year, but in 2016 they were $3 billion lower than in 2011. At the start of Friday's talks, U.S. Commerce Secretary Wilbur Ross said the largest component of the deficit was automotive trade and many non-tariff barriers to U.S. auto exports to South Korea remained. "I think the way to address it is to deal product by product with what we can do to change the export side and what we can do to reduce the bad imports side," he said. Ross said later on Friday that some progress had been made in the talks. The current pact was agreed to despite protests by supporters of Moon, who was then in opposition. But analysts have suggested that given the need to preserve a unified front in the face of a hostile North Korea, there could be compromise on both sides to resolve issues. (By David Brunnstrom and Lisa Lambert. Additional reporting by Fatima Bhojani, Roberta Rampton, Tim Ahmann, David Chance, David Lawder and Eric Beech; Editing by Bill Trott and Andrew Hay) Related Video: Image Credit: Kim Hong-Ji / Reuters Government/Legal Genesis Hyundai Kia trade